New customers wins and the expansion of existing contracts helped Amdocs, the leading telecoms and cable TV billing and customer care software supplier, boost first-quarter revenues by 25 per cent and diluted earnings by 24 per cent.
Net income excluding certain costs increased to $90m, or 42 cents a diluted share, in the three months to December 31, up from $72.4m, or 34 cents a share, last time. in the year-earlier on Revenue that jumped 25 per cent to $587m.
The Israeli company, which has with headquarters in St Louis, also said it expected revenues in the current fiscal second quarter to increase by about 20 per cent, driven by new contracts from companies such as like Sprint Nextel, the third-largest US wireless carrier.
Sprint Nextel announced earlier this week that it had signed a preliminary eight-year agreement with Amdocs which would will provide the recently merged carrier with a single billing and customer care system for its wireless subscribers, which number more than 46.5m. wireless subscribers.
That deal was hailed on Thursday by Dov Baharav, Amdocs chief executive, who said moving to an integrated back-office system would help the carrier develop new services.
Mr Baharav added: “We expect that the continuation of the industry dynamics that contributed to our success in 2005 will also drive our performance in 2006.”
He said He said he expected consolidation among telecoms companies coupled with convergence and the move to Internet Protocol-based services to drive demand for the integrated back-office software and services that Amdocs provides.
“It is a difficult transition for them [telecoms companies],” he said, “and that is what drives growth for Amdocs.”
Amdocs shares gained more than 3 per cent in New York trading to about $32.40 on Thursday.