Sprint Nextel To Switch Billing Platforms

CINCINNATI -(Dow Jones)- Convergys reaffirmed its 2006 earnings guidance after saying Sprint Nextel plans to end its billing relationship with the company.

Convergys's 2006 per-share earnings guidance is $1.07, lower that Wall Street's average estimate of $1.11, according to a survey of 11 analysts by Thomson First Call.

The customer-care, human-resources and billing-services company said in a press release Tuesday that Sprint Nextel's current plan is to migrate subscribers off the existing Precedent 2000 platform during 2006 and 2007.

Convergys said its information management group generated about $100 million in revenue from the communications company at profitability levels comparable to the average of that unit.

The company said said it was "disappointed" with Sprint Nextel's decision to end billing services.

Convergys had $2.48 billion in sales for 2004.

In a separate release later Tuesday, Sprint Nextel said it reached a preliminary eight-year agreement with Amdocs to provide a single billing and customer-care platform.

Amdocs is a St. Louis provider of customer care and billing systems for communications and Internet service providers.

Amdocs shares jumped 4.8%, or $1.47, to $31.87 in after-hours trading on Inet.

-Jonathan Vuocolo; Dow Jones Newswires; 201-938-5400; AskNewswires@dowjones.com

(END) Dow Jones Newswires"

Posted to the site on 18th January 2006