Amdocs Ltd. (NYSE: DOX) yesterday published its financial report for its fiscal first quarter of 2010, and provided its guidance for the second fiscal quarter, after the market closed. Despite a drop in revenue and non-GAAP net profit, compared with the corresponding quarter, the company still beat the analysts' consensus. The company also announced the extension of two contracts with AT&T Inc. (NYSE: T) and Bell Canada Enterprises Inc. (NYSE; TSX: BCE)
Amdocs posted $724.8 million for the fiscal first quarter, down 3.9% from the $753.8 million corresponding fiscal quarter of 2009, but up 2.5% compared with the preceding quarter.
Non-GAAP net profit fell to $113.1 million ($0.55 per share) for the fiscal first quarter, down from $116.3 million for the corresponding quarter. GAAP-based net profit rose to $88.4 million ($0.43 per share) from $74.2 million for the corresponding quarter.
The results beat the analysts' consensus was non-GAAP earnings per share of $0.53 on $715.5 million revenue.
In its guidance for the fiscal second quarter, through March 2010, Amdocs estimates non-GAAP earnings per share of $0.52-0.56, and GAAP-based earnings per share of $0.40-0.45, on $730-750 million revenue.
Amdocs CEO Dov Baharav said, "As we emerge from the economic crisis, we feel even better about our competitive position than when we entered. We have improved our operating efficiencies and cost competitiveness, yet we have continued investing in innovation, exemplified by yesterday's launch of Amdocs CES 8. These efforts, combined with our superior business model, are driving our success in winning new business globally with large and emerging service providers alike. Given our market position and the improved demand outlook, we are guiding to sequential revenue growth again in the second fiscal quarter, and we are now internally planning for sequential revenue growth of roughly 1-2% to persist throughout fiscal 2010."
Amdocs also extended its contract to provide customer care, billing, ordering and wholesale platforms for AT&T wireline services through 2017. The company also extended its contract with Bell Canada for support and billing-related services for five years through 2017. The company did not disclose the value of either contract.
Amdocs' share closed at $28.52 yesterday, giving a market cap of $5.86 billion. The share rose 1% in after-hours trading.
Published by Globes [online], Israel business news - www.globes-online.com - on January 21, 2010
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