Amdocs Ltd (Amdocs) reported weak 3Q 09 results with a y-o-y decline in revenues in line with Management guidance on account of the weak demand environment. For the near-to-medium term, on account of the ongoing economic slowdown resulting in tight corporate budgets and a delay in deal closings, revenue growth prospects are expected to remain weak, reflected in cautious Management guidance for 4Q 09. However, we expect service revenues to increase in the long run taking into account…

Delay in deal closing rates on account of poor macro-economic conditions, aggravated by unfavorable currency movements have resulted in revenues falling short of our and Management’s expectations. The deal closing process is expected to be further elongated in FY 2009 in addition to low visibility on closure rates due to tight budgets. This is reflected in the 9%-12% y-o-y decline in revenue guidance provided by Management for FY 2009…

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While Amdocs Ltd.’s (Amdocs) 4Q 08 top-line was in line with our expectation, earnings fell marginally below our expectations due to higher-than-anticipated interest expenses. While revenues and operating income registered healthy y-o-y growth, net income declined as a result of higher interest expenses. FY 2008 performance remained healthy at all levels. Management expects declining revenues due to unfavorable currency…