BSS (inc. billing, revenue assurance)

Amdocs Ramps Sales, Adds Customers

Amdocs clearly hasn't hit its peak yet. The Service Provider Information Technology (SPIT) giant reported record quarterly revenues of $906.3 million for its fiscal first quarter that ended December 31, a year-on-year increase of 4.9%.

Operating income hit $141.5 million, up 17.2%, while net income jumped by 29.2% to $131 million.

And the company believes its sales will continue to rise: Its revenues forecast for the first three months of 2015 (its fiscal second quarter) is $900-930 million, with financial analysts expecting the vendor to deliver at the high end of that range. (See Amdocs Reports Fiscal Q1.)

In addition, Amdocs Ltd. (NYSE: DOX) expects its full fiscal year revenues to increase by between 2.5% and 5.5%, compared with the $3.6 billion reported for the fiscal year that ended September 30, 2014.

Industry experience and scale, in terms of resources and portfolio, is what appears to be driving ongoing demand for Amdocs's products and professional services. While it doesn't win every deal it pitches, Amdocs is constantly adding new customers and expanding its relationships with existing users: In addition to reporting its latest financials late Tuesday, the vendor also announced a five-year BSS and OSS managed services deal with U.S. Cellular Corp. (NYSE: USM), which was already a customer; a BSS transformation deal with long-time customer Telefónica SA (NYSE: TEF) in Brazil, for the carrier's Vivo Participacoes SA quad-play operation; and a deal to provide its cloud-based Mobile Financial Services system to three mobile operators in Norway as part of their mobile payments rollout strategy.

The deal in Norway comes only weeks after Amdocs launched its Mobile Financial Services solution, which has been developed following internal R&D and the integration of technology from Utiba, which Amdocs acquired in early 2014 for $20 million in cash.

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So where will future growth come from? CEO Eli Gelman clearly believes there's some business to be won in India. (See Amdocs Spies Growth In India and Amdocs CEO Interview.)

He also believes there could be deals to strike with some of the web services giants as they expand their communications and networking services offerings.

Some of the major companies "may decide not to develop their own billing and customer management systems when it comes to becoming a real operator," Gelman said during the Amdocs earnings conference call late Tuesday. That could present some new customer opportunities. (See Verizon Ready for Google MVNO Challenge, Google Continues Gigabit Expansion and Kish to Cities: To Get Google, Get Ready.)

That may be true but of course there will be no shortage of rivals, such as Ericsson AB (Nasdaq: ERIC), Netcracker Technology Corp. and Oracle Corp. (Nasdaq: ORCL) and others, looking to pick up that business too.

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

[email protected] 1/28/2015 | 12:52:28 PM
NOt discounting further M&A The CEO is also not discounting further acquisitions to help boost growth further, though it loooks like more 'strategic' (small) deals rather than anything big time.

Though is anyone has the financial muscle to swallow a rival, it would be Amdocs.
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