Business Segment Information (Tables)

6 Months Ended

Jul. 31, 2012

Schedule of Segment Reporting Information, by Segment

The tables below present information about total revenue, total costs and expenses, income (loss) from operations, segment performance, interest expense, depreciation and amortization, and other non-cash items for the three and six months ended July 31, 2012 and 2011:



	Comverse BSS			Comverse VAS			Verint				All Other			Eliminations			Consolidated
	(In thousands)
Three Months Ended July 31, 2012
Total revenue	$	69,052		$	91,289		$	212,426			$	10,885		$	—		$	383,652
Total costs and expenses	$	54,420		$	60,109		$	186,163			$	57,098		$	13		$	357,803
Income (loss) from operations	$	14,632		$	31,180		$	26,263			$	(46,213	)	$	(13	)	$	25,849
Computation of segment performance:
Total revenue	$	69,052		$	91,289		$	212,426			$	10,885
Segment revenue adjustment	—			—			2,642				—
Segment revenue	$	69,052		$	91,289		$	215,068			$	10,885
Total costs and expenses	$	54,420		$	60,109		$	186,163			$	57,098
Segment expense adjustments:
Stock-based compensation expense	—			—			5,922				3,151
Amortization of acquisition-related intangibles	3,998			—			9,679				—
Compliance-related professional fees	—			—			—				149
Compliance-related compensation and other expenses	48			143			—				244
Strategic evaluation related costs	—			—			2,428				7,451
Impairment of property and equipment	1			—			—				13
Litigation settlements and related cost	—			—			—				(13		)
Restructuring charges	—			—			—				427
Other	—			—			(4,001		)	⁽¹⁾	(35		)
Segment expense adjustments	4,047			143			14,028				11,387
Segment expenses	50,373			59,966			172,135				45,711
Segment performance	$	18,679		$	31,323		$	42,933			$	(34,826	)
Interest expense	$	—		$	—		$	(7,867	)		$	(11	)	$	—		$	(7,878	)
Depreciation and amortization	$	(4,800	)	$	(1,243	)	$	(14,169	)		$	(1,930	)	$	—		$	(22,142	)
Other non-cash items ⁽²⁾	$	(1	)	$	—		$	69			$	(13	)	$	—		$	55


(1)	Consists of changes in the fair value of contingent consideration liabilities associated with business combinations.


(2)	Other non-cash items consist of write-downs of property and equipment.



	Comverse BSS			Comverse VAS			Verint				All Other			Eliminations			Consolidated
	(In thousands)
Three Months Ended July 31, 2011
Total revenue	$	85,471		$	84,105		$	194,959			$	12,479		$	—		$	377,014
Total costs and expenses	$	64,618		$	54,240		$	173,549			$	75,445		$	(22	)	$	367,830
Income (loss) from operations	$	20,853		$	29,865		$	21,410			$	(62,966	)	$	22		$	9,184
Computation of segment performance:
Total revenue	$	85,471		$	84,105		$	194,959			$	12,479
Segment revenue adjustment	—			—			727				—
Segment revenue	$	85,471		$	84,105		$	195,686			$	12,479
Total costs and expenses	$	64,618		$	54,240		$	173,549			$	75,445
Segment expense adjustments:
Stock-based compensation expense	—			—			6,641				1,590
Amortization of acquisition-related intangibles	4,498			—			8,100				—
Compliance-related professional fees	—			—			17				9,467
Compliance-related compensation and other expenses	5			35			—				1,835
Strategic evaluation related costs	—			—			—				2,904
Impairment of property and equipment	—			5			—				24
Litigation settlements and related costs	—			—			—				3
Acquisition-related charges	—			—			2,820				—
Restructuring charges	—			—			—				1,963
Other	—			—			671			⁽¹⁾	(19		)
Segment expense adjustments	4,503			40			18,249				17,767
Segment expenses	60,115			54,200			155,300				57,678
Segment performance	$	25,356		$	29,905		$	40,386			$	(45,199	)
Interest expense	$	—		$	—		$	(7,857	)		$	(148	)	$	—		$	(8,005	)
Depreciation and amortization	$	(5,374	)	$	(1,097	)	$	(12,585	)		$	(2,439	)	$	—		$	(21,495	)
Other non-cash items ⁽²⁾	$	—		$	(5	)	$	(19	)		$	(24	)	$	—		$	(48	)


(1)	Consists of changes in the fair value of contingent consideration liabilities associated with business combinations.


(2)	Other non-cash items consist of write-downs of property and equipment.



	Comverse BSS			Comverse VAS			Comverse Other			Total Comverse
	(In thousands)
Three Months Ended July 31, 2012
Total revenue	$	69,052		$	91,289		$	10,885		$	171,226
Total costs and expenses	$	54,420		$	60,109		$	42,907		$	157,436
Income (loss) from operations	$	14,632		$	31,180		$	(32,022	)	$	13,790
Computation of Comverse performance:
Total revenue	$	69,052		$	91,289		$	10,885		$	171,226
Total costs and expenses	$	54,420		$	60,109		$	42,907		$	157,436
Expense adjustments:
Stock-based compensation expense	—			—			2,201			2,201
Amortization of acquisition-related intangibles	3,998			—			—			3,998
Compliance-related professional fees	—			—			149			149
Compliance-related compensation and other expenses	48			143			244			435
Impairment of property and equipment	1			—			13			14
Litigation settlements and related costs	—			—			(13		)	(13		)
Restructuring charges	—			—			427			427
Other	—			—			(35		)	(35		)
Expense adjustments	4,047			143			2,986			7,176
Expenses after adjustments	50,373			59,966			39,921			150,260
Comverse performance	$	18,679		$	31,323		$	(29,036	)	$	20,966
Interest expense	$	—		$	—		$	(180	)	$	(180	)
Depreciation and amortization	$	(4,800	)	$	(1,243	)	$	(1,867	)	$	(7,910	)
Other non-cash items ⁽¹⁾	$	(1	)	$	—		$	(13	)	$	(14	)


(1)	Other non-cash items consist of write-downs of property and equipment.



	Comverse BSS			Comverse VAS			Comverse Other			Total Comverse
	(In thousands)
Three Months Ended July 31, 2011
Total revenue	$	85,471		$	84,105		$	12,479		$	182,055
Total costs and expenses	$	64,618		$	54,240		$	53,606		$	172,464
Income (loss) from operations	$	20,853		$	29,865		$	(41,127	)	$	9,591
Computation of Comverse performance:
Total revenue	$	85,471		$	84,105		$	12,479		$	182,055
Total costs and expenses	$	64,618		$	54,240		$	53,606		$	172,464
Expense adjustments:
Stock-based compensation expense	—			—			1,029			1,029
Amortization of acquisition-related intangibles	4,498			—			—			4,498
Compliance-related professional fees	—			—			(2,142		)	(2,142		)
Compliance-related compensation and other expenses	5			35			1,835			1,875
Impairment of property and equipment	—			5			24			29
Litigation settlements and related costs	—			—			(1		)	(1		)
Restructuring charges	—			—			1,963			1,963
Other	—			—			(20		)	(20		)
Expense adjustments	4,503			40			2,688			7,231
Expenses after adjustments	60,115			54,200			50,918			165,233
Comverse performance	$	25,356		$	29,905		$	(38,439	)	$	16,822
Interest expense	$	—		$	—		$	(141	)	$	(141	)
Depreciation and amortization	$	(5,374	)	$	(1,097	)	$	(2,377	)	$	(8,848	)
Other non-cash items ⁽¹⁾	$	—		$	(5	)	$	(24	)	$	(29	)


(1)	Other non-cash items consist of write-downs of property and equipment.



	Comverse BSS			Comverse VAS			Comverse Other			Total Comverse
	(In thousands)
Six Months Ended July 31, 2012
Total revenue	$	126,732		$	157,211		$	25,033		$	308,976
Total costs and expenses	$	107,703		$	110,191		$	100,175		$	318,069
Income (loss) from operations	$	19,029		$	47,020		$	(75,142	)	$	(9,093	)
Computation of Comverse performance:
Total revenue	$	126,732		$	157,211		$	25,033		$	308,976
Total costs and expenses	$	107,703		$	110,191		$	100,175		$	318,069
Expense adjustments:
Stock-based compensation expense	—			—			3,632			3,632
Amortization of acquisition-related intangibles	8,072			—			—			8,072
Compliance-related professional fees	—			—			13			13
Compliance-related compensation and other expenses	678			916			(41		)	1,553
Impairment of property and equipment	1			—			35			36
Litigation settlements and related costs	—			—			(243		)	(243		)
Restructuring charges	—			—			1,107			1,107
Other	—			—			(208		)	(208		)
Expense adjustments	8,751			916			4,295			13,962
Expenses after adjustments	98,952			109,275			95,880			304,107
Comverse performance	$	27,780		$	47,936		$	(70,847	)	$	4,869
Interest expense	$	—		$	—		$	(376	)	$	(376	)
Depreciation and amortization	$	(9,663	)	$	(2,444	)	$	(3,848	)	$	(15,955	)
Other non-cash items ⁽¹⁾	$	(1	)	$	—		$	(35	)	$	(36	)


(1)	Other non-cash items consist of write-downs of property and equipment.



	Comverse BSS			Comverse VAS			Comverse Other			Total Comverse
	(In thousands)
Six Months Ended July 31, 2011
Total revenue	$	160,672		$	163,580		$	21,567		$	345,819
Total costs and expenses	$	134,760		$	112,929		$	126,214		$	373,903
Income (loss) from operations	$	25,912		$	50,651		$	(104,647	)	$	(28,084	)
Computation of Comverse performance:
Total revenue	$	160,672		$	163,580		$	21,567		$	345,819
Total costs and expenses	$	134,760		$	112,929		$	126,214		$	373,903
Expense adjustments:
Stock-based compensation expense	—			—			1,697			1,697
Amortization of acquisition-related intangibles	8,996			—			—			8,996
Compliance-related professional fees	—			—			10,467			10,467
Compliance-related compensation and other expenses	2,067			1,236			604			3,907
Impairment of property and equipment	—			5			152			157
Litigation settlements and related costs	—			—			474			474
Restructuring charges	—			—			13,050			13,050
Other	—			—			(47		)	(47		)
Expense adjustments	11,063			1,241			26,397			38,701
Expenses after adjustments	123,697			111,688			99,817			335,202
Comverse performance	$	36,975		$	51,892		$	(78,250	)	$	10,617
Interest expense	$	—		$	—		$	(471	)	$	(471	)
Depreciation and amortization	$	(10,840	)	$	(2,033	)	$	(4,474	)	$	(17,347	)
Other non-cash items ⁽¹⁾	$	—		$	(5	)	$	(152	)	$	(157	)


(1)	Other non-cash items consist of write-downs of property and equipment.

- Definition

Tabular disclosure of the profit or loss and total assets for each reportable segment. An entity discloses certain information on each reportable segment if the amounts (a) are included in the measure of segment profit or loss reviewed by the chief operating decision maker or (b) are otherwise regularly provided to the chief operating decision maker, even if not included in that measure of segment profit or loss.

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