Comverse reports billion dollar loss in three years

After years of delays, Comverse Technology finally filed financial statements for 2006-2009.

After four years of delays, Comverse Technology Inc. (Pink Sheets: CMVT) finally reported its financial statements for its fiscal years (ending January 31st) 2006-2009. The results published last night are the first ones since a backdating scandal, which led to former CEO Kobi Alexander fleeing to Namibia.

Consolidated total revenue grew from $1.16 billion for the fiscal year ended January 31, 2006 to $1.72 billion for the fiscal year ended January 31, 2008, and then declined to $1.68 billion for the fiscal year ended January 31, 2009.

Comverse's consolidated results include subsidiaries Verint Systems Inc. (Pink Sheets: VRNT), Ulticom Inc. (Pink Sheets: ULCM), and Starhome, as well as the Comverse Inc. unit.

After a net profit of $82.4 million in the 2006 fiscal year, the company lost over $1billion in the subsequent three years. Net loss was $313.8 million in 2007, $373.2 million in 2008, and $320.4 million in the fiscal year ended January 31, 2009.

Comverse said that the increase in revenue for the three years through January 31, 2008 was primarily attributable to the increase in revenue experienced by its Comverse and Verint segments during such fiscal years principally as a result of acquisitions and, to a lesser extent, from continuing growth in sales of their then-existing products and services (organic growth).

The decline in consolidated total revenue for the fiscal year ended January 31, 2009 was primarily attributable to a 15.7% decrease in Comverse's revenue partially offset by a 25.3% increase in Verint's revenue.

Verint was responsible for a larger part of the overall revenue, partially due to acquiring Witness. At the same time, the Comverse unit represented a lower percentage of the group's revenue.

Comverse's revenue as a percentage of consolidated total revenue declined from 68.7% for the fiscal year ended January 31, 2006 to 54.7% for the fiscal year ended January 31, 2009. Verint's revenue as a percentage of consolidated total revenue increased from 24.1% for the fiscal year ended January 31, 2006 to 39.9% for the fiscal year ended January 31, 2009. Comverse said that the trend continued in the fiscal year ended January 31, 2010.

Published by Globes [online], Israel business news - www.globes-online.com - on October 5, 2010

© Copyright of Globes Publisher Itonut (1983) Ltd. 2010

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