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AMDOCS LTD. /Chesterfield, Missouri Declining Market Value Doesn't Deter This Firm.(THE NEW AMERICA)

Investor's Business Daily

| September 05, 2001 | COPYRIGHT 2001 Investor's Business Daily, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

Byline: Kirk Shinkle

Lately, telecommunications firms have become a pariah to investors. Smaller companies are foundering. Equipment, testing -- even software companies that work in the sector -- have felt the pinch.

Amdocs Inc. hasn't escaped. The firm provides customer service and billing software. It does well enough to have produced 91% annual earnings growth over the past five years.

But Amdocs' stock has been in steady decline since January, when it traded near 80. It now trades as DOX for less than half as much.

But the Israeli firm is fighting its way through the downturn even as spending by its biggest customers continues to slow.

"They're probably one of the more insulated to a capital expenditure slowdown," said David Raezer, analyst with Morgan Stanley Dean Witter & Co. "(But for) anyone who's selling anything to service providers right now, it's a tough environment."

The company is hanging on because of a focus on Tier 1 customers, analysts say. They include telecom heavyweights SBC Communications Inc. and Verizon Communications Inc.

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