-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, IUeR67OrNqxP6wZ3h04ppDCS7w9sJa45VCn+U0/yCln5bver5V4ft5BDGEPNY4FJ f0CGrKqYULEYQ5SE5CgCqw== 0000909518-03-000360.txt : 20030603 0000909518-03-000360.hdr.sgml : 20030603 20030603160941 ACCESSION NUMBER: 0000909518-03-000360 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20030603 ITEM INFORMATION: Financial statements and exhibits ITEM INFORMATION: Regulation FD Disclosure FILED AS OF DATE: 20030603 FILER: COMPANY DATA: COMPANY CONFORMED NAME: COMVERSE TECHNOLOGY INC/NY/ CENTRAL INDEX KEY: 0000803014 STANDARD INDUSTRIAL CLASSIFICATION: TELEPHONE & TELEGRAPH APPARATUS [3661] IRS NUMBER: 133238402 STATE OF INCORPORATION: NY FISCAL YEAR END: 0131 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-15502 FILM NUMBER: 03730537 BUSINESS ADDRESS: STREET 1: 170 CROSSWAYS PARK DR CITY: WOODBURY STATE: NY ZIP: 11797 BUSINESS PHONE: 5166777200 MAIL ADDRESS: STREET 1: 170 CROSSWAYS PARK DRIVE CITY: WOODBURY STATE: NY ZIP: 11797 8-K 1 jd6-3_8k.txt UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of Report (Date of earliest event reported): June 3, 2003 COMVERSE TECHNOLOGY, INC. (Exact name of registrant as specified in its charter) NEW YORK 0-15502 13-3238402 (State or other jurisdiction of (Commission (I.R.S. Employer incorporation or organization) File Number) Identification No.) 170 CROSSWAYS PARK DRIVE, WOODBURY, NEW YORK 11797 (Address of principal executive offices) (Zip Code) (516) 677-7200 (Registrant's telephone number, including area code) ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS (c) Exhibits. The following exhibit is filed with this document: Exhibit 99.1 Press Release, dated June 3, 2003, reporting the financial results for Comverse Technology, Inc. for the first quarter ending April 30, 2003. ITEM 9. REGULATION FD DISCLOSURE (INFORMATION PROVIDED UNDER ITEM 12-RESULTS OF OPERATIONS AND FINANCIAL CONDITION) The following information is being furnished under Item 12 of Form 8-K, "Results of Operations and Financial Condition," and is included under Item 9 in accordance with SEC Release Nos. 33-8216 and 34-47583. On June 3, 2003, Comverse Technology, Inc. issued a press release announcing its financial results for the fiscal quarter ended April 30, 2003. A copy of the press release is attached hereto as Exhibit 99.1 to this report. In addition, the Company announced that its earnings before interest, taxes, depreciation and amortization ("EBITDA") for the three months ended April 30, 2003 was approximately $505,000. EBITDA is calculated by adding depreciation and amortization of approximately $16,886,000 to the Company's operating loss of approximately $16,381,000. The Company provides EBITDA as additional information for its operating results. This measure is not in accordance with, or an alternative for, generally accepted accounting principles. The Company believes that the presentation of EBITDA provides useful information to management and investors regarding certain additional financial and business trends relating to its financial condition and results of operations. The information in this Current Report is being furnished and shall not be deemed "filed" for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that Section. The information in this Current Report shall not be incorporated by reference into any registration statement or other document pursuant to the Securities Act of 1933, as amended. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. COMVERSE TECHNOLOGY, INC. Dated: June 3, 2003 /s/ David Kreinberg ---------------------------------- Name: David Kreinberg Title: Executive Vice President and Chief Financial Officer EXHIBIT INDEX Exhibit No. Description - ----------- ----------- 99.1 Press Release, dated June 3, 2003 issued by Comverse Technology, Inc. EX-99 3 jd6-3ex99_1.txt 99.1 Exhibit 99.1 CONTACT: Paul D. Baker Comverse Technology, Inc. 170 Crossways Park Drive Woodbury, New York 11797 (516) 677-7226 COMVERSE TECHNOLOGY REPORTS FIRST QUARTER FISCAL 2003 RESULTS: SALES OF $180,552,000, GAAP LOSS PER SHARE OF $0.03, PRO FORMA LOSS PER SHARE OF $0.04 WOODBURY, NY, June 3, 2003, Comverse Technology, Inc. (NASDAQ: CMVT) announced sales of $180,552,000 for the first quarter of fiscal year 2003, ended April 30, 2003, compared to sales of $211,194,000 for the first quarter of fiscal 2002, ended April 30, 2002. Net loss on a generally accepted accounting principles ("GAAP") basis for the first quarter of fiscal 2003 was $5,819,000 ($0.03 per share) compared to a net loss of $23,576,000 ($0.13 per share) for the first quarter of fiscal 2002. The GAAP results for the first quarter of fiscal 2003 include a charge of $1,043,000 relating to the write-down of investments and a gain of $2,809,000 resulting from the repurchase of $44,550,000 face value of the Company's 1.5% convertible debt, and for the first quarter of fiscal 2002 include a charge of $15,393,000 for the write-down of investments. Excluding these charges and gains, on a pro forma basis, the net loss was $7,585,000 ($0.04 per share) in the first quarter of fiscal 2003 and $8,183,000 ($0.04 per share) in the first quarter of fiscal 2002. Kobi Alexander, Chairman and CEO of Comverse Technology, stated, "In the first quarter, we achieved sequential revenue growth in each of our three major operating units, and we once again generated positive operating cash flow. Our two telecom-focused units, Comverse, our network systems division, and Ulticom, both saw sequential sales growth, while operating in a carrier capital spending environment that continues to be very difficult. Our Verint Systems division achieved record sales and earnings, due primarily to an expansion in its activities relating to digital security and surveillance." The Company ended the quarter with cash and cash equivalents, bank time deposits and short-term investments of $1,753,742,000, working capital of $1,729,049,000, total assets of $2,302,223,000 and stockholders' equity of $1,547,066,000. -- more -- COMVERSE TECHNOLOGY FIRST QUARTER RESULTS June 3, 2003 Page Two Financial highlights at and for the three month period ended April 30, 2003 and prior year comparisons are as follows:
- ----------------------------------------------------------------------------------------------------------------------------------- FINANCIAL HIGHLIGHTS (In thousands, except per share data) Operations Data (GAAP basis, including certain net gains, net of tax, of $1,766 for the three months ended April 30, 2003, and certain net charges, net of tax, of $15,393 for the three months ended April 30, 2002.) - ----------------------------------------------------------------- ----------------------------------------------------------------- Three Months Ended (unaudited) - ----------------------------------------------------------------- --------------------------------- ------------------------------- April 30, April 30, 2002 2003 - ----------------------------------------------------------------- --------------------------------- ------------------------------- Sales $ 211,194 $ 180,552 - ----------------------------------------------------------------- --------------------------------- ------------------------------- Cost of sales 91,777 80,373 - ----------------------------------------------------------------- --------------------------------- ------------------------------- Research and development, net 62,923 54,488 - ----------------------------------------------------------------- --------------------------------- ------------------------------- Selling, general and administrative 73,513 62,072 - ----------------------------------------------------------------- --------------------------------- ------------------------------- Loss from operations (17,019) (16,381) - ----------------------------------------------------------------- --------------------------------- ------------------------------- Interest and other income, net (5,244) 12,542 - ----------------------------------------------------------------- --------------------------------- ------------------------------- Loss before income tax provision (22,263) (3,839) - ----------------------------------------------------------------- --------------------------------- ------------------------------- Income tax provision 1,313 1,980 - ----------------------------------------------------------------- --------------------------------- ------------------------------- Net loss $ (23,576) $ (5,819) - ----------------------------------------------------------------- --------------------------------- ------------------------------- - ----------------------------------------------------------------- --------------------------------- ------------------------------- Loss per share: - ----------------------------------------------------------------- --------------------------------- ------------------------------- Diluted $ (0.13) $ (0.03) - ----------------------------------------------------------------- --------------------------------- ------------------------------- Basic $ (0.13) $ (0.03) - ----------------------------------------------------------------- --------------------------------- ------------------------------- - ----------------------------------------------------------------- --------------------------------- ------------------------------- Weighted average shares: - ----------------------------------------------------------------- --------------------------------- ------------------------------- Diluted 186,569 188,094 - ----------------------------------------------------------------- --------------------------------- ------------------------------- Basic 186,569 188,094 - ----------------------------------------------------------------- --------------------------------- -------------------------------
-- more -- COMVERSE TECHNOLOGY FIRST QUARTER RESULTS June 3, 2003 Page Three Comverse Technology provides pro forma net income (loss) and pro forma earnings (loss) per share data as additional information for its operating results. These measures are not in accordance with, or an alternative for, GAAP and may be different from pro forma measures used by other companies. The Company believes that this presentation of pro forma data provides useful information to management and investors regarding certain additional financial and business trends relating to its financial condition and results of operations. In addition, the Company's management uses these measures for reviewing the financial results of the Company and for budget planning purposes.
- ------------------------------------------------------------------------------------------------------------------------------------ FINANCIAL HIGHLIGHTS (In thousands, except per share data) Operations Data (Pro forma basis, excluding certain net gains, net of tax, of $1,766 for the three months ended April 30, 2003, and certain net charges, net of tax, of $15,393 for the three months ended April 30, 2002.) - ------------------------------------------------------------------------------------------------------------------------------------ Three Months Ended (unaudited) - ------------------------------------------------------------------- --------------------------------- ------------------------------ April 30, April 30, 2002 2003 - ------------------------------------------------------------------- --------------------------------- ------------------------------ Sales $ 211,194 $ 180,552 - ------------------------------------------------------------------- --------------------------------- ------------------------------ Cost of sales 91,777 80,373 - ------------------------------------------------------------------- --------------------------------- ------------------------------ Research and development, net 62,923 54,488 - ------------------------------------------------------------------- --------------------------------- ------------------------------ Selling, general and administrative 73,513 62,072 - ------------------------------------------------------------------- --------------------------------- ------------------------------ Loss from operations (17,019) (16,381) - ------------------------------------------------------------------- --------------------------------- ------------------------------ Interest and other income, net 10,149 10,776 - ------------------------------------------------------------------- --------------------------------- ------------------------------ Loss before income tax provision (6,870) (5,605) - ------------------------------------------------------------------- --------------------------------- ------------------------------ Income tax provision 1,313 1,980 - ------------------------------------------------------------------- --------------------------------- ------------------------------ Pro forma net loss $ (8,183) $ (7,585) - ------------------------------------------------------------------- --------------------------------- ------------------------------ - ------------------------------------------------------------------- --------------------------------- ------------------------------ Pro forma loss per share: - ------------------------------------------------------------------- --------------------------------- ------------------------------ Diluted $ (0.04) $ (0.04) - ------------------------------------------------------------------- --------------------------------- ------------------------------ Basic $ (0.04) $ (0.04) - ------------------------------------------------------------------- --------------------------------- ------------------------------ - ------------------------------------------------------------------- --------------------------------- ------------------------------ Weighted average shares: - ------------------------------------------------------------------- --------------------------------- ------------------------------ Diluted 186,569 188,094 - ------------------------------------------------------------------- --------------------------------- ------------------------------ Basic 186,569 188,094 - ------------------------------------------------------------------- --------------------------------- ------------------------------ - ------------------------------------------------------------------------------------------------------------------------------------ Reconciliation of GAAP basis net loss to pro forma basis net loss: - ------------------------------------------------------------------- --------------------------------- ------------------------------ GAAP basis net loss $ (23,576) $ (5,819) - ------------------------------------------------------------------- --------------------------------- ------------------------------ Adjustments: - ------------------------------------------------------------------- --------------------------------- ------------------------------ Write-down of investments 15,393 1,043 - ------------------------------------------------------------------- --------------------------------- ------------------------------ Gain on extinguishment of debt - (2,809) - ------------------------------------------------------------------- --------------------------------- ------------------------------ Pro forma basis net loss $ (8,183) $ (7,585) - ------------------------------------------------------------------- --------------------------------- ------------------------------
--more-- COMVERSE TECHNOLOGY FIRST QUARTER RESULTS June 3, 2003 Page Four
- --------------------------------------------------------------------------------------------------------------------------------- FINANCIAL HIGHLIGHTS (In thousands) Balance Sheet Data: - ------------------------------------------------------------------ -------------------------------------------------------------- ASSETS - ------ - ------------------------------------------------------------------ ---------------------------- --------------------------------- January 31, April 30, 2003 2003 (unaudited) - --------------------------------------------------------------------------------------------------------------------------------- CURRENT ASSETS: - ------------------------------------------------------------------ ---------------------------- --------------------------------- Cash and cash equivalents $ 1,402,783 $ 1,418,238 - ------------------------------------------------------------------ ---------------------------- --------------------------------- Bank time deposits and short-term investments 406,089 335,504 - ------------------------------------------------------------------ ---------------------------- --------------------------------- Accounts receivable, net 212,953 184,027 - ------------------------------------------------------------------ ---------------------------- --------------------------------- Inventories 40,015 43,315 - ------------------------------------------------------------------ ---------------------------- --------------------------------- Prepaid expenses and other current assets 65,018 53,285 - ------------------------------------------------------------------ ---------------------------- --------------------------------- TOTAL CURRENT ASSETS 2,126,858 2,034,369 - ------------------------------------------------------------------ ---------------------------- --------------------------------- PROPERTY AND EQUIPMENT, net 146,380 140,601 - ------------------------------------------------------------------ ---------------------------- --------------------------------- OTHER ASSETS 130,421 127,253 - ------------------------------------------------------------------ ---------------------------- --------------------------------- - ------------------------------------------------------------------ ---------------------------- --------------------------------- TOTAL ASSETS $ 2,403,659 $ 2,302,223 - --------------------------------------------------------------------------------------------------------------------------------- - --------------------------------------------------------------------------------------------------------------------------------- LIABILITIES AND STOCKHOLDERS' EQUITY - ------------------------------------ - --------------------------------------------------------------------------------------------------------------------------------- CURRENT LIABILITIES: - ------------------------------------------------------------------ ---------------------------- --------------------------------- Accounts payable and accrued expenses $ 260,810 $ 249,683 - ------------------------------------------------------------------ ---------------------------- --------------------------------- Advance payments from customers 53,496 52,614 - ------------------------------------------------------------------ ---------------------------- --------------------------------- Other current liabilities 46,045 3,023 - ------------------------------------------------------------------ ---------------------------- --------------------------------- TOTAL CURRENT LIABILITIES 360,351 305,320 - ------------------------------------------------------------------ ---------------------------- --------------------------------- CONVERTIBLE DEBENTURES 390,838 346,288 - ------------------------------------------------------------------ ---------------------------- --------------------------------- OTHER LIABILITIES 19,230 17,807 - ------------------------------------------------------------------ ---------------------------- --------------------------------- TOTAL LIABILITIES 770,419 669,415 - ------------------------------------------------------------------ ---------------------------- --------------------------------- MINORITY INTEREST 83,548 85,742 - ------------------------------------------------------------------ ---------------------------- --------------------------------- STOCKHOLDERS' EQUITY 1,549,692 1,547,066 - ------------------------------------------------------------------ ---------------------------- --------------------------------- TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 2,403,659 $ 2,302,223 - ------------------------------------------------------------------ ---------------------------- ---------------------------------
--more-- COMVERSE TECHNOLOGY FIRST QUARTER RESULTS June 3, 2003 Page Five CONFERENCE CALL INFORMATION A conference call to discuss the company's results will be conducted Tuesday, June 3, 2003, at 5:30 pm EDT. Participants should dial 706-643-1670. A replay will be available for seven days at 706-645-9291, access code 924549. A live webcast can be accessed at cmvt.com. The webcast will be available for replay for seven days. ABOUT COMVERSE TECHNOLOGY, INC. Comverse Technology, Inc. (NASDAQ: CMVT) is the world's leading provider of software and systems enabling network-based multimedia enhanced communications services. More than 400 wireless and wireline telecommunications network operators, in more than 100 countries, have selected Comverse's enhanced services systems and software, which enable the provision of revenue-generating value-added services including call answering with one-touch call return, short messaging services, IP-based unified messaging (voice, fax, and email in a single mailbox), 2.5G/3G multimedia messaging (MMS), wireless instant messaging, wireless information and entertainment services, voice-controlled dialing, messaging and browsing, prepaid wireless services, and additional personal communication services. Other Comverse Technology business units include: Verint Systems (NASDAQ: VRNT), a leading provider of analytic solutions for communications interception, digital video security and surveillance, and enterprise business intelligence; and Ulticom (NASDAQ: ULCM), a leading provider of service enabling network software for wireless, wireline, and Internet communications. Comverse Technology is an S&P 500 and NASDAQ-100 Index company. For additional information, visit the Comverse Technology web site at www.cmvt.com. Note: This release may contain forward-looking statements that involve risks and uncertainties. There can be no assurances that forward-looking statements will be achieved, and actual results could differ materially from forecasts and estimates. Important factors that could cause actual results to differ materially include: changes in the demand for the company's products; changes in capital spending among the company's current and prospective customers; the risks associated with the sale of large, complex, high capacity systems and with new product introductions as well as the uncertainty of customer acceptance of these new or enhanced products from either the company or its competition; risks associated with rapidly changing technology and the ability of the company to introduce new products on a timely and cost-effective basis; risks associated with changes in the competitive or regulatory environment in which the company operates; risks associated with significant foreign operations and international sales and investment activities, including fluctuations in foreign currency exchange rates, interest rates, and valuations of public and private equity; the volatility of macroeconomic and industry conditions and the international marketplace; risks associated with the company's ability to retain existing personnel and recruit and retain qualified personnel; and other risks described in filings with the Securities and Exchange Commission. These risks and uncertainties, as well as others, are discussed in greater detail in the filings of the company with the Securities and Exchange Commission, including its most recent Annual Report on Form 10-K. These documents are available through the company, or its website, www.cmvt.com, or through the SEC's Electronic Data Gathering Analysis and Retrieval system (EDGAR) at www.sec.gov. The company makes no commitment to revise or update any forward-looking statements in order to reflect events or circumstances after the date any such statement is made. ### -----END PRIVACY-ENHANCED MESSAGE-----