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Robertson Stephens: Acquisition of Clarify will lift Amdocs' order backlog and transparency

Billing company's net profit won't be hurt while its technology will benefit, say analysts

Robertson Stephens on Friday reiterated a Buy rating for Israeli billing giant Amdocs (NYSE:DOX)

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and set its price target at $34.5.

Analysts Malindi Davies and Marianne Wolk predist the acquisition of Clarify from Canadian telco Nortel (NYSE:NT) will be "neutral to accretive" to Amdocs' earnings per share, while contributing positively to Amdocs' order backlog and transparency.

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They also see the resulting CRM-billing systems creating a more effective end solution for customers.

In the longer term, Wolk and Davies expect the $200 million Clarify acquisition to boost Amdocs' net by up to 20 cents per share.

Given that rival buyers such as Nortel, ADC Communications and Alcatel are straining, Amdocs is the "last man standing" in the sphere of telecommunications operation support systems, the analysts wrote.

Robertson Stephens foresees Amdocs ending 2001 with $1.63 billion revenues, down 15% from $1.93 billion in 2000, with EPS shrinking from $1.63 in 2000 to $1.34 for 2001. But 2002 should bring better results, the analysts predict, of $2.07 billion revenues and $1.73 EPS.