Israel IT solutions and communications systems company Amdocs Ltd. (NYSE: DOX) share price fell 2.7% on Friday after the company published its financial reports for its second fiscal quarter ending on March 31.
Together with its reports, Amdocs announced that it had completed its acquisition of Vubiquity for $224 million, which it first reported together with its preceding financial statements. Amdocs also announced that it had acquired Canadian company UXP Systems, which provides user lifecycle management solutions, for $80 million.
Amdocs's reports outstripped the analysts' forecasts for revenue, while matching the forecasts for profit. Revenue in the quarter totaled $992 million, 2.7% more than in the corresponding quarter last year, while revenue in the first half rose by the same proportion, reaching $1.97 billion.
The distribution of revenue in the quarter shows that revenue in North America totaled $624 million, 1.9% less than in the corresponding quarter last year., while revenue from Europe jumped 28.8% to $149 million and revenue from the rest of the world grew 2.4% to $220 million.
Revenue from North America was hit by the expected slowdown in spending by communications company AT&T, Amdocs's biggest customer. In a conference call following publication of the company's reports, Amdocs CEO Eli Gelman said that the company expects no change in this trend in the coming quarters. AT&T accounted for a third of Amdocs's revenue in the preceding fiscal year.
According to GAAP accounting standards, Amdocs's net profit in the quarter totaled $102 million, 9.6% less than in the corresponding quarter last year, but its half-year net profit was up 3.9% to $219 million. Excluding various accounting items, the company's non-GAAP net profit in the quarter was $137 million, down 1.3%, and its profit per share was $0.95, while its half-year profit per share reached $2.01.
Amdocs president and CEO Eli Gelman said, “We are pleased to report solid results for our second fiscal quarter which included double-digit growth in Europe and record revenue in Rest of World. Our operating profitability was stable and we grew our 12-month backlog to another new high. Additionally, we extended our technology leadership with the launch of AmdocsOne at Mobile World Congress and we utilized our cash to close on the acquisitions of Vubiquity, as well as UXP Systems, a leader in User Lifecycle Management solutions."
Published by Globes [online], Israel business news - www.globes-online.com - on May 13, 2018
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