Israeli telecom systems IT solutions provider Amdocs Ltd. (Nasdaq: DOX) is set to lay off hundreds of employees in Israel and around the world. The company has 4,500 employees in Israel and 25,000 employees worldwide. The company said that it is "continually examining the required adjustments in the structure of our expenses."
Amdocs is traded on Nasdaq with a market cap of $8.15 billion. The company's share price has yet to return to its pre-coronavirus crisis levels but it has risen 32% from its low-point in March. The share price is down 15% since the start of 2020, while the Nasdaq index is up 12%. The company has substantial revenue in the US where it rests heavily on AT&T, whose share price is down 23% this year.
Earlier this week, Amdocs announced that it is issuing $650 million in bonds for repayment in 2030. At the end of its second fiscal quarter (March 31, 2020), the company had cash reserves of $762 million, with short-term debt of $350 million, after generating cash flow of $103 million during the quarter and using $120 million to buy back shares.
Amdocs said, "As a global group responsible for tens of thousands of employees, Amdocs is continually examining the required adjustments in the structure of our expenses, while strategically looking at the situation of our work force and adjusting it to changing business needs. This is the right thing to do, especially during this complex and persistent period of uncertainty on global markets. Amdocs continues to hire employees extensively in areas where operations are growing, to invest in engines of growth and to look after its human capital."
Published by Globes, Israel business news - en.globes.co.il - on July 2, 2020
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