Comverse raises outlook as profit soars

Comverse said it earned $38.3m., or 18 cents a share, up from $15.9m, or eight cents a share, a year earlier.

comverse logo 88 (photo credit:)
comverse logo 88
(photo credit: )
Comverse Technology increased its fourth-quarter outlook and predicted sharp sales growth in 2006 after third-quarter net profit surged 140 percent and sales 22% amid demand for its telecommunications applications. Comverse said it earned $38.3 million, or 18 cents a share, up from $15.9m, or eight cents a share, a year earlier. Sales jumped to just under $299 million from $245.5 million last year. The company beat its own guidance by four cents a share as well as analyst expectations, which had ranged from 15 to 16 cents for EPS and from $291m. to $298.4m. for revenue, as compiled by Thomson Financial Network. In a conference call to analysts, chairman and chief executive Kobi Alexander boosted its fourth-quarter guidance for EPS to 18 cents from 16 cents and for revenue to $325m. from $296m. Alexander also gave 2006 forecasts for the first time, estimating that sales would rise to $1.5b. and EPS to 81 cents. Detailing the third-quarter numbers, Alexander said sales grew for the 12th quarter in a row, while operating margins also expanded. Comverse's network systems division experienced demand for its Total Communication portfolio, which enables call answering and call completion services, advanced messaging, real-time billing, and other telecommunications applications. Earnings also grew at Comverse unit Verint Systems, which develops software that enables the collection and analysis of voice, fax, video, and e-mail transmissions