Amdocs reports revenues that surpassed expectations, but anticipates slowdown
Amdocs reports revenues that surpassed expectations, but anticipates slowdown
The software company which last month laid off 2,000 employees, is anticipating a general slowdown this year due to low purchase rate among customers
Amdocs released its recent earnings performance today, providing an explanation for their recent layoff of 2,000 employees in July. The software company showed that it saw a good quarter that surpassed expectations, but anticipated that there would be a slowdown for the remainder of the year.
There has been a slowdown in the rate of purchase by Amdocs customers, a trend that has been seen across the sector including by cyber company CheckPoint. "Taking into consideration the economic uncertainty and industry pressures have led our customers to prioritize and carefully examine their investments, we expect that our revenues will be below 8%", said Shuky Sheffer, CEO of Amdocs.
Amdocs' current round of layoffs follows a previous cut of 700 employees, and 3% of its total workforce, at the beginning of the year. The cost of their new operational efficiency plan is expected to harm Amdocs' net profit in 2023. Since the beginning of the year, they have accumulated $24 million of expenses.
Amdocs is also anticipating a slowdown in their annual growth rate from 6-8% in the previous forecast, to 6-7%. After the implementation of the efficiency plan, Amdocs will employ approximately 29,000 workers, of which 5,000 are in Israel.
In the previous quarter, Amdocs recorded record revenues of $1.24 billion, which were slightly higher than forecasts and reflected an annual growth of 7%. The company also reports a record order backlog of $4.14 billion, an increase of 5% compared to the corresponding period.
Amdocs recorded profits of $160 million in the previous quarter, an increase of 25% compared to the corresponding period. "We improved our profitability compared to the third quarter of last year mainly through a focus on cost management," noted Tamar Rapaport-Dagim, CFO of Amdocs.
