After the close of trading in New York yesterday, Amdocs Ltd. (NYSE: DOX) reported results for the quarter ending December 31, its fiscal first quarter. Revenue was $753.8 million, an increase of 1.6% from last year's first quarter, but below its own guidance of $785-$810 million.
Net profit on a non-GAAP basis was $116.3 million, or $0.55 per diluted share, compared to non-GAAP net profit of $123.3 million, or $0.56 per diluted share, in the first quarter of fiscal 2008.
For its fiscal second quarter, Amdocs expects revenue of about $700-$720 million, and non-GAAP earnings per share for the second quarter to be $0.47-$0.51.
Amdocs CEO Dov Baharav said that customers reacted to a worsening financial situation faster than expected. "The first quarter of fiscal 2009 was a difficult start for Amdocs as macro-economic conditions continued to worsen and sales cycles lengthened across our business. Service providers reacted more quickly than we expected as the quarter progressed by reducing their spending and delaying some new projects. Additionally, foreign exchange remains a headwind in fiscal 2009, and was slightly more of a drag on revenue in the first quarter than we had anticipated. As a result, our revenue in the first quarter was up only 1.6% over the prior year's first quarter and we are disappointed with this relative to our expectations. We believe the company made prudent decisions to control costs over the course of the quarter and, as a result, Amdocs delivered on our operating margin, non-GAAP earnings per share and cash flow targets."
Amdocs shares fell 8.9% in after-hours trading. Its shares closed on Wednesday at $18.63, reflecting a market cap of $3.79 billion.
Published by Globes [online], Israel business news - www.globes-online.com - on January 22, 2009
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