Amdocs helps bring telecom companies and their customers together. The company is a leading supplier of customer experience software and services for business support systems (BSS) and operational support systems (OSS), used by telecommunications providers to manage delivery of voice, data, and wireless services. Its applications help automate customer relationship management (CRM), sales, and billing operations. Amdocs also develops publishing software for creating print and online directories. In addition, it offers outsourced customer service and data center services. Amdocs gets more than 70% of sales from customers in North America.
Since entering the customer relationship management market, Amdocs has become one of the largest CRM providers for the telecommunications industry. The company focuses on serving large, global customers in the telecomm, cable, satellite, and online television markets. AT&T, Bell Canada, and Sprint Nextel are among its largest customers, with AT&T accounting for 29% of sales. Sales from Bell Canada will decrease under a scheduled price reduction beginning in fiscal 2012 as part of Amdocs' contract with the company.
The company's sales strategy is focused on expanding past what has historically been its core business (large telecommunications providers in developed markets) to target smaller telecom firms in developed markets as well as going after clients in emerging markets such as India, Southeast Asia, and Latin America. An effort to expand in China through the 2005 acquisition and integration of Longshine Information Technology Company presented numerous challenges; in 2010 Amdocs sold a majority stake in the company and operates in the country through its minority interest in Longshine.
Amdocs has also used acquisitions to further its product strategy, which revolves around an integrated suite of software and related services encompassing all aspects of customer management, including acquisition, account activation, support, and billing. In 2011 it paid C$211 million (about $215 million, or $130 million net of cash) to acquire Bridgewater Systems, a provider of policy management and network control systems. The purchase supports Amdocs' strategy of expanding its customer experience systems with data experience management capabilities. Bridgewater's customers are primarily in the telecom sector, and include Bell Mobility, Sprint Nextel, and Telstra.
Amdocs' sales rose more than 6% in 2011 over 2010, primarily related to new and existing managed service contracts, along with revenue related to implementation and integration projects. Sales of customer experience systems, which make up more than 90% of total revenue, were up 7%. Net income for the year was essentially flat, with lower interest and other expenses offset by an increase in income tax expense.
Amdocs' primary production facilities are located in Brazil, Cyprus, India, Ireland, Israel, and the US. Most of its sales come from customers in North America, Europe, Latin America, and the Asia/Pacific regions. – less