Amdocs Limited (DOX), the global leader in customer management and billing software for the communications industry, has declared third quarter of fiscal 2009 financial results, well above our estimates. The company continues to benefit from the telecom carrier industry’s long-term trend towards network consolidation & convergence. Third quarter revenue of $690.3 million was down 15.9% from the year-ago quarter and down 2.9% sequentially. But this was above our expectation of $680 million and at the high-end of the company’s guidance. Adjusted diluted EPS (excluding special items) during the third quarter was $0.52 compared to $0.53 in the prior-year quarter and $0.48 in the previous quarter. This was also better than our estimate of $0.44. Gross margin (excluding stock-based compensation expenses) in the third quarter 2009 was 36.8% compared to 36.2% in the prior-year quarter and 36.5% in the previous quarter. After a big reduction of operational ...

Amdocs Ltd. (DOX), the global leader in customer experience system and billing software for communications service providers, continues to benefit from the telecom carrier industry’s long-term trend towards network consolidation and convergence. Amdocs is currently generating more than 70% of its revenue from managed services and other recurring sources.

Communication service providers implement billing and customer care systems to enable quick responses to customer requests, ensure proper billing for services, validate network users and optimize sales and marketing operations.

The Telecommunications Software Management System (TSMS) market is highly competitive. More than 100 vendors provide customer management and billing system solutions throughout the world. In addition to Amdocs, other major players include Convergys (CVG), CSG System (CSGS), Oracle (ORCL), and Comverse (CMVT).

Despite competition, Amdocs has the largest customer base and broadest product line in the industry. The company’s Customer Experience Systems portfolio (CES 7.5)

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