-----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, NQ5Gi6FSuolBPtuP7kRxGeXYmaVfNfGyWtdCDM7iAQsAUljqG+0Umg9F7LT1aj54 NVAlbTth5c/zc5FR/ZAI4g== 0000909518-04-000246.txt : 20040310 0000909518-04-000246.hdr.sgml : 20040310 20040310165410 ACCESSION NUMBER: 0000909518-04-000246 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20040310 ITEM INFORMATION: ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 20040310 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: 04660744 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 mv3-10_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): March 10, 2004 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. Exhibit No. Description ----------- ----------- 99.1 Press Release of Comverse Technology, Inc., dated March 10, 2004. ITEM 12. RESULTS OF OPERATIONS AND FINANCIAL CONDITION On March 10, 2004, Comverse Technology, Inc. issued a press release announcing its financial results for the fourth quarter of fiscal year 2003 and for the year ended January 31, 2004. A copy of the press release is attached hereto as Exhibit 99.1 to this report. The information in this Current Report on Form 8-K is furnished pursuant to Item 12 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, except as shall be expressly set forth by a specific reference in such filing. SIGNATURE 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: March 10, 2004 /s/ David Kreinberg -------------------------------------- Name: David Kreinberg Title: Executive Vice President and Chief Financial Officer EXHIBIT INDEX Exhibit No. Description - ----------- ----------- 99.1 Press Release, dated March 10, 2004 issued by Comverse Technology, Inc. EX-99 3 mv3-10ex99_1.txt Exhibit 99.1 CONTACT: Paul D. Baker Comverse Technology, Inc. 170 Crossways Park Drive Woodbury, New York 11797 (516) 677-7226 COMVERSE TECHNOLOGY FOURTH QUARTER FISCAL 2003 RESULTS: SALES OF $203,029,000, UP 15% YEAR-OVER-YEAR; GAAP EARNINGS PER DILUTED SHARE OF $0.02, PRO FORMA EARNINGS PER DILUTED SHARE OF $0.02 WOODBURY, NY, March 10, 2004 -- Comverse Technology, Inc. (NASDAQ: CMVT) announced sales of $203,029,000 for the fourth quarter of fiscal year 2003, ended January 31, 2004, an increase of 15.3% compared to sales of $176,016,000 for the fourth quarter of fiscal year 2002, ended January 31, 2003. Net income on a generally accepted accounting principles ("GAAP") basis for the fourth quarter of fiscal 2003 was $4,928,000, ($0.02 per diluted share) compared to a net loss of $30,142,000 ($0.16 per share) for the fourth quarter of fiscal 2002. Net income on a pro forma basis was $3,248,000 ($0.02 per diluted share) in the fourth quarter of fiscal 2003 compared to a net loss of $15,944,000 ($0.08 per share) in the fourth quarter of fiscal 2002. A reconciliation between results on a GAAP basis and results on a pro forma basis is provided in a table immediately following the Pro Forma Consolidated Statements of Operations. Kobi Alexander, Chairman and CEO of Comverse Technology, stated, "Each of our three major operating units achieved sequential and year-over-year revenue growth in the fourth quarter, we once again generated positive operating cash flow, and we achieved our goal of returning to profitability by fiscal year end. Comverse, our network systems division, benefited from an improved carrier capital spending environment, and saw increased activity for its products which enable call answering, messaging and other wireless data applications, and real-time billing. Our Verint Systems division achieved record sales and earnings, due to continued expansion in its activities relating to security solutions, and an improvement in spending and an expansion in its activities in business intelligence. Our Ulticom division grew in an environment of improved customer spending for its software supporting wireless enhanced services and packet softswitching." The Company ended the quarter with cash and cash equivalents, bank time deposits and short-term investments of $2,198,499,000, working capital of $2,141,277,000, total assets of $2,728,042,000 and stockholders' equity of $1,672,546,000, all of which represent record levels. -- more -- COMVERSE TECHNOLOGY FOURTH QUARTER RESULTS March 10, 2004 Page Two Financial highlights at and for the twelve and three month periods ended January 31, 2004 and prior year comparisons are as follows: CONSOLIDATED STATEMENTS OF OPERATIONS (GAAP BASIS) (In thousands, except per share data)
Twelve Months Ended Three Months Ended (unaudited) ---------------------- --------------------- ---------------------- ---------------------- January 31, January 31, January 31, January 31, 2003 2004 2003 2004 ---------------------- --------------------- ---------------------- ---------------------- Sales $ 735,889 $ 765,892 $ 176,016 $ 203,029 ---------------------- --------------------- ---------------------- ---------------------- Cost of sales 338,121 327,560 82,487 83,194 ---------------------- --------------------- ---------------------- ---------------------- Research and development, net 232,593 216,457 54,280 54,355 ---------------------- --------------------- ---------------------- ---------------------- Selling, general and administrative 281,202 254,376 66,777 65,420 ---------------------- --------------------- ---------------------- ---------------------- Workforce reduction, restructuring and impairment charges (credits) 66,714 (2,123) 12,998 (1,890) ---------------------- --------------------- ---------------------- ---------------------- Income (loss) from operations (182,741) (30,378) (40,526) 1,950 ---------------------- --------------------- ---------------------- ---------------------- Interest and other income, net 56,557 33,198 9,255 5,090 ---------------------- --------------------- ---------------------- ---------------------- Income (loss) before income tax provision (benefit) (126,184) 2,820 (31,271) 7,040 ---------------------- --------------------- ---------------------- ---------------------- Income tax provision (benefit) 3,294 8,206 (1,129) 2,112 ---------------------- --------------------- ---------------------- ---------------------- Net income (loss) $ (129,478) $ (5,386) $ (30,142) $ 4,928 ---------------------- --------------------- ---------------------- ---------------------- Earnings (loss) per share: ---------------------- --------------------- ---------------------- ---------------------- Diluted $ (0.69) $ (0.03) $ (0.16) $ 0.02 ---------------------- --------------------- ---------------------- ---------------------- Basic $ (0.69) $ (0.03) $ (0.16) $ 0.03 ---------------------- --------------------- ---------------------- ---------------------- Weighted average shares: ---------------------- --------------------- ---------------------- ---------------------- Diluted 187,212 190,351 187,721 199,986 ---------------------- --------------------- ---------------------- ---------------------- Basic 187,212 190,351 187,721 193,074 ---------------------- --------------------- ---------------------- ----------------------
--more- COMVERSE TECHNOLOGY FOURTH QUARTER RESULTS March 10, 2004 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.
PRO FORMA CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share data) Twelve Months Ended Three Months Ended (unaudited) ---------------------- --------------------- ---------------------- --------------------- January 31, January 31, January 31, January 31, 2003 2004 2003 2004 ---------------------- --------------------- ---------------------- --------------------- Sales $ 735,889 $ 765,892 $ 176,016 $ 203,029 ---------------------- --------------------- ---------------------- --------------------- Cost of sales 332,173 327,560 82,487 83,194 ---------------------- --------------------- ---------------------- --------------------- Research and development, net 232,593 216,457 54,280 54,355 ---------------------- --------------------- ---------------------- --------------------- Selling, general and administrative 281,202 254,163 66,777 65,207 ---------------------- --------------------- ---------------------- --------------------- Income (loss) from operations (110,079) (32,288) (27,528) 273 ---------------------- --------------------- ---------------------- --------------------- Interest and other income, net 52,188 28,455 13,364 5,087 ---------------------- --------------------- ---------------------- --------------------- Income (loss) before income tax provision (57,891) (3,833) (14,164) 5,360 ---------------------- --------------------- ---------------------- --------------------- Income tax provision 4,178 8,206 1,780 2,112 ---------------------- --------------------- ---------------------- --------------------- Pro forma net income (loss) $ (62,069) $ (12,039) $ (15,944) $ 3,248 ---------------------- --------------------- ---------------------- --------------------- Pro forma earnings (loss) per share: ---------------------- --------------------- ---------------------- --------------------- Diluted $ (0.33) $ (0.07) $ (0.08) $ 0.02 ---------------------- --------------------- ---------------------- --------------------- Basic $ (0.33) $ (0.07) $ (0.08) $ 0.02 ---------------------- --------------------- ---------------------- --------------------- Weighted average shares: ---------------------- --------------------- ---------------------- --------------------- Diluted 187,212 190,351 187,721 199,986 ---------------------- --------------------- ---------------------- --------------------- Basic 187,212 190,351 187,721 193,074 ---------------------- --------------------- ---------------------- --------------------- RECONCILIATION OF GAAP BASIS NET INCOME (LOSS) TO PRO FORMA BASIS NET INCOME (LOSS): - ------------------------------------------------------------------------------------------------------------------------------------ GAAP basis net income (loss) $ (129,478) $ (5,386) $ (30,142) $ 4,928 ---------------------- --------------------- ---------------------- --------------------- Adjustments: ---------------------- --------------------- ---------------------- --------------------- Cost of sales: impairment charges* 5,948 - - - ---------------------- --------------------- ---------------------- --------------------- Stock-based compensation - 213 - 213 ---------------------- --------------------- ---------------------- --------------------- Workforce reduction, restructuring and impairment charges (credits) 66,714 (2,123) 12,998 (1,890) ---------------------- --------------------- ---------------------- --------------------- Write-down of investments 35,005 5,481 4,545 - ---------------------- --------------------- ---------------------- --------------------- Gain on extinguishment of debt (39,374) (10,224) (436) (3) ---------------------- --------------------- ---------------------- --------------------- Income tax provision (884) - (2,909) - ---------------------- --------------------- ---------------------- --------------------- Pro forma basis net income (loss) $ (62,069) $ (12,039) $ (15,944) $ 3,248 ---------------------- --------------------- ---------------------- ---------------------
*Pertaining to the write-down of the value of certain inventory and the write-off of certain prepaid licenses for which there is no estimable future use. --more-- COMVERSE TECHNOLOGY FOURTH QUARTER RESULTS March 10, 2004 Page Four FINANCIAL HIGHLIGHTS (In thousands)
Balance Sheet Data: ASSETS January 31, January 31, 2003 2004 ---------------------------- ------------------------------ CURRENT ASSETS: ---------------------------- ------------------------------ Cash and cash equivalents $ 1,402,783 $ 1,530,995 ---------------------------- ------------------------------ Bank time deposits and short-term investments 406,089 667,504 ---------------------------- ------------------------------ Accounts receivable, net 212,953 158,236 ---------------------------- ------------------------------ Inventories 40,015 54,751 ---------------------------- ------------------------------ Prepaid expenses and other current assets 65,018 50,798 ---------------------------- ------------------------------ TOTAL CURRENT ASSETS 2,126,858 2,462,284 ---------------------------- ------------------------------ PROPERTY AND EQUIPMENT, net 146,380 125,023 ---------------------------- ------------------------------ OTHER ASSETS 130,421 140,735 ---------------------------- ------------------------------ ---------------------------- ------------------------------ TOTAL ASSETS $ 2,403,659 $ 2,728,042 ---------------------------- ------------------------------ LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES: ---------------------------- ------------------------------ Accounts payable and accrued expenses $ 260,810 $ 229,296 ---------------------------- ------------------------------ Advance payments from customers 53,496 89,062 ---------------------------- ------------------------------ Other current liabilities 46,045 2,649 ---------------------------- ------------------------------ TOTAL CURRENT LIABILITIES 360,351 321,007 ---------------------------- ------------------------------ CONVERTIBLE DEBENTURES 390,838 544,723 ---------------------------- ------------------------------ OTHER LIABILITIES 19,230 28,288 ---------------------------- ------------------------------ TOTAL LIABILITIES 770,419 894,018 ---------------------------- ------------------------------ MINORITY INTEREST 83,548 161,478 ---------------------------- ------------------------------ STOCKHOLDERS' EQUITY 1,549,692 1,672,546 ---------------------------- ------------------------------ TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 2,403,659 $ 2,728,042 ---------------------------- ------------------------------
--more-- COMVERSE TECHNOLOGY FOURTH QUARTER RESULTS March 10, 2004 Page Five CONFERENCE CALL INFORMATION A conference call to discuss the company's results will be conducted Wednesday, March 10, 2004, at 5:30 pm EST. Participants should dial 706-643-1670. A replay will be available for seven days at 706-645-9291, access code 5775114. 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 --more-- COMVERSE TECHNOLOGY FOURTH QUARTER RESULTS March 10, 2004 Page Six 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 and its subsequent Quarterly Reports on Form 10-Q. 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-----