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Forward Looking
Statements and
Segment Performance
2
Forward-Looking Statements
This investor presentation contains “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 investor
presentation. Such risks or uncertainties may give rise to future claims and increase
exposure to contingent liabilities.
The risks and uncertainties discussed above, as well as others, are discussed in greater
detail in Item 1A, “Risk Factors” of Comverse Technology, Inc.’s Annual
Report on Form 10-K for the fiscal year ended January 31, 2011 and our other filings with
the SEC. The documents and reports we file with the SEC are available
through the
Company, or its website, www.cmvt.com, or through the SEC’s Electronic Data Gathering, Analysis, and Retrieval system (EDGAR) at
The Company undertakes no commitment to update or revise any forward-looking statements
except as required by law.
Segment Performance
•
The Company uses segment performance, as defined below, as the primary basis for assessing the
financial results of its segments and for the allocation of
resources. Segment
performance, as defined by the Company’s management in accordance with the Financial Accounting Standards Board’s (“FASB”) guidance
relating to segment reporting, is not necessarily comparable to other similarly titled
captions of other companies. Segment performance, as defined by
management, represents
operating results of a segment without the impact of significant expenditures incurred by the segment in connection with the efforts
to become current in periodic reporting obligations under the federal securities laws, certain
non-cash charges, and certain other insignificant gains and
charges.
•
Segment performance is computed by management as income (loss) from operations adjusted for
the following: (i) stock-based compensation expense;
(ii) amortization of
acquisition-related intangibles; (iii) compliance-related professional fees; (iv) compliance-related compensation and other expenses;
(v) impairment charges; (vi) litigation settlements and related costs; (vii)
acquisition-related charges; (viii) restructuring and integration charges; and (ix) certain
other insignificant gains and charges. Compliance-related professional fees and
compliance-related compensation and other expenses relate to fees and
expenses
incurred in connection with (a) the Company’s efforts to complete current and previously issued financial statements and audits of such financial
statements and (b) the Company’s efforts to become and remain current in its periodic
reporting obligations under the federal securities laws.
•
In evaluating each segment’s performance, management uses segment revenue, which consists
of revenue generated by the segment, including intercompany
revenue. Certain segment
performance adjustments relate to expenses included in the calculation of income (loss) from operations, while, from time to time,
certain segment performance adjustments may be presented as adjustments to revenue.
www.sec.gov
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