) to overweight from underweight.
Analyst Sterling Auty says business has stabilized, and fundamentals are improving. He says demand for voicemail and mobility products has returned. Auty also says Comverse is effectively taking more voicemail customers and further penetrating its existing market share. He notes the fourth quarter backlog jumped up an amazing 61% sequentially; days sales outstanding dropped to 110 days. He also notes the company generated more than $64 million cash flow from operations in the fourth quarter.
Auty narrowed the 19 cents fiscal 2004 (Jan.) loss estimate to an 18-cent loss, and sees seven cents fiscal 2005 earnings per share.