PROSPECTUS SUPPLEMENT
(To Prospectus dated July 3, 1997)
$115,000,000
COMVERSE TECHNOLOGY, INC.
5 3/4% Convertible Subordinated Debentures due 2006
initially convertible into 2,513,661 Shares of Common Stock, $.10 par value
Set forth in this Prospectus Supplement is certain updating
information regarding the Selling Holders and the price range of the Common
Stock.
THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES
AND EXCHANGE COMMISSION NOR HAS THE COMMISSION PASSED UPON THE ACCURACY OR
ADEQUACY OF THIS PROSPECTUS SUPPLEMENT OR THE ACCOMPANYING PROSPECTUS. ANY
REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.
March 30, 1998
<PAGE>
PRICE RANGE OF COMMON STOCK AND DIVIDEND POLICY
The Company's Common Stock is traded on the Nasdaq National Market
under the symbol "CMVT." The following table sets forth, for the periods
indicated, the range of high and low closing sales prices for the Common
Stock, as reported by Nasdaq.
Low High
1994
First Quarter..................................... $ 8.00 $ 15.63
Second Quarter.................................... 8.25 10.50
Third Quarter..................................... 8.75 11.13
Fourth Quarter.................................... 9.88 14.25
1995
First Quarter..................................... $ 11.00 $ 14.63
Second Quarter.................................... 13.25 18.25
Third Quarter..................................... 17.14 23.38
Fourth Quarter.................................... 19.94 25.69
1996
First Quarter..................................... $ 16.63 $ 25.13
Second Quarter.................................... 23.38 31.19
Third Quarter..................................... 23.75 41.38
Fourth Quarter ................................... 32.56 38.13
1997
First Quarter..................................... $ 36.88 $ 46.38
Second Quarter.................................... 36.50 52.00
Third Quarter..................................... 46.00 53.06
Fourth Quarter.................................... 32.25 54.19
1998
First Quarter (through March 27, 1998)............ $ 30.63 $ 49.00
On March 27, 1998, the last reported sale price of the Common Stock on
the Nasdaq National Market was $47.38. As of March 27, 1998, there were
approximately 1,500 holders of record of the Common Stock.
The Company has never declared or paid dividends on its capital stock
and does not anticipate paying any dividends in the foreseeable future. The
Company currently intends to retain its earnings, if any, to finance the
development and growth of its business.
<PAGE>
SELLING HOLDERS
The Debentures were originally issued by the Company and sold by the
Initial Purchaser, in transactions exempt from the registration
requirements of the Securities Act, to persons reasonably believed by the
Initial Purchaser to be "qualified institutional buyers" (as defined in
Rule 144A under the Securities Act) or other institutional "accredited
investors" (as defined in Rule 501(a)(1), (2), (3) or (7) under the
Securities Act) or in transactions complying with the provisions of
Regulation S under the Securities Act. The Selling Holders (which term
includes their transferees, pledgees, donees or their successors) may from
time to time offer and sell pursuant to this Prospectus any or all of the
Debentures and Common Stock issued upon conversion of the Debentures.
The following table sets forth information with respect to the Selling
Holders and the respective principal amounts of Debentures and shares of
Common Stock beneficially owned by each Selling Holder. Such information
has been obtained from the Selling Holders. Except as otherwise disclosed
herein, none of the Selling Holders has, or within the past three years has
had, any position, office or other material relationship with the Company
or any of its predecessors or affiliates. Because the Selling Holders may
offer all or some portion of the Debentures or the Common Stock issuable
upon conversion thereof pursuant to this Prospectus, no estimate can be
given as to the amount of the Debentures or the Common Stock issuable upon
conversion thereof that will be held by the Selling Holders upon
termination of any such sales. In addition, the Selling Holders identified
below may have sold, transferred or otherwise disposed of all or a portion
of their Debentures since the date on which they provided the information
regarding their Debentures in transactions exempt from the registration
requirements of the Securities Act. Finally, additional Selling Holders may
from time to time be identified and information with respect to such
Selling Holders be provided in a Prospectus Supplement.
<TABLE>
<CAPTION>
Principal Amount Number of
of Debentures Shares of
Beneficially Common Stock
Owned and Beneficially
Selling Holder Offered Hereby Owned(1)
<S> <C> <C>
Equitable Life Assurance --
Separate Account Convertibles ....................... 4,150,000 --
BT Alex. Brown ........................................ 3,000,000 --
State of Oregon Equity ................................ 2,500,000 --
Lehman Brothers Inc. .................................. 2,000,000 --
Van Kampen American Capital Harbor Fund ............... 2,000,000 --
Contintental Assurance Company Separate Account (E).... 1,830,000 --
Hudson River Trust Balanced Account ................... 1,765,000 --
Chase Manhattan Bank as Trustee of
Amoco Corporation Master Trust for
for Employee Pension Plans ............................ 1,750,000 --
Memphis Light, Gas & Water Retirement Fund ............ 1,750,000 --
Carrigaholt Capital (Bermuda) L.P. .................... 1,600,000 --
Hudson River Trust Growth Investors ................... 1,425,000 --
Class 1 C Company, Ltd ................................ 1,410,000 --
Hospital Corp. of America
Money Purchase Plan ................................... 1,320,000 --
Phoenix Income & Growth Fund .......................... 1,250,000 --
Hudson River Trust Growth & Income .................... 1,210,000 --
Paloma Securities L.L.C. .............................. 1,010,000 --
Allstate Insurance Company ............................ 1,000,000 --
Merrill Lynch Capital Markets P.L.C. .................. 1,000,000 --
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Principal Amount Number of
of Debentures Shares of
Beneficially Common Stock
Owned and Beneficially
Selling Holder Offered Hereby Owned(1)
<S> <C> <C>
Lincoln National Convertible Securities Fund........... $865,000 --
Pacific Mutual Life Insurance Company ................. 750,000 --
TQA Vantage Fund Ltd. ................................. 725,000 --
Silverton International Fund Limited .................. 640,000 --
AIM VI Growth and Income Fund, a series
of AIM Variable Insurance Funds, Inc. ............... 600,000 --
Kellner, DiLeo & Co. .................................. 500,000 --
Value Line Convertible Fund ........................... 500,000 --
The HCA Foundation .................................... 460,000 --
The Sumitomo Trust & Banking Co., Ltd. ................ 400,000 --
Van Kampen American Capital
Convertible Securities Fund.......................... 350,000 --
Weirton Trust ......................................... 350,000 --
Associated Electric and Gas Insurance Services Ltd. ... 275,000 --
Starvest Discretionary ................................ 250,000 --
Walker Art Center ..................................... 190,000 --
Greyhound Lines Fund................................... 150,000 --
David Lipscomb University ............................. 120,000 --
United National Life Insurance Co. .................... 110,000 --
Equitable Life Assurance-- Separate Account Balanced... 75,000 --
Fiducie Desjardins .................................... 65,000 --
The Hotel Union & Industry of Hawaii .................. 50,000 --
Savings & Investment Trust ............................ 35,000 --
---------- ----
Total............................................. $39,430,000 --
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</TABLE>
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(1) Excludes shares of Common Stock issuable upon conversion of Debentures.
