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8-K - 8-K - COMVERSE TECHNOLOGY INC/NY/ | a8k13112amendment.htm |
EXHIBIT 99.1
COMVERSE TECHNOLOGY, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
(In thousands, except share and per share data)
January 31, | ||||||||
2012 | 2011 | |||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 483,171 | $ | 560,181 | ||||
Restricted cash and bank time deposits | 41,756 | 73,117 | ||||||
Auction rate securities | 272 | 72,441 | ||||||
Accounts receivable, net of allowance of $12,097 and $13,064, respectively | 286,767 | 312,005 | ||||||
Inventories, net | 41,689 | 62,808 | ||||||
Deferred cost of revenue | 46,315 | 51,599 | ||||||
Deferred income taxes | 23,208 | 39,644 | ||||||
Prepaid expenses and other current assets | 100,742 | 90,864 | ||||||
Current assets of discontinued operations | 40,773 | 34,483 | ||||||
Total current assets | 1,064,693 | 1,297,142 | ||||||
Property and equipment, net | 74,540 | 65,635 | ||||||
Goodwill | 1,049,672 | 959,665 | ||||||
Intangible assets, net | 206,264 | 196,460 | ||||||
Deferred cost of revenue | 121,163 | 158,814 | ||||||
Deferred income taxes | 19,620 | 20,766 | ||||||
Other assets | 101,455 | 106,740 | ||||||
Noncurrent assets of discontinued operations | 8,961 | 9,780 | ||||||
Total assets | $ | 2,646,368 | $ | 2,815,002 | ||||
LIABILITIES AND EQUITY | ||||||||
Current liabilities: | ||||||||
Accounts payable and accrued expenses | $ | 374,716 | $ | 394,590 | ||||
Convertible debt obligations | 2,195 | 2,195 | ||||||
Deferred revenue | 504,663 | 543,809 | ||||||
Deferred income taxes | 9,798 | 13,661 | ||||||
Bank loans | 6,228 | 6,000 | ||||||
Litigation settlement | — | 146,150 | ||||||
Income taxes payable | 8,473 | 11,382 | ||||||
Other current liabilities | 41,950 | 50,280 | ||||||
Current liabilities of discontinued operations | 27,984 | 24,598 | ||||||
Total current liabilities | 976,007 | 1,192,665 | ||||||
Bank loans | 591,151 | 583,234 | ||||||
Deferred revenue | 227,985 | 261,466 | ||||||
Deferred income taxes | 81,599 | 52,953 | ||||||
Other long-term liabilities | 211,444 | 227,329 | ||||||
Noncurrent liabilities of discontinued operations | 5,430 | 11,468 | ||||||
Total liabilities | 2,093,616 | 2,329,115 | ||||||
Commitments and contingencies | ||||||||
Equity: | ||||||||
Comverse Technology, Inc. shareholders’ equity: | ||||||||
Common stock, $0.10 par value - authorized, 600,000,000 shares; issued 219,708,779 and 204,937,882 shares, respectively; outstanding, 218,636,842 and 204,533,916 shares, respectively | 21,971 | 20,494 | ||||||
Treasury stock, at cost, 1,071,937 and 403,966 shares, respectively | (8,011 | ) | (3,484 | ) | ||||
Additional paid-in capital | 2,198,086 | 2,088,717 | ||||||
Accumulated deficit | (1,766,364 | ) | (1,707,638 | ) | ||||
Accumulated other comprehensive (loss) income | (4,174 | ) | 14,919 | |||||
Total Comverse Technology, Inc. shareholders’ equity | 441,508 | 413,008 | ||||||
Noncontrolling interest | 111,244 | 72,879 | ||||||
Total equity | 552,752 | 485,887 | ||||||
Total liabilities and equity | $ | 2,646,368 | $ | 2,815,002 |
COMVERSE TECHNOLOGY, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
(In thousands, except share and per share data)
Fiscal Years Ended January 31, | ||||||||||||
2012 | 2011 | 2010 | ||||||||||
Revenue: | ||||||||||||
Product revenue | $ | 666,851 | $ | 676,066 | $ | 618,749 | ||||||
Service revenue | 886,954 | 913,569 | 879,731 | |||||||||
Total revenue | 1,553,805 | 1,589,635 | 1,498,480 | |||||||||
Costs and expenses: | ||||||||||||
Product costs | 274,474 | 258,187 | 245,579 | |||||||||
Service costs | 462,754 | 452,771 | 464,674 | |||||||||
Research and development, net | 205,239 | 245,342 | 259,746 | |||||||||
Selling, general and administrative | 566,587 | 673,512 | 704,815 | |||||||||
Other operating expense (income): | ||||||||||||
Litigation settlements | 4,880 | (17,500 | ) | — | ||||||||
Impairment of intangible assets | — | — | 3,356 | |||||||||
Restructuring charges | 20,728 | 29,934 | 15,413 | |||||||||
Total other operating expense | 25,608 | 12,434 | 18,769 | |||||||||
Total costs and expenses | 1,534,662 | 1,642,246 | 1,693,583 | |||||||||
Income (loss) from operations | 19,143 | (52,611 | ) | (195,103 | ) | |||||||
Interest income | 4,174 | 4,093 | 7,043 | |||||||||
Interest expense | (33,332 | ) | (30,813 | ) | (25,381 | ) | ||||||
Loss on extinguishment of debt | (8,136 | ) | — | — | ||||||||
Other income (expense), net | 21,630 | 5,974 | (18,095 | ) | ||||||||
Income (loss) before income tax (provision) benefit | 3,479 | (73,357 | ) | (231,536 | ) | |||||||
Income tax (provision) benefit | (42,259 | ) | (36,932 | ) | 7,297 | |||||||
Net loss from continuing operations | (38,780 | ) | (110,289 | ) | (224,239 | ) | ||||||
Income (loss) from discontinued operations, net of tax | 7,761 | (8,213 | ) | (40,013 | ) | |||||||
Net loss | (31,019 | ) | (118,502 | ) | (264,252 | ) | ||||||
Less: Net income attributable to noncontrolling interest | (27,707 | ) | (13,820 | ) | (7,783 | ) | ||||||
Net loss attributable to Comverse Technology, Inc. | $ | (58,726 | ) | $ | (132,322 | ) | $ | (272,035 | ) | |||
Weighted average common shares outstanding: | ||||||||||||
Basic and Diluted | 208,301,686 | 205,162,720 | 204,513,420 | |||||||||
Loss per share attributable to Comverse Technology, Inc.’s shareholders: | ||||||||||||
Basic (loss) income per share | ||||||||||||
Continuing operations | $ | (0.31 | ) | $ | (0.62 | ) | $ | (1.14 | ) | |||
Discontinued operations | 0.03 | (0.02 | ) | (0.19 | ) | |||||||
Basic loss per share | $ | (0.28 | ) | $ | (0.64 | ) | $ | (1.33 | ) | |||
Diluted (loss) income per share | ||||||||||||
Continuing operations | $ | (0.31 | ) | $ | (0.62 | ) | $ | (1.14 | ) | |||
Discontinued operations | 0.03 | (0.03 | ) | (0.19 | ) | |||||||
Diluted loss per share | $ | (0.28 | ) | $ | (0.65 | ) | $ | (1.33 | ) | |||
Net loss attributable to Comverse Technology, Inc. | ||||||||||||
Net loss from continuing operations | $ | (63,913 | ) | $ | (127,413 | ) | $ | (232,408 | ) | |||
Income (loss) from discontinued operations, net of tax | 5,187 | (4,909 | ) | (39,627 | ) | |||||||
Net loss attributable to Comverse Technology, Inc. | $ | (58,726 | ) | $ | (132,322 | ) | $ | (272,035 | ) |
2
COMVERSE TECHNOLOGY, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
(UNAUDITED)
(In thousands)
Fiscal Years Ended January 31, | ||||||||||||
2012 | 2011 | 2010 | ||||||||||
Net loss | $ | (31,019 | ) | $ | (118,502 | ) | $ | (264,252 | ) | |||
Other comprehensive (loss) income, net of tax: | ||||||||||||
Foreign currency translation adjustments | (2,059 | ) | (840 | ) | 14,570 | |||||||
Unrealized (loss) gain on available-for-sale securities, net of reclassification adjustments and tax | (21,634 | ) | (7,818 | ) | 15,308 | |||||||
Unrealized gain (loss) on cash flow hedges, net of reclassification adjustments and tax | 280 | (206 | ) | 3,815 | ||||||||
Other comprehensive (loss) income, net of tax | (23,413 | ) | (8,864 | ) | 33,693 | |||||||
Comprehensive loss, net of tax | (54,432 | ) | (127,366 | ) | (230,559 | ) | ||||||
Less: comprehensive income attributable to noncontrolling interest | (23,387 | ) | (9,294 | ) | (14,283 | ) | ||||||
Comprehensive loss attributable to Comverse Technology, Inc. | $ | (77,819 | ) | $ | (136,660 | ) | $ | (244,842 | ) |
3
COMVERSE TECHNOLOGY, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF EQUITY
(UNAUDITED)
(In thousands, except share data)
Common Stock | Accumulated Other Comprehensive Income (Loss) | ||||||||||||||||||||||||||||||||||||||||||||||
Number of Shares | Par Value | Treasury Stock | Additional Paid-in Capital | Accumulated Deficit | Unrealized Gains (Losses) on Available-for- Sale Securities | Unrealized (Losses) Gains on Derivatives | Cumulative Translation Adjustment | Total Accumulated Other Comprehensive Income (Loss) | Comverse Technology, Inc.’s Shareholders’ Equity | Noncontrolling Interest | Total Equity | ||||||||||||||||||||||||||||||||||||
Balance, January 31, 2009 | 204,111,096 | $ | 20,421 | $ | (1,219 | ) | $ | 1,945,273 | $ | (1,303,281 | ) | $ | 10,302 | $ | (3,028 | ) | $ | (15,210 | ) | $ | (7,936 | ) | $ | 653,258 | $ | 109,929 | $ | 763,187 | |||||||||||||||||||
Net loss | — | — | — | — | (272,035 | ) | — | — | — | — | (272,035 | ) | 7,783 | (264,252 | ) | ||||||||||||||||||||||||||||||||
Other comprehensive income, net of tax | — | — | — | — | — | 15,361 | 3,813 | 8,019 | 27,193 | 27,193 | 6,500 | 33,693 | |||||||||||||||||||||||||||||||||||
Stock-based compensation expense | — | — | — | 11,322 | — | — | — | — | — | 11,322 | — | 11,322 | |||||||||||||||||||||||||||||||||||
Common stock issued for restricted and deferred stock awards | 158,829 | 16 | — | (16 | ) | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
Impact from equity transactions of subsidiaries and other | — | — | — | 3,107 | — | — | — | — | — | 3,107 | 29,498 | 32,605 | |||||||||||||||||||||||||||||||||||
Repurchase of common stock | (47,901 | ) | — | (359 | ) | — | — | — | — | — | — | (359 | ) | — | (359 | ) | |||||||||||||||||||||||||||||||
Forfeitures of restricted stock | (148,639 | ) | (15 | ) | — | 15 | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||
Dividends to noncontrolling interest | — | — | — | — | — | — | — | — | — | — | (66,474 | ) | (66,474 | ) | |||||||||||||||||||||||||||||||||
Balance, January 31, 2010 | 204,073,385 | $ | 20,422 | $ | (1,578 | ) | $ | 1,959,701 | $ | (1,575,316 | ) | $ | 25,663 | $ | 785 | $ | (7,191 | ) | $ | 19,257 | $ | 422,486 | $ | 87,236 | $ | 509,722 | |||||||||||||||||||||
Net loss | — | — | — | — | (132,322 | ) | — | — | — | — | (132,322 | ) | 13,820 | (118,502 | ) | ||||||||||||||||||||||||||||||||
Other comprehensive income (loss), net of tax | — | — | — | — | — | (7,792 | ) | (37 | ) | 3,491 | (4,338 | ) | (4,338 | ) | (4,526 | ) | (8,864 | ) | |||||||||||||||||||||||||||||
Stock-based compensation expense | — | — | — | 10,402 | — | — | — | — | — | 10,402 | — | 10,402 | |||||||||||||||||||||||||||||||||||
Common stock issued for restricted and deferred stock awards | 709,513 | 72 | — | (72 | ) | — | — | — | — | — | — | — | — |
COMVERSE TECHNOLOGY, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF EQUITY
(UNAUDITED)
(In thousands, except share data)
Common Stock | Accumulated Other Comprehensive Income (Loss) | ||||||||||||||||||||||||||||||||||||||||||||||
Number of Shares | Par Value | Treasury Stock | Additional Paid-in Capital | Accumulated Deficit | Unrealized Gains (Losses) on Available-for- Sale Securities | Unrealized (Losses) Gains on Derivatives | Cumulative Translation Adjustment | Total Accumulated Other Comprehensive Income (Loss) | Comverse Technology, Inc.’s Shareholders’ Equity | Noncontrolling Interest | Total Equity | ||||||||||||||||||||||||||||||||||||
Sale of Verint Systems, Inc. shares of common stock, net of tax | — | — | — | 52,203 | — | — | — | — | 52,203 | 7,117 | 59,320 | ||||||||||||||||||||||||||||||||||||
Impact from equity transactions of subsidiaries and other | — | — | — | 66,483 | — | — | — | — | — | 66,483 | 886 | 67,369 | |||||||||||||||||||||||||||||||||||
Sale of Ulticom, Inc. | — | — | — | — | — | — | — | — | — | — | (7,808 | ) | (7,808 | ) | |||||||||||||||||||||||||||||||||
Repurchase of common stock | (248,982 | ) | — | (1,906 | ) | — | — | — | — | — | — | (1,906 | ) | — | (1,906 | ) | |||||||||||||||||||||||||||||||
Dividends to noncontrolling interest | — | — | — | — | — | — | — | — | — | — | (23,846 | ) | (23,846 | ) | |||||||||||||||||||||||||||||||||
Balance, January 31, 2011 | 204,533,916 | $ | 20,494 | $ | (3,484 | ) | $ | 2,088,717 | $ | (1,707,638 | ) | $ | 17,871 | $ | 748 | $ | (3,700 | ) | $ | 14,919 | $ | 413,008 | $ | 72,879 | $ | 485,887 | |||||||||||||||||||||
— | |||||||||||||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | (58,726 | ) | — | — | — | — | (58,726 | ) | 27,707 | (31,019 | ) | ||||||||||||||||||||||||||||||||
Other comprehensive income (loss), net of tax | — | — | — | — | — | (21,631 | ) | (234 | ) | 2,772 | (19,093 | ) | (19,093 | ) | (4,320 | ) | (23,413 | ) | |||||||||||||||||||||||||||||
Stock-based compensation expense | — | — | — | 9,073 | — | — | — | — | — | 9,073 | — | 9,073 | |||||||||||||||||||||||||||||||||||
Common stock issued for restricted and deferred stock awards | 1,931,361 | 193 | — | (193 | ) | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||
Exercises of stock options | 377,300 | 38 | — | 2,075 | — | — | — | — | — | 2,113 | — | 2,113 | |||||||||||||||||||||||||||||||||||
Impact from equity transactions of subsidiaries and other | — | — | — | 17,160 | — | — | — | — | — | 17,160 | 16,908 | 34,068 | |||||||||||||||||||||||||||||||||||
Common stock issued for settlement of shareholders class action | 12,462,236 | 1,246 | — | 81,254 | — | — | — | — | — | 82,500 | — | 82,500 | |||||||||||||||||||||||||||||||||||
Repurchase of common stock | (667,971 | ) | — | (4,527 | ) | — | — | — | — | — | — | (4,527 | ) | — | (4,527 | ) | |||||||||||||||||||||||||||||||
Dividends to noncontrolling interest | — | — | — | — | — | — | — | — | — | — | (1,930 | ) | (1,930 | ) | |||||||||||||||||||||||||||||||||
Balance, January 31, 2012 | 218,636,842 | $ | 21,971 | $ | (8,011 | ) | $ | 2,198,086 | $ | (1,766,364 | ) | $ | (3,760 | ) | $ | 514 | $ | (928 | ) | $ | (4,174 | ) | $ | 441,508 | $ | 111,244 | $ | 552,752 |
COMVERSE TECHNOLOGY, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
(In thousands)
Fiscal Years Ended January 31, | ||||||||||||
2012 | 2011 | 2010 | ||||||||||
Cash flows from operating activities: | ||||||||||||
Net loss | $ | (31,019 | ) | $ | (118,502 | ) | $ | (264,252 | ) | |||
Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||||||
Non-cash items | 140,226 | 177,474 | 189,087 | |||||||||
Changes in operating assets and liabilities, net of effects of business combinations: | ||||||||||||
Accounts receivable | 19,208 | (8,007 | ) | (351 | ) | |||||||
Inventories | (1,946 | ) | (2,880 | ) | (7,080 | ) | ||||||
Deferred cost of revenue | 41,199 | 43,801 | 12,734 | |||||||||
Prepaid expenses and other current assets | 11,142 | 4,473 | (7,912 | ) | ||||||||
Accounts payable and accrued expenses | (49,753 | ) | (56,896 | ) | (42,869 | ) | ||||||
Deferred revenue | (74,318 | ) | (164,051 | ) | (6,527 | ) | ||||||
Other assets and liabilities | (101,080 | ) | 2,783 | 29,069 | ||||||||
Other, net | 275 | (7,675 | ) | 9 | ||||||||
Net cash used in operating activities—continuing operations | (46,066 | ) | (129,480 | ) | (98,092 | ) | ||||||
Net cash provided by (used in) operating activities—discontinued operations | 11,782 | 2,198 | (2,628 | ) | ||||||||
Net cash used in operating activities | (34,284 | ) | (127,282 | ) | (100,720 | ) | ||||||
Cash flows from investing activities: | ||||||||||||
Proceeds from sales and maturities of investments | 75,475 | 57,256 | 175,206 | |||||||||
Proceeds from sale of Verint Systems, Inc. shares of common stock | — | 76,475 | — | |||||||||
Proceeds from sale of Ulticom, Inc., net of cash sold | — | 2,627 | — | |||||||||
Acquisition of businesses, net of cash acquired | (109,780 | ) | (23,485 | ) | (96 | ) | ||||||
Purchase of property and equipment | (18,455 | ) | (19,789 | ) | (22,808 | ) | ||||||
Capitalization of software development costs | (3,399 | ) | (2,527 | ) | (2,715 | ) | ||||||
Net change in restricted cash and bank time deposits | 29,414 | 6,966 | (58,774 | ) | ||||||||
Proceeds from asset sales | 1,421 | 27,345 | 60 | |||||||||
Settlement of derivative financial instruments not designated as hedges | (1,313 | ) | (34,783 | ) | (19,414 | ) | ||||||
Other, net | 172 | (12 | ) | (7 | ) | |||||||
Net cash (used in) provided by investing activities—continuing operations | (26,465 | ) | 90,073 | 71,452 | ||||||||
Net cash (used) in provided by investing activities—discontinued operations | (525 | ) | 65,305 | 9,229 | ||||||||
Net cash (used in) provided by investing activities | (26,990 | ) | 155,378 | 80,681 | ||||||||
Cash flows from financing activities: | ||||||||||||
Debt issuance costs and other debt-related costs | (15,276 | ) | (4,039 | ) | (152 | ) | ||||||
Borrowings under lines of credit | — | 12,000 | — | |||||||||
Repurchase of convertible debt obligations | 597,136 | — | — | |||||||||
Proceeds from borrowings, net of original issuance discount | — | — | (417,282 | ) | ||||||||
Repayment of bank loans, long-term debt and other financing obligations | (593,580 | ) | (44,163 | ) | (6,088 | ) | ||||||
Repurchase of common stock of CTI and subsidiaries | (6,182 | ) | (6,052 | ) | (359 | ) | ||||||
Excess tax benefits from stock awards plans | 847 | 815 | — | |||||||||
Proceeds from exercises of stock options of CTI and subsidiary | 14,587 | 40,787 | — | |||||||||
Dividends paid to noncontrolling interest | (1,930 | ) | (2,191 | ) | (4,145 | ) | ||||||
Other, net | (1,969 | ) | — | (106 | ) | |||||||
Net cash used in financing activities—continuing operations | (6,367 | ) | (2,843 | ) | (428,132 | ) | ||||||
Net cash used in financing activities—discontinued operations | — | (21,467 | ) | (63,803 | ) | |||||||
Net cash used in financing activities | (6,367 | ) | (24,310 | ) | (491,935 | ) | ||||||
Effects of exchange rates on cash and cash equivalents | 1,888 | 2,732 | 7,919 | |||||||||
Net (decrease) increase in cash and cash equivalents | (65,753 | ) | 6,518 | (504,055 | ) | |||||||
Cash and cash equivalents, beginning of year including cash of discontinued operations | 581,390 | 574,872 | 1,078,927 | |||||||||
Cash and cash equivalents, end of year including cash of discontinued operations | $ | 515,637 | $ | 581,390 | $ | 574,872 | ||||||
Less: Cash and cash equivalents of discontinued operations, end of year | (32,466 | ) | (21,209 | ) | (26,068 | ) | ||||||
Cash and cash equivalents, end of year | $ | 483,171 | $ | 560,181 | $ | 548,804 |
COMVERSE TECHNOLOGY, INC. (PARENT COMPANY ONLY)
CONDENSED BALANCE SHEETS
(UNAUDITED)
(In thousands, except share and per share data)
January 31, | ||||||||
2012 | 2011 | |||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 171,046 | $ | 197,840 | ||||
Restricted cash | — | 33,367 | ||||||
Auction rate securities | 272 | 72,441 | ||||||
Prepaid expenses and other current assets | 3,808 | 2,242 | ||||||
Total current assets | 175,126 | 305,890 | ||||||
Property and equipment, net | 1,564 | 1,815 | ||||||
Advances to and investments in subsidiaries | 435,094 | 441,449 | ||||||
Investment in discontinued operations | 9,359 | 3,984 | ||||||
Other assets | 800 | 1,662 | ||||||
Total assets | $ | 621,943 | $ | 754,800 | ||||
LIABILITIES AND EQUITY | ||||||||
Current liabilities: | ||||||||
Accounts payable and other current liabilities | $ | 27,757 | $ | 37,797 | ||||
Convertible debt obligations | 2,195 | 2,195 | ||||||
Litigation settlement | — | 146,150 | ||||||
Total current liabilities | 29,952 | 186,142 | ||||||
Other long-term liabilities | 150,483 | 155,650 | ||||||
Total liabilities | 180,435 | 341,792 | ||||||
Commitments and contingencies | ||||||||
Equity: | ||||||||
Common stock, $0.10 par value—authorized, 600,000,000 shares; issued, 219,708,779 and 204,937,882 shares, respectively; outstanding, 218,636,842 and 204,553,916, respectively | 21,971 | 20,494 | ||||||
Treasury stock, at cost, 1,071,937 and 403,966 shares, respectively | (8,011 | ) | (3,484 | ) | ||||
Additional paid-in capital | 2,198,086 | 2,088,717 | ||||||
Accumulated deficit | (1,766,364 | ) | (1,707,638 | ) | ||||
Accumulated other comprehensive (loss) income | (4,174 | ) | 14,919 | |||||
Total equity | 441,508 | 413,008 | ||||||
Total liabilities and equity | $ | 621,943 | $ | 754,800 |
COMVERSE TECHNOLOGY, INC. (PARENT COMPANY ONLY)
CONDENSED STATEMENTS OF OPERATIONS
(UNAUDITED)
(In thousands, except share and per share data)
Fiscal Years Ended January 31, | ||||||||||||
2012 | 2011 | 2010 | ||||||||||
Management fees | $ | — | $ | — | $ | 60 | ||||||
Selling, general and administrative expenses | (73,753 | ) | (84,504 | ) | (49,291 | ) | ||||||
Litigation settlement | (4,880 | ) | 17,500 | — | ||||||||
Loss from operations | (78,633 | ) | (67,004 | ) | (49,231 | ) | ||||||
Interest income | 1,758 | 1,922 | 3,271 | |||||||||
Interest expense | (14 | ) | (10 | ) | (103 | ) | ||||||
Other-than-temporary impairment of investments | — | (407 | ) | (6,914 | ) | |||||||
Other income | 29,587 | 17,184 | 92 | |||||||||
Loss before income taxes | (47,302 | ) | (48,315 | ) | (52,885 | ) | ||||||
Income tax benefit | 5,675 | 4,445 | 47,617 | |||||||||
Equity in losses of subsidiaries from continuing operations, net of tax | (22,286 | ) | (83,543 | ) | (227,140 | ) | ||||||
Net loss from continuing operations | (63,913 | ) | (127,413 | ) | (232,408 | ) | ||||||
Loss from discontinued operations, net of tax | 5,187 | (4,909 | ) | (39,627 | ) | |||||||
Net loss | $ | (58,726 | ) | $ | (132,322 | ) | $ | (272,035 | ) | |||
Weighted average shares outstanding | ||||||||||||
Basic and diluted | 208,301,686 | 205,162,720 | 204,513,420 | |||||||||
Loss per share: | ||||||||||||
Basic | ||||||||||||
Continuing operations | $ | (0.31 | ) | $ | (0.62 | ) | $ | (1.14 | ) | |||
Discontinued operations | $ | 0.03 | $ | (0.02 | ) | $ | (0.19 | ) | ||||
Basic loss per share | $ | (0.28 | ) | $ | (0.64 | ) | $ | (1.33 | ) | |||
Diluted | ||||||||||||
Continuing operations | $ | (0.31 | ) | $ | (0.62 | ) | $ | (1.14 | ) | |||
Discontinued operations | $ | 0.03 | $ | (0.03 | ) | $ | (0.19 | ) | ||||
Diluted loss per share | $ | (0.28 | ) | $ | (0.65 | ) | $ | (1.33 | ) |
COMVERSE TECHNOLOGY, INC. (PARENT COMPANY ONLY)
CONDENSED STATEMENTS OF COMPREHENSIVE LOSS
(UNAUDITED)
(In thousands)
Fiscal Years Ended January 31, | ||||||||||||
2012 | 2011 | 2010 | ||||||||||
Net loss | $ | (58,726 | ) | $ | (132,322 | ) | $ | (272,035 | ) | |||
Other comprehensive (loss) income, net of tax: | ||||||||||||
Foreign currency translation adjustments | 2,772 | 3,491 | 8,019 | |||||||||
Unrealized (loss) gain on available-for-sale securities, net of reclassification adjustments and tax | (21,631 | ) | (7,792 | ) | 15,361 | |||||||
Unrealized (loss) gain on cash flow hedges, net of reclassification adjustments and tax | (234 | ) | (37 | ) | 3,813 | |||||||
Other comprehensive (loss) income, net of tax | (19,093 | ) | (4,338 | ) | 27,193 | |||||||
Comprehensive loss, net of tax | $ | (77,819 | ) | $ | (136,660 | ) | $ | (244,842 | ) |
COMVERSE TECHNOLOGY, INC. (PARENT COMPANY ONLY)
CONDENSED STATEMENTS OF CASH FLOWS
(UNAUDITED)
(In thousands)
Fiscal Years Ended January 31, | ||||||||||||
2012 | 2011 | 2010 | ||||||||||
Net cash used in operating activities | $ | (139,642 | ) | $ | (97,062 | ) | $ | (23,045 | ) | |||
Cash flows from investing activities: | ||||||||||||
Proceeds from sales and maturities of investments | 74,950 | 57,218 | 26,370 | |||||||||
Proceeds from sale of Verint Systems, Inc. shares of common stock | — | 76,475 | — | |||||||||
Proceeds from sale of Ulticom, Inc. | — | 13,211 | — | |||||||||
Purchase of property and equipment | (4 | ) | (84 | ) | (891 | ) | ||||||
Payments from subsidiaries, net | 6,949 | 68,247 | 6,150 | |||||||||
Net change in restricted cash | 33,367 | (7,223 | ) | (26,144 | ) | |||||||
Dividend received from discontinued operations | — | 42,399 | 135,323 | |||||||||
Net cash provided by investing activities | 115,262 | 250,243 | 140,808 | |||||||||
Cash flows from financing activities: | ||||||||||||
Repurchase of convertible debt obligations | — | — | (417,282 | ) | ||||||||
Repurchase of common stock | (4,527 | ) | (1,906 | ) | (359 | ) | ||||||
Proceeds from exercise of stock options | 2,113 | — | — | |||||||||
Net cash used in financing activities | (2,414 | ) | (1,906 | ) | (417,641 | ) | ||||||
Net (decrease) increase in cash and cash equivalents | (26,794 | ) | 151,275 | (299,878 | ) | |||||||
Cash and cash equivalents, beginning of year | 197,840 | 46,565 | 346,443 | |||||||||
Cash and cash equivalents, end of year | $ | 171,046 | $ | 197,840 | $ | 46,565 |