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  "documentTitle": "Amdocs Limited (DOX)",
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  "authorName": "Ben Axler",
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  "notes": "The slide uses historical financial data from Comverse 10-Qs to challenge Amdocs management's narrative regarding the acquired assets' performance and revenue contribution.",
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      "text": "Even then, claiming that the business was generating quarterly revenue “in the forties” was a sizable mischaracterization, even when taking only the assets acquired by Amdocs into account.",
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      "text": "Total Revenue: $273M",
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      "text": "In Q4 FY 2015, Amdocs acquired the majority of Comverse's Business Support Systems (BSS) assets for $273M. In response to questions regarding BSS's revenue contribution to Amdocs, management warned that, while the segment had generated $251M in revenue through the prior fiscal year, the business was in decline: it was generating revenue “already in the forties” on a quarterly basis, and would contribute “in the low tens of millions of dollars.” It also reiterated that it was not purchasing the entirety of the segment's assets, clearly downplaying the extent to which the acquisition would contribute inorganic sales.",
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      "text": "We also note that, while Amdocs did in fact not acquire the full BSS business, it did acquire most BSS sales. We question why management went out of its way to claim that “our starting base is somewhat lower” – a clear attempt to downplay BSS's inorganic sales contribution.",
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      "text": "Management was correct that the business was in decline. However, this could have been due to the divestiture itself, as the segment had grown by just over 1% through the prior fiscal year. It’s plausible that revenue growth would have stabilized in the year following the acquisition. Even then, claiming that the business was generating quarterly revenue “in the forties” was a sizable mischaracterization, even when taking only the assets acquired by Amdocs into account.",
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      "text": "“in the low tens of millions of dollars.” — Amdocs Management",
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      "text": "Source: Comverse 10-Qs",
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      "text": "Comverse BSS Segment (Total) financial data Q1 FY14-Q4 FY14",
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      "text": "Discontinued Comverse BSS Assets (Acquired By Amdocs) financial data Q1 FY14-Q1 FY15",
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      "text": "Q4 FY 2015: Comverse BSS – Background",
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