Israeli CRM and billing systems company Amdocs (DOX) has bested analyst estimates and come through with a record quarter. The company reported record revenue of $820 million in Q2, up 15% over Q2 ‘07, solidly beating the consensus estimate of $811.06 million. Non-GAAP net profit grew 9.9% to $132.5 million, or $0.61 per share, above the analysts’ consensus of $0.60. In addition, Amdocs raised Q3 guidance as well.

Globes quotes from a Merrill Lynch report on the earnings: “We attribute the strong performance to the first complete quarter of AT&T (T) revenue recognition and better than expected execution at Sprint (S). This is the second consecutive quarter that management has raised guidance while other telecom-exposed names have been much more conservative. We note that the company has a backlog of $2.42 billion, providing management good visibility into the next few quarters.”

Merrill put a $43 target on the stock, a huge premium to the $28-29 range the stock is trading in. The company seems to really be hitting on all cylinders and with another increase in guidance, once rationale comes back into the market, Amdocs potentially could hit the Merrill target.

Aaron Katsman, IsraelNewsletter.com

Disclosure: Author’s fund has a position in DOX. He has no positions in any other stock mentioned as of 7/24/08.

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Aaron Katsman is Managing Editor of the Israel Opportunity Investor newsletter. He is lead portfolio manager for the Israel Growth Portfolio and Managing Director of America Israel Investment Associates, LLC. For more information, go to www.israelnewsletter.com or call 1-888-327-6179, or email aaron@profile-financial.com.

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What do you get when a leading revenue management firm teams up with leading telecom billing solutions provider?

A pretty neat fraud detection and prevention solution with an expert delivery team.

Reporting in Globes this morning, ECtel (ECTX) announced a collaboration with Amdocs (DOX) in which ECtel will team up with Amdoc’s system integration services to market its FraudView product suite. The software allows advanced detection of fraudulent activity as part of customer acquisition, credit risk management, and new subscriber evaluation processes. (Continue »)

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The entire interview with Gemini’s Carmel Sofer is part of our new subscription newsletter, Israel Opportunity Investor. You can find out more about the product and the opportunities we cover at www.israelnewsletter.com.

Can you tell us a bit about Gemini?
Carmel Sofer, Partner: Gemini was one of Israel’s first VCs and is 15 years old. We now manage more than $600 million via 4 funds. We’ve just closed our 4th fund and are in the process of raising our 5th fund, which we’re targeting to be $200 million. We’ve had over 30 exits including Saifun and recently, Traiana. (Continue »)

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Elbit Systems (ESLT) wins a multi-year contract from Lockheed Martin Aeronautics Company to supply new generation Head-Up Displays (HUDs) for the new F-16 aircraft.

Comverse (CMVT) wins Norway deal.

Amdocs (DOX) bought broadband cable solutions provider Jacobs RimellLtd. for approximately $45 million to build its operations support systems (OSS) offering.

El Al raising prices by about 9%.

Israeli firms are profiting on the Facebook phenomenon. Read the Globes story.

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