18. BUSINESS SEGMENT INFORMATION

The Company has three reportable segments: Comverse, Verint, and All Other. The All Other segment is comprised of Starhome B.V. and its subsidiaries, miscellaneous operations and CTI's holding company operations. Ulticom was a reportable segment of the Company prior to its sale to a third party on December 3, 2010. As a result of the Ulticom Sale, the results of operations of Ulticom are reflected in discontinued operations, less applicable income taxes, as a separate component of net loss in the Company's condensed consolidated statement of operations for the three months ended April 30, 2010 (see Note 15, Discontinued Operations).

The Company evaluates its business by assessing the performance of each of its segments. CTI's Chief Executive Officer is its chief operating decision maker. The chief operating decision maker uses segment performance, as defined below, as the primary basis for assessing the financial results of the segments and for the allocation of resources. Segment performance, as the Company defines it in accordance with the FASB's guidance relating to segment reporting, is not necessarily comparable to other similarly titled captions of other companies. Segment performance, as defined by management, represents operating results of a segment without the impact of significant expenditures incurred by the segment in connection with the efforts to become current in periodic reporting obligations under the federal securities laws, certain non-cash charges, and certain other insignificant gains and charges.

Segment Performance

Segment performance is computed by management as (loss) income from operations adjusted for the following: (i) stock-based compensation expense; (ii) amortization of acquisition-related intangibles; (iii) compliance-related professional fees; (iv) compliance-related compensation and other expenses; (v) impairment charges; (vi) litigation settlements and related costs; (vii) acquisition-related charges; (viii) restructuring and integration charges; and (ix) certain other insignificant gains and charges. Compliance-related professional fees and compliance-related compensation and other expenses relate to fees and expenses incurred in connection with (a) the Company's efforts to complete current and previously issued financial statements and audits of such financial statements, and (b) the Company's efforts to become current in its periodic reporting obligations under the federal securities laws.

In evaluating each segment's performance, management uses segment revenue, which consists of revenue generated by the segment, including intercompany revenue. Certain segment performance adjustments relate to expenses included in the calculation of (loss) income from operations, while, from time to time, certain segment performance adjustments may be presented as adjustments to revenue. In calculating Verint's segment performance for the three months ended April 30, 2011, the presentation of segment revenue gives effect to segment revenue adjustments that represent the impact of fair value adjustments required under the FASB's guidance relating to acquired customer support contracts that would have otherwise been recognized as revenue on a standalone basis with respect to an acquisition consummated by Verint in March 2011. Verint did not have a segment revenue adjustment for the three months ended April 30, 2010.

The tables below present information about total revenue, total costs and expenses, (loss) income from operations, interest expense, depreciation and amortization, significant non-cash items, and segment performance for the three months ended April 30, 2011 and 2010:


	Comverse			Verint			All Other			Eliminations			Consolidated Totals
	(In thousands)
Three Months Ended April 30, 2011:

Revenue	$	163,160		$	176,332		$	10,005		$	—		$	349,497
Intercompany revenue		604			—			95			(699	)		—

Total revenue	$	163,764		$	176,332		$	10,100		$	(699	)	$	349,497


Total costs and expenses	$	201,439		$	157,498		$	24,719		$	(735	)	$	382,921


(Loss) income from operations	$	(37,675	)	$	18,834		$	(14,619	)	$	36		$	(33,424	)


Computation of segment performance:
Total revenue	$	163,764		$	176,332		$	10,100
Segment revenue adjustment		—			235			—

Segment revenue	$	163,764		$	176,567		$	10,100


Total costs and expenses	$	201,439		$	157,498		$	24,719

Segment expense adjustments:
Stock-based compensation expense		668			7,550			2,859
Amortization of acquisition-related intangibles		4,498			8,196			—
Compliance-related professional fees		12,609			991			5,797
Compliance-related compensation and other expenses		2,033			—			—
Impairment charges		128			—			—
Litigation settlements and related costs		475			—			84
Acquisition-related charges		—			2,374			—
Restructuring and integration charges		11,087			—			—
Other		(27	)		1,335			237

Segment expense adjustments		31,471			20,446			8,977

Segment expenses		169,968			137,052			15,742

Segment performance	$	(6,204	)	$	39,515		$	(5,642	)


Interest expense	$	(330	)	$	(8,794	)	$	(4	)	$	—		$	(9,128	)

Depreciation and amortization	$	(8,500	)	$	(12,954	)	$	(221	)	$	—		$	(21,675	)

Significant non-cash items	$	128		$	203		$	—		$	—		$	331

Three Months Ended April 30, 2010:

Revenue	$	175,996		$	172,613		$	8,279		$	—		$	356,888
Intercompany revenue		575			—			202			(777	)		—

Total revenue	$	176,571		$	172,613		$	8,481		$	(777	)	$	356,888


Total costs and expenses	$	230,821		$	176,595		$	34,375		$	(1,211	)	$	440,580


Loss from operations	$	(54,250	)	$	(3,982	)	$	(25,894	)	$	434		$	(83,692	)


Computation of segment performance:
Total revenue	$	176,571		$	172,613		$	8,481
Segment revenue adjustments		—			—			—

Segment revenue	$	176,571		$	172,613		$	8,481


Total costs and expenses	$	230,821		$	176,595		$	34,375

Segment expense adjustments:
Stock-based compensation expense		241			17,970			2,546
Amortization of acquisition-related intangibles		4,659			7,572			—
Compliance-related professional fees		20,226			20,200			18,651
Compliance-related compensation and other expenses		(198	)		—			—
Litigation settlements and related costs		—			—			95
Acquisition-related charges		—			507			—
Restructuring and integration charges		5,956			—			—
Other		(1,462	)		13			89

Segment expense adjustments		29,422			46,262			21,381

Segment expenses		201,399			130,333			12,994

Segment performance	$	(24,828	)	$	42,280		$	(4,513	)


Interest expense	$	(204	)	$	(5,948	)	$	(16	)	$	—		$	(6,168	)

Depreciation and amortization	$	(10,385	)	$	(11,898	)	$	(239	)	$	—		$	(22,522	)

Significant non-cash items	$	251		$	43		$	—		$	—		$	294