The share price of Comverse Inc. (Nasdaq: CNSI) fell 19% in heavy trading yesterday to $27.52, giving a market cap of $612 million, after the company reporting disappointing results for its fourth fiscal quarter and full-year of 2013, which ended in January 2014.
Fourth quarter revenue fell 9.3% to $166.5 million from $183.6 million for the corresponding quarter of 2012, and below the analysts' consensus of $170 million. Full-year revenue fell 4% to $652.5 million from $677.8 million. Comverse president and CEO Philippe Tartavull attributed the drop to weakness in Asian markets, especially India.
Fourth quarter net profit rose to $15.8 million ($0.71 per share) from $10.8 million for the corresponding quarter, most of which was due to a $14.2 million tax benefit on prior losses. Full-year net profit was $18.7 million ($0.84 per share), compared with a net loss of $20.3 million in 2012. The company beat the analysts' consensus of fourth quarter earnings per share of $0.52, but missed the full-year consensus of $2.61.
Comverse had $323 million in cash at the end of January, and announced a $30 million share buyback program.
Published by Globes [online], Israel business news - www.globes-online.com - on April 16, 2014
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