Attached files
| file | filename |
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| 8-K - 8-K - XURA, INC. | form8kq42014pressrelease.htm |
Exhibit 99.1
CONTACT: Mary T. Conway
Conway Communications
for Comverse, Inc.
(781) 772-1679
ir@comverse.com
Comverse Announces Fiscal 2014 Fourth Quarter Results;
Conference Call to be Held Today at 8:00 AM
WAKEFIELD, MA, April 16, 2015 - Comverse, Inc. (“Comverse”; NASDAQ: CNSI) today announced its results for the fourth quarter ("Q4") and fiscal year ended January 31, 2015 ("fiscal 2014").
Consolidated Highlights: Below is selected consolidated financial information for Q4 and fiscal 2014, prepared in accordance with generally accepted accounting principles (“GAAP”), except as noted.
Comverse, Inc.: | Three Months Ended January 31, | Fiscal Years Ended January 31, | |||||||||||||
(In thousands) | 2015 | 2014 | 2015 | 2014 | |||||||||||
Total revenue | $ | 119,734 | $ | 166,514 | $ | 477,305 | $ | 652,501 | |||||||
Costs and expenses | |||||||||||||||
Cost of revenue | 75,694 | 112,140 | 308,642 | 402,476 | |||||||||||
Research and development, net | 11,049 | 17,036 | 56,334 | 67,512 | |||||||||||
Selling, general and administrative | 22,604 | 30,689 | 111,832 | 134,031 | |||||||||||
Other operating expenses | 3,632 | 2,924 | 16,333 | 10,783 | |||||||||||
Total costs and expenses | 112,979 | 162,789 | 493,141 | 614,802 | |||||||||||
Income (loss) from operations | 6,755 | 3,725 | (15,836 | ) | 37,699 | ||||||||||
Expense adjustments | 8,041 | 8,730 | 35,918 | 18,950 | |||||||||||
Comverse performance (1) | 14,796 | 12,455 | 20,082 | 56,649 | |||||||||||
Income (loss) before income tax benefit (expense) | 5,040 | 1,514 | (11,855 | ) | 27,875 | ||||||||||
Income tax benefit (expense) | 4,868 | 14,263 | (10,284 | ) | (9,189 | ) | |||||||||
Net income (loss) | 9,908 | 15,777 | (22,139 | ) | 18,686 | ||||||||||
Basic earnings (loss) per share | $ | 0.45 | $ | 0.71 | $ | (1.00 | ) | $ | 0.84 | ||||||
Diluted earnings (loss) per share | $ | 0.45 | $ | 0.70 | $ | (1.00 | ) | $ | 0.83 | ||||||
Interest expense | (165 | ) | (282 | ) | (641 | ) | (847 | ) | |||||||
Depreciation and amortization | $ | (5,469 | ) | $ | (4,962 | ) | $ | (20,359 | ) | $ | (19,032 | ) | |||
Operating margin | 5.6 | % | 2.2 | % | (3.3 | )% | 5.8 | % | |||||||
Comverse performance margin | 12.4 | % | 7.5 | % | 4.2 | % | 8.7 | % | |||||||
Net cash (used in) provided by operating activities (2) | $ | (4,161 | ) | $ | 12,008 | $ | (69,595 | ) | $ | 6,621 | |||||
(1) "Comverse performance" has not been prepared in accordance with GAAP. See “Presentation of Non-GAAP Financial Measures” below.
(2) Includes approximately $10.9 million of cash proceeds related to an Italian VAT refund received during first quarter of the fiscal year ended January 31, 2014.
Tech Mahindra:
On April 15, 2015, Comverse and Tech Mahindra announced an agreement in principle on a strategic relationship, whereby Comverse will accelerate its transformation as a global innovator in digital services by leveraging Tech Mahindra’s expertise and scale in development and delivery of digital offerings. As part of this initiative, employees from certain functions within Comverse’s Digital Services business unit are anticipated to join Tech Mahindra.
"I am pleased with the progress we have made thus far, in terms of new wins in our business units and our organizational efforts. Our agreement in principle with Tech Mahindra is an integral step, and I am eager to continue our efforts in repositioning and transforming Comverse for a strong and healthy future. We see all of these steps offering important benefits to our company, our customers, our employees and our shareholders,” said Philippe Tartavull, President and CEO of Comverse, Inc.
Business Segment Highlights:
Three Months Ended January 31, | Fiscal Years Ended January 31, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
(Dollars in thousands) | |||||||||||||||
SEGMENT RESULTS | |||||||||||||||
BSS | |||||||||||||||
Segment revenue | $ | 65,471 | $ | 78,239 | $ | 250,733 | $ | 299,561 | |||||||
Gross margin | 37.3 | % | 32.6 | % | 41.5 | % | 37.0 | % | |||||||
Income from operations | 11,231 | 9,316 | 50,511 | 44,636 | |||||||||||
Operating margin | 17.2 | % | 11.9 | % | 20.1 | % | 14.9 | % | |||||||
Segment performance | 12,033 | 10,017 | 53,410 | 47,557 | |||||||||||
Segment performance margin | 18.4 | % | 12.8 | % | 21.3 | % | 15.9 | % | |||||||
Digital Services | |||||||||||||||
Segment revenue | $ | 54,263 | $ | 88,275 | $ | 226,572 | $ | 352,940 | |||||||
Gross margin | 40.9 | % | 39.6 | % | 38.4 | % | 44.7 | % | |||||||
Income from operations | 13,730 | 28,098 | 56,015 | 127,008 | |||||||||||
Operating margin | 25.3 | % | 31.8 | % | 24.7 | % | 36.0 | % | |||||||
Segment performance | 13,825 | 28,134 | 56,213 | 127,224 | |||||||||||
Segment performance margin | 25.5 | % | 31.9 | % | 24.8 | % | 36.0 | % | |||||||
All Other | |||||||||||||||
Loss from operations | $ | (18,206 | ) | $ | (33,689 | ) | $ | (122,362 | ) | $ | (133,945 | ) | |||
Segment performance | (11,062 | ) | (25,696 | ) | (89,541 | ) | (118,132 | ) | |||||||
Selected Balance Sheet Highlights: Below is selected balance sheet data:
As of | |||||||
(In millions) | January 31, 2015 | January 31, 2014 | |||||
Cash and cash equivalents | $ | 158.1 | $ | 254.6 | |||
Restricted cash (including long-term restricted cash) and bank time deposits | 43.7 | 68.2 | |||||
Total | $ | 201.8 | $ | 322.8 | |||
Conference Call Details
Comverse will be conducting a conference call today, April 16, 2015 at 8:00 a.m. ET. To listen to the conference call live, please dial (678) 825-8369. Please dial-in at least ten minutes before the scheduled start time. A live webcast can be accessed at www.comverse.com by following links to the events and presentations page under the Investors section. Following the call, a replay of the webcast will be archived in the same location.
Segment Performance
We evaluate our business by assessing the performance of each of our operating segments. Our Chief Executive Officer is our chief operating decision maker (“CODM”). The CODM uses segment performance, as defined below, as the primary basis for assessing the financial results of the operating segments and for the allocation of resources. Segment performance, as we define it in accordance with the Financial Accounting Standards Board's guidance relating to segment reporting, is not necessarily comparable to other similarly titled captions of other companies.
Segment performance is computed by management as (loss) income from operations adjusted for the following: (i) stock-based compensation expense; (ii) amortization of intangible assets; (iii) compliance-related professional fees; (iv) compliance-related compensation and other expenses; (v) Italian VAT recovery recorded within operating expense; (vi) strategic related costs (vii) write-off of property and equipment; (viii) certain litigation settlements and related costs; (ix) restructuring expenses; and (x) certain other gains and expenses. Compliance-related professional fees relate to fees and expenses recorded in connection with our efforts to remediate material weaknesses in internal control over financial reporting. Strategic related costs include business strategy evaluation and mergers and acquisition efforts.
Presentation of Non-GAAP Financial Measures
We provide Comverse performance, a non-GAAP financial measure, as additional information for our operating results. This measure is not in accordance with, or an alternative for, GAAP financial measures and may be different from, or not comparable to similarly titled or other non-GAAP financial measures used by other companies. We believe that the presentation of this non-GAAP financial measure provides useful information to investors regarding certain additional financial and business trends relating to our results of operations as viewed by management in monitoring our businesses, reviewing financial results and for planning purposes. See “Consolidated Reconciliation of GAAP to Non-GAAP Financial Measures” below.
About Comverse, Inc.
At the core of the evolution of how we communicate, exchange information and monetize the digital world, Comverse enables the creation and monetization of innovative digital services for telecom and enterprise service providers through its proven and innovative product portfolio that includes managed BSS and Policy (PCRF), Enterprise Billing and Digital Services - all backed by Managed and Professional Services. Comverse’s extensive customer base spans more than 125 countries with solutions successfully delivered to over 450 communication service providers serving more than two billion subscribers. Comverse’s solutions are available in a variety of delivery models, including on-site, cloud, hosted/SaaS and managed services. For more information, visit www.comverse.com.
Forward-Looking Statements
This press release includes “forward-looking statements.” Forward-looking statements include financial projections, statements of plans and objectives for future operations, statements of future economic performance, and statements of assumptions relating thereto. In some cases, forward-looking statements can be identified by the use of terminology such as “may,” “expects,” “plans,” “anticipates,” “estimates,” “believes,” “potential,” “projects,” “forecasts,” “intends,” or the negative thereof or other comparable terminology. By their very nature, forward-looking statements involve known and unknown risks, uncertainties and other important factors that could cause actual results, performance and the timing of events to differ materially from those anticipated, expressed or implied by the forward-looking statements in this press release. Such risks or uncertainties may give rise to future claims and increase exposure to contingent liabilities. These risks and uncertainties relate to (among other factors) the market price of our stock, operating expenses and cash flows, variability of our tax provision, and the additional
risks described in the sections entitled “Forward-Looking Statements” and Item 1A, “Risk Factors” and elsewhere in the company's Annual Report on Form 10-K, or in subsequently filed periodic, current or other reports. We undertake no commitment to update or revise any forward-looking statements except as required by law.
These risks and uncertainties discussed above, as well as others, are discussed in greater detail in our filings with the SEC. The documents and reports we file with the SEC are available through us, or our website, www.comverse.com, or through the SEC's Electronic Data Gathering, Analysis, and Retrieval system (EDGAR) at www.sec.gov.
COMVERSE, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except share and per share data)
Three Months Ended January 31, | Fiscal Years Ended January 31, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
Revenue: | |||||||||||||||
Product revenue | $ | 26,000 | $ | 61,359 | $ | 99,768 | $ | 220,167 | |||||||
Service revenue | 93,734 | 105,155 | 377,537 | 432,334 | |||||||||||
Total revenue | 119,734 | 166,514 | 477,305 | 652,501 | |||||||||||
Costs and expenses: | |||||||||||||||
Product costs | 16,035 | 36,323 | 55,572 | 116,259 | |||||||||||
Service costs | 59,659 | 75,817 | 253,070 | 286,217 | |||||||||||
Research and development, net | 11,049 | 17,036 | 56,334 | 67,512 | |||||||||||
Selling, general and administrative | 22,604 | 30,689 | 111,832 | 134,031 | |||||||||||
Other operating expenses: | |||||||||||||||
Restructuring expenses and write-off of property and equipment | 3,632 | 2,924 | 16,333 | 10,783 | |||||||||||
Total other operating expenses | 3,632 | 2,924 | 16,333 | 10,783 | |||||||||||
Total costs and expenses | 112,979 | 162,789 | 493,141 | 614,802 | |||||||||||
Income (loss) from operations | 6,755 | 3,725 | (15,836 | ) | 37,699 | ||||||||||
Interest income | 139 | 178 | 480 | 614 | |||||||||||
Interest expense | (165 | ) | (282 | ) | (641 | ) | (847 | ) | |||||||
Foreign currency transaction (loss) gain, net | (1,668 | ) | (2,529 | ) | 4,659 | (10,290 | ) | ||||||||
Other (expense) income, net | (21 | ) | 422 | (517 | ) | 699 | |||||||||
Income (loss) before income tax benefit (expense) | 5,040 | 1,514 | (11,855 | ) | 27,875 | ||||||||||
Income tax benefit (expense) | 4,868 | 14,263 | (10,284 | ) | (9,189 | ) | |||||||||
Net income (loss) | 9,908 | 15,777 | (22,139 | ) | 18,686 | ||||||||||
Weighted average common shares outstanding: | |||||||||||||||
Basic | 21,853,129 | 22,240,517 | 22,190,630 | 22,164,131 | |||||||||||
Diluted | 21,966,408 | 22,555,426 | 22,190,630 | 22,382,234 | |||||||||||
Earnings (loss) per share attributable to Comverse, Inc.’s stockholders: | |||||||||||||||
Basic earnings (loss) per share | $ | 0.45 | $ | 0.71 | $ | (1.00 | ) | $ | 0.84 | ||||||
Diluted earnings (loss) per share | $ | 0.45 | $ | 0.70 | $ | (1.00 | ) | $ | 0.83 | ||||||
COMVERSE, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In thousands, except share and per share data)
January 31, | |||||||
2015 | 2014 | ||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 158,121 | $ | 254,580 | |||
Restricted cash and bank deposits | 35,802 | 34,343 | |||||
Accounts receivable, net of allowance of $4,403 and $6,945, respectively | 71,670 | 89,361 | |||||
Inventories | 17,817 | 16,166 | |||||
Deferred cost of revenue | 7,059 | 14,500 | |||||
Deferred income taxes | 13,781 | 2,329 | |||||
Prepaid expenses | 15,156 | 17,000 | |||||
Other current assets | 10,570 | 1,680 | |||||
Total current assets | 329,976 | 429,959 | |||||
Property and equipment, net | 49,230 | 41,541 | |||||
Goodwill | 151,217 | 150,346 | |||||
Intangible assets, net | 4,049 | 5,153 | |||||
Deferred cost of revenue | 30,437 | 45,717 | |||||
Deferred income taxes | 3,064 | 1,720 | |||||
Long-term restricted cash | 7,940 | 33,815 | |||||
Other assets | 30,439 | 40,586 | |||||
Total assets | $ | 606,352 | $ | 748,837 | |||
LIABILITIES AND EQUITY | |||||||
Current liabilities: | |||||||
Accounts payable and accrued expenses | $ | 121,720 | $ | 168,406 | |||
Deferred revenue | 185,323 | 239,902 | |||||
Deferred income taxes | 1,491 | 514 | |||||
Income taxes payable | 2,166 | 2,102 | |||||
Total current liabilities | 310,700 | 410,924 | |||||
Deferred revenue | 89,999 | 113,426 | |||||
Deferred income taxes | 56,815 | 43,735 | |||||
Other long-term liabilities | 135,456 | 147,942 | |||||
Total liabilities | 592,970 | 716,027 | |||||
Commitments and contingencies | |||||||
Equity: | |||||||
Common stock, $0.01 par value - authorized, 100,000,000 shares; issued, 22,591,411 and 22,286,123 shares, respectively; outstanding, 21,830,081 and 22,251,226 shares, respectively | 226 | 223 | |||||
Treasury stock, at cost, 761,330 and 34,897 shares, respectively | (17,211 | ) | (1,024 | ) | |||
Accumulated deficit | (46,390 | ) | (24,251 | ) | |||
Additional paid-in-capital | 45,935 | 34,530 | |||||
Accumulated other comprehensive income | 30,822 | 23,332 | |||||
Total equity | 13,382 | 32,810 | |||||
Total liabilities and equity | $ | 606,352 | $ | 748,837 | |||
COMVERSE, INC. AND SUBSIDIARIES
CONSOLIDATED AND COMBINED STATEMENTS OF CASH FLOWS
(In thousands)
Fiscal Years Ended January 31, | |||||||||||
2015 | 2014 | 2013 | |||||||||
Cash flows from operating activities: | |||||||||||
Net (loss) income | $ | (22,139 | ) | $ | 18,686 | $ | 6,248 | ||||
Net income from discontinued operations | — | — | (26,542 | ) | |||||||
Non-cash items | |||||||||||
Depreciation and amortization | 20,359 | 19,032 | 31,865 | ||||||||
Impairment of goodwill | — | — | 5,605 | ||||||||
Provision for doubtful accounts | 1,329 | 1,293 | 518 | ||||||||
Stock-based compensation expense | 11,368 | 10,208 | 7,517 | ||||||||
Deferred income taxes | 928 | 17,345 | (11,724 | ) | |||||||
Inventory write-downs | 2,553 | 4,239 | 6,097 | ||||||||
Other non-cash items, net | 2,705 | (765 | ) | 1,244 | |||||||
Changes in assets and liabilities: | |||||||||||
Accounts receivable | 12,419 | 32,498 | 9,538 | ||||||||
Inventories | (6,750 | ) | 374 | (7,085 | ) | ||||||
Deferred cost of revenue | 22,723 | 45,882 | 36,124 | ||||||||
Prepaid expense and other current assets | (9,108 | ) | 12,845 | 14,881 | |||||||
Accounts payable and accrued expenses | (38,005 | ) | (12,926 | ) | (19,806 | ) | |||||
Income tax payable | 993 | (7,237 | ) | 37,828 | |||||||
Deferred revenue | (69,277 | ) | (110,828 | ) | (85,036 | ) | |||||
Tax contingencies | (655 | ) | (24,036 | ) | 17,889 | ||||||
Other assets and liabilities | 962 | 11 | 3,029 | ||||||||
Net cash (used in) provided by operating activities - continuing operations | (69,595 | ) | 6,621 | 28,190 | |||||||
Net cash used in operating activities - discontinued operations | — | — | (1,277 | ) | |||||||
Net cash (used in) provided by operating activities | (69,595 | ) | 6,621 | 26,913 | |||||||
Cash flows from investing activities: | |||||||||||
Purchase of other assets | — | — | (1,131 | ) | |||||||
Proceeds from sale of Starhome B.V., net of cash sold of $30.9 million | — | — | 6,340 | ||||||||
Purchase of property and equipment | (23,377 | ) | (12,341 | ) | (5,402 | ) | |||||
Acquisition of Solaiemes, net of cash acquired | (2,673 | ) | — | — | |||||||
Net change in restricted cash and bank deposits | 23,791 | (26,918 | ) | (4,678 | ) | ||||||
Other, net | 106 | 962 | 389 | ||||||||
Net cash used in investing activities | (2,153 | ) | (38,297 | ) | (4,482 | ) | |||||
Cash flows from financing activities: | |||||||||||
Decrease in net investment by CTI | — | — | 1,052 | ||||||||
Borrowings under note payable to CTI | — | — | 9,500 | ||||||||
CTI capital contribution | — | 25,000 | 38,500 | ||||||||
Payment for repurchase of common stock in connection with tax liabilities upon settlement of awards | (1,053 | ) | (991 | ) | (33 | ) | |||||
Payment for repurchase of common stock under repurchase program | (15,134 | ) | — | — | |||||||
Proceeds from stock options exercises and issuance of subsidiary common stock | 40 | 1,109 | 233 | ||||||||
Borrowings | 87 | — | — | ||||||||
Repayments | (100 | ) | — | — | |||||||
Net cash (used in) provided by financing activities | (16,160 | ) | 25,118 | 49,252 | |||||||
Effects of exchange rates on cash and cash equivalents | (8,551 | ) | (1,783 | ) | (1,954 | ) | |||||
Net (decrease) increase in cash and cash equivalents | (96,459 | ) | (8,341 | ) | 69,729 | ||||||
Cash and cash equivalents, beginning of year including cash from discontinued operations | 254,580 | 262,921 | 193,192 | ||||||||
Cash and cash equivalents, end of year | $ | 158,121 | $ | 254,580 | $ | 262,921 | |||||
COMVERSE, INC. AND SUBSIDIARIES
CONSOLIDATED RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(UNAUDITED)
Three Months Ended January 31, | Fiscal Years Ended January 31, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
(In thousands) | |||||||||||||||
Income (loss) from operations | $ | 6,755 | $ | 3,725 | $ | (15,836 | ) | $ | 37,699 | ||||||
Expense Adjustments: | |||||||||||||||
Stock-based compensation expense | 2,762 | 2,197 | 11,368 | 10,208 | |||||||||||
Amortization of intangible assets | 793 | 695 | 2,984 | 2,765 | |||||||||||
Compliance-related professional fees | 265 | 594 | 1,024 | 2,144 | |||||||||||
Compliance-related compensation and other expenses | — | 36 | (70 | ) | 199 | ||||||||||
Italian VAT recovery recorded within operating expense | — | — | — | (10,861 | ) | ||||||||||
Strategic related costs | — | — | 2,576 | — | |||||||||||
Write-off of property and equipment | 322 | 231 | 1,970 | 482 | |||||||||||
Certain litigation settlements and related costs | 41 | (1 | ) | 87 | (16 | ) | |||||||||
Restructuring expenses | 3,632 | 2,924 | 14,869 | 10,783 | |||||||||||
Gain on sale of fixed assets | (10 | ) | (9 | ) | (31 | ) | (41 | ) | |||||||
Other | 236 | 2,063 | 1,141 | 3,287 | |||||||||||
Total expense adjustments | 8,041 | 8,730 | 35,918 | 18,950 | |||||||||||
Comverse performance | $ | 14,796 | $ | 12,455 | $ | 20,082 | $ | 56,649 | |||||||
COMVERSE, INC. AND SUBSIDIARIES
BUSINESS SEGMENT INFORMATION
(UNAUDITED)
BSS | Digital Services | All Other | Combined | ||||||||||||
(In thousands) | |||||||||||||||
Three Months Ended January 31, 2015 | |||||||||||||||
Maintenance revenue | $ | 30,085 | $ | 24,878 | $ | — | $ | 54,963 | |||||||
Customer solutions revenue | 35,386 | 29,385 | — | 64,771 | |||||||||||
Total revenue | $ | 65,471 | $ | 54,263 | $ | — | $ | 119,734 | |||||||
Total costs and expenses | $ | 54,240 | $ | 40,533 | $ | 18,206 | $ | 112,979 | |||||||
Income (loss) from operations | $ | 11,231 | $ | 13,730 | $ | (18,206 | ) | $ | 6,755 | ||||||
Computation of segment performance: | |||||||||||||||
Segment revenue | $ | 65,471 | $ | 54,263 | $ | — | |||||||||
Total costs and expenses | $ | 54,240 | $ | 40,533 | $ | 18,206 | |||||||||
Segment expense adjustments: | |||||||||||||||
Stock-based compensation expense | — | — | 2,762 | ||||||||||||
Amortization of intangible assets | 698 | 95 | — | ||||||||||||
Compliance-related professional fees | — | — | 265 | ||||||||||||
Write-off of property and equipment | 43 | — | 279 | ||||||||||||
Certain litigation settlements and related cost | — | — | 41 | ||||||||||||
Restructuring expenses | — | — | 3,632 | ||||||||||||
Gain on sale of fixed assets | 61 | — | (71 | ) | |||||||||||
Other | — | — | 236 | ||||||||||||
Segment expense adjustments | 802 | 95 | 7,144 | ||||||||||||
Segment expenses | 53,438 | 40,438 | 11,062 | ||||||||||||
Segment performance | $ | 12,033 | $ | 13,825 | $ | (11,062 | ) | ||||||||
Interest expense | $ | — | $ | — | $ | (165 | ) | $ | (165 | ) | |||||
Depreciation | $ | (890 | ) | $ | (1,264 | ) | $ | (2,522 | ) | $ | (4,676 | ) | |||
COMVERSE, INC. AND SUBSIDIARIES
BUSINESS SEGMENT INFORMATION
(UNAUDITED)
BSS | Digital Services | All Other | Combined | ||||||||||||
(In thousands) | |||||||||||||||
Three Months Ended January 31, 2014 | |||||||||||||||
Maintenance revenue | $ | 35,019 | $ | 33,924 | $ | — | $ | 68,943 | |||||||
Customer solutions revenue | 43,228 | 54,343 | — | 97,571 | |||||||||||
Total revenue | $ | 78,247 | $ | 88,267 | $ | — | $ | 166,514 | |||||||
Total costs and expenses | $ | 68,923 | $ | 60,177 | $ | 33,689 | $ | 162,789 | |||||||
Income (loss) from operations | $ | 9,324 | $ | 28,090 | $ | (33,689 | ) | $ | 3,725 | ||||||
Computation of segment performance: | |||||||||||||||
Segment revenue | $ | 78,247 | $ | 88,267 | $ | — | |||||||||
Total costs and expenses | $ | 68,923 | $ | 60,177 | $ | 33,689 | |||||||||
Segment expense adjustments: | |||||||||||||||
Stock-based compensation expense | — | — | 2,197 | ||||||||||||
Amortization of intangible assets | 695 | — | — | ||||||||||||
Compliance-related professional fees | — | — | 594 | ||||||||||||
Compliance-related compensation and other expenses | — | 36 | — | ||||||||||||
Write-off of property and equipment | — | — | 231 | ||||||||||||
Certain litigation settlements and related costs | — | — | (1 | ) | |||||||||||
Restructuring expenses | — | — | 2,924 | ||||||||||||
Gain on sale of fixed assets | — | — | (9 | ) | |||||||||||
Other | 6 | — | 2,057 | ||||||||||||
Segment expense adjustments | 701 | 36 | 7,993 | ||||||||||||
Segment expenses | 68,222 | 60,141 | 25,696 | ||||||||||||
Segment performance | $ | 10,025 | $ | 28,126 | $ | (25,696 | ) | ||||||||
Interest expense | $ | — | $ | — | $ | (282 | ) | $ | (282 | ) | |||||
Depreciation | $ | (1,259 | ) | $ | (1,328 | ) | $ | (1,680 | ) | $ | (4,267 | ) | |||
COMVERSE, INC. AND SUBSIDIARIES
BUSINESS SEGMENT INFORMATION
BSS | Digital Services | All Other | Consolidated | ||||||||||||
(In thousands) | |||||||||||||||
Fiscal Year Ended January 31, 2015 | |||||||||||||||
Maintenance revenue | $ | 118,086 | $ | 109,559 | $ | — | $ | 227,645 | |||||||
Customer solutions revenue | 132,647 | 117,013 | — | 249,660 | |||||||||||
Total revenue | $ | 250,733 | $ | 226,572 | $ | — | $ | 477,305 | |||||||
Total costs and expenses | $ | 200,222 | $ | 170,557 | $ | 122,362 | $ | 493,141 | |||||||
Income (loss) from operations | $ | 50,511 | $ | 56,015 | $ | (122,362 | ) | $ | (15,836 | ) | |||||
Computation of segment performance: | |||||||||||||||
Segment revenue | $ | 250,733 | $ | 226,572 | $ | — | |||||||||
Total costs and expenses | $ | 200,222 | $ | 170,557 | $ | 122,362 | |||||||||
Segment expense adjustments: | |||||||||||||||
Stock-based compensation expense | — | — | 11,368 | ||||||||||||
Amortization of intangible assets | 2,791 | 193 | — | ||||||||||||
Compliance-related professional fees | — | — | 1,024 | ||||||||||||
Compliance-related compensation and other expenses | — | 1 | (71 | ) | |||||||||||
Strategic-related cost | — | — | 2,576 | ||||||||||||
Write-off of property and equipment | 45 | 3 | 1,922 | ||||||||||||
Certain litigation settlements and related cost | — | — | 87 | ||||||||||||
Restructuring expenses | — | — | 14,869 | ||||||||||||
Gain on sale of fixed assets | 63 | 1 | (95 | ) | |||||||||||
Other | — | — | 1,141 | ||||||||||||
Segment expense adjustments | 2,899 | 198 | 32,821 | ||||||||||||
Segment expenses | 197,323 | 170,359 | 89,541 | ||||||||||||
Segment performance | $ | 53,410 | $ | 56,213 | $ | (89,541 | ) | ||||||||
Interest expense | $ | — | $ | — | $ | (641 | ) | $ | (641 | ) | |||||
Depreciation | $ | (3,522 | ) | $ | (5,092 | ) | $ | (8,761 | ) | $ | (17,375 | ) | |||
COMVERSE, INC. AND SUBSIDIARIES
BUSINESS SEGMENT INFORMATION
BSS | Digital Services | All Other | Combined | ||||||||||||
(In thousands) | |||||||||||||||
Fiscal Year Ended January 31, 2014 | |||||||||||||||
Maintenance revenue | $ | 128,024 | $ | 135,242 | $ | — | $ | 263,266 | |||||||
Customer solutions revenue | 171,537 | 217,698 | — | 389,235 | |||||||||||
Total revenue | $ | 299,561 | $ | 352,940 | $ | — | $ | 652,501 | |||||||
Total costs and expenses | $ | 254,925 | $ | 225,932 | $ | 133,945 | $ | 614,802 | |||||||
Income (loss) from operations | $ | 44,636 | $ | 127,008 | $ | (133,945 | ) | $ | 37,699 | ||||||
Computation of segment performance: | |||||||||||||||
Segment revenue | $ | 299,561 | $ | 352,940 | $ | — | |||||||||
Total costs and expenses | $ | 254,925 | $ | 225,932 | $ | 133,945 | |||||||||
Segment expense adjustments: | |||||||||||||||
Stock-based compensation expense | — | — | 10,208 | ||||||||||||
Amortization of intangible assets | 2,765 | — | — | ||||||||||||
Compliance-related professional fees | — | — | 2,144 | ||||||||||||
Compliance-related compensation and other expenses | 122 | 216 | (139 | ) | |||||||||||
Italian VAT recovery recorded within operating expense | — | — | (10,861 | ) | |||||||||||
Write-off of property and equipment | 28 | — | 454 | ||||||||||||
Certain litigation settlements and related costs | — | — | (16 | ) | |||||||||||
Restructuring expenses | — | — | 10,783 | ||||||||||||
Gain on sale of fixed assets | — | — | (41 | ) | |||||||||||
Other | 6 | — | 3,281 | ||||||||||||
Segment expense adjustments | 2,921 | 216 | 15,813 | ||||||||||||
Segment expenses | 252,004 | 225,716 | 118,132 | ||||||||||||
Segment performance | $ | 47,557 | $ | 127,224 | $ | (118,132 | ) | ||||||||
Interest expense | $ | — | $ | — | $ | (847 | ) | $ | (847 | ) | |||||
Depreciation | $ | (3,738 | ) | $ | (5,040 | ) | $ | (7,489 | ) | $ | (16,267 | ) | |||