Light Reading

Amdocs Flexes Its Back Office Muscles

Ray Le Maistre
5/2/2014
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Amdocs sent a reminder to the rest of the Service Provider Information Technology (SPIT) community this week that where sheer muscle power in the telecom back office is concerned, it has some of the biggest biceps around.

The telecom software and professional services giant reported its highest ever quarterly revenues, $897 million, up 7% from a year ago, and earnings per share before one-time costs (non-GAAP) of $0.81, better than financial analysts had expected.

That, though, was just Amdocs Ltd. (NYSE: DOX) warming up, as the company then rolled up its sleeves and revealed a string of significant customer engagements.

Long-time customer Sprint Corp. (NYSE: S) has extended its managed billing, customer care, and IT systems contract to 2022 and included the real-time charging capabilities on offer in the vendor's CES 9.1 Convergent Charging system. The extension "is important on two fronts," noted CEO Eli Gelman on the company's earnings conference call. "It reinforces the long-standing strategic partnership with one of our largest customers," and "removes a key source of uncertainty that was [hanging over] us since Softbank's acquisition of Sprint in 2013." (See Softbank Closes on Sprint Acquisition and Amdocs Ain't What It Used to Be.)

The vendor also reminded the market of its selection for AT&T Inc. (NYSE: T)'s Domain 2.0 supplier program, which is at the heart of the carrier's SDN and NFV plans, with Gelman boasting in a prepared company earnings statement that this "is recognition of the value we can bring on the cutting edge of network software, including network virtualization." (See AT&T Adds Amdocs, Juniper to Cloud Initiative.)

Amdocs did warn, though, that its North American business outlook is still somewhat uncertain, as a number of other mergers and acquisitions may impact its customer engagements, most notably T-Mobile's purchase of MetroPCS, AT&T's acquisition of Leap, and consolidation in the Pay TV market, for example Comcast's proposed acquisition of Time Warner Cable. (See Comcast to Send Subs to Charter if TWC Deal Closes.)

Elsewhere, the company unveiled a managed services deal to modernize the wireline billing support systems at Telefonica Argentina, where it has already implemented a new BSS platform for the operator's mobile division. Amdocs is providing sales, provisioning, billing, customer management, self-service, and enterprise-wide product management capabilities. (See Telefonica Argentina Goes With Amdocs.)

In South Africa, national operator Telkom SA Ltd. (NYSE/Johannesburg: TKG) has awarded Amdocs a four-year managed services deal for a converged OSS/BSS operation, while in Taiwan, Far EasTone Telecommunications Co. Ltd. is using Amdocs' systems to upgrade its billing and charging capabilities to support real-time transactions as part of its 4G service rollout. In Europe, the company extended its reach into the Vodafone Group plc (NYSE: VOD) empire, adding two more markets (Romania and Hungary) to the group-wide managed services agreement, taking the total to five. (See Vodafone Outsources to Amdocs.)

All the positive news helped the vendor's share price gain just over 1% on Thursday to close at $47.03, and add a few cents more Friday to $47.09, giving Amdocs a market valuation of $7.5 billion.

— Ray Le Maistre, Circle me on Google+ Follow me on TwitterVisit my LinkedIn profile, Editor-in-Chief, Light Reading

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