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We reaffirm our Neutral recommendation on Amdocs Ltd. (DOX - Analyst Report) following its better-than-expected financial results for the fourth quarter of fiscal 2012. Net earnings easily toped the Zacks Consensus Estimate. The company is doing well in the emerging markets of Asia and Latin America and performing moderately in Europe, despite facing severe economic fluctuations.

Amdocs’ sales opportunity in North America is more visible now after stabilization of business with AT&T Inc. (T - Analyst Report) and renewal of long-term contracts with several leading telecom and cable TV operators. The company offers a portfolio of industry-leading technology integration products of managed services for large-scale transformational project. The long-term fundamentals of the company remain intriguing due to the transition of the broader telecom industry to converged IP solutions. Meanwhile, the stock price has moved up by nearly 23% in the last year and we believe Amdocs is currently fairly valued.

Amdocs offers integrated customer management systems, which is essential for carriers in order to prevent customer churn. There are huge opportunities that exist with Amdocs as more telecom companies started deploying 3G and 4G networks. Furthermore, investment in the emerging markets will further drive its top-line and bottom-line growth.

Amdocs has the largest customer base and the broadest product line in the industry, including a full suite of end-to-end solutions for both Business Support Systems (BSS) and Operations Support Systems (OSS). Business in North America was comparatively strong with Europe, showing signs of improvement. Alongside, the emerging Asia Pacific markets are witnessing double-digit revenue growth. Total order backlog was $2,790 million at the end of fiscal 2012. 

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