The first 100 days of grace period new Amdocs Ltd. (NYSE: DOX) CEO Eli Gelman ended yesterday with an analysts and investors conference in New York, where he and other executives presented the company's plans for the next few years.
After a flood of information about Amdocs's business and target markets, it was the turn of CFO Tamar Rapaport Dagim, who offered the company's guidance for fiscal years 2011-13.
Rapaport Dagim said that Amdocs expects 4-6% annual organic growth through 2013, which implies that acquisitions could boost the growth rate. Amdocs posted $2.98 billion revenue in fiscal year 2010. Based on the guidance mid-point, the company is expected to post $3.13 billion revenue in 2011, $3.29 billion revenue in 2012, and $3.45 billion revenue in 2013.
Amdocs said that its growth engines are double-digit growth in emerging markets, new managed services contracts, positive trends in Europe, and growth in its operations support services (OSS). The company cautioned that factors liable to hinder the growth rate include lower growth rates in expenditures by telecommunications operators in mature markets.
In the presentation, Amdocs said, "At current price levels, we believe that the share buyback program is the best use of our cash." The company announced a $1 billion share buyback program yesterday.
Amdocs's share price fell 1% yesterday to $28.68, giving a market cap of $5.45 billion.
Published by Globes [online], Israel business news - www.globes-online.com - on February 24, 2011
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