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Guidance Weighs on Amdocs

The quarter is strong, but revenue guidance is a bit light.

Amdocs (DOX) - Get Amdocs Limited Report beat fiscal fourth quarter targets but guided slightly below Wall Street expectations for the current quarter.

The St. Louis telco billing and customer service provider posted an adjusted profit of $109.5 million, or 50 cents a share. Those numbers compare with pro forma net income of $83.9 million, or 39 cents a share, in the year-ago quarter.

Total sales for the quarter ended in September were $665.4 million, up from $553 million last year.

Analysts were expecting a 49-cent pro forma profit on $659 million in sales, according to Reuters Research.

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"Our record revenue in the fourth quarter and in fiscal 2006 was driven by a strong market and by the actions we took to capitalize on this market," CEO Dov Baharav said in a press release.

For the fiscal year, Amdox had adjusted profit of $1.85 a share on $2.5 billion in revenue. That is an improvement from the $1.45 pro forma profit on $2 billion in sales for fiscal 2005.

Looking ahead, the company expects adjusted profit to remain flat sequentially at 50 cents a share on $690 million in sales. Analysts' consensus calls for pro forma profit of 50 cents on sales of $693 million.

For the full fiscal year 2007, Amdox expects adjusted profit of $2.12 a share on sales of about $2.93 billion. That is roughly in line with analysts' expectations.

Amdocs shares fell 70 cents, or 2%, to $37.73 in after-hours trading Wednesday.