×

Amdocs Shares Plummet on Lowered Guidance for 2007

Shares of Amdocs fell about 10% after the company lowered its revenue outlook for fiscal 2007, adding demand for its products and services was not matching its expectations.

The company, which provides billing and customer management software, now expects revenue of about $2.83 billion to $2.91 billion for the fiscal year, down from its earlier view of about $2.89 billion to $2.97 billion. For fiscal 2007, analysts had expected revenue of $2.93 billion.

Amdocs said it expects results for the first quarter, which ended Dec. 31, 2006, to be in line with its prior estimates.

The company expects first-quarter earnings of 39 cents to 40 cents a share, on revenue of about $690 million.

Excluding acquisition-related costs and equity-based compensation expense of 5 cents to 6 cents a share, Amdocs said it expects earnings of 50 cents a share for the first quarter.

Analysts on average expect the company to earn 50 cents a share, excluding exceptional items, for the first quarter, on revenue of $691 million, according to Thomson Financial.