Three of the major players in the Service Provider Information Technology (SPIT) sector provided financial updates this week and each can feel relatively pleased with their fiscal performance during the first three months of this year considering the current capex conditions in the global communications sector.
Each of the three rivals is at a different stage of its corporate development, with each facing slightly different challenges and opportunities in the same billing and customer experience management sector.
Amdocs Ltd. reported fiscal second quarter revenues of $833 million, its highest ever, 3 percent higher than a year ago and in line with Wall Street's expectations. Net income was $104.9 million, giving it an EPS (earnings per share) of $0.65. Yet the company's share price is down ever so slightly, at $35.68, because investors are looking for even greater growth from this mature, entrenched company that is a back office lynchpin for many Tier 1 operators. Amdocs is looking at ways it can make even more money, of course. (See Amdocs Ain't What It Used to Be.)
Comverse Inc., meanwhile, is in the early stages of its new life, having been re-born as an independent company in November 2012. It reported its fiscal fourth quarter and full year results Wednesday and saw its share price edge up 1 percent to $26.80. The company reported fourth quarter revenues of $183.6 million, slightly better than a year ago and still managed to report an operating profit of $5.6 million despite an increase in costs as new CEO Philippe Tartavull sets the company on a new direction. (See Comverse Plans for Independence.)
AsiaInfo-Linkage Inc., meanwhile, reported a 12 percent year-on-year increase in first quarter revenues to $143 million and a net profit of $14.1 million. The company has a strong foothold in China with the country's three main operators and is now looking to break into large telecom operator accounts in Europe, leading some people (OK, us) to refer to it as the Huawei of the SPIT world. (Well, who else would ever say such a thing?) (See AsiaInfo-Linkage Reports Q1 Profit of $14.1M and AsiaInfo Takes On BSS Giants in Europe.)
— Ray Le Maistre, Editor-in-Chief, Light Reading