Comverse zero-coupon convertibles will be putable if Nasdaq delists stock

By Angela McDaniels

Seattle, Dec. 12 - Comverse Technology, Inc.'s shares could be delisted from the Nasdaq Stock Market because the company did not file its 10-Q report for the fiscal quarter ended Oct. 31 on time and, if the shares are delisted, Comverse's zero-coupon, zero-yield putable convertible securities due 2023 will be putable at par, according to a 12b-25 form filed with the Securities and Exchange Commission on Tuesday.

Comverse said it did not file the quarterly report because of its ongoing investigation into past stock option grants, the possible misuse of accounting reserves, the understatement of backlog for fiscal 2002 and prior periods and additional accounting issues including errors in the recognition of revenue related to certain contracts, errors in the recording of certain deferred tax accounts and the misclassification of certain expenses in earlier periods.

The last quarterly report the company filed was its 10-Q for the quarter ended Oct. 31, 2005.

The company expects to receive notice from the Nasdaq Stock Market that the latest filing delay could serve as an addition basis for delisting the company's securities, according to a news release.

In September, the Nasdaq Listing and Hearing Review Council issued a stay of any future determinations to delist the company's securities. Comverse said it does not know whether the latest delay will result in a lifting of the stay and a delisting of its shares.

The Woodbury, N.Y., communications and information processing company said it plans to file its 10-Q reports for the fiscal quarters ended April 30, 2006, July 31 and Oct. 31, its 10-K report for the fiscal year ended Jan. 31, 2006 and any restated financial statements "as soon as practicable."

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