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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