Amdocs 2017 Annual Report

annual report 2017 fiscal 2017 a good year for Amdocs Board approved dividend increase for fifth consecutive year Amdocs is well positioned to enable our industry’s transition 2 2017 Annual Report 2017 Annual Report 3 letter to shareholders Dear Fellow Shareholders, Communications and media service providers are entering the first stage of a multi-year transition as they transform digitally to improve the customer experience. They are also moving to a virtualized, service- driven network environment in order to accelerate service agility and, in the case of many market leaders, continuing their journey to become “full-service” providers. Such full-service providers seek to furnish their customers with a rich portfolio of offerings including core communications; media, advertising and entertainment; enterprise enablement; internet of things (IoT) and digital lifestyle services. We believe that Amdocs is well positioned in all these spheres to enable this industry transition. Our unique and global perspective, gained through working with the world’s leading operators, enables us to help our customers seize the opportunities of this ever-changing landscape. Fiscal 2017 was a successful year for Amdocs in which we maintained our high win rate, having invested in what we believe are the right strategic engines to support the needs of the world’s largest global carriers as well as innovative operators in smaller markets. Furthermore, we delivered on our long-held reputation for execution, progressing a record number of significant transformation projects toward production. With an eye to the future, we continued to invest in innovation, partnered with cutting-edge companies and became early adopters of new tools and technologies such as DevOps and microservices (decomposing an application into different smaller services to make it easier to develop and test) to maintain our strong market position and extend our product leadership. And we achieved all this while maintaining our profitability at the high end of our forecast. Eli Gelman Robert A. Minicucci President and CEO, Chairman of the Board, Amdocs Management Limited Amdocs Limited Director, Amdocs Limited 4 2017 Annual Report We have a unique and global perspective 2017 Annual Report 5 the trend towards full-service providers North American market accelerates its New customers in Europe, Rest of World modernization moves The consolidation of mobile and Pay TV operators The North American market is leading important into full-service providers is not unique to North aspects of the industry’s transition, particularly America. Vodafone Netherlands, for example, around increased interactions between Pay TV has entered into a cable joint venture with Ziggo, companies and communications service providers a subsidiary of Liberty Global, in which they are such as AT&T as each looks to expand their using our technologies to drive their digital vision. portfolio in order to become a full-service provider. While focusing on project execution at some of Having anticipated this trend, we believe we will the region’s largest service providers, we also benefit from this transformation. We invested in expanded our momentum at the Vodafone Group, an extensive digital solution for customer care and with Vodafone Italy, a new customer, selecting full multi-play services to address this expansion Amdocs for its BSS transformation across its and have the R&D and delivery scale to support multiple service lines. Additionally, in a further operators’ future requirements. testament to our support for carriers rolling out digital lifestyle services as part of their expanded Indeed many leading North American mobile offering, Orange Spain selected our smart home operators and Pay TV providers, such as Comcast, security solution, which is based on our partnership are now using our digital technology solutions to with the Tyco securities unit of Johnson Controls. drive their business and modernize their systems. We are providing technology solutions to help our Over the past 12 months we have won a significant customers achieve their business goals and are also number of projects as Pay TV providers invest instrumental in helping them meet their everyday to improve their customer experience through needs. In fiscal 2017 we signed several multi-year digitization. These include a pivotal business services extension agreements in Europe, including support systems (BSS) transformation project at BT, the United Kingdom’s largest full-service at Altice USA and our partnership with Charter, provider, and at Rostelecom, Russia’s national where we are helping Charter provide a uniform communications service provider. and enhanced customer experience for all their subscribers following the company’s acquisition of Time Warner Cable and Bright House Networks. We were also selected by DISH Network Corporation for a strategic project in which we will help them better support their business customers. The enterprise business-to-business (B2B) customer market is a growing one, and we have accelerated our investments here in order to help service providers capture this opportunity. 6 2017 Annual Report In South-East Asia, we continued to solidify and strengthen our position in the region. We saw the progression of several major digital modernization projects, including KT Corporation, South Korea’s largest full-service provider, moving to Amdocs for a real-time monetization system to capture the opportunities of the digital economy. The enterprise sector, which requires automated and sophisticated order fulfillment solutions, is also a growth engine for this region, and we signed a deal with Telstra in Australia to transform their order orchestration and fulfillment, while Singapore’s NetLink Trust selected Amdocs to accelerate its fiber connectivity rollout and simplify the ordering experience for its broadband service provider customers. We also secured a major digital transformation project at one of South-East Asia’s leading operators, which is investing heavily to improve its customer experience. This project is a showcase of a former Comverse customer choosing to modernize its systems on Amdocs’ new digital technology stack, providing another proof point to support our fiscal 2015 acquisition of Comverse’s BSS assets. Through Comverse, we acquired a wide number of customers around the world and saw continued momentum globally, including in Brazil at Agar Telecom and Oi, and in India, where we announced a strategic partnership with Bharti Airtel to create an innovation foundry to bring exciting new services to their customers. We also maintained our momentum with Telefónica in Latin America, where we were selected to deploy a service fulfillment and orchestration solution at Telefónica Argentina, as well as an operational data store to support their enterprise businesses. Our development and operations center in Guadalajara, Mexico, which opened in the previous fiscal year, We won a significant further increased its support for our numerous projects throughout number of Pay TV projects the region. 2017 Annual Report 7 artificial intelligence and the move to virtualized networks Driving innovation at the core of a service With regard to the innovation around service provider’s business providers evolving their legacy networks into more IT, data-centric and virtualized environments, our One of the major characteristics behind our success software and services enable service providers is our ability to constantly innovate, focusing on to accelerate the value of network functions the major innovation needs of our customers as virtualization (NFV). Among our NFV initiatives, they transform their business and the industry. In Amdocs is a platinum sponsor of the Linux particular, we have brought artificial intelligence Foundation’s Open Network Automation Platform into our portfolio of products as well as pioneered (ONAP), which has become the leading open source the transformation of carrier networks to have initiative for virtualizing service providers’ networks. cloud-ready, service agility. During the last year, we partnered with several leading service providers to advance their move into In the first case, as service providers seek to create the virtualized network space, including AT&T, Bell, intelligent, real-time digital customer interactions, Comcast, Orange and others. both virtual and human, in their customer’s channel of choice, our modular, open and integrated solutions enable operators to provide digital care and commerce in every channel and a seamless and connected omni-channel experience. With the launch this year of aia, our industry-specific digital intelligence platform, we enable service providers to infuse artificial intelligence into their business systems and processes, and thereby benefit from data-driven and intelligence-fueled decision making and actions. In the Philippines, SMART Communications deployed our contextual digital engagement technology, which is based on last year’s acquisition of Pontis, in order to launch and manage cross-channel, personalized marketing campaigns that leverage analytics to offer customers the most appropriate service at the right time in the right channel. 8 2017 Annual Report We help our customers achieve their business goals and meet their everyday needs Record revenue, continued operating margin improvement Our fiscal 2017 financial performance was in line with our expectations at the start of the year and included record revenue, continued operating margin

Load more