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Amdocs records record performance and double contract win

Anthony Goonetilleke Amdocs.jpg

Amdocs recorded its "best-ever performance in North America and Europe" in the three months to December, with profitability up on last year.

The financial results were released as the firm announced two new contract wins in its key markets, with T-Mobile and A1 Telecom Austria Group.

In the US, a multi-year strategic partnership agreement has been entered into with T-Mobile to drive its next generation hybrid-cloud operations through the adoption of amdocsONE to provide its consumer and business customers with next generation communication and media services. Amdocs will also provide extended next generation hybrid-cloud operations in a multi-year managed services engagement for T-Mobile’s digital platforms covering hosting and automated operations.

The operator's digitalisation has received a boost in the 12 months since it merged with Sprint and the Amdocs contract will help T-Mobile focus on "post-merger integration activities" and unlocking "operational synergies".

Amdocs' Anthony Goonetilleke (pictured), the group president of media, network and technology, said: "We are proud to be T-Mobile’s strategic partner, enabling the success of its merger as they accelerate their journey to the cloud by implementing our amdocsONE suite of cloud portfolio products and services.”

In Europe, A1 Telecom Austria Group will use Amdocs Openet 5G charging and policy control products  to modernise charging in Bulgaria, Croatia and North Macedonia, as well as its policy functions in Austria, Croatia, North Macedonia, Serbia and Slovenia.

The multi-tenancy solutions, based on cloud native technology, will enable A1 Group to improve total cost of ownership and monetisation.

Goonetilleke added: "CSPs worldwide are embarking on an accelerated journey to transform their business, prepare for new services and monetization opportunities in the 5G era, and deliver an enhanced digital customer experience.

“We are pleased to extend our strong partnership with A1 Group to new domains, helping the company to deliver the next generation of 5G experiences.”

Financial update

Amdocs latest financials confirmed revenue of US$1,086 million, which came in above the midpoint of the $1,055-$1,095 million guidance range, even after adjusting for a positive impact from foreign currency movements of approximately $6 million compared to guidance assumptions.

The divesture of OpenMarket, completed in December, raised $300 million and managed services revenue hit an all-time record for the company at 57% of total revenue, reaching $624 million.

However, the outlook for reported revenue is below last year's forecast, with Amdocs expecting revenue growth of (0.3)%-3.7% year-over-year on a reported basis as compared with 4%-8% year-over-year previously.

The board approved the next quarterly cash dividend payment at $0.36 per share payable on April 23, 2021.

Company president and CEO Shuky Sheffer, said: "I am pleased to report a strong quarter to start the fiscal year, with record revenue reflecting our best-ever performance in North America and Europe, and profitability slightly improved on a sequential and year ago basis.

"Our sales momentum was strong, and included a multi-year strategic agreement with T-Mobile, a managed services agreement to support Charter's Spectrum mobile business, a new logo award with WINDTRE in Italy and several wins in respect to Openet’s 5G charging and policy solutions."

Sheffer continued: "We remain on-track with our guidance to deliver accelerated growth in fiscal 2021 on a pro forma basis, adjusting for the divestiture of OpenMarket. Moreover, we continue to expect a stronger second half as we execute on our strategy and ramp-up recent customer awards, our confidence in which has further improved as a result of our continued sales momentum, 12-month backlog, our ability to execute and the healthy pipeline of opportunities we see ahead of us.”

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