Comverse Technology Inc. (Pink Sheets: CMVT) halved its consolidated GAAP-based net loss on higher revenue for its 2010 fiscal year, which ended on January 31, 2011. Comverse Technology's revenue rose 5.8% to $1.63 billion in 2010 from $1.53 billion revenue in fiscal year 2009.
Comverse's GAAP-based net loss fell 51.4% to $132.3 million ($0.64 per share) in 2010 from $272 million in 2009. Net loss from continuing operations was halved to $107.5 million from $221.2 million. Non-GAAP net profit more than quadrupled to $140 million ($0.68 per share) in 2010 from $29.1 million in 2009.
Comverse Technology's consolidated results include Comverse Inc., Verint Systems Inc. (Nasdaq: VRNT) and Starhome BV, after it sold Ulticom Inc. in 2010.
Revenue from Comverse Inc. rose 8.5% to $860.2 million in fiscal 2010 from $793 million in 2009. Revenue from value-added services rose 17% to $519.7 million from $443.9 million, revenue from customer solutions (licenses, hardware professional services and training) rose 13.6% to $529.2 million from $465.7 million, and maintenance revenue rose 1% to $331.1 million, but revenue from business support systems (BSS) fell 2.5% to $340.5 million from $349.1 million.
Comverse Inc's operating loss narrowed 72.1% to $59.8 million in 2010 from $214.2 million in 2009.
Comverse Technology and Comverse Inc's combined cash, cash equivalents, bank time deposits and restricted cash rose to $457.6 million at the end of January from $446.4 million a year earlier. The company predicts that its cash and cash equivalents will be sufficient to meet the liquidity needs, including capital expenditures, for the foreseeable future. This forecast assumes that Comverse Technology will use shares to meet an upcoming payment of $82.5 million in November out the $112.5 million settlement of the class-action suit filed by shareholders.
Comverse Technology chairman and CEO Charles Burdick, Chairman and Chief Executive Officer of CTI said, "With this annual report on Form 10-K we are now up to date with the filing of our audited annual results. Despite many challenges during fiscal 2010, our consolidated revenue increased at both the Comverse and Verint segments and our operating performance improved."
Comverse Technology's share price fell 0.3% yesterday to $7.43, giving a market cap of $1.52 billion.
Published by Globes [online], Israel business news - www.globes-online.com - on June 1, 2011
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