Amdocs Quarterly Revenue Down 16%

Billing and Ops support vendor, Amdocs has reported a 15.9% drop in its fiscal Q3 (ending June 30th) revenues of $690.3 million - down 2.9% sequentially. The Company's GAAP net income was US$85.5 million, compared to US$100.7 million in the prior year's third quarter.

"We are pleased with our results for the third fiscal quarter, particularly in light of the on-going strain in the global economy. Favorable foreign currency movements increased third quarter revenue and EPS relative to our expectations for the quarter. Even without currency benefits, our results were at or above the mid-point of our guidance ranges. Additionally, backlog remained stable and we continued to meet our profit and cash flow objectives, all of which are encouraging," said Dov Baharav, chief executive officer of Amdocs Management Limited.

Baharav continued, "Demand conditions, however, remain weak, particularly for large transformational projects, as our customers manage their budgets tightly. As a result, we anticipate that our revenue may continue to trend down sequentially, albeit at a moderating pace, until we see demand improve. This view is reflected in our fourth fiscal quarter guidance, and we believe this trend could persist into early fiscal 2010."

Free cash flow was $96 million for the quarter, comprised of cash flow from operations of $114 million less approximately $18 million in net capital expenditures and other.

Twelve-month backlog, which includes anticipated revenue related to contracts, estimated revenue from managed services contracts, letters of intent, maintenance and estimated on-going support activities, was $2.37 billion at the end of the third quarter of fiscal 2009.

Amdocs expects that revenue for the fourth quarter of fiscal 2009 will be approximately $670-$690 million.

Posted to the site on 23rd July 2009