-----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, FtjeLVaa7wdAzb+l4BTKpZfaJJ7nWolGkbYPQxp6xi9oe3zq2emjb0xXnwCYYwG7 jHCfFT7j8tjTdDLNp+gPNg== 0000909518-05-000715.txt : 20050907 0000909518-05-000715.hdr.sgml : 20050907 20050907161725 ACCESSION NUMBER: 0000909518-05-000715 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20050907 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20050907 DATE AS OF CHANGE: 20050907 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: 051072989 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 jd9-7_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): September 7, 2005 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.) 909 Third Avenue, New York, New York 10022 (Address of principal executive offices) (Zip Code) (212) 652-6801 (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 September 7, 2005, Comverse Technology, Inc. issued a press release announcing its financial results for the second quarter of fiscal year 2005, ended July 31, 2005. 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 September 7, 2005. 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: September 7, 2005 /s/ David Kreinberg ------------------------------------------- Name: David Kreinberg Title: Executive Vice President of Finance and Chief Financial Officer 3 EXHIBIT INDEX Exhibit No. Description - ----------- ----------- 99.1 Press Release, dated September 7, 2005 issued by Comverse Technology, Inc. 4 EX-99 2 jd9-7ex_99.txt 99.1 EXHIBIT 99.1 [Comverse Technology logo] CONTACT: Paul D. Baker Comverse Technology, Inc. One Huntington Quadrangle Melville, New York 11747 (516) 677-7226 COMVERSE TECHNOLOGY SECOND QUARTER FISCAL 2005 RESULTS: SALES OF $285,835,000, UP 22% YEAR-OVER-YEAR; GAAP EARNINGS UP 161% ($0.16 PER DILUTED SHARE), PRO FORMA EARNINGS UP 122% ($0.14 PER DILUTED SHARE) NEW YORK, NY, September 7, 2005 -- Comverse Technology, Inc. (NASDAQ: CMVT) announced sales of $285,835,000 for the second quarter of fiscal year 2005, ended July 31, 2005, an increase of 22.5% compared to sales of $233,427,000 for the second quarter of fiscal year 2004, ended July 31, 2004. Net income on a generally accepted accounting principles ("GAAP") basis for the second quarter of fiscal 2005 was $34,814,000 ($0.16 per diluted share), up 161% compared to net income of $13,327,000 ($0.06 per diluted share) for the second quarter of fiscal 2004. Net income on a pro forma basis was $30,465,000 ($0.14 per diluted share) in the second quarter of fiscal 2005, up 122% compared to pro forma net income of $13,725,000 ($0.07 per diluted share) in the second quarter of fiscal 2004. 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 Income. Kobi Alexander, Chairman and CEO of Comverse Technology, stated, "We achieved our eleventh consecutive quarter of sequential sales growth, and continued to expand our operating margin. 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 billing. Our Verint Systems unit continued to expand its activities providing actionable intelligence for security and business intelligence applications." The Company ended the quarter with cash and cash equivalents, bank time deposits and short-term investments of $2,293,240,000, working capital of $2,266,571,000, total assets of $3,052,425,000 and stockholders' equity of $1,888,447,000, all of which represent record levels. COMVERSE TECHNOLOGY SECOND QUARTER RESULTS ------------------------------------------ SEPTEMBER 7, 2005 ----------------- PAGE TWO Financial highlights at and for the six and three month periods ended July 31, 2005 and prior year comparisons are as follows:
- ---------------------------------------------------------------------------------------------------------- CONSOLIDATED STATEMENTS OF INCOME (GAAP BASIS) (In thousands, except per share data) - ---------------------------------------------------------------------------------------------------------- Six Months Ended Three Months Ended ---------------- ------------------ (unaudited) (unaudited) - ---------------------------------------------------------------------------------------------------------- July 31, July 31, July 31, July 31, 2004 2005 2004 2005 - ----------------------------------------- ---------------- --------------- --------------- -------------- Sales $ 454,822 $ 558,636 $ 233,427 $ 285,835 - ----------------------------------------- ---------------- --------------- --------------- -------------- Cost of sales 182,716 220,949 93,124 114,566 - ----------------------------------------- ---------------- --------------- --------------- -------------- Research and development, net 112,069 128,184 56,527 63,449 - ----------------------------------------- ---------------- --------------- --------------- -------------- Selling, general and administrative 140,002 165,483 71,507 83,444 - ----------------------------------------- ---------------- --------------- --------------- -------------- In-process research and development and other acquisition-related charges 4,635 - - - - ----------------------------------------- ---------------- --------------- --------------- -------------- Workforce reduction, restructuring and impairment charges (credits) 164 (253) (534) (100) - ----------------------------------------- ---------------- --------------- --------------- -------------- Income from operations 15,236 44,273 12,803 24,476 - ----------------------------------------- ---------------- --------------- --------------- -------------- Interest and other income, net 15,429 34,317 7,784 20,907 - ----------------------------------------- ---------------- --------------- --------------- -------------- Income before income tax provision, minority interest and equity in the earnings (losses) of affiliates 30,665 78,590 20,587 45,383 - ----------------------------------------- ---------------- --------------- --------------- -------------- Income tax provision 5,160 11,180 3,668 6,227 - ----------------------------------------- ---------------- --------------- --------------- -------------- Minority interest and equity in the earnings (losses) of affiliates (5,177) (8,335) (3,592) (4,342) - ----------------------------------------- ---------------- --------------- --------------- -------------- Net income $ 20,328 $ 59,075 $ 13,327 $ 34,814 - ----------------------------------------- ---------------- --------------- --------------- -------------- - ----------------------------------------- ---------------- --------------- --------------- -------------- Earnings per share: - ----------------------------------------- ---------------- --------------- --------------- -------------- Diluted (1) $ 0.10 $ 0.27 $ 0.06 $ 0.16 - ----------------------------------------- ---------------- --------------- --------------- -------------- Basic $ 0.10 $ 0.30 $ 0.07 $ 0.17 - ----------------------------------------- ---------------- --------------- --------------- -------------- - ----------------------------------------- ---------------- --------------- --------------- -------------- Weighted average shares: - ----------------------------------------- ---------------- --------------- --------------- -------------- Diluted 202,114 213,537 201,946 214,081 - ----------------------------------------- ---------------- --------------- --------------- -------------- Basic 195,136 199,379 195,467 199,893 - ----------------------------------------- ---------------- --------------- --------------- --------------
(1) Net income for purposes of calculating diluted earnings per share includes the dilutive effects of subsidiary options of approximately $474 and $259 for the six and three month periods ended July 31, 2005, respectively, and approximately $394 and $243 for the six and three month periods ended July 31, 2004, respectively. 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. COMVERSE TECHNOLOGY SECOND QUARTER RESULTS ------------------------------------------ SEPTEMBER 7, 2005 ----------------- PAGE THREE
- ------------------------------------------------------------------------------------------------------------ PRO FORMA CONSOLIDATED STATEMENTS OF INCOME (In thousands, except per share data) - ------------------------------------------------ ----------------------------------------------------------- Six Months Ended Three Months Ended ---------------- ------------------ (unaudited) (unaudited) - ------------------------------------------------ ----------------------------- ---------------------------- July 31, July 31, July 31, July 31, 2004 2005 2004 2005 - ------------------------------------------------ --------------- -------------- ------------- -------------- Sales $ 454,822 $ 558,636 $ 233,427 $ 285,835 - ------------------------------------------------ --------------- -------------- ------------- -------------- Cost of sales 182,150 219,234 92,713 113,709 - ------------------------------------------------ --------------- -------------- ------------- -------------- Research and development, net 112,069 128,184 56,527 63,449 - ------------------------------------------------ --------------- -------------- ------------- -------------- Selling, general and administrative 138,296 163,482 70,567 82,879 - ------------------------------------------------ --------------- -------------- ------------- -------------- Income from operations 22,307 47,736 13,620 25,798 - ------------------------------------------------ --------------- -------------- ------------- -------------- Interest and other income, net 15,088 28,915 7,687 15,505 - ------------------------------------------------ --------------- -------------- ------------- -------------- Income before income tax provision, minority interest and equity in the earnings (losses) of affiliates 37,395 76,651 21,307 41,303 - ------------------------------------------------ --------------- -------------- ------------- -------------- Income tax provision 5,872 11,324 3,733 6,173 - ------------------------------------------------ --------------- -------------- ------------- -------------- Minority interest and equity in the earnings (losses) of affiliates (7,191) (9,139) (3,849) (4,665) - ------------------------------------------------ --------------- -------------- ------------- -------------- Pro forma net income $ 24,332 $ 56,188 $ 13,725 $ 30,465 - ------------------------------------------------ --------------- -------------- ------------- -------------- - ------------------------------------------------ --------------- -------------- ------------- -------------- Pro forma earnings per share: - ------------------------------------------------ --------------- -------------- ------------- -------------- Diluted $ 0.12 $ 0.26 $ 0.07 $ 0.14 - ------------------------------------------------ --------------- -------------- ------------- -------------- Basic $ 0.12 $ 0.28 $ 0.07 $ 0.15 - ------------------------------------------------ --------------- -------------- ------------- -------------- - ------------------------------------------------ --------------- -------------- ------------- -------------- Weighted average shares: - ------------------------------------------------ --------------- -------------- ------------- -------------- Diluted 202,114 213,537 201,946 214,081 - ------------------------------------------------ --------------- -------------- ------------- -------------- Basic 195,136 199,379 195,467 199,893 - ------------------------------------------------------------------------------------------------------------ RECONCILIATION OF GAAP BASIS NET INCOME TO PRO FORMA BASIS NET INCOME: - ------------------------------------------------ --------------- -------------- ------------- -------------- GAAP basis net income $ 20,328 $ 59,075 $ 13,327 $ 34,814 - ------------------------------------------------ --------------- -------------- ------------- -------------- Adjustments: - ------------------------------------------------ --------------- -------------- ------------- -------------- Amortization of acquisition-related intangibles 1,408 2,487 918 1,233 - ------------------------------------------------ --------------- -------------- ------------- -------------- Amortization of deferred stock-based compensation 864 2,089 433 1,049 - ------------------------------------------------ --------------- -------------- ------------- -------------- In-process research and development and other acquisition-related charges 4,635 - - - - ------------------------------------------------ --------------- -------------- ------------- -------------- Workforce reduction, restructuring and impairment charges (credits) 164 (253) (534) (100) - ------------------------------------------------ --------------- -------------- ------------- -------------- Net realized gain on investments previously written-down - (5,434) - (5,434) - ------------------------------------------------ --------------- -------------- ------------- -------------- Gain on extinguishment of debt (341) - (97) - - ------------------------------------------------ --------------- -------------- ------------- -------------- Gain on settlement - (828) - (828) - ------------------------------------------------ --------------- -------------- ------------- -------------- Income tax provision (712) (144) (65) 54 - ------------------------------------------------ --------------- -------------- ------------- -------------- Minority interest effect of GAAP to pro forma basis adjustments (2,014) (804) (257) (323) - ------------------------------------------------ --------------- -------------- ------------- -------------- - ------------------------------------------------ --------------- -------------- ------------- -------------- Pro forma basis net income $ 24,332 $ 56,188 $ 13,725 $ 30,465 - ------------------------------------------------ --------------- -------------- ------------- --------------
COMVERSE TECHNOLOGY SECOND QUARTER RESULTS ------------------------------------------ SEPTEMBER 7, 2005 ----------------- PAGE FOUR
- ------------------------------------------------------------------------------------------- FINANCIAL HIGHLIGHTS (In thousands) Balance Sheet Data: - ------------------------------------------------------------------------------------------- ASSETS - ------------------------------------------------------------------------------------------- January 31, July 31, 2005 2005 (unaudited) - ------------------------------------------------------------------------------------------ CURRENT ASSETS: - ------------------------------------------------------------------------------------------ Cash and cash equivalents, bank time deposits and short-term investments $ 2,249,630 $ 2,293,240 - ---------------------------------------------------- ------------------ ------------------ Accounts receivable, net 199,571 258,820 - ---------------------------------------------------- ------------------ ------------------ Inventories 107,552 123,634 - ---------------------------------------------------- ------------------ ------------------ Prepaid expenses and other current assets 70,335 91,804 - ---------------------------------------------------- ------------------ ------------------ TOTAL CURRENT ASSETS 2,627,088 2,767,498 - ---------------------------------------------------- ------------------ ------------------ PROPERTY AND EQUIPMENT, net 122,174 127,301 - ---------------------------------------------------- ------------------ ------------------ OTHER ASSETS 176,024 157,626 - ---------------------------------------------------- ------------------ ------------------ - ---------------------------------------------------- ------------------ ------------------ TOTAL ASSETS $ 2,925,286 $ 3,052,425 - ------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------ LIABILITIES AND STOCKHOLDERS' EQUITY - ------------------------------------ - ------------------------------------------------------------------------------------------ CURRENT LIABILITIES: - ---------------------------------------------------- ------------------ ------------------ Accounts payable and accrued expenses $ 273,861 $ 278,369 - ---------------------------------------------------- ------------------ ------------------ Convertible debt 87,253 87,253 - ---------------------------------------------------- ------------------ ------------------ Bank loans and other debt 660 9,002 - ---------------------------------------------------- ------------------ ------------------ Advance payments from customers 108,381 126,303 - ---------------------------------------------------- ------------------ ------------------ 470,155 500,927 TOTAL CURRENT LIABILITIES - ---------------------------------------------------- ------------------ ------------------ CONVERTIBLE DEBT 420,000 419,907 - ---------------------------------------------------- ------------------ ------------------ OTHER LIABILITIES 45,277 35,050 - ---------------------------------------------------- ------------------ ------------------ TOTAL LIABILITIES 935,432 955,884 - ---------------------------------------------------- ------------------ ------------------ MINORITY INTEREST 195,825 208,094 - ---------------------------------------------------- ------------------ ------------------ STOCKHOLDERS' EQUITY 1,794,029 1,888,447 - ---------------------------------------------------- ------------------ ------------------ TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 2,925,286 $ 3,052,425 - ---------------------------------------------------- ------------------ ------------------
COMVERSE TECHNOLOGY SECOND QUARTER RESULTS ------------------------------------------ SEPTEMBER 7, 2005 ----------------- PAGE FIVE CONFERENCE CALL INFORMATION A conference call to discuss the Company's results will be conducted Wednesday, September 7, 2005, at 5:15 pm EDT. Participants should dial 706-643-1670. A replay will be available for seven days at 706-645-9291, access code 8953996. 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), through its Comverse business unit, is the world's leading provider of software and systems enabling network-based multimedia enhanced communication services. These value-added enhanced services solutions, along with the Company's real-time billing solutions, comprise Comverse's Total Communication(TM) portfolio. Comverse's Total Communication portfolio addresses four primary categories: call completion and call management solutions; advanced messaging for groups, communities and person-to-person communication; solutions and enablers for the management and delivery of data and content-based services; and real-time billing and account management solutions for dynamic service environments. Other Comverse Technology business units include: Verint Systems (NASDAQ: VRNT), a leading provider of analytic software-based solutions for communications interception, networked video security and business intelligence; and Ulticom (NASDAQ: ULCM), a leading provider of service enabling signaling software for wireline, wireless and Internet communications. Comverse Technology is an S&P 500 and NASDAQ-100 Index company. For additional information, visit the Comverse Technology website 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 COMVERSE TECHNOLOGY SECOND QUARTER RESULTS ------------------------------------------ SEPTEMBER 7, 2005 ----------------- PAGE SIX 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 Report 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-----