Billing and business systems company Amdocs Ltd. (Nasdaq: DOX) predicts that it will meet its full-year guidance, after reporting higher revenue and profits for its second fiscal quarter, which were within its guidance. The company also announced a number of new contracts.
Revenue rose 7.7% to $896.9 million for the second fiscal quarter from $832.9 million for the corresponding quarter of 2013. GAAP-based net profit rose to $110.4 million ($0.68 per share) for the second fiscal quarter from $104.9 million for the corresponding quarter, and non-GAAP net profit rose to $131.9 million ($0.81 per share) from $119.3 million.
Cash flow from operations was $131 million for the second fiscal quarter. The 12-month backlog was $2.94 billion at the end of March.
In its guidance for the third fiscal quarter, Amdocs forecasts non-GAAP earnings per share of $0.75-0.81 on $885-915 million revenue.
"As we embark on the second half of fiscal 2014, we are on-track to deliver full year revenue growth toward the mid-point of our previously guided range of 5-8%," said Amdocs CEO Eli Gelman. "As a reminder, this outlook reflects many moving parts, including with respect to macroeconomic and industry conditions. We believe we are executing well and we remain comfortable with our non-GAAP earnings per share growth outlook of 6-9% for the full year."
Amdocs signed contracts in the US, Argentina, South Africa, and Taiwan. It did not disclose the size or terms of any of them. In the US, Sprint Corporation (NYSE: S), extended its managed services deal with Amdocs by selecting the Amdocs Convergent Charging to rapidly create and monetize mobile data services for its 4G LTE network. In Taiwan, Far EasTone Telecommunications Ltd. (FET), chose Amdocs products and services to modernize its charging and billing systems ahead of the launch of 4G LTE services. Telefonica Argentina SA chose Amdocs software to modernize and standardize its BSS operations. Telkom South Africa Ltd. (JSE: TKG) extended its one-year contract with Amdocs to four years, under which Amdocs will provide end-to-end management of the carrier's billing operations, covering application development, integration management, testing, maintenance and bill production, including e-billing.
Published by Globes [online], Israel business news - www.globes-online.com - on May 1, 2014
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