Thursday, July 30, 2015

Amdocs CEO: "Network Optimization Business is Slow"

In the past two years, Amdocs entered a new space of managing networks' traffic  by acquiring two companies - Celcite (2014, $129M, here) and Actix (2013, $120M, here). See also "Amdocs Integrates RAN Management and Optimization Solutions" - here.

Was this a successful move? 

Amdocs Q3 (June 30) earning call (revenues of $908M, here) provides some insights into Amdocs' network business: 

Question by Amit Singh - Jefferies: " .. you have previously highlighted network optimization as one of the avenue of growth. And I believe a few quarters ago you had even said that it could be about $100 million plus revenue this year. So just wanted to get a sense of how that business or the growth in that business is playing out and what is your expectation going forward from here?"

Answer by Eli Gelman [pictured], President and CEO, Amdocs: "So network software in general, including network optimization, is moving along well. Its lumpy, because the deals there are not so smooth I would say in terms of the deals, the deal flow, not the execution.

So we see progress. We actually expanding the offering, so it’s not only specific in the network optimization, it's not only around that product that we acquired we are now talking about more services, a broader view of the problem, not only the red optimization other network optimization as well. And as we are talk about that we are also trying to make our first moves into the network visualization which is the even the bigger potential in this network software space.

But it’s slow, its – we are executing on some development, we have some dialogue with some customers. But these are completely new topics. So the ones that we have already are progressing well. The new ones are a big unknown. And what we are learning is that it is lumpy as many other projects" 

See "Amdocs' (DOX) CEO Eli Gelman on Q3 2015 Results - Earnings Call Transcript", by SeekingAlpha, here.