Comverse Technology, Inc. (Pink Sheets: CMVT.PK) today announced that
the company had reached a settlement with the United States Securities
and Exchange Commission (the "SEC”) regarding the improper backdating of
stock options and other accounting practices, including the improper
establishment, maintenance, and release of reserves, the
reclassification of certain expenses, and the calculation of backlog of
sales orders. Without admitting or denying the allegations in the SEC’s
complaint, the company consented to the entry of a final judgment under
which it will be subject to a permanent injunction against any future
violations of the federal securities laws and ordered to be in
compliance with its obligations with respect to the filing of periodic
reports with the SEC by February 8, 2010 or, if earlier, the date on
which the company becomes current in its SEC reporting obligations. No
monetary penalties were assessed against the company in conjunction with
the settlement. Subject to the approval of the settlement by the United
States District Court for the Eastern District of New York, the
settlement concludes the SEC's civil action against the company in
connection with these subject matters. These matters were the result of
actions principally taken by senior executives of the company who were
discharged in 2006. The company self-reported these matters to the SEC
and has cooperated fully with the SEC and United States Department of
Justice.
"This is an important step forward, and with these matters now resolved,
we remain focused on executing our plan towards completing our
restatement and executing our strategies for the long-term success of
Comverse Technology, Inc.,” said Andre Dahan, the company’s President
and Chief Executive Officer.
About Comverse Technology, Inc.
Comverse Technology, Inc. is the world’s leading provider of software
and systems enabling value-added services for voice, messaging, mobile
Internet and mobile advertising; converged billing and active customer
management; and IP communications. Over 500 communication service
providers in more than 130 countries use Comverse products to generate
revenue, and improve customer loyalty and operational efficiencies.
Other Comverse Technology subsidiaries include: Verint Systems (Pink
Sheets: VRNT.PK), a leading provider of analytic software-based
actionable intelligence solutions for enterprise workforce optimization
and security intelligence; and Ulticom (Pink Sheets: ULCM.PK), a leading
provider of service essential signaling solutions for wireless,
wireline, and Internet communications.
For additional information, visit the Comverse Technology website at www.cmvt.com.
All product and company names mentioned herein may be registered
trademarks or trademarks of Comverse or the respective referenced
company(s).
Forward-Looking Statements
This release contains "forward-looking statements” under the Private
Securities Litigation Reform Act of 1995 that involve risks and
uncertainties. There can be no assurances that any forward-looking
statements will be achieved. Important factors that could affect the
statements contained herein include: risks relating to the court’s
approval of the settlement described above, the ability of the company
to become current in its reporting obligations by February 8, 2010,
including the possible identification of new significant issues that
impact its financial statements and unforeseen events that could delay
the company’s plan for completion of its financial statements. The
company undertakes no commitment to update or revise forward-looking
statements except as required by law.
