Amdocs, a supplier of customer-relationship management software to telecommunications
and cable companies, blamed reduced spending by service provider customers
for missing sales targets in its most recent quarter.
The company on Wednesday reported revenue of $753.8 million
for the quarter ended Dec. 31, below its previous guidance of $785 million to
$810 million. Net income was $74.2 million, down 22% compared with $95.7
million in the year-prior period.
"Service providers reacted more quickly than we
expected as the quarter progressed by reducing their spending and delaying some
new projects," Amdocs CEO Dov Baharav said in a statement. He also said
foreign exchange rates remain a "headwind" and were slightly more of
a drag on revenue in the first quarter than anticipated.
Major Amdocs customers in North America
include Comcast, AT&T, Verizon Communications, DirecTV, Cablevision Systems
and Sprint Nextel.
Baharav said that while Amdocs is not seeing project
cancellations, "the pace of deal signings has slowed and we expect the
market will remain difficult until global spending trends in communications and
credit market conditions stabilize."
For the second quarter of fiscal 2009, Amdocs expects revenue
will be $700 million to $720 million, in anticipation of slower close
rates on new projects and mostly stable trends in recurring business.
The company said its 12-month backlog, which includes
anticipated revenue related to contracts, letters of intent, maintenance and
estimated ongoing support activities, was $2.4 billion at the end of calendar
Separately, Amdocs announced Wednesday that it has signed a
new multiyear contract with Canada's
Rogers Communications, which plans to deploy the Amdocs CES 7.5 system to
support its quad-play operations, including cable. This agreement expands on
the 10-year relationship Amdocs has with Rogers
to include an enterprise-wide billing, ordering and service management