Amdocs reported revenues for its fiscal first quarter at the high end of its guidance, but trimmed its outlook for revenue growth in the full year due to negative forex effects. The company’s 12-month backlog increased by USD 10 million in the December quarter to USD 3.37 billion.
Quarterly revenue rose 3.5 percent year-on-year to USD 1.012 billion, and operating profit improved to USD 133 million from USD 122 million a year ago. Adjusted EPS fell to USD 0.98 from USD 1.06 due to higher taxes, but was in line with the guidance issued by Amdocs.
Amdocs said it was a “solid start” to the year, with growth in its main market North America and Europe doing well apart from currency effects. For fiscal Q2, the group expects revenue of USD 995 to 1,035 million, EPS of USD 0.75-0.83 and adjusted EPS of USD 1.00-1.06.
For the full fiscal year, revenue growth is estimated at 0.5-4.5 percent, down from the forecast in November of 1-5 percent. The change is due to expected forex headwinds, and revenue at constant currency rates is still expected up 2-6 percent. Amdocs said exchange rates had a negative impact of USD 4 million on Q1 results compared to Q4 and expects a negative effect of around 1.5 percent over the full year.
Adjusted EPS is still expected to grow by 3-7 percent over the full year.