The size of the seven-year contract was not disclosed although market sources believe it to be worth a substantial amount.
Amdocs Ltd. (NYSE: DOX) announced on Friday that it signed a seven-year managed services agreement with AT&T Inc. (NYSE: T) to provide application management services in support of AT&T's legacy ordering and wholesale platforms. The project is to begin later this year. The size of the contract not disclosed, although market sources believe it to be worth a considerable amount. Amdocs's shares gained 5% following the announcement.
AT&T is the largest telephony company in the US, with tens of millions of fixed line, wireless and broadband subscribers. It owns 5% of Amdocs and it is also one of its largest customers. The two companies are also collaborating in the $4 billion Lightspeed project, which aims to transmit television, voice, and data over IP networks.
Amdocs currently has a market cap of $7.9 billion. It will publish its financials for its second fiscal quarter this Thursday, April 26. Analysts covering the company expect it to report non-GAAP earnings per share of $0.50 on $705 million revenue. The company's own forecast also predicts revenue of $705 million with earnings per share of $0.49-51. This represents growth of 17.2% over the corresponding quarter.
Published by Globes [online], Israel business news - www.globes.co.il - on April 22, 2007
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