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Comverse Technology Shares Rise

The Associated Press

NEW YORK (AP) — Comverse Technology Inc. shares climbed Friday, a day after the voicemail software maker said it settled charges of improper stock option backdating and other accounting practices.

Comverse shares rose 45 cents, or 5.5 percent, to $8.65 in afternoon trading.

Comverse didn't admit or deny guilt to the Securities and Exchange Commission, and the company was not fined. It must file periodic reports with the SEC by Feb. 8. The company had delayed filing financial reports due to the investigation.

In a note to clients Friday, Wedbush Morgan analyst Scott P. Sutherland reiterated his "Buy" rating on the stock and raised his share price target by $2.50 to $10.

Sutherland said the February filing deadline is "a bit better than expected and sets a stake in the ground."

He also said the process of filing reports seems to be "moving along smoothly" with the company's new chief financial officer, Stephen Swad. He was appointed in May.

Additionally, checks show the company is still a strong competitor in its field, Sutherland said.