Small-Cap Software Provider Comverse Expected To Report Considerable Growth

Small-cap software provider Comverse Inc (NASDAQ: CNSI) is scheduled to announce its first quarter financial results before the market opens on Monday, and analysts are modeling an 80 percent year-over-year decrease in the company’s loss.

In the first quarter of 2014, the company reported a net loss of ($0.72) per share on revenue of $19.13 million. In the last quarter, however, earnings came in at $0.45 per share, and revenue, at $119.73 million.

For the current quarter, the Street is projecting a net loss of ($0.14) per share on revenue of $108 million (Estimize). These estimates imply an 80 percent year-over-year increase in earnings (actually, a decrease in the net loss), and a 464 percent surge in revenue.

It should be noted from the chart above, however that estimates have not been particularly precise over the past couple of years. In fact, the company did not meet consensus in any of the past eight quarter, having fallen short in three of them, and surpassed them in another five quarters. So, while there is no clear trend, history suggests a beat could be expected.

A Takeover Target?

In a recent report, Oppenheimer analyst Shaul Eyal looked into the cybersecurity, big data and cloud computing industries. Among other things, the expert went over some takeover candidates, including Clicksoftware Technologies Ltd (NASDAQ: CKSW), Nuance Communications Inc. (NASDAQ: NUAN) and Comverse.

Related Link: Check Out Oppenheimer's Take On Software, Cybersecurity

According to a recent Benzinga article, “Shareholder activism, low-cost capital and relatively high cash balances are sparking increasing merger activity.”