Amdocs Still Neutral - Analyst Blog
December 05 2011 - 7:30AM
Zacks
We reiterate our long-term Neutral
recommendation on Amdocs Ltd. (DOX). The company’s
fourth quarter of fiscal 2011 financial results met the Zacks
Consensus Estimates. Amdocs enjoys a strong portfolio of
several industry-leading technology integration products for
managed services and large transformational projects. Amdocs
benefited from the long-term trend toward information technology
outsourcing.
We believe consolidation of the
telecom industry may act as a growth catalyst for the company.
Historically, Amdocs is a major beneficiary of the merger among the
big U.S. telecom carriers. We also believe the long-term
fundamentals of Amdocs remain firm mainly due to the transition of
telecom service providers to converged IP solutions. However, in
the near term, the company may suffer due to higher expenses for
productivity improvement and prolonged global economic
volatility.
Amdocs recently completed the
acquisition of Bridgewater Systems of Canada, a leading intelligent
software developer for converged mobile platform. Bridgewater’s
software optimized mobile data growth, reduces network congestion
by diverting data traffic to WiFi networks while enabling wireless
service providers to migrate from 2G to 3G or next-generation 4G
networks. Bridgewater serves more than 150 wireless operators
throughout the world. Important among them are giants such as
Verizon Wireless, which is a joint venture between Verizon
Communications Inc. (VZ) and Vodafone Group
plc. (VOD), Sprint Nextel Corp. (S), Bell
Mobility, Telstra, and Etihad Etisalat (Mobily).
Acquisition of Bridgewaterwill help
Amdocs to enhance its phone-billing software especially its
Customer Experience Systems (CES 8) product suit. For broadband,
this software provides a single platform capable of supporting
complex requirements of traditional and next- generation
triple-play voice, video, and data services as it focuses on
addressing favorable market trends in the communications
industry.
This solution facilitates carriers
to effectively monetize their assets, deliver superior services and
improve its operating performance. Using Amdocs with integrated
Bridgewater software enable wireless carriers to offer innovative
pricing strategy for data plans. While enabling its customers to
offer personalized value-based pricing strategy, Amdocs can now
move one step forward compared with its rivals, such as Comverse
Technologies Inc, Convergys Corp. (CVG), and
Tekelec (TKLC).
CONVERGYS CORP (CVG): Free Stock Analysis Report
AMDOCS LTD (DOX): Free Stock Analysis Report
SPRINT NEXTEL (S): Free Stock Analysis Report
TEKELEC INC (TKLC): Free Stock Analysis Report
VODAFONE GP PLC (VOD): Free Stock Analysis Report
VERIZON COMM (VZ): Free Stock Analysis Report
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