Communications software company Comverse Technology Inc. (Nasdaq: CMVT) saw revenue and profit fall for the fourth quarter and full-year of its fiscal year, which ended on January 31. Comverse's backlog fell to Comverse $982 million at the end of January from $1.17 billion a year ago.
Full-year revenue fell to $1.59 billion in 2011 from $1.63 billion in 2010. GAAP-based net loss narrowed to $58.7 million ($0.28 per share) in 2011 from $132.3 million in 2011, but non-GAAP net profit fell to $81.9 million ($0.39 per share) from $107.1 million in 2011. The company met the analysts' earnings per share consensus but missed the revenue consensus of $1.61 billion.
Fourth fiscal quarter revenue fell to $405.5 million from $430.8 million for the corresponding quarter of 2011. GAAP-based net profit fell over 70% to $4.5 million ($0.02 per share) for the fourth quarter from $15.4 million for the corresponding quarter, and non-GAAP net profit fell to $30.3 million ($0.14 per share) from $117.5 million. The company missed the analysts' consensus of $0.16 per share on $427.3 million.
Comverse's revenue fell to $771.2 million in fiscal 2011 from $862.8 million in 2010, but it swung to a profit of $11.4 million from a loss of $59.8 million. Comverse Technology plans to distribute Comverse shares as a dividend in kind. The increase in the company's business support services (BSS) to $365 million in 2011 from $340 million in 2010, was more than offset by the drop in its value added services (VAS) to $356 million from $460 million.
Comverse Technology's intelligence subsidiary Verint Systems Inc. (Nasdaq: VRNT) posted revenue and profit growth for fiscal 2011 and expects the growth to continue in 2012. Revenue rose to $796.2 million in 2011 from $782.6 million in 2010, and non-GAAP net profit rose to $118.3 million ($2.47 per share) from $109 million. Its earnings per share of $2.55-2.70 on $860-880 million revenue in fiscal year 2012.
Revenue of roaming services provider Starhome BV rose to $45 million in 2011 from $37.2 million in 2010, and its operating income rose to $7.8 million from $2.7 million.
Comverse Technology chairman and CEO Charles Burdick said, "We achieved operating income and positive operating cash flow for the quarter in each of our three subsidiaries, building a solid foundation to support our future success." He added, "Although due to several project deferrals, we did not experience expected fourth quarter strength in BSS customer solution order activity, our pipeline remains strong and we expect growth in BSS customer order activity." He added that Verint Starhome achieved strong operating and market performance
Comverse's share price fell 4.3% at the opening on Nasdaq to $6.55, giving a market cap of $1.4 billion.
Published by Globes [online], Israel business news - www.globes-online.com - on April 3, 2012
© Copyright of Globes Publisher Itonut (1983) Ltd. 2012