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Investment house CIBC World Markets has cut its forecasts for

Comverse Technology



) after the company published its results on September 10.

In a report dated the following day, CIBC said that the company roughly met forecasts, but that its layoffs were not extensive enough to stop its losses from growing.

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Comverse, which is trading at a market cap of $1.6 billion, reported revenues of $181.2 million for the second quarter, down 14% from the parallel quarter.

The company had hoped to present revenues of $190 million, although its results were within its guidance range of $180.5 million to $199.5 million. CIBC had predicted revenues of $185 million.

In the conference call following release of its results, Comverse chief executive Kobi Alexander said the company could break even at quarterly revenues of $190 million. He did not provide a target date for that to happen, but predicted that the company would reached a positive proforma net profit during 2003. CIBC saw his statements having a negative effect on the share.

Although Comverse evidently expects to achieve revenues of $190 million in one of the quarters of 2003, CIBC lowered its estimates.

For 2002, the bank sees Comverse presenting revenues of $717 million, compared with its previous estimate of $740 million.

For 2003, CIBC lowered its estimate from $740 million to $655 million.

It did not change its estimate that Comverse will lose 34 cents per share in 2002, but it changed its estimate for 2003 from an operating loss of 12 cents per share to 25 cents per share.