WOODBURY, N.Y.—Comverse Technology Inc., which sells wireless messaging systems, announced third-quarter results that were in line with expectations and, as anticipated, announced a round of layoffs to cut costs.
The company’s net income was $20 million, compared with $68 million during the same quarter last year. The company ended the quarter with cash and cash equivalents of $1.8 billion. In addition, Comverse said it would cut about 900 positions, or 15 percent of its work force.
“Our third quarter results reflect the impact of the severe global capital spending and economic slowdown,” said Kobi Alexander, the company’s chairman and chief executive officer. “Despite the current difficult economic climate, however, we remain well-positioned as a leader in our major markets, and believe that these markets offer attractive opportunities for long-term growth.”
Comverse’s stock was up slightly after the news to about $22 per share.
