Network communications software provider
was tumbling in the premarket after posting a first-quarter loss and saying its second-quarter loss would be wider than expected.
The company said it lost $23.58 million, or 13 cents a share, in the first quarter, compared with a profit of $78.96 million, or 43 cents a share, in the year ago quarter.
Excluding nonrecurring charges, Comverse lost $8.18 million, or 4 cents a share. On that basis, analysts polled by Thomson Financial/First Call had been expecting the company to lose 6 cents a share.
Sales for the quarter dropped to $211 million from $365 million a year ago.
In a press release, Comverse said, "Our first quarter results reflect the different dynamics that are currently impacting the markets we serve. Our Comverse and Ulticom divisions, which together comprised over 80% of Comverse Technology's first quarter sales, continued to post revenue declines, as the severe global telecommunications capital spending slowdown persists."
On a conference call following release of the results, Comverse reportedly said it expected to lose 11 cents a share on $190 million in revenue in the second quarter. Analysts had been looking for a loss of 5 cents on $216.7 million in revenue.
Shares of Comverse Technology were off by 5% to $9.70 in premarket trading after closing at $10.21 Wednesday.