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Billing software provider Amdocs ended its 2005 fiscal year with record revenue in the fourth quarter, bringing its annual sales to over $2 billion for the first time.
The company said it had net income of $67.8 million, or $0.32 per diluted share, for the three months ended in September, compared to $61.6m., or $0.29 per diluted share, for the parallel period of 2004. Excluding acquisition costs, net income was $83.9 million, or $0.39 per diluted share - the upper end of analyst estimates of $0.37 to $0.39 per share. Revenue grew 26.7 percent to $573.3m. during the quarter from $452.5m. in the 2004 period.
The company said sales were boosted by its expanded relationship with a major European wire line carrier to provide additional services over the next several years and a major project win in the US to provide software and services to a leading wireless carrier.
"This was a very good quarter for Amdocs as we achieved excellent financial results and strengthened our strategic position," Dov Baharav, chief executive officer of Amdocs, said in a statement.
For the full year, revenue increased 14.9% to $2.039b. while net income rose to $288.m., or $1.35 per diluted share, from $234m., or $1.08 per diluted share, in fiscal 2004.
Shares in Amdocs rose 2.3% to $28.56 in New York on Thursday following the announcement, which was made after Wednesday's closing bell.
Tal Liani, an analyst at Merrill Lynch reiterated his "neutral" rating on the shares, cautioning that "the environment suggests some risks to the current 2006/07 outlook."
Looking ahead, Amdocs said it expects revenue for the first quarter of fiscal 2006 to be approximately $58m. with diluted earnings per share of $0.33 to $0.34. For all of fiscal 2006, the company forecasts revenue of between $2.40b. and $2.47b. and diluted earnings of between $1.37 and $1.44 per share.
Amdocs, which was founded in Israel and has its headquarters in St. Louis, Missouri, delivers software and services to bring "integrated customer management" to mainly telecommunications companies. It recently expanded to provide the service to financial institutions.
The company has approximately 13,000 employees, of which 3,500 are in Israel.