Israeli telecom IT business systems company Amdocs Ltd. (Nasdaq: DOX) beat the analysts in its financial results for the third fiscal quarter of 2020, which it published today. Amdocs also raised its fiscal 2020 revenue guidance to1.1%-2.1% year on year growth.
Amdocs reported revenue of $1.03 billion in the third fiscal quarter, above the analysts’ estimates and unchanged from the corresponding quarter of 2019. Revenue in the first three fiscal quarters of 2020 totals $3.1 billion, up 2% from the corresponding period of 2019.
GAAP net profit in the third fiscal quarter was $120 million, down from $131 million in the corresponding quarter of 2019. Non-GAAP net profit was $143 million ($1.07 per share), down 12.2% from 2019 but above the analysts’ estimate of $1.05 per share.
Amdocs president and CEO Shuky Sheffer said, “Our fiscal third quarter was our first full quarter operating under the global conditions of the Covid-19 pandemic, considering which I am proud of the company’s performance. Revenue exceeded the midpoint of our guidance and included healthy year-over-year growth in North America and another record quarter in managed services.”
He added, ” As part of our strategy to accelerate the pace of taking the communications industry to the cloud, we recently announced an agreement to acquire Openet, a leading provider of 5G charging, policy and cloud technologies whose customers include several of the world’s top 10 largest service providers. Openet’s technologies naturally complement our own portfolio of 5G solutions, the combination of which will greatly strengthen our leading technology position in the market. Moreover, we are excited by the opportunity to bring Openet to our global customer base of more than 350 service providers, helping them to further succeed in the wave of 5G advancements around cloud, edge compute, IoT and new customer experiences. Overall, we believe Openet represents the right acquisition at the right time in the industry and we look forward to welcoming their innovative team of software professionals to Amdocs upon closing later in the fourth quarter.”
He concluded, “Our 12-month backlog increased quarter-on-quarter and year-over-year in Q3. This supports a stronger fourth quarter revenue outlook than we previously forecasted, the midpoint of which includes the resumption of growth on a sequential basis. We are on-track to generate normalized free cash flow of $500 million in fiscal 2020, which is slightly better than the original guidance we provided at the beginning of the year.
Published by Globes, Israel business news – en.globes.co.il – on August 6, 2020 © Copyright of Globes Publisher Itonut (1983) Ltd. 2020