EX-99.1 2 cmvt-1312012x8kexhibit.htm EXHIBIT CMVT - 1.31.2012 - 8K exhibit


 

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