It announces record revenues and plans to buy business unit from Teoco
Amdocs has just reported record quarterly revenues of $1.22 billion (€1.115 billion) for its fiscal Q2, which concluded at the end of March. This is a rise of 8.2% if constant currency rates are applied and was in line with the company’s guidance but apparently exceeded Wall Street’s expectations.
This includes highest ever revenue in Europe of $172 million, up 16.6%, but North America remains its biggest markets with revenues up by 7.4% to $829 million.
The software and professional services company has also announced it will expand its portfolio by acquiring the service assurance arm of OSS software provider TEOCO for a cash payment of $90 million.
Second attempt
A year ago, Amdocs announced it would acquire the cloud service assurance firm Mycom OSI for $188 million, but the deal fell apart last December. Amdocs announced it would develop the capabilities it needed itself.
The TEOCO announcement seems to signal another change of mind. The Teoco division it plans to acquire has tech solutions for managing faults and performance, and service management tools, plus analytics for the network and services.
In-house capabilities
Amdocs’ President and CEO, Shuky Sheffer, commented, “The move will enhance Amdocs’ offering by bringing key assurance expertise and capabilities in-house, enabling us to offer truly end-to-end service orchestration.
“In today’s dynamic and complex 5G era, such a holistic, end-to-end approach is key to delivering on the promise of amazing experiences our customers’ end users expect. Amdocs and Teoco already partner in some opportunities within the service assurance domain, and this acquisition and the new seamlessly integrated offering will enable us to better serve existing and new customers”.