Comverse Inc. (Nasdaq: CNSI) is set to fire 350 employees worldwide including at least 200 employees in Israel. At the start of 2014, Comverse had 2,500 employees more than one third of them in Israel. Comverse declined to comment on this report but in its second fiscal quarter results today it said was laying off 14% of its work force. In recent years, Comverse has implemented several rounds of layoffs.
Comverse operates in two fields: billing and digital services, and in both these areas the company has seen its results eroded recently. The company is traded on Nasdaq with a market cap of $519 million. Although founded in Israel, Comverse is today a US company and no longer has senior Israeli executives.
In the results published today for the second fiscal quarter of 2014 ending July 31, Comverse reported $115 million revenue, down 32% from the corresponding quarter of 2013. The company swung to a loss of $16.9 million in the second quarter of 2014 and losses since the start of 2014 have widened 63% to $33 million.
Published by Globes [online], Israel business news - www.globes-online.com - on September 9, 2014
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