-----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, MtPMoKljsoqtD40AChyApIpzRlh9ke0qHhv/ALgtqHHEQ9TW9WLtJMSdy+w38eXS T9iiUkmHOJ/K7uw1YVYbBA== 0000909518-04-000948.txt : 20041201 0000909518-04-000948.hdr.sgml : 20041201 20041201164606 ACCESSION NUMBER: 0000909518-04-000948 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20041201 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20041201 DATE AS OF CHANGE: 20041201 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: 041177945 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 jd12-1_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): DECEMBER 1, 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) Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: |_| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |_| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |_| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |_| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13a-4(c)) ITEM 2.02. RESULTS OF OPERATIONS AND FINANCIAL CONDITION. On December 1, 2004, Comverse Technology, Inc. issued a press release announcing its financial results for the third quarter of fiscal year 2004, ended October 31, 2004. A copy of the press release is attached hereto as Exhibit 99.1 to this report. ITEM 9.01. FINANCIAL STATEMENTS AND EXHIBITS. (c) Exhibits: 99.1 Press Release of Comverse Technology, Inc., dated December 1, 2004. In accordance with General Instruction B.2. of Form 8-K, the information in this Current Report on Form 8-K, including Exhibit 99.1, is furnished pursuant to Item 2.02 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. 2 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: December 1, 2004 /s/ David Kreinberg ------------------------------------- Name: David Kreinberg Title: Executive Vice President and Chief Financial Officer 3 EXHIBIT INDEX Exhibit No. Description - ----------- ----------- 99.1 Press Release, dated December 1, 2004 issued by Comverse Technology, Inc. 4 EX-99 2 jd12-1ex99_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 THIRD QUARTER FISCAL 2004 RESULTS: SALES OF $245,479,000, UP 27% YEAR-OVER-YEAR; GAAP AND PRO FORMA EARNINGS PER DILUTED SHARE OF $0.08 WOODBURY, NY, December 1, 2004 -- Comverse Technology, Inc. (NASDAQ: CMVT) announced sales of $245,479,000 for the third quarter of fiscal year 2004, ended October 31, 2004, an increase of 26.6% compared to sales of $193,843,000 for the third quarter of fiscal year 2003, ended October 31, 2003. Net income on a generally accepted accounting principles ("GAAP") basis for the third quarter of fiscal 2004 was $15,959,000, ($0.08 per diluted share) compared to a net loss of $3,437,000 ($0.02 per share) for the third quarter of fiscal 2003. Net income on a pro forma basis was $17,368,000 ($0.08 per diluted share) in the third quarter of fiscal 2004 compared to a pro forma net loss of $1,570,000 ($0.01 per share) in the third quarter of fiscal 2003. 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 increased its profitability and achieved both sequential and year-over-year revenue growth in the third quarter. Comverse, our network systems division, saw demand for its Total Communication portfolio, which enables a broad range of telecommunications applications, including call answering and call completion services, advanced messaging and other data applications such as wireless content delivery, and real-time prepaid billing. Our Verint Systems unit continued to expand its activities providing actionable intelligence for security and business intelligence applications. Our Ulticom division saw demand for its service enabling software across several application areas, including prepaid billing for wireless voice and data services, and IP softswitching." The Company ended the quarter with cash and cash equivalents, bank time deposits and short-term investments of $2,190,458,000, working capital of $2,173,878,000, total assets of $2,873,111,000 and stockholders' equity of $1,757,488,000. -more- COMVERSE TECHNOLOGY THIRD QUARTER RESULTS - ----------------------------------------- DECEMBER 1, 2004 - ---------------- PAGE TWO - -------- Financial highlights at and for the nine and three month periods ended October 31, 2004 and prior year comparisons are as follows:
- --------------------------------------------------------------------------------------------------------------------- CONSOLIDATED STATEMENTS OF OPERATIONS (GAAP BASIS) (In thousands, except per share data) - ----------------------------------------- ------------------------------------ -------------------------------------- Nine Months Ended Three Months Ended (unaudited) (unaudited) - ----------------------------------------- ------------------------------------ ------------------------------------ October 31, October 31, October 31, October 31, 2003 2004 2003 2004 - ----------------------------------------- ----------------- ----------------- ----------------- ----------------- Sales $ 562,863 $ 700,301 $ 193,843 $ 245,479 - ----------------------------------------- ----------------- ----------------- ----------------- ----------------- Cost of sales 244,366 279,652 82,669 96,936 - ----------------------------------------- ----------------- ----------------- ----------------- ----------------- Research and development, net 162,102 172,851 53,810 60,782 - ----------------------------------------- ----------------- ----------------- ----------------- ----------------- Selling, general and administrative 188,956 213,769 63,891 73,767 - ----------------------------------------- ----------------- ----------------- ----------------- ----------------- In-process research and development and other acquisition-related charges - 4,635 - - - ----------------------------------------- ----------------- ----------------- ----------------- ----------------- Workforce reduction, restructuring and impairment charges (credits) (233) 62 - (102) - ----------------------------------------- ----------------- ----------------- ----------------- ----------------- Income (loss) from operations (32,328) 29,332 (6,527) 14,096 - ----------------------------------------- ----------------- ----------------- ----------------- ----------------- Interest and other income, net 31,420 24,970 6,366 9,541 - ----------------------------------------- ----------------- ----------------- ----------------- ----------------- Income (loss) before income tax provision, minority interest and equity in the earnings (losses) of affiliates (908) 54,302 (161) 23,637 - ----------------------------------------- ----------------- ----------------- ----------------- ----------------- Income tax provision 6,094 9,211 1,888 4,051 - ----------------------------------------- ----------------- ----------------- ----------------- ----------------- Minority interest and equity in the earnings (losses) of affiliates (3,312) (8,804) (1,388) (3,627) - ----------------------------------------- ----------------- ----------------- ----------------- ----------------- Net income (loss) $ (10,314) $ 36,287 $ (3,437) $ 15,959 - ----------------------------------------- ----------------- ----------------- ----------------- ----------------- - ----------------------------------------- ----------------- ----------------- ----------------- ----------------- Earnings (loss) per share: - ----------------------------------------- ----------------- ----------------- ----------------- ----------------- Diluted $ (0.05) $ 0.18 $ (0.02) $ 0.08 - ----------------------------------------- ----------------- ----------------- ----------------- ----------------- Basic $ (0.05) $ 0.19 $ (0.02) $ 0.08 - ----------------------------------------- ----------------- ----------------- ----------------- ----------------- - ----------------------------------------- ----------------- ----------------- ----------------- ----------------- Weighted average shares: - ----------------------------------------- ----------------- ----------------- ----------------- ----------------- Diluted 189,397 201,947 190,996 202,445 - ----------------------------------------- ----------------- ----------------- ----------------- ----------------- Basic 189,397 195,452 190,996 196,077 - ----------------------------------------- ----------------- ----------------- ----------------- -----------------
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. -more- COMVERSE TECHNOLOGY THIRD QUARTER RESULTS - ----------------------------------------- DECEMBER 1, 2004 - ---------------- PAGE THREE - ----------
- -------------------------------------------------------------------------------------------------------------------- PRO FORMA CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share data) - -------------------------------------------------------------------------------------------------------------------- Nine Months Ended Three Months Ended ----------------- ------------------ (unaudited) (unaudited) - ---------------------------------------- ------------------------------------ ------------------------------------ October 31, October 31, October 31, October 31, 2003 2004 2003 2004 - ----------------------------------------- ----------------- ----------------- ----------------- ----------------- Sales $ 562,863 $ 700,301 $ 193,843 $ 245,479 - ----------------------------------------- ----------------- ----------------- ----------------- ----------------- Cost of sales 244,366 277,936 82,669 95,786 - ----------------------------------------- ----------------- ----------------- ----------------- ----------------- Research and development, net 162,102 172,851 53,810 60,782 - ----------------------------------------- ----------------- ----------------- ----------------- ----------------- Selling, general and administrative 188,956 210,913 63,891 72,617 - ----------------------------------------- ----------------- ----------------- ----------------- ----------------- Income (loss) from operations (32,561) 38,601 (6,527) 16,294 - ----------------------------------------- ----------------- ----------------- ----------------- ----------------- Interest and other income, net 26,680 24,629 8,233 9,541 - ----------------------------------------- ----------------- ----------------- ----------------- ----------------- Income (loss) before income tax provision, minority interest and equity in the earnings (losses) of affiliates (5,881) 63,230 1,706 25,835 - ----------------------------------------- ----------------- ----------------- ----------------- ----------------- Income tax provision 6,094 10,021 1,888 4,149 - ----------------------------------------- ----------------- ----------------- ----------------- ----------------- Minority interest and equity in the earnings (losses) of affiliates (3,312) (11,509) (1,388) (4,318) - ----------------------------------------- ----------------- ----------------- ----------------- ----------------- Pro forma net income (loss) $ (15,287) $ 41,700 $ (1,570) $ 17,368 - ----------------------------------------- ----------------- ----------------- ----------------- ----------------- - ----------------------------------------- ----------------- ----------------- ----------------- ----------------- Pro forma earnings (loss) per share: - ----------------------------------------- ----------------- ----------------- ----------------- ----------------- Diluted (1) $ (0.08) $ 0.20 $ (0.01) $ 0.08 - ----------------------------------------- ----------------- ----------------- ----------------- ----------------- Basic $ (0.08) $ 0.21 $ (0.01) $ 0.09 - ----------------------------------------- ----------------- ----------------- ----------------- ----------------- - ----------------------------------------- ----------------- ----------------- ----------------- ----------------- Weighted average shares: - ----------------------------------------- ----------------- ----------------- ----------------- ----------------- Diluted 189,397 201,947 190,996 202,445 - ----------------------------------------- ----------------- ----------------- ----------------- ----------------- Basic 189,397 195,452 190,996 196,077 - ----------------------------------------- ----------------- ----------------- ----------------- ----------------- (1) Net income for purposes of calculating diluted earnings per share includes the dilutive effects of subsidiary options of approximately $880 and $330 for the nine and three month periods ended October 31, 2004, respectively. - --------------------------------------------------------------------------------------------------------------------
RECONCILIATION OF GAAP BASIS NET INCOME (LOSS) TO PRO FORMA BASIS NET INCOME (LOSS): - -------------------------------------------------------------------------------------------------------------------- GAAP basis net income (loss) $ (10,314) $ 36,287 $ (3,437) $ 15,959 - ----------------------------------------- ----------------- ----------------- ----------------- ----------------- Adjustments: - ----------------------------------------- ----------------- ----------------- ----------------- ----------------- Amortization of acquisition-related intangibles - 2,376 - 968 - ----------------------------------------- ----------------- ----------------- ----------------- ----------------- Amortization of deferred stock-based compensation - 1,297 - 433 - ----------------------------------------- ----------------- ----------------- ----------------- ----------------- In-process research and development and other acquisition-related charges - 4,635 - - - ----------------------------------------- ----------------- ----------------- ----------------- ----------------- Acquisition-related charges included in cost of sales and selling, general and administrative - 899 - 899 - ----------------------------------------- ----------------- ----------------- ----------------- ----------------- Workforce reduction, restructuring and impairment charges (credits) (233) 62 - (102) - ----------------------------------------- ----------------- ----------------- ----------------- ----------------- Write-down of investments 5,481 - 2,874 - - ----------------------------------------- ----------------- ----------------- ----------------- ----------------- Gain on extinguishment of debt (10,221) (341) (1,007) - - ----------------------------------------- ----------------- ----------------- ----------------- ----------------- Income tax provision - (810) - (98) - ----------------------------------------- ----------------- ----------------- ----------------- ----------------- Minority interest effect of GAAP to pro forma basis adjustments - (2,705) - (691) - ----------------------------------------- ----------------- ----------------- ----------------- ----------------- - ----------------------------------------- ----------------- ----------------- ----------------- ----------------- Pro forma basis net income (loss) $ (15,287) $ 41,700 $ (1,570) $ 17,368 - ----------------------------------------- ----------------- ----------------- ----------------- -----------------
-more- COMVERSE TECHNOLOGY THIRD QUARTER RESULTS - ----------------------------------------- DECEMBER 1, 2004 - ---------------- PAGE FOUR - ---------
- ------------------------------------------------------------------------------------ FINANCIAL HIGHLIGHTS Balance Sheet Data: (In thousands) - ------------------------------------------------------------------------------------ January 31, October 31, ASSETS 2004 2004 (unaudited) - ----------------------------------------------------------------------------------- CURRENT ASSETS: - ---------------------------------------------------------------------- ------------ Cash and cash equivalents $ 1,530,995 $ 1,779,783 - -------------------------------------------------- ------------ ------------ Bank time deposits and short-term investment 667,504 410,675 - -------------------------------------------------- ------------ ------------ Accounts receivable, net 158,236 215,619 - -------------------------------------------------- ------------ ------------ Inventories 54,751 88,032 - -------------------------------------------------- ------------ ------------ Prepaid expenses and other current assets 50,798 76,184 - -------------------------------------------------- ------------ ------------ TOTAL CURRENT ASSETS 2,462,284 2,570,293 - -------------------------------------------------- ------------ ------------ PROPERTY AND EQUIPMENT, net 125,023 121,953 - -------------------------------------------------- ------------ ------------ OTHER ASSETS 140,735 180,865 - -------------------------------------------------- ------------ ------------ TOTAL ASSETS $ 2,728,042 $ 2,873,111 - -------------------------------------------------- ------------ ------------ - ----------------------------------------------------------------------------------- LIABILITIES AND STOCKHOLDERS' EQUITY - ------------------------------------ - ----------------------------------------------------------------------------------- CURRENT LIABILITIES: - ----------------------------------------------------------------------------------- Accounts payable and accrued expenses $ 229,296 $ 283,697 - -------------------------------------------------- ------------ ------------ Bank loans and other debt 2,649 9,752 - -------------------------------------------------- ------------ ------------ Advance payments from customers 89,062 102,966 - -------------------------------------------------- ------------ ------------ TOTAL CURRENT LIABILITIES 321,007 396,415 - -------------------------------------------------- ------------ ------------ CONVERTIBLE DEBT 544,723 507,253 - -------------------------------------------------- ------------ ------------ OTHER LIABILITIES 28,288 21,521 - -------------------------------------------------- ------------ ------------ TOTAL LIABILITIES 894,018 925,189 - -------------------------------------------------- ------------ ------------ MINORITY INTEREST 161,478 190,434 - -------------------------------------------------- ------------ ------------ STOCKHOLDERS' EQUITY 1,672,546 1,757,488 - -------------------------------------------------- ------------ ------------ TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 2,728,042 $ 2,873,111 - -------------------------------------------------- ------------ ------------
-more- COMVERSE TECHNOLOGY THIRD QUARTER RESULTS DECEMBER 1, 2004 PAGE FIVE CONFERENCE CALL INFORMATION A conference call to discuss the Company's results will be conducted Wednesday, December 1, 2004, at 5:15 pm EST. Participants should dial 706-643-1670. A replay will be available for seven days at 706-645-9291, access code 2457283. A live webcast can be accessed at www.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" under the Private Securities Litigation Reform Act of 1995 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; aggressive competition may force the Company to reduce prices; a failure to compensate any decrease in the sale of the Company's traditional products with a corresponding increase in sales of new products; risks associated with changes in the competitive or regulatory environment in which the Company operates; risks associated with prosecuting or defending allegations or claims of infringement of intellectual property rights; 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 and 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-----