ST. LOUIS-Amdocs Ltd. stock fell almost 40 percent Friday following announcements of lowered revenue expectations, reductions in work force and changes in senior level management.
The company said it now expects revenue for the third quarter of fiscal 2002 to be about $380 million, down from previous expectations of $420 million. In addition, earnings per share should be about 20 cents per diluted shared, not 33 cents per share. The company further said it expects the fourth quarter to continue to be challenging and anticipates revenue for the fourth quarter, ending September 30, 2002, to be between $350 and $360 million with earnings per share between 17 and 20 cents.
Amdocs said it will begin restructuring by reducing costs by 10 percent over the next two quarters. It plans to do so by cutting overhead expenses and laying off 8 to 10 percent of its work force.
In addition, the company has chosen to boost Dov Baharav, currently chief financial officer, to the position of president and chief executive officer effective July 1. Avi Naor, currently president and CEO, will become vice chairman and Ron Moskovitz, currently vice president of finance, will take over as CFO. The transition was announced previously, but should have taken place on October 1, the beginning of the company’s financial year.
Shares of Amdocs were down 39.22 percent, or $5.71, to trade at $8.85 mid-morning Friday.
