Amdocs meets expectations with fourth-quarter earnings 45% over parallel

Billing firm's results are heartening when seen against slump in spending by telcos
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The fourth-quarter 2000 results that billing company

Amdocs

(NYSE:DOX) released yesterday typically kept up with analyst's expectations and actually left some change on the table. Earnings were 27 cents a share, beating the consensus by one cent, as usual.

The results are heartening particularly seen against the spate of warnings and slowing sales that many telcos, which constitute the majority of Amdocs's customers, are indicating.

Amdocs shares, trading on NYSE, outperformed Nasdaq by 200% over the last year. Amdocs shares gained another 4.8% on Tuesday to $77.

Income of $1.23 billion for calendar year 2000

Amdocs lead Israel's software exporters in the third quarter finished its fourth quarter (its first fiscal quarter for 2001) with revenue of $342.2 million, a 45% increase over Q4 1999. Revenue beat analyst consensus by 1%.

The company had already reported its fiscal year 2000 results in the previous quarter. In today's result it appears that for calendar year 2000, income reached $1.23 billion.

This information is particularly interesting given that

ECI Telecom

(Nasdaq:ECIL) released a corrected, steeper earnings warning this quarter, predicting income of $1.16 to $1.175 billion for 2000. If ECI is accurate, Amdocs will become Israel's biggest income producer traded on Wall Street.

Goldman Sachs estimates that Amdocs will achieve annual growth of 38% in the next few years, due to rising demand for its services and customer growth. The nature of Amdocs's business makes its revenue stream highly visible. About 76% of Amdocs's 2001 income can be predicted. Thus the company's ability to keep up with analyst's expectations is understandable.

Amdocs, lead by CEO Avi Naor, is a world leader in telecom customer care and billing services. After taking over Canadian company,

Solect

Amdocs was able to offer its customers a total billing solution, including convergence billing for voice, internet and ASP.