(RTTNews) - Wednesday, Amdocs Ltd. (DOX) reported an increase in its profit for the fourth quarter, helped by lower expenses as well as interest income, despite a decrease in revenues. Per share earnings, on a non-GAAP basis, was one cent lower than last year, but topped the Street expectations.

In addition, the company provided first-quarter earnings forecast, above the Street view, and said it anticipates that its two growth drivers- managed services, and cable and satellite businesses, will continue to perform well in the next year.

The company's GAAP net income for the fourth quarter was $85.8 million or $0.42 per share, compared with $82.7 million or $0.38 per share in the prior-year's fourth quarter. Net income, on a non-GAAP basis, was $109.2 million or $0.53 per share, compared with $117.2 million or $0.54 per share, in the fourth quarter of fiscal 2008.

On average, fourteen analysts polled by Thomson Reuters estimated earnings of $0.49 per share. Analysts' estimates typically exclude special items.

Total revenue for the quarter declined to $707.41 million from $825.27 million a year ago. Seventeen Wall Street analysts estimated revenues of $678.98 million.

According to the company, which provides Business Software and Services, license revenues declined to $27.26 million from $41.91 million year-ago, Service revenues declined to $680.15 million from $783.36 million in the prior year period.

Region-wise, revenue from North America declined to $528.0 million from $558.7 million year-ago, while revenue from Europe declined to $93.00 million from $150.9 million year-ago. Revenue from the Rest of World declined to $86.4 million from $825.3 million.

For the quarter under review, the total operating expenses saw a significant decline to $610.57 million from $723.81 million in the year-ago period.

Dov Baharav, chief executive officer of Amdocs Management Limited, stated that the company experienced rising interest and strong signings in managed services and that the business performed very well in cable and satellite in a tough economy. He said that the company validated its market position by establishing and expanding important relationships with leading operators.

"We expect these two growth drivers - managed services and cable and satellite - to continue to perform well and provide a strong foundation for our results again in 2010. We believe, in aggregate, our project-oriented revenue is showing early signs of stabilization; however, decision cycles remain extended and results may still vary quarter to quarter in individual product areas and geographies," he added.

Amdocs estimates GAAP earnings per share for the first quarter to be in the range of $0.38 per share - $0.44 per share and non-GAAP earnings per share of $0.51 per share - $0.55 per share, which excludes acquisition-related costs and approximately $0.04 per share - $0.05 per share of equity-based compensation expense, net of related tax effects.

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