Comverse Tech loss narrows, adjusted results beat
Comverse Technology's second-quarter loss narrowed as it incurred lower restructuring charges and revenue improved. Its adjusted results beat Wall Street's expectations and shares gained almost 3 percent.
The company, which is being acquired by Verint Systems Inc. in an all-stock deal, lost $274,000, or breakeven results per share. That compares with a loss of $39.7 million, or 19 cents per share, in the prior-year period.
Stripping out restructuring charges, stock-based compensation expense and other items, earnings rose to 11 cents per share from 10 cents per share.
Analysts forecast earnings of 8 cents per share, according to a FactSet poll.
Revenue for the three months ended July 31 increased 2 percent to $383.7 million from $377 million. Wall Street predicted $389.7 million in revenue for the maker of voicemail and cellphone billing software.
Last month Comverse Technology said that it would receive about 27.5 million Verint shares and up to an additional $25 million in Verint stock as part of the buyout deal. The company will also spin off its telecommunications business, Comverse Inc., prior to the transaction with Verint.
Comverse provides software and systems that help manage billing and customer relations.
Shares of Comverse Technology Inc. added 17 cents, or 2.8 percent, to $6.17 in midday trading on Friday. The stock has traded between $5.14 and $7.45 over the past year.