Why Comverse (CNSI) Stock Is Down Today (Update)

Update (12:50 p.m.): Updated to more accurately reflect reported revenue decline.

NEW YORK (TheStreet) -- Comverse  (CNSI) plunged Tuesday after the technology company reported a revenue decline in the fourth quarter of the fiscal year 2013.

The company reported a year-over-year decrease to $166.5 million from $183.5 million, which came up short of the Capital IQ consensus estimate of $170.5 million. Earnings per share, though, increased year over year 70 cents from 49 cents, which beat the consensus estimate of 56 cents.

"During fiscal 2013, we were pleased with the realignment of our product and services portfolio in supporting the transition to IP, cloud-based offerings in Digital Services; the extension of our Kenan initiatives and Comverse One industrialization; and our enhanced managed services deployment," said President and CEO Philippe Tartavull in a statement.

"We have grown year-over-year product bookings in two of our three geographies. However, we faced significant softness in our Asia Pacific region resulting in an overall decline in bookings compared to fiscal 2012. This softness was primarily a function of the overall economic conditions in India and a delay in orders with a large customer in the region. We believe we have a tremendous portfolio of products and a significant install base to drive future growth."

The company also announced a common stock repurchase program for up to $30 million to be executed at management's discretion at any time up to Oct. 9, 2015. As of April 2, Comverse had 22,258,981 shares of common stock outstanding. Comverse would use its own cash resources to repurchase stock under the program.

The stock was down 20.63% to $26.97 at 12:50 p.m. on Tuesday. More than 930,000 shares had changed hands, well above the average volume of 110,955.

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