{
  "docId": "019dd923-622c-750b-8b98-9727cc72301c",
  "docSlug": "778e2cbfbfaa",
  "documentTitle": "Amdocs Limited (DOX)",
  "authorId": "54_Spruce_Point_Capital",
  "authorName": "Ben Axler",
  "documentKindSlug": "activist-deck",
  "documentKindLabel": "Activist deck",
  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2019-01-23 00:00:00",
  "orientation": "landscape",
  "aspectRatio": 1.3333334,
  "pageNumber": 103,
  "pageCount": 128,
  "prevPage": 102,
  "nextPage": 104,
  "slideType": "expose_contradiction",
  "function": "expose_contradiction",
  "density": "overcrowded",
  "nDataPoints": 0,
  "notes": "The slide uses a 'playbook' framing to link past legal allegations to current investor concerns.",
  "elementsJson": [
    "headline_text",
    "paragraph",
    "callout_box",
    "footnote"
  ],
  "metadataConfidence": 1,
  "imagePath": null,
  "slideHref": "/slides/019dd923-622c-750b-8b98-9727cc72301c/103",
  "deckHref": "/decks/019dd923-622c-750b-8b98-9727cc72301c",
  "deckJsonHref": "/decks/019dd923-622c-750b-8b98-9727cc72301c.json",
  "deckAnchorHref": "/decks/019dd923-622c-750b-8b98-9727cc72301c#slide-103",
  "components": [
    {
      "bbox": {
        "h": 0.04,
        "w": 0.15,
        "x": 0.52,
        "y": 0.65
      },
      "kind": "callout",
      "text": "Gelman complicit?",
      "attrs": null,
      "subkind": "primary",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "0ef9cb32-b73e-4ac0-941f-34e9b8d5b264",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.04,
        "w": 0.38,
        "x": 0.31,
        "y": 0.32
      },
      "kind": "callout",
      "text": "Kerry Chambers, et al. vs. Amdocs Limited, et al.",
      "attrs": null,
      "subkind": "primary",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "2fb47c46-ebaa-4e33-8090-9530e44102fc",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.08,
        "w": 0.31,
        "x": 0.02,
        "y": 0.82
      },
      "kind": "callout",
      "text": "Ironically, this ultimately encouraged customers to seek alternatives, exacerbating sales contraction at Amdocs",
      "attrs": null,
      "subkind": "primary",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "d12c50cc-d9d4-40d2-9851-fa58d8ba373d",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": null,
      "kind": "callout",
      "text": "As it appears that management could be putting the 1999-2002 playbook back into play, we worry that the Company may be engaging in some of the above activities in addition to the observed behaviors noted throughout this report.",
      "attrs": null,
      "subkind": null,
      "toolName": "Visual emphasis",
      "toolSlug": "visual-emphasis",
      "confidence": null,
      "componentId": "019dd953-64d3-706e-a457-078d89352686",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.08,
        "w": 0.31,
        "x": 0.02,
        "y": 0.37
      },
      "kind": "list",
      "text": "Amdocs makes code unnecessarily complex to enhance customer stickiness and increase costs to customer",
      "attrs": null,
      "subkind": "bullet",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "6d7aaf54-f6ee-42fa-ae3e-60d95dbb1fa6",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.08,
        "w": 0.31,
        "x": 0.35,
        "y": 0.37
      },
      "kind": "list",
      "text": "Delaying revenue recognition at acquired companies to boost post-acquisition sales",
      "attrs": null,
      "subkind": "bullet",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "a14d8e94-9b98-4543-b912-0c31e1e1eef7",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.08,
        "w": 0.31,
        "x": 0.68,
        "y": 0.37
      },
      "kind": "list",
      "text": "Inflating backlog to justify revenue guidance",
      "attrs": null,
      "subkind": "bullet",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "c664ddc5-b4e6-4c87-81fb-1a5aca42a2e3",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.08,
        "w": 0.9,
        "x": 0.05,
        "y": 0.17
      },
      "kind": "paragraph",
      "text": "Throughout this report, we have noted that management appears to be repeating a number of behaviors of which it was accused in the 2002 lawsuit.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "1b57a1a9-bd57-4a94-95b5-e6e6106ee4d0",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.25,
        "w": 0.31,
        "x": 0.02,
        "y": 0.47
      },
      "kind": "paragraph",
      "text": "Former employees indicated that Amdocs' programmers wrote very complex code for its software products, code which was difficult to learn.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "975b5b6f-af56-40cc-bb27-1a53662b6e43",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.05,
        "w": 0.9,
        "x": 0.05,
        "y": 0.91
      },
      "kind": "paragraph",
      "text": "As it appears that management could be putting the 1999-2002 playbook back into play, we worry that the Company may be engaging in some of the above activities in addition to the observed behaviors noted throughout this report.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "cd10c913-e95a-414b-8b8a-d8b25eea6474",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.35,
        "w": 0.31,
        "x": 0.68,
        "y": 0.47
      },
      "kind": "paragraph",
      "text": "The most likely reason defendants sought to maintain secrecy about Amdocs' true condition was that, starting no later than Q4 2001, in its public statements the Company was intentionally inflating its backlog.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "d47dcf7a-4c0e-4a84-bb8d-5d1827278b18",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.15,
        "w": 0.31,
        "x": 0.35,
        "y": 0.47
      },
      "kind": "paragraph",
      "text": "According to Amdocs' public filings, Clarify recognized an unusually low amount of revenue in the 'stub period,' i.e. the period between the announcement of the deal and the closing of the Amdocs purchase of Clarify.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "d7ee1e6c-d076-484a-88f1-4d92f3f0674f",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": null,
      "kind": "quote",
      "text": "According to Confidential Witness No. 1, a number of high-ranking Amdocs employees in the United States and Israel--including Gelman and Daunov, Division Presidents Shaul Ganel and Dani Keret, Division Vice President Richard Norris, and Vice President of Sales, North America, Joshua Behar--were involved in a scheme to overstate Amdocs' backlog by 30-50%, with successive quarters increasingly overstated.",
      "attrs": null,
      "subkind": null,
      "toolName": "Authority citation",
      "toolSlug": "authority-citation",
      "confidence": null,
      "componentId": "019dd953-64d3-706e-a457-08d1a40c97ec",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.07,
        "w": 0.65,
        "x": 0.31,
        "y": 0.03
      },
      "kind": "title",
      "text": "What Else Could Management Be Doing? Revisiting The 1999-2002 Playbook",
      "attrs": null,
      "subkind": "headline",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "3dba57c6-48da-477e-bba5-f6f12258ad33",
      "frameworkName": null,
      "frameworkSlug": null
    }
  ],
  "metrics": [],
  "tools": [],
  "frameworks": [
    {
      "name": "fraud-exposure",
      "slug": null,
      "matchId": "4f89e0a1-aeb3-4a61-9d85-59bc8b019890",
      "evidence": "The slide explicitly links past legal allegations of fraud to current management behavior.",
      "confidence": 0.9
    }
  ],
  "arcBeats": [],
  "loops": [],
  "imagePathAlt": null,
  "thumbSrc": null,
  "thumbSrcAlt": null,
  "locked": true
}