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 4, 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 3, 1998).. $ 30.63 $ 49.00
On March 3, 1998, the last reported sale price of the Common
Stock on the Nasdaq National Market was $45.50. As of February 4,
1998, there were approximately 1,540 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.
Number of
Principal Amount Shares of
Debentures of Common Stock
Beneficially Owned Beneficially
Selling Holder and Offered Hereby Owned(1)
- -------------- ------------------ ------------
Equitable Life Assurance --
Separate Account Convertibles ........... 4,150,000 --
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 --
Merrill Lynch Capital Markets P.L.C. .... 1,000,000 --
<PAGE>
Number of
Principal Amount Shares of
Debentures of Common Stock
Beneficially Owned Beneficially
Selling Holder and Offered Hereby Owned(1)
- -------------- ------------------ ------------
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........................... $35,430,000 --
=========== ======
- ------------------
(1) Excludes shares of Common Stock issuable upon conversion of
Debentures.
