NEW YORK-Shares in Comverse Technology Inc. were down almost 35 percent, falling $13.27 per share to $25.75, after the company last week warned of reduced profits due to a slowing worldwide economy.
Comverse said it anticipates sales for its second quarter of this year to be about $345 million. For the third and fourth quarters, the company now expects about $330 million and $340 million in sales, respectively.
“Although most of our products support profitable, revenue-generating services, and are considered strategic competitive weapons for communication service providers, the capital spending recession and macro-economic slowdown appears to have spread throughout the developed world, and conditions have continued to deteriorate,” said Kobi Alexander, chairman and chief executive officer of Comverse. “Furthermore, the delays in next-generation 2.5/3G wireless network launches have postponed the realization of several significant opportunities.”
Comverse provides software and systems enabling network-based multimedia enhanced communications services.
