Amdocs Ltd (DOX) 2005 Q1 法說會逐字稿

Good day everyone, and welcome to the Amdocs first quarter 2005 earnings release conference call. Today's call is being recorded. And at this time I will turn the call over to Mr. Tom O'Brien. Please go ahead, sir.

I am Tom O'Brien, Treasurer and Vice President of Investor Relations for Amdocs. Before we begin I would like to point out that during this call we will discuss certain financial information that is not prepared in accordance with GAAP. Investors should not construe these financial measures as being superior to GAAP. The Company's management uses this financial information and its internal analysis in order to exclude the effect of acquisitions and other significant onetime events that may have a disproportionate effect in a particular period.

Accordingly, management believes that isolating the effects of such events enables management and investors to consistently analyze the critical components and results of operations of the Company's business, and to have a meaningful comparison to prior periods. Also this call includes information that constitute forward-looking statements made pursuant to the Safe Harbor provision of the Private Securities Litigation Reform Act of 1995, including statements about Amdocs' growth and business development in future quarters.

Although we believe the expectations reflected in such forward-looking statements are based upon reasonable assumptions, we can give no assurance that expectations will be obtained or that any deviations will not be material. Such statements involve risk and uncertainties that may cause future results to differ from those anticipated.

These risks include but are not limited to the effects of general economic conditions, Amdocs' ability to grow in a mobile, wireline and IT business segments, adverse effects of market competition, rapid technological shifts that may render the Company's products and services obsolete, potential loss of a major customer, our ability to develop long-term relationships with our customers, and the risks associated with operating businesses in the international market. These and other risks are discussed at greater length in the Company's filings with the Securities and Exchange Commission, including in our annual report on Form 20 F filed in December 30, 2004.

Participating in the call today are Dov Baharav, President and Chief Executive Officer of Amdocs Management Limited, Eli Gelman, Executive Vice President, and Ron Moskovitz, Chief Financial Officer. Following Dov Baharav's comments we will open the call to Q&A. Now let me turn the call over to Dov Baharav.

Good afternoon, ladies and gentlemen. We are pleased to report that this was an excellent quarter for Amdocs. We exceeded our guidance with revenue of $469.5 million, and earnings per share of 34 cents, excluding acquisition related costs net of related tax effect. The good results of this quarter are the result of among other things excellent execution in sales and delivery. This was our best ever quarter in sales. We spend (ph) new wins contributing to a $75 million increase in our 12-month backlog.

I will give you more detail on this quarter's wins in a minute. But the major sale driver were the increasing activity in wireline, along with continued growth in wireless market. We are seeing improvements in the market that we sell. Carriers are increasingly willing to commit to new projects, both in wireline and wireless. While we continue to face competition, our position as the market leader helps us to enjoy a greater benefit from the improvement in the business environment.

The momentum that we are experiencing today is the result of our strategy to win industry-leading products and services to the high-end carriers. We continue to invest in R&D over the years so that we now have a full suite of products to enable carriers to pursue an integrated Customer Management approach. The concept of integrated Customer Management supported by a single suite integrated front and back office system covering all lines of business from wireline and wireless through (indiscernible) is being met with great enthusiasm among our customers and was a major contributor to our sales this quarter.

Our results are based on successful delivery as well. And during this quarter we had 7 implementations where Enabler 5.5 was put into production. Successful implementations are crucial for Amazons as they usually lead to support revenue for years to come. They help to drive additional new sales within this existing customer, and they also give confidence to new customers that Amdocs will deliver for them.

Let me now spend just a few minutes talking about the wins in this quarter. On our last conference call I spoke to you about opportunity that we saw in wireline industry. On one hand, these are driven by the move from circuit switched voice to IP VoIP services and need for carriers to move towards advanced services, including beta, video and Voice over IP. Wireline carriers are in competition with the cable companies to capture the entertainment market.

In addition, wireline carriers need to consolidate and modernize their systems to gain efficiency in their operations. For this reason and more there is substantial increase in activities among the wireline carriers. And we're pleased to say that we signed some significant new business with these carriers in Q1.

First, we won a large integrated Customer Management project with Svyazinvest, where we're walking with IBM to modernize the company multiple billing systems supporting more than 35 million wireline subscribers. Svyazinvest will use Amdocs Billing, Customer Management, Ordering, Self-Service, and Partner Relationship Management systems in order to pursue an integrated Customer Management strategy and have a single comprehensive view of the customer.

Amdocs and IBM will provide ongoing maintenance services once the implementation is complete. Also, another major wireline carrier has selected Amdocs to support its initiative to provide customers with new IP-based services using our Billing, CRM, Ordering and Mediation products to pursue an integrated Customer Management strategy. Amdocs will also provide implementation and system integration services to this customer. In addition to these wins we have other existing and potential activities in the wireline area.

While I have focused on wireline activities so far, we have success in wireless as well, with wins for software and services including a large system integration project. There is continued growth in the wireless industry where we are the leading vendor. Carriers are rolling out 3G, which requires additional functionality to support new products and services.

There is consolidation in this industry as well, which represents both opportunity and risk for Amdocs. We have several customers going through consolidation activity now. We continue to make progress at Cingular where they have reported that all phase 1 initiatives of the AT&T Wireless integration are on or ahead of schedule. We're providing conversion and other support activity, and things are going well at this customer.

I know that many of you are interested in what role we see for Amdocs in the combined Sprint Nextel. So please let me share our thoughts. First, there will be competition among the vendors who serve these companies. So of course that means that there is some risk for Amdocs. We have some business now with Sprint who uses mostly our competitor. We are the major provider of billing and customer care for Nextel, where we have helped Nextel grow from 4 million subscribers to over 50 million today.

During this time we help them consolidate 14 databases down to 1, reduce their billing cycle to less than 4 days, and reduce call handling times. Our products helped Nextel's largest customer manage their businesses through self provisioning. And Nextel is using our Enabler for their 4G1 (ph) with Flarion.

Our existing offer as demonstrated by the systems that we have provided for Nextel, our industry-leading R&D spend and our capability to support the combined Sprint Nextel and its growth make Amdocs a compelling choice to be a partner to the new company.

We're focusing our efforts on the two companies to win their trust and confidence That we will walk out to bring the wide solution of products and services to Sprint Nextel. So in summary, we feel good about the probability of Amdocs benefiting from this merger.

When we look at where we stand today, we're very encouraged by our success in recent quarters and the expected growth in Q2 and going forward. We see a market where conditions are improving, and there is a great alignment between the need of the market and our offering. Our leadership in this market is growing as we continue to increase the gap between Amdocs and our competitors. We are a strategic partner to our customers. And the deals that we have signed in the recent quarters may help to serve as the basis for the growth of Amdocs for years to come.

Let me now turn the call over to Ron Moskovitz, our CFO, for the financial review. And then I will come back with some concluding remarks.

Our first quarter revenue was $469.5 million, exceeding our guidance and representing a growth of 9.6 percent over a last year's sequential growth of 3.8 percent. Our EPS, excluding acquisition related charges net of related tax effects, was up 30.8 percent to 34 cents per diluted share, which was 3 cents over our guidance.

After taking into account acquisition related charges, GAAP EPS was 32 cents per diluted share. Please remember that in computing diluted earnings per share you need to add back to net income $984,000 of interest and expenses and issuers costs. This is the result of the elimination of the contingent conversion accounting under EITF 08-04 which resulted also with adding 10.4 million shares to our share count.

Our revenue and expenses this quarter were slightly impacted by the significant weakening of the U.S. dollar which increased both our reported revenue and expenses by accrual (ph) approximately $7 million each. As our practice is to hedge our net exposure to foreign currencies, the change in value in the U.S. dollar did not add a material impact on our earnings, and we do not expect it to in future quarters.

License revenue was $20.4 million, or 4.3 percent of revenue. And we will probably be around this percentage going forward. Operating margins was slightly up this quarter to 18.2 percent as we enjoyed the leverage provided by topline growth. We expect a slight increase in operating margin margins next quarter as well.

Other income was $5 million this quarter, up primarily due to more favorable interest rates on our cash. We expect this line to be at this level or even slightly up in the coming quarters. Our effective tax rate on pretax income before acquisition related charges and related tax effects decreased to 20 percent for Q1, and we expect to see this rate for all of fiscal 2005.

DSO at the end of the quarter was 55 days, up slightly from last quarter. Free cash flow defined as cash flow from operations less net capital expenditures and principal payments on capital leases was strong at $63 million for the quarter. We ended the quarter with a cash balance of $1,257,000,000, an increase of $66.7 million from last quarter's balance.

We announced late last month that our Board has authorized up to $100 million for share buy backs. Given the short amount of time between the authorization and our quarter end blackout period, we did not repurchase any shares under this authorization. We may or may not purchase shares in the future based upon our evaluation of ongoing cash balances and needs and the share price.

Our 12 month backlog, which includes contracts, committed revenue from Managed Services contracts, letter of intent, maintenance and estimated ongoing support activities was $1,515,000,000 at the end of the quarter, an increase of $75 million from the September quarter.

As you may have seen in the press release last month, the District Court dismissal of the class action lawsuit was affirmed by the Court of Appeals per curiam, which was a strong victory for Amdocs. We were pleased by this ruling, as we said from the beginning that there was no merit to the plaintiff's case. Regarding the SEC investigation, we're not aware of any substantial development since last quarter's conference call.

Looking forward, our guidance for the second quarter of fiscal 2005 is for revenue of approximately $488 million. We expect EPS of 35 cents, excluding the effect of acquisition related charges net of related tax effects between 1 to 2 cents per share. Our EPS guidance is based on a fully diluted share count of 223 million shares.

With that let me turn it back to Dov.

We are pleased with what we accomplished this quarter, and are looking forward to additional success in the coming quarters. With that, let me now open the call to Q&A.

(OPERATOR INSTRUCTIONS). Michael Turits.

Can you just -- two things related. First of all, what did drive the upside beside the FX in the quarter? Was it early sales or was it ad hoc to ad hoc projects and from where? And then I have a follow up.

It was a combination of strong business with existing customers, strong sales that came during the entire quarter, so we had upside in all aspects of the business this quarter.

Was there any --?

I'm sorry, sir. Once again queue up if you have a question. We move to Tom Roderick at this time.

Thank you. Just I was hoping you could offer some more commentary around Cingular. Last quarter you suggested there was a variety of activities that you were engaged in with Cingular in helping them migrate, not just subscribers but potentially looking at helping them upgrade service plans, things of that nature. Can you offer any more commentary around what the scope of your project activity there looks like today?

We can not give a lot of specific information about the activity, but we can share with you that we are actively converting customers to the Cingular system for -- in different markets. We are active on the Call Center application, the CRM application, trying to streamline their Call Center to have a more common view for the CSR, and additional services around the activities.

Thank you. And just one question here around Svyazinvest. The deal itself, given that IBM will be the prime contractor on this deal, should we expect to see a ramp perhaps not this coming quarter but in the future quarters around license business itself, or do you feel that there is a strong level of service activity available for you despite the fact that IBM will be the prime on this?

We're going to see. We're going to start recognizing revenue from this build in the Q2. And so we are going some of the growth in Q2, but not all of it is attributable to (indiscernible). We should expect down the road further services, but not -- mostly not at this stage.

We move back to Michael Turits now.

I guess I got cut off there. That was my question as well. In terms of the Svyazinvest signing is the full amount of the project and the potential for the project reflected in the current description or are there upside opportunities?

Only part of the project is committed and reflected in the backlog -- in the 12-month backlog. And there is a lot of activity that we expect to get from this customer.

And let me, Michael, add here that that is the usual case with large projects. The customer initially commits for license and maintenance and maybe some initial phases. And usually once we are successful, we usually get some expansion and the customer is willing to do more. And right now -- and we expect that in the coming years we will see more and more in this project.

Whatever we're thinking of as the normal run rate of business for that, pick a number, call it 40 million a year or something, would that already be flowed into the backlog?

For the coming quarter (indiscernible) backlog, yes.

Only (indiscernible). Michael, let me just add -- maybe just shed some light. Svyazinvest basically has 8 operations which is like 8 RBOCs -- all over Russia. The idea is that we're going to implement the same system all over Russia, and potentially also go to the long-distance international Ross (ph) Telcom, which is another company.

So it is a huge potential for us. And we expect to share some of the services going forward with IBM. But we have a lot of expertise in customer care and billing, as you know, so we expect to seen additional services in the future.

Greg Gould with Goldman Sachs.

It is Liz Grabson (ph). This is the first quarter I can remember a stand-alone systems integration project being announced. And I was wondering if you could give us some insight into the growth you have and the headcount dedicated to the SI practice? And any sense of what we can see out of that practice going forward?

As far as we remember, this is the second time where I am mentioning it. We mentioned Vodafone Hungary before, which is a turnkey solution, and it is a large system integration project as well. This specific new win is additional walk around system integration, implementation of services, most of them are around those systems, but not all of them.

Now this practice win we said all along that we're going to expand the system integration services under the leadership of Rick Medis (ph), who is an excellent leader in this area. We are expanding our methodologies. We are expanding our activities. We're recruiting people. And we have -- we see some fruition of this effort, and we expect to see some more in the future.

And what headcount do you have in that practice right now?

It is very difficult to say. We have several hundred people. However, it depends on the project because we can pool people from our delivery division and add them, and using others. So it is varies between one project to another.

(indiscernible).

But it -- the count right now in hundreds with our permanent consultants in this (indiscernible).

And moving to the geographies it sounds like there's a little bit more activity out of Europe that we have heard in the past few quarters than we have in probably the past year and a half. Have you seen a material pick up in Europe, or is it still a little bit slow? And can you just talk to the geographical break outs in revenue for the quarter?

In terms of a breakdown of revenue, actually we see more pick up in North America. So we have about a 24 percent in Europe, about a 68 in North America. But even though we have a lot of opportunities in Europe.

Maybe to be short, we have not seen yet pick up in Europe, even though a lot of potential in our pipeline. So we see a lot of activity. It has not been translated yet to pick up in the percentage of revenue fueled out of the total revenue.

Tom Ernst with Deutsche Bank.

Looking at your margin performance there was a nice move upwards in service margin this quarter. And your guidance would imply a healthy move in operating margin next quarter. Is is driven by -- or are your Managed Services contracts progressing with this? And do you still feel like your Managed Services contracts will perform at your average margin levels or better looking forward? And then finally, a third piece of that, are you meeting the major milestones? Have there been any significant disappointment in your large Managed Services contracts thus far?

As for the margins, we're producing according to plan in Managed Services. And we see a creep up of the margins there. And we sure expect to get to our average corporate margins on Managed Services. As for the entire margin, we expect next quarter a slight increase in overall operating margins. It is not going to be a huge increase.

And are you making your major milestones? Again, have there been any significant disappointments in any of the contracts?

I would say in all our contracts, and the large one where SPCDO (ph) and Bank Canada and Nextel and other in the directory area, we meet all the milestones. And I would say that we performed to the SLA. And in many cases better than the SLA, which actually creates high customers satisfaction which enables us to expand the business, extend the business as we have done with R.H. Donnelley this quarter.

R.H. Donnelley we had some small area (ph) contract, and we got an agreement to expand it to add more functionality, to modernize the system and to expand it until 2009 I think. So it is -- I would say we are quite pleased with our achievement in this regard.

Ashwin Shirvaikar.

Thanks for taking my question and excellent quarter. Could you talk about looking out in the next 9 to 12 months? Could you talk about the potential for new large Managed Services contracts in your pipeline?

As for the pipeline we -- on one hand we translated a lot of the pipeline into backlog. That is the good news. At the same time we still have many new opportunities that were entered into the pipeline. The pipeline is diverse. We have opportunities in all geographies and in all application suites, the CRM and the billing, mediation, Yellow Pages. In terms of many servers (ph), we have several opportunities as I mentioned as well. But we do not necessarily see them materializing in the next 90 days are so.

Looking to your trendy F (ph), it is kind of -- on the one hand very nice to see that you make -- you're penetrating your existing clients very, very nicely. But that also opens up the question how much more potential do you have that you can continue to penetrate clients when you get 2 or $300 million of revenue from some of the larger ones?

I would say we serve the tier 1, tier 2 customers. So one of our largest customers is SBC. According to some publication they are -- they spend about $3 billion on their IT. And our revenue is measured well. They counted as one of our 10 percent customers. So it is around 10 percent of our business, which is close to $200 million.

So we have a very small portion of the business where we have the largest penetration. So actually looking we have huge potential to increase and expand our business with our existing customers, which is one thing. Secondly, there are many, many customers that we have not penetrated yet. Just to give you some examples, Telecomm Italy, NTP. We have many more penetration to British Telecom. French Telecomm is a customer that we have not penetrated. And there are many other large carriers in the wireless and the wireline and the cable, and even in directory. So we feel that we have -- we are the market leaders, however, we believe that we have about 10 percent of this market.

Julie Santoriello.

A couple of questions. Following up again on the systems integration and Professional Services project, some of those stand-alone projects we saw this quarter. How would you say these compare in terms of gross margin and operating margins versus the corporate average?

In average we are capable of achieving similar margins that we see in any other projects. In some cases even more than the corporate average. But an average we see very similar margins.

The important thing about the system integration activity of Amdocs it is that it is not just a stand-alone system integration practice. We're not just a one more system integrator in the market. We provide mainly our system integration services in conjunction to our offering to our customers.

As a result of it, we achieve high synergy. So in the cases where we have the system integrations and the delivery of software and services, we achieve a higher efficiency. We're able to comply with the time line and with the budget. And as a result of this to increase the customer satisfaction and bring on more value to the customer. So I would say it is not only that we're able to get more revenue, we are able to provide better value to the customer, which increases substantially our position and our ability to win in this market.

Thank you and just a quick follow-up to that. In light of that sort of synergy there, would we assume that these deals tend to be larger than your average deal size?

Yes. Actually by adding the system integration portion we are adding I would say a substantial addition to the regular revenues that we used to have. If in the past we have a license and maybe design customization, implementation services. Now we have additional services. It is high level consultancy, maybe strategy consultancy, and PMO and business forces and change management, and designing business processes and training and testing and many other, which depends on the case might add -- increase substantially the size of our project.

I would add to that that in the -- when we do these kind of services in conjunction with the software and they serve our traditional business definitely it increases, and may even significantly increase the deal size. But on the other hand, we have some stand-alone SI projects that could vary in sizes. It could be even smaller 1, $2 million small deals and it could get to 10, 15, $20 million stand-alone services deals, which are not in conjunction with a customer project.

Peter Jacobson with Kaufman Brothers.

Just a clarification on the Svyazinvest deal. I think when that was announced you indicated that you anticipated that it would be -- go for several years. And was that a description of the implementation of the signed scope, or was that more a general comment regarding that anticipating that relationship would go on for several years, including potential future scope to be signed?

Basically both. We expect this deal, as it is structured right now, and as I mentioned the scope of it is to place 8 MRKs, which are like RBOCs in Russia under Svyazinvest. So the plan right now is actually -- the roll of the project, the rolling of the projects is for a few years. And we expect the services to increase throughout this year. We also meant that there are some potential upside on components for example they did not buy, or getting into the long-distance business in Russia. And so on and so forth. So both actually are relevant.

At this point has that deal generated any new leads associated with working with IBM?

We're working with -- in cooperation with IBM all over the world, in Europe and in APAC, and eventually also in North America. This specific deal I would not say immediately generated new leads, but we have quite a few of the leads that we're working on. And obviously there is nothing like going into it together to energize the relationship. So I would say the bottom line is very positive.

And finally, any updates as far as your thoughts on expanding into OSS and/or the cable billing space?

As I said before, we're looking all the time to expand our abilities into different areas. We have -- in the pay-TV we have a win in Asia-Pacific with Astro, where they're using our Clarify product line and Enabler in production -- a very successful project. And we're having new deeds in the pipeline in this area.

As for OSS we're also already in this area, so our leading product of Order Management where we had several very successful implementations and some new sends (ph) in recent quarters. And we said that we're expanding this offering into additional components on the OSS, on the operating support systems, which will be more in the area of provision controller and inventory management and such.

Marianne Wolk with Susquehanna.

Could you talk to how concentrated the backlog increased and deal flow was this quarter? Were there any 10 percent customers in that area? And can you also let us know how many of the 8 divisions of Svyazinvest you actually did sign or actually did go to contract? And then I had a follow-up.

As for the first part the growth of (indiscernible) was across the board. So it was not only one deal, it was quite a few deals. And also we see increasing activities with existing customers. So I would think it is all over the place.

As for the second question, in terms of how many of the 8 Svyazinvest operation, one of the reason why it took a longer period is because all of them signed up for the program. And the licenses were calculated for all 8 of them. In terms of the exact implementations and the order of the implementations, we cannot comment. But naturally we will start with a couple of them in the beginning and then go on.

So basically the backlog includes deals for all 8, but only a portion of the work you would expect to do? Is there a potential to sign additional business with Svyazinvest this year?

It is only the revenue that they are expecting to see in the next several months, which we believe it is not the end of the work we can have with Svyazinvest.

To some extent actually the backlog, the 5 year backlog increased much more than the 12 month backlog. So it is not that we have 12 months and that's it. So we got I would say a substantial increase of the 5 years backlog.

And that follow-up on Cingular. Are there any milestones we could look toward that might lead to another phase of work? Or are there other pieces of business with Cingular currently in their pipeline that would suggest you might win additional business with them in 2005?

We are the major vendor for Cingular, and we serve them for many years. And as we have indicated before we have a major role in the conversion right now in the activities that are running right now. And we hope that since they increase substantially their activity and need to cope with consolidating the companies, the combined company moving forward, we will get a bigger portion of the pie. And what we will get and when we will get, I would be very glad to share it with you once we get the permission of the customer to release it.

Can you at least confirm that there are projects that are in your pipeline with them?

The only thing I can confirm is that we're doing a lot of work there, and we work with the customer. And we're trying to convince the customer to have a press release so I can talk about everything with you.

Daniel Meron with RBC.

Congrats on the great quarter. A couple of questions here. If you can talk about on the make of the quarter as far as directory versus Customer Care and Billing, and also the trends there, and if there's any split on the addition to the backlog?

As for directory, directory represents say 13 percent of the business say for this quarter. It is -- And the trend is that the directory is drawing. Actually we have -- the activity with R.H. Donnelley and some other things that we're doing, and the recent deals that we announced with Dex Media in the previous quarters, we see it was in the directory as well.

Just to add on that, just to give you more color on the R.H. Donnelley, we have been working with R.H. Donnelley for about 18 years now. And that is also related to the question that we have been asked before about our expansion into existing customers.

This specific deal that we're talking about is a multiple of our normal deal size. And it is an expansion of scope of services, scope of products, modernization of software, additional work in terms of the operational aspect of the business. And that is only in R.H. Donnelley. We had some additional smaller wins in the Yellow Pages this quarter as well. So it is growing and we have a pipeline for Yellow Pages as well.

And my next question is about what is the extent of business that you expect from 3G as a growth driver or from telcos moving into triple play? Are you -- is this something that could contribute to revenues more in 2005, 2006 or is it even past that? And why would 3G be an upward cycle right now when the piece in Europe, most of the work on the infrastructure has been done?

We believe that the move of (indiscernible) will create a catalyst for growth in our business. We already see activity and we see a substantial I would say activity among carriers to be able to provide the triple play. So that has helped us (indiscernible). And we mentioned that there is one project that we won this quarter. And we actually see demand in the market for this with -- from other carriers. So that is here and today.

Now regarding the 3G, the 3G actually is moving forward slowly but surely. And that is a result of (indiscernible) there are more subscribers on it. And carriers are required to provide new services with additional functionality to more customers. And once you have more customers, more services division of functionality you need to tweak your system. You need to add some features. You need to adjust your system. And that creates additional demand for products, for functionality and for services. And that is -- and everything that I said it is now, not in 2006, in 2005. And that is one of the reasons why we had such growth in the backlog.

Scott Sutherland.

I want to talk -- I think last quarter you said you had some bookings from the AT&T Wireless migration. Did you get some more this quarter?

I would say it is the same since AT&T Wireless and Cingular have been combined. So with your permission I would refer to it as Cingular. And actually I indicated that we're doing a lot of work for Cingular regarding the conversion of AT&T Wireless. And we hope that given the needs of Cingular we will win the confidence in our ability to provide some value and get more work as time passes by.

With your wireline customer first can you indicate if they are North American? And secondly can you comment on the activity with wireline operators? Is it regionally based or are you seeing broad scale RFPs around the world?

We cannot relate to the specific win that we mentioned before in terms of North America or any other place in the world. Sorry for that. In terms of the interest and the bids and the pipeline, as well as some of the wins that we're having in recent quarters, it is mainly in North America and Europe. And we have some small activity in APAC.

Just a couple of housekeeping questions. What was your CapEx in the quarter? And what percent was Managed Service in your Services segment?

CapEx was about $16 million, and Managed Service was slightly above 40 percent.

That's all the time we have questions for today. Sir, I will turn it back to you for any closing or further comments.

Thank you, Justin. This is Tom O'Brien on behalf of Amdocs. I would like to thank everyone for their support of the Company, and for joining us on this call this evening. Thank you and good night.

And that does conclude this Amdocs management teleconference. We do thank you all for your participation today. And you may disconnect at this time.