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  "docSlug": "778e2cbfbfaa",
  "documentTitle": "Amdocs Limited (DOX)",
  "authorId": "54_Spruce_Point_Capital",
  "authorName": "Ben Axler",
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  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2019-01-23 00:00:00",
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  "pageNumber": 17,
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  "notes": "The slide uses two line charts to demonstrate AT&T's financial stagnation as a proxy for risk to Amdocs.",
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      "text": "Importantly, we note that, until recently, AT&T was a strategic investor in Amdocs. However, AT&T's position in DOX equity fell below 5% in 2009, and there is no indication that it maintains a material position in the stock today.",
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      "text": "T Net Revenue (Organic)",
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      "text": "AT&T revenue exposure: 30%",
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      "text": "Importantly, we note that, until recently, AT&T was a strategic investor in Amdocs. However, AT&T's position in DOX equity fell below 5% in 2009, and there is no indication that it maintains a material position in the stock today. Not only does this diminish AT&T's interest in maintaining a strong relationship with Amdocs, but it perhaps reveals AT&T's perception of the direction of the industry and of Amdocs' future in the space. Investors would be wise to take note of AT&T's divestment, as there are likely few entities with a better understanding of the direction of telecom than one of the biggest players in the industry.",
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      "text": "Of particular note is Amdocs' exposure to AT&T, which accounts for ~30% of Company revenue. AT&T has seen consistent organic sales declines through the last several years, and capex has generally been flat. A lack of growth in spending on IT infrastructure among major customers will limit Amdocs' potential organic sales growth, and margin pressure at AT&T and throughout the industry will force Amdocs' customers to spend frugally though the foreseeable future.",
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