Comverse Technology announces record first quarter results: Record earnings per share of 24 cents vs. 13 cents; Sales up 38%, net income up 91% to record levels

Business Wire, May 1, 1996

WOODBURY, N.Y.--(BUSINESS WIRE)--May 1, 1996--Comverse Technology Inc. (NASDAQ:CMVT) announced for the quarter ended March 31, 1996 net income after taxes of $5,507,000 (24 cents per share), an increase of 91% over the net income of $2,889,000 (13 cents per share) posted for the corresponding period in 1995.

The company also posted record sales and total revenues of $40,410,000 and $42,196,000, respectively, for the first quarter of 1996, an increase of 38% and 34%, respectively, over the first quarter of 1995.

Kobi Alexander, chairman, president and CEO of Comverse, stated that, "The increase in first quarter revenues reflects strong growth in worldwide sales of the Company's TRILOGUE(R) and AUDIODISK(TM) product lines. During the first quarter we achieved significant new and repeat orders for our TRILOGUE INfinity(TM) multimedia enhanced services platform from wireless and wireline telecommunications network operators. More than 90 phone companies worldwide, including more than 50 wireless network operators, have selected TRILOGUE for their revenue-generating enhanced services."

Alexander continued, "Sales of the AUDIODISK product family were also at a record level, reflecting the ongoing global transition from analog to digital recording and monitoring technology by customers such as law enforcement and intelligence agencies, financial institutions, call centers, telemarketers, correctional institutions, and emergency '911' services."

The company ended the quarter with cash, cash equivalents and short-term investments of $127,309,000, working capital of $160,109,000, total assets of $226,020,000 and stockholders' equity of $127,460,000.

Financial highlights at and for the three month period ended March 31, 1996 and prior year comparisons are as follows: -0-

                      Financial Highlights
              (In thousands, except per share data)