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  "documentTitle": "Amdocs Limited (DOX)",
  "authorId": "54_Spruce_Point_Capital",
  "authorName": "Ben Axler",
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  "presentationDate": "2019-01-23 00:00:00",
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  "notes": "Includes specific excerpts from a legal case (Kerry Chambers, et al. vs. Amdocs Limited, et al.) with underlined emphasis on key allegations.",
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      "text": "Kerry Chambers, et al. vs. Amdocs Limited, et al.",
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      "text": "One ploy even more desperate than defendants' accounting sleight-of-hand was Amdocs' malfeasance with respect to its contract with Certen. According to Confidential Witness No. 13, whereas Amdocs recognized revenue on the basis of percentage-of-contract-completion, Amdocs was over-eager to start developing the software for the Bell Mobility and Nexxia transitions to an Amdocs platform so that the Company could begin to recognize revenues in late 2001. Specifically, rather than determining the features the two companies wanted from their systems and developing these features in customized software-Amdocs' stock-in-trade-Amdocs started to write the code without ever meeting with Certen employees. As a result, Certen had to request numerous changes to the code. Not only did it delay the implementation of both projects for Amdocs to rewrite the code, but Amdocs demanded that Certen pay for the changes. While Confidential Witness No. 13 objected to paying for Amdocs' mistakes and for basic functions which should have been included in the contract price, Certen management agreed to make additional payments. To be sure this occurred, Amdocs employees from Israel were present to be sure that their developers gave Certen the party line. When Certen asked questions about the extra payments, the Amdocs representatives had to call back to Israel. Confidential Witness 13 indicated that the pricing demands were directed from Amdocs' offices in Israel to Certen.",
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      "text": "We note that, based on the accusations made by investors in the 2002 lawsuit, it seems that little has changed at Amdocs HQ. Management was similarly aggressive in looking to meet growth targets in the early 2000s, and was similarly clubby and secretive. Given the indications of strain at Amdocs noted throughout this report, we worry that management is once again taking steps to hide underlying business weakness while secretly enriching itself, until it runs out of available levers to prop up the Company.",
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      "text": "Confidential Witnesses Nos. 1 and 21 indicated that at a world wide sales meeting in London's Novotel Hotel in late January 2002, at which Senior Vice President Eli Gelman and other top executives were present, Division President Nissim Daunov told attendees that Amdocs had lost a lot of business, including SBC projects, and that there would be layoffs because of a large sales decline. Then Daunov told those in attendance that this information could not leave the room.",
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