Good day, ladies and gentlemen and welcome to Amdocs Third Quarter 2016 Earnings Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session and instructions will be given at that time. As a reminder, today's conference is being recorded. I'd now like to introduce your host for today's conference, Mr. Matt Smith, Head of Investor Relations. Sir, please go ahead.

Thank you, Lisa. Before we begin, I would like to point out that during this call we will discuss certain financial information that is not prepared in accordance with GAAP. The company's management uses this financial information in its internal analysis in order to exclude the effect of acquisitions and other significant items that may have a disproportionate effect in a particular period. Accordingly, management believes that isolating the effects of such events enables management and investors to consistently analyze the critical components of results of operations of the company's business and to have a meaningful comparison to prior periods. For more information regarding our use of non-GAAP financial measures including reconciliations of these measures, we refer you to today's earnings release which will also be furnished with the SEC on Form 6-K. Also, this call includes information that constitutes forward-looking statements. Although we believe the expectations reflected in such forward-looking statements are based upon reasonable assumptions, we can give no assurance that our expectations will be obtained or that any deviations will not be material. Such statements involve risks and uncertainties that may cause future results to differ from those anticipated. These risks include but are not limited to the effects of general economic conditions and such other risks as discussed in our earnings release today and at greater length in the company's filings with the Securities and Exchange Commission, including in our annual report on Form 20-F for the fiscal year ended September 30, 2015 filed on December 10, 2015, and our Form 6-K furnished for the first quarter of fiscal 2016 on February 16, 2016, and for the second quarter of fiscal 2016 on May 17. Amdocs may elect to update these forward-looking statements at some point in the future, however the company specifically disclaims any obligation…

Our first question comes from the line of Shaul Eyal with Oppenheimer. Your line is now open. Shaul Eyal - Oppenheimer & Co., Inc. (Broker): Thank you. Hi. Good afternoon Eli, Tamar and Matt. Tamar Rapaport-Dagim - Senior Vice President & Chief Financial Officer, Amdocs Management Limited: Hi. Shaul Eyal - Oppenheimer & Co., Inc. (Broker): Thanks for the color on AT&T, and great, as always, to see the relations further expanding on the heels of last quarter's announcement. Eli, does this project – the ECOMP is already part of the overall AT&T big contract, or is it some sort of an add-on? Eli Gelman - President and Chief Executive Officer, Amdocs Management Ltd.; Director, Amdocs Ltd.: The entire D2 activity for us, the entire ECOMP activity for us is all new. So any activity that we had before with AT&T represents the base and this activity is on top of it. It includes joint development of certain components of ECOMP and some services around it. And as we said also that – in terms of AT&T as we said also, we have the right to market this entire solution regardless to whether AT&T or us or jointly via development and whomever is developing it. We are the exclusive owner of the rights to market it globally. And I'm sure that AT&T will help us market it, because we all have an interest that this would become some kind of a start-up or some kind of reference, blueprint for other operators as well. Shaul Eyal - Oppenheimer & Co., Inc. (Broker): Got it. So in a way you're leading me to my next question. So maybe from a complete different direction though. For last week you probably saw – everybody saw Verizon announced their NFV strategy targeting the enterprise. I…

Our next question comes from the line of Tom Roderick with Stifel. Your line is now open. Tom Roderick - Stifel, Nicolaus & Co., Inc.: Hey, guys. Good afternoon. Thanks for taking my questions. Eli, I wanted to throw the first question at you here. You've been talking a little bit more constructively about the Pay TV market over the last several quarters. And it seems like you have some particularly good news this quarter with what sounds like it could be a transformational cable MSO win in the U.S. So I'm curious if you could talk a little bit more about the dynamics of that win, what the competitive landscape looks like and what larger cable MSOs are asking you to do in some of these transformational deals? And secondarily to that, could you talk a little bit about what the role of OSS and NFV, your capabilities within those categories sort of play in your attempts to win business in the Pay TV market? Thanks. Eli Gelman - President and Chief Executive Officer, Amdocs Management Ltd.; Director, Amdocs Ltd.: Yes Tom. Thank you very much. It may take me some time because you asked basically several questions, and all of them are good ones. Maybe to start from the end, OSS and NFV are absolutely relevant to the Pay TV and cable MSOs in North America. I'll give you the color in a minute. That's one. In terms of what are the demands, we believe that there are two major drivers and two major needs in the Pay TV North American market. One is to improve customer experience. The improved NPS, they are not known for high NPS, all of the operators. And there is a major need to improve it, regardless to anything else. On top of…

In the interest of time, we ask that you limit yourself to one preliminary question and one follow-up. Our next question comes from the line of Sterling Auty with JPMorgan. Your line is now open.

Hi, guys. This is Jackson Ader on for Sterling. Question from our side. It sounds like you're much more positive on North America in the last couple of quarters. Where do you see it kind of bottoming out and maybe returning to growth? What's the timeline of that? Eli Gelman - President and Chief Executive Officer, Amdocs Management Ltd.; Director, Amdocs Ltd.: Well, Jack it's not the $1 million question. It's a few billion dollar question. Obviously, we don't know exactly, but the direction that we are identifying is the correct one. North America dynamics regardless to Amdocs, it says nothing – the dynamic was not so positive in the last 12 months because of many, many reasons including the regulators, including fierce competitions and wireless and other things, but we definitely see some progress with North American carriers and MSOs. The MSOs are the new part. The others, wireless and broadband are the old part. We believe it will grow. It's hard to predict exactly when and the pace, but I think it'll be fairly safe to say it will be better in the following – next 12 months than in comparison to the previous ones.

Okay. And then my follow-up is also regionally based. Again, you mentioned in your prepared remarks that you're seeing some stronger markets in Southeast Asia rather than Latin America and I'm just curious, why that is? What you're seeing in Southeast Asia versus Latin America? Eli Gelman - President and Chief Executive Officer, Amdocs Management Ltd.; Director, Amdocs Ltd.: So Jack, this is actually a relatively easier question to answer. The reason why we see it is because of the – first of all, the macroeconomics. When you look at the two strongest economies in central Latin America, this is Brazil and Mexico, for different reasons. They have some challenging environments. Brazil I know how you measure it; the recession or whatever, but Brazil is not in a very good economical place. And that affects obviously everyone decision and practically almost the Olympics is behind us. I mean the preparation for the Olympics are already built into their economy. So that's in Brazil. In Mexico, slightly different dynamics. The entrance of AT&T into Mexico changed the market quite significantly. And now there is a strong competitor in Mexico which is AT&T. AT&T is going with a very interesting strategy of going after the high end of the market. So they put 4G network. They invest in IT system which is Amdocs, and they go after enterprise and lot of other things of this nature. And this created real competition among the carriers there, which is predominantly of course América Móvil and Telcel. So it's different dynamics. And the rest of the market actually are derivatives of this market. So we believe that there will be growth, but not as high as in APAC or in Southeast Asia and APAC. And Southeast – and Asia and APAC on the other hand, we are talking about economies that are growing including the Philippines, the Malaysia, Indonesia, Korea, Australia and other, so both emerging economies and more developed economies are growing, and they invest more as such in their future, that is to say with people like us, and more specifically with us. So we believe that there will be a difference between the growth rate, might be even relatively significant difference between the growth rate of APAC and Southeast Asia versus central Latin America. By the way, it was also true this year but not so significantly. Both of them grew. And in the future, I think they will grow but maybe in a different rate. Altogether, we still believe that rest of the world will generate growth and maybe and most likely in higher growth of the company. But the growth that we had in the last, let's say 12 months of 25%-plus is not sustainable. We said it more than once. It's not something new that we are saying.

Okay. Thank you very much. Eli Gelman - President and Chief Executive Officer, Amdocs Management Ltd.; Director, Amdocs Ltd.: Thank you, Jack.

Our next question comes from the line of Jason Kupferberg with Jefferies. Your line is now open.

Hi, guys. This is Amit Singh for Jason. Just wanted to quickly talk about your M&A comments earlier in the prepared remarks. So now with Comverse pretty well integrated into the business and you having more than $1 billion of cash and ability to lever up as well. Are we at the stage where you're ready to do some more acquisitions? And if yes, if you could talk about the capabilities or the sizes that you would be looking at? Eli Gelman - President and Chief Executive Officer, Amdocs Management Ltd.; Director, Amdocs Ltd.: So, Amit it's a very good question. The short answer is yes. We said all along that we believe in M&A as a vehicle to generate growth and to augment our offering. We really think that we have smart people and good software and good services, but really we don't have a monopoly on wisdom. So we would buy when we think it makes sense. You know that we are quite prudent in the way that we are targeting. First of all, it has to meet our strategy. This is the number one by far and the most important thing. And then we're trying to look for the best company possible to get and that could be, as demonstrated in last few years, in any variety of areas from consolidation all the way to niche technology, do we need to accelerate the R&D and anything around services in the middle in different geographies where we feel very comfortable to buy assets in any geography and in any topic as long as they're good assets and that make sense for shareholders. So the answer is yes. We would like to do more M&As. Size and type, needless to say, I cannot really get into that, but our history shows that we do – I like to call it the right M&As. So if we need technology augmentation of geography presence or whatever, depends on the asset. If it will be something bigger, it will have to come with big in terms of the cost. It will have to come with bigger revenue in EBIT for us. So I hope that in retrospect, we will always look at our M&As as intelligent M&As.

Great. Thank you. And then as you look at your employee mix and you've talked about now Southeast Asia being one of the focused region sort of inside emerging markets. And as you're thinking about hiring more people, are you thinking about beefing up your presence in any particular region or country? And if you could tie that to your margins, could that help your margins expand from your current 16.2% to 17.2% range going forward? Eli Gelman - President and Chief Executive Officer, Amdocs Management Ltd.; Director, Amdocs Ltd.: So you see the – first of all I want to tell you that our employee mix and locations are not primarily driven from cost structures and efficiency of this kind. It might be disappointing for you, but we are first of all going after the talent. We are a software company. We are dealing with very, very sophisticated piece of software and very sophisticated pieces of services. And we first of all go after talent. After saying that, if we can find the same talent in a very expensive area of Europe for sake of discussion or West Coast versus lower cost in India or might be in Israel, we'll go usually with the lower cost, but this is secondary. It's important secondary, but this is a secondary consideration. And the third consideration is where we need the support teams, because we do very, very – software that is very – it's affecting intimately the operation of our customers. It's not like something that you're sending and installing once and you go away. So we need to reside either on-site or close by to our customers. So if we have growing business in Southeast Asia, we are developing some capabilities and some talent and skills in Manila and in Singapore. And if we need to have more business in – and we have more business in central Latin America. We just opened this year a center in Guadalajara in Mexico to support the Spanish-speaking customers. So the consideration for us are first of all talent, cost and locations of our customers. And after saying all that, we're optimizing it all the time, and we are trying to do the best, trying to find the best balancing act between talent and capabilities and cost.

All right. Great. Thank you very much. Eli Gelman - President and Chief Executive Officer, Amdocs Management Ltd.; Director, Amdocs Ltd.: Thank you.

Our next question comes from the line of Will Power with Robert W. Baird. Your line is now open.

Hi. This is actually Charlie Erlikh filling in for Will. Thanks for taking my question. Eli Gelman - President and Chief Executive Officer, Amdocs Management Ltd.; Director, Amdocs Ltd.: Hi, Charlie.

Could you talk a little bit about your relationship with Vodafone and maybe where you see that going forward? Eli Gelman - President and Chief Executive Officer, Amdocs Management Ltd.; Director, Amdocs Ltd.: Yes. Look, Vodafone is a very active company; let's put it this way, to start with. So they are spread in many, many geographies and many type of markets from emerging markets like India, through emerging European countries like Turkey and others, all the way to North Africa and obviously the heart of Western Europe, which is UK, Germany, Holland or Netherlands or others places. A highly demanding customer, a very sophisticated customer. It may sound like an issue. It's actually an advantage because we have the ability to address highly complex sophisticated customers. And I think that's the number one reason why we have growing business with Vodafone. They find, I think, more and more our product to meets their strategy and their needs. And we have relationship in many dimension, not only in many geographies but in many dimensions. On one hand, we have managed services ongoing, ADM application development and maintenance contracts with Vodafone in several locations. The other extreme is that we are doing all kind of proof of concepts with Vodafone on completely new ideas. And in between of course is the bread-and-butter CS10 versions and services and the whole nine yard that we can offer. So we have a broad relationship with Vodafone on many geographies. The type of services and type of products are the other dimension which is – we enjoy a wide range of application services. And we have a very close with Vodafone on a strategic level and that is to say management to management meetings, the strategy alignment, and early adopter type projects. After saying all that, like with AT&T, like with Singtel, and many others, these are all very demanding customers. And the only reason I believe that we are having growing business with them is that we are relevant and we are competitive and we need to win each one of the businesses, each piece of the business in each country again, again, again. We have no shortcuts or no discounts in the process. That's kind of the (44:48) I can give you for Vodafone.

Yes. That's perfect. Thank you. Eli Gelman - President and Chief Executive Officer, Amdocs Management Ltd.; Director, Amdocs Ltd.: Thank you very much, Charlie.

Our next question comes from the line of Tal Liani with Bank of America. Your line is now open.

Hi. Good afternoon. Thank you for taking my question. This is Mike (45:08) filling in for Tal. Congrats on being selected by AT&T as its ECOMP integration partner. Would you be able to give us any color with regards to the size of this project from a dollar value perspective? And is this project expected to replace any other streams of revenue you were getting from AT&T or is it totally incremental? Eli Gelman - President and Chief Executive Officer, Amdocs Management Ltd.; Director, Amdocs Ltd.: So Mike (45:29), I'll start from the end. We believe it's incremental not because of the commercial aspect of it. It just we are providing completely different value. This is a – different buying center. This decision have been made in the network, the network engineers and the network operation and it's completely different type of software and engineering. So we believe it's incremental. So the second question you had. In terms of the size, we usually don't comment about size of projects, but this is many millions of dollars. It's not a small project. We are talking about a major undertaking on both ends; on AT&T and on us. And we believe it will be a multi-year too because the first phase is to design all of it, then execute it, some of it in pilot, some of it is second phase, then execution and implementation. We are talking about replacing very, very delicate component of the network. Obviously network's need to work with five 9s and high reliability and highly secured and so on so forth. So we're talking about highly sophisticated, high-volume replacing very important component and being the backbone of the future for AT&T network, nationwide AT&T network. And that's before we go into maybe a next generation operation and other things that are not necessarily in the program today. And there is obviously a large component of services that comes with this type of project. So it is major undertaking.

Excellent. Thank you for the color. And just one follow-up. As you work with AT&T on its Domain 2.0 initiatives, are you expecting a ramp in OpEx investments that is needed to fill this project, or it's just something that fits within the current operating structure? Eli Gelman - President and Chief Executive Officer, Amdocs Management Ltd.; Director, Amdocs Ltd.: OpEx is not necessarily the number one concern that we have. Some of it would be in R&D because we're developing new products. Some of it will be part of our services and we monetize it as part of services, but it's like a normal natural project for us. So I don't expect hikes, neither in OpEx or CapEx, but other than what you would see normally within our project.

Excellent. Thank you. Eli Gelman - President and Chief Executive Officer, Amdocs Management Ltd.; Director, Amdocs Ltd.: Thank you, Mike (48:26).

I'm showing no further questions in queue at this time. I'd like to turn the call back to Matt Smith for closing remarks.

Thank you, Lisa, and thank you very much for joining our call this evening and for your continued interest in Amdocs. We look forward to hearing from you in the coming days. And if you do have any additional questions, please give us a call on the Investor Relations group. Have a great evening and with that, we'll conclude the call.

Ladies and gentlemen, thank you for your participation in today's conference. This concludes the program and you may now disconnect. Everyone have a great day.