Subject: [NEXTEL-1] Amdocs restructures again-

From: [email-masked]
Date: Thu, 04 Sep 2003 00:14:47 -0400

Amdocs restructures again

The company is expected to fire hundreds of workers by February, when it will
consider additional lay-offs.

Hadass Geyfman 3 Sep 03 18:48

Sources inform “Globes” that billing giant Amdocs (NYSE: DOX) is about to fire
hundreds of workers, including very senior executives. Industry estimates speak of
over 700 lay-offs. The firings are expected to begin in late October, and take
place in small groups, spread over 2-4 months.

The sources added that this wave is only the first stage of the process. Once it
is completed, Amdocs will consider whether further lay-offs, involving hundreds
more employees, are necessary. As reported in “Globes” several months ago, Amdocs
has been laying off small numbers of employees, averaging 100 per month, since
early this year.

”Globes” also reported that industry sources believe that Amdocs will reassess its
employment situation every quarter, and decide whether to lay off more workers,
according to the number and extent of the projects it wins and loses.

The industry sources believe that the reason for the upcoming lay-offs is the
sharp fall in the company’s profits. Amdocs has won major outsourcing contracts
with low profit margins, which are expected to sharply reduce the profit margins
for the whole company over the coming quarters. Merrill Lynch analyst Tal Liani
told “Globes” yesterday that the company’s return to 15-17% profitability could be
delayed by much more than a few quarters, and could take years. Industry sources
therefore predict that the company is being forced into lay-offs, in order to
raise its profit margins.

A considerable degree of overstaffing has been evident at the company offices in
Ra’anana and Hod Hasharon for many months. It can nevertheless be assumed that
Amdocs believed until recently that it would need the workers, including those
having little to do, for the large contracts the company had recently won, and
other large contracts in the pipeline. In other words, it appears that Amdocs has
little choice, and is being forced to adopt the necessary measures, in order to
preserve its profit margins.

After publishing its third quarter report, Amdocs announced it had 8,250 IT
employees at the end of the quarter. “Globes” reported at the time that Amdocs had
reported 8,400 IT workers as of the end of its 2002 fiscal year (September 30,
2002). At the same time, following its outsourcing contracts with SBCDO, Bell
Canada (TSE: BC), Dex Media, Nextel Communications (Nasdaqm, XETRA: NXTL), and
Nextel Partners, hundreds of new IT workers joined the company. A crude estimate
therefore is that Amdocs has fired hundreds of workers.

Another possible motive for the lay-offs is the lower than expected extent of the
contract with US wireless giant Sprint PCS (NYSE: PCS). A few months ago, Amdocs
was on the verge of signing a $700 million, seven-year outsourcing contract with
Sprint for its mobile billing systems.

Because of structural and other changes at Sprint, the contract terms were
altered. As a result, the contract is now for the supply of a regular Ensemble
billing system, not outsourcing. This has made the value of the contract much less
than expected. Furthermore, Amdocs reported to the analysts that a large
proportion of the work on the project had already been carried out. Industry
estimates are therefore that Amdocs will receive only a few tens of millions of
dollars from the contract in the coming year.

At the same time, it should be emphasized that the contract with Sprint is of
enormous strategic importance for Amdocs. When Convergys (NYSE: CVG) was Sprint’s
billing supplier, it cited its contract as an important strategic foothold.
Sources also inform “Globes” that Amdocs recently canceled its own pavilion in the
International Telecommunication Union Telecom World Geneva exhibition. The company
will send only a small delegation to the exhibition, without a pavilion. The
spherical three-storey pavilion planned by Amdocs would have cost tens of
thousands of dollars.
The company decided to reduce its delegation and cancel the pavilion after
learning that attendance by exhibitors and visitors at the exhibition is expected
to be far less than in previous years. Amdocs’s measure is expected to save
millions, and perhaps tens of millions, of dollars.

An Amdocs spokesperson responded to the report about the lay-offs, “Amdocs is not
planning any large-scale lay-offs at this time. At the same time, the company
evaluates the level of its expenses against its revenue, in accordance with
developments, and makes the appropriate response.”

http://www.globes.co.il/serveen/globes/docview.asp?did=720959&fid=942

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From: [email-masked]
Date: Thu, 04 Sep 2003 00:27:58 -0400

Amdocs restructures again-

Now You Know Why Your Nextel Bill Is Always S*** Up!

1st  AMDOCS can't keep their lights on-
 http://www.news-gazette.com/story.cfm?Number=13366

Now AMDOCS is facing  layoffs......

The next couple of Nextel billing cycles will be hell!

Check you bills people!