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BSS (inc. billing, revenue assurance)

CSG Breaks New Ground

For major Service Provider Information Technology (SPIT) vendors, winning significant managed services deals appears to be the common currency.

Only a day after Amdocs Ltd. highlighted a major engagement in Europe, billing systems and services specialist CSG Systems International Inc. announced during its second-quarter earnings conference call late Tuesday that it had landed its first significant managed services deal with an unidentified Tier 1 operator in Asia/Pacific. (See Vodafone Outsources to Amdocs.)

CEO Peter Kalan told investors and analysts that the five-year deal will see the operator shift its enterprise services billing processes onto CSG's Singl.eView platform, which will be run on a day-to-day basis by the CSG team out of the operator's data center facilities. He didn't provide any financial details, but noted that the operator is an existing customer and that this deal will result in a four-fold increase in spending with CSG by that operator.

CSG, which has 500 customers worldwide in total, has a number of managed services deals in the U.S. with major companies such as Comcast Corp., but this deal marks a breakthrough for the company in Asia/Pacific. (See Comcast Deal Shrinks CSG's Outlook.)

CSG will be striving for further business in that region to help loosen its dependency on the U.S. market and a number of large customers. Of the company's second-quarter revenues of US$186.1 million, 43 percent came from its three main customers -- Comcast, Dish Network Corp. and Time Warner Cable Inc. Customers in The Americas generated 85 percent of all revenues, while EMEA (Europe, Middle East and Africa) contributed 9 percent and Asia/Pacific just 6 percent.

Those revenues, and the non-GAAP (after one-time costs) earnings of 57 cents per share, were better than expected.

For the full year, CSG expects to generate revenues of between $740 million and $760 million and report non-GAAP earnings of between $2.05 and $2.15. The company's share price ended Tuesday at $23.74.

— Ray Le Maistre, Editor-in-Chief, Light Reading

Ray Le Maistre 8/7/2013 | 1:02:48 PM
re: CSG Breaks New Ground Good deal for CSG in APAC, but it has to be the first of many if it's to be seen as a turning point.
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