Amdocs has revealed record revenues of $1.22bn in its second quarter, coinciding with a wave of corporate additions and collaborations.
The revenues generated in the three-month period ended 31 March 2023 represented a year-on-year increase of 8.2% in constant currency, and were the key driver of net income of $150m.
Amdocs also revealed its 12-month order backlog stood at a record $4.11bn at the end of the second quarter of fiscal 2023, up approximately 5.7% compared with the same time last year. The backlog includes anticipated revenue related to contracts, estimated revenue from managed services contracts, letters of intent, maintenance and estimated ongoing support activities.
Q2 saw a flurry of activity, with the company signing off on new deals with the likes of T-Mobile in the US, two new logos in Eastern Europe, and a significant cloud-migration engagement with PLDT in the Philippines. It also expanded its Microsoft partnership to bring an artificial intelligence-powered customer engagement platform and signed a definitive agreement to acquire the service assurance business of TEOCO – a provider of 5G, analytics, assurance, planning and optimisation software – in a deal valued at $90m to enhance the execution of its network automation strategy.
The acquisition is designed to enable Amdocs to provide a unique end-to-end service orchestration offering, assuring the quality of service and enabling the monetisation of next-generation dynamic customer experiences.
“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,” said Shuky Sheffer, president and CEO of Amdocs Management Limited.
“In today’s dynamic and complex 5G era, such a holistic, end-to-end approach is key to delivering on the promise of the amazing experiences our customers’ end users expect,” he said. “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.”
In other projects announced alongside the Q2 results, Amdocs said it had successfully completed a digital transformation project with Malta-based operator Melita Limited to further monetise new 5G and IoT-based services for both consumer and enterprise customers.
The project has seen Amdocs enhance its charging services, enabling Melita to create differentiated services and business models. Amdocs also delivered improvements to Melita’s customer data management, systems security, quality engineering and work allocation systems, as well as supporting Melita’s international expansion through its melita.io platform, which now provides IoT offerings in several countries.
Tapping into a growing sector in the communications market, Amdocs has been selected by Ice Norway to enable the launch of eSIM services, allowing for an enriched customer experience and accelerating the Norwegian operator’s digitisation journey. The project with Amdocs will allow Ice Norway to offer consumers the option to switch to its network with the tap of a button when using eSIM-enabled smartphones, tablets and laptops, as well as smartwatches and other wearables.