UPDATE 2-Amdocs Q4 profit beats market, sees strong Q1

* Q4 adj. EPS $0.53 vs est. of $0.49

* Q4 rev $707.4 mln

* Sees Q1 EPS $0.51-$0.55 vs est of $0.50

* Sees improvement in deal activity in Q4

* Shares up 6 pct after-market (Recasts; Adds conference call details, updates share movement)

Nov 4 (Reuters) - Amdocs Ltd (DOX.N: Quote, Profile, Research), which makes phone-billing and customer-management software, posted better-than-expected quarterly profit, as customer willingness to sign new deals improved, and forecast a strong first quarter, sending its shares up 6 percent after the bell.

Stabilization in the company's managed services, and cable and satellite businesses, which supported the fourth quarter results, will continue into fiscal 2010, the company said on a conference call with analysts. The company, however, said its project-oriented business shrunk in 2009, resulting in fewer transformational deals and a disproportionate decline in its European business.

Though there was evidence of smaller investments picking up in the project-oriented business, a near-term recovery in large transformational deals in Europe was not in sight, the company said.

For the current quarter, the company expects to earn between 51 cents and 55 cents a share, excluding items, on revenue of about $705 million to $725 million. [ID:nWNAB0219]