Amdocs Limited Reports Quarterly Revenue Growth of 14%
Amdocs Reports Record Annual Revenue of
Key highlights:
- Fourth quarter revenue increased to
- Fourth quarter non-GAAP operating income of
- Fourth quarter diluted non-GAAP EPS, excluding acquisition-related costs, restructuring charges and equity-based compensation expense, net of related tax effects, of
- Diluted GAAP EPS of
- Strong free cash flow of
"Fiscal 2008 was a good year for Amdocs as we achieved record revenues," said
In the fourth quarter Amdocs had numerous wins across lines of business and geographies. These wins include new business with Comcast, which will deploy customer care, billing and OSS (operational support systems) products based on Amdocs CES 7.5. Another customer in the cable and satellite market has chosen Amdocs Enterprise Product Catalog. Amdocs signed a six-year managed services agreement to support MetroPCS, a provider of advanced wireless services, using Amdocs CES 7.5 capabilities. In
Baharav continued, "The financial volatility that we experienced in the fourth quarter is accompanied by economic uncertainty and these factors are impacting our outlook for fiscal 2009. Amdocs expects that revenue for the first quarter of fiscal 2009 will be approximately
As reported, GAAP EPS per diluted share for the fourth quarter of fiscal 2008 was
For the fiscal year ended
Financial Outlook
Amdocs expects that revenue for the first quarter of fiscal 2009 will be approximately
Amdocs will host a conference call on
Non-GAAP Financial Measures
This release includes non-GAAP diluted earnings per share and other non-GAAP financial measures, including free cash flow, non-GAAP cost of service, non-GAAP research and development, non-GAAP selling, general and administrative, non-GAAP operating income, non-GAAP income taxes and non-GAAP net income. These non-GAAP measures exclude the following items:
- amortization of purchased intangible assets;
- in-process research and development write-off and other;
- restructuring charges;
- equity-based compensation expense; and
- tax effects related to the above.
These non-GAAP financial measures are not in accordance with, or an alternative for, generally accepted accounting principles and may be different from non-GAAP financial measures used by other companies. In addition, these non-GAAP financial measures are not based on any comprehensive set of accounting rules or principles. Amdocs believes that non-GAAP financial measures have limitations in that they do not reflect all of the amounts associated with Amdocs' results of operations as determined in accordance with GAAP and that these measures should only be used to evaluate Amdocs' results of operations in conjunction with the corresponding GAAP measures.
Amdocs believes that the presentation of non-GAAP diluted earnings per share and other financial measures, including free cash flow, non-GAAP cost of service, non-GAAP research and development, non-GAAP selling, general and administrative, non-GAAP operating income, non-GAAP income taxes and non-GAAP net income, when shown in conjunction with the corresponding GAAP measures, provides useful information to investors and management regarding financial and business trends relating to its financial condition and results of operations as well as the net amount of cash generated by its business operations after taking into account capital spending required to maintain or expand the business.
For its internal budgeting process and in monitoring the results of the business, Amdocs' management uses financial statements that do not include amortization of purchased intangible assets, in-process research and development write-off and other, restructuring charges, equity-based compensation expense, and related tax effects. Amdocs' management also uses the foregoing non-GAAP financial measures, in addition to the corresponding GAAP measures, in reviewing the financial results of Amdocs. In addition, Amdocs believes that significant groups of investors exclude these non-cash expenses in reviewing its results and those of its competitors, because the amounts of the expenses between companies can vary greatly depending on the assumptions used by an individual company in determining the amounts of the expenses.
Amdocs further believes that, where the adjustments used in calculating non-GAAP diluted earnings per share are based on specific, identified amounts that impact different line items in the Consolidated Statements of Income (including cost of service, research and development, selling, general and administrative, operating income, income taxes and net income), it is useful to investors to understand how these specific line items in the Consolidated Statements of Income are affected by these adjustments.
Please refer to the Reconciliation of Selected Financial Metrics from GAAP to Non-GAAP tables below.
About Amdocs
Amdocs is the market leader in customer experience systems innovation, enabling world-leading service providers to deliver an integrated, innovative and the intentional customer experienceTM -- at every point of service. Amdocs provides solutions that deliver customer experience excellence, combining the software, service and expertise to help its customers execute their strategies and achieve service, operational and financial excellence. A global company with revenue of
This press release includes information that constitutes forward-looking statements made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995, including statements about Amdocs growth and business results in future quarters. 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, Amdocs ability to grow in the business markets that it serves, Amdocs ability to successfully integrate acquired businesses, adverse effects of market competition, rapid technological shifts that may render the Company's products and services obsolete, potential loss of a major customer, our ability to develop long-term relationships with our customers, and risks associated with operating businesses in the international market. Amdocs may elect to update these forward-looking statements at some point in the future; however, the Company specifically disclaims any obligation to do so. These and other risks are discussed 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
AMDOCS LIMITED
Consolidated Statements of Income
(in thousands, except per share data)
Three months ended Twelve months ended
September 30, September 30,
-------------------- -----------------------
2008 2007 2008 2007
------- ------- --------- ---------
Revenue:
License $41,917 $46,266 $135,487 $159,357
Service 783,360 680,423 3,026,609 2,676,816
------- ------- --------- ---------
825,277 726,689 3,162,096 2,836,173
Operating expenses:
Cost of license 462 869 2,729 3,914
Cost of service 530,428 461,692 2,023,562 1,792,468
Research and
development 57,252 55,515 225,492 230,444
Selling, general and
administrative 103,171 95,299 404,134 370,194
Amortization of
purchased intangible
assets 20,385 19,174 86,687 74,959
Restructuring charges,
in-process research
and development and
other (1) 12,116 - 13,896 6,761
------- ------- --------- ---------
723,814 632,549 2,756,500 2,478,740
------- ------- --------- ---------
Operating income 101,463 94,140 405,596 357,433
Interest (expense)
income and other, net (11,842) 13,638 11,955 50,566
------- ------- --------- ---------
Income before income
taxes 89,621 107,778 417,551 407,999
Income taxes 6,910 11,535 38,645 43,062
------- ------- --------- ---------
Net income $82,711 $96,243 $378,906 $364,937
======= ======= ========= =========
Basic earnings per
share $ 0.40 $ 0.46 $ 1.83 $ 1.76
======= ======= ========= =========
Diluted earnings per
share (2) $ 0.38 $ 0.43 $ 1.74 $ 1.65
======= ======= ========= =========
Basic weighted average
number of shares
outstanding 205,164 209,371 206,590 207,846
======= ======= ========= =========
Diluted weighted
average number of
shares outstanding 217,479 224,033 219,606 223,256
======= ======= ========= =========
(1) Restructuring charges, in-process research and development and other
for the twelve months ended September 30, 2008 includes restructuring
charges of $12,116 and in-process research and development of $1,780.
(2) To reflect the impact of assumed conversion of the convertible notes,
$985 and $3,940, representing interest expense and amortization of
issuance costs, were added back to net income for the three and twelve
months ended September 30, 2008 and 2007, respectively.
AMDOCS LIMITED
Selected Financial Metrics
(in thousands, except per share data)
Three months ended Twelve months ended
September 30, September 30,
------------------- ------------------------
2008 2007 2008 2007
-------- -------- ---------- ----------
Revenue $825,277 $726,689 $3,162,096 $2,836,173
Non-GAAP operating
income 147,744 126,931 563,669 492,740
Non-GAAP net income 117,208 120,708 499,608 473,871
Non-GAAP diluted
earnings per share(1) $ 0.54 $ 0.54 $ 2.29 $ 2.14
Diluted weighted
average number of
shares outstanding 217,479 224,033 219,606 223,256
(1) To reflect the impact of assumed conversion of the convertible notes,
$985 and $3,940, representing interest expense and amortization of
issuance costs, were added back to net income for the three and twelve
months ended September 30, 2008 and 2007, respectively.
AMDOCS LIMITED
Reconciliation of Selected Financial Metrics from GAAP to Non-GAAP
(in thousands)
Three months ended
September 30, 2008
-----------------------------------------------------------
Reconciliation items
---------------------------------------------
Amortization
of Equity
purchased based
intangible Restructuring compensation Tax Non-
GAAP assets charges expense effect GAAP
-----------------------------------------------------------
Operating
expenses:
Cost of
license $ 462 $ - $ - $ - $ - $ 462
Cost of
service 530,428 - - (5,836) - 524,592
Research
and
development 57,252 - - (1,088) - 56,164
Selling,
general and
admini-
strative 103,171 - - (6,856) - 96,315
Amortization
of purchased
intangible
assets 20,385 (20,385) - - - -
Restructuring
charges,
in-process
research and
development
and other 12,116 - (12,116) - - -
-----------------------------------------------------------
Total
operating
expenses 723,814 (20,385) (12,116) (13,780) - $677,533
-----------------------------------------------------------
-----------------------------------------------------------
Operating
income 101,463 20,385 12,116 13,780 - 147,744
-----------------------------------------------------------
-----------------------------------------------------------
Income taxes 6,910 - - - 11,784 18,694
-----------------------------------------------------------
-----------------------------------------------------------
Net income $ 82,711 $20,385 $12,116 $13,780 $(11,784) $117,208
-----------------------------------------------------------
Three months ended
September 30, 2007
-------------------------------------------------------
Reconciliation items
-------------------------------------
Amortization
of purchased Equity based
intangible compensation
GAAP assets expense Tax effect Non-GAAP
------------------------------------------------------- Operating
expenses:
Cost of license $ 869 $ - $ - $ - $ 869
Cost of service 461,692 - (6,504) - 455,188
Research and
development 55,515 - (1,475) - 54,040
Selling, general
and admini-
strative 95,299 - (5,638) - 89,661
Amortization of
purchased
intangible
assets 19,174 (19,174) - - -
-----------------------------------------------------
Total operating
expenses 632,549 (19,174) (13,617) - 599,758
-----------------------------------------------------
-----------------------------------------------------
Operating income 94,140 19,174 13,617 - 126,931
-----------------------------------------------------
-----------------------------------------------------
Income taxes 11,535 - - 8,326 19,861
-----------------------------------------------------
-----------------------------------------------------
Net income $ 96,243 $19,174 $13,617 $(8,326) $120,708
-----------------------------------------------------
AMDOCS LIMITED
Reconciliation of Selected Financial Metrics from GAAP to Non-GAAP
(in thousands)
Twelve months ended
September 30, 2008
-----------------------------------------------------------
Reconciliation items
---------------------------------------------
Amortization Restructuring
of charges and Equity
purchased in-process based
intangible research and compensation Tax Non-
GAAP assets development expense effect GAAP
-----------------------------------------------------------
Operating
expenses:
Cost of
license $ 2,729 $ - $ - $ - $ - $ 2,729
Cost of
service 2,023,562 - - (23,547) - 2,000,015
Research
and
development 225,492 - - (4,714) - 220,778
Selling,
general and
admini-
strative 404,134 - - (29,229) - 374,905
Amortization
of purchased
intangible
assets 86,687 (86,687) - - - -
Restructuring
charges,
in-process
research and
development
and other 13,896 - (13,896) - - -
-----------------------------------------------------------
Total
operating
expenses 2,756,500 (86,687) (13,896) (57,490) - 2,598,427
-----------------------------------------------------------
-----------------------------------------------------------
Operating
income 405,596 86,687 13,896 57,490 - 563,669
-----------------------------------------------------------
-----------------------------------------------------------
Income taxes 38,645 - - - 37,371 76,016
-----------------------------------------------------------
-----------------------------------------------------------
Net income $ 378,906 $86,687 $13,896 $57,490 $(37,371) $ 499,608
-----------------------------------------------------------
Twelve months ended
September 30, 2007
-----------------------------------------------------------
Reconciliation items
-------------------------------------------
Restructuring
Amortization charges,
of in-process Equity
purchased research and based
intangible development compensation Tax Non-
GAAP assets and other expense effect GAAP
-----------------------------------------------------------
Operating
expenses:
Cost of
license $ 3,914 $ - $ - $ - $ - $ 3,914
Cost of
service 1,792,468 - - (25,418) - 1,767,050
Research
and
development 230,444 - - (6,574) - 223,870
Selling,
general and
admini-
strative 370,194 - - (21,595) - 348,599
Amortization
of purchased
intangible
assets 74,959 (74,959) - - - -
Restructuring
charges,
in-process
research and
development
and other 6,761 - (6,761) - - -
-----------------------------------------------------------
Total
operating
expenses 2,478,740 (74,959) (6,761) (53,587) - 2,343,433
-----------------------------------------------------------
----------------------------------------------------------- Operating
income 357,433 74,959 6,761 53,587 - 492,740
-----------------------------------------------------------
-----------------------------------------------------------
Income taxes 43,062 - - - 26,373 69,435
-----------------------------------------------------------
-----------------------------------------------------------
Net income $ 364,937 $74,959 $6,761 $53,587 $(26,373) $ 473,871
-----------------------------------------------------------
AMDOCS LIMITED
Condensed Consolidated Balance Sheets
(in thousands)
As of
----------------------------
September 30, September 30,
2008 2007
------------ -----------
ASSETS
Current assets
Cash, cash equivalents and short-term
interest-bearing investments $1,244,378 $1,179,280
Accounts receivable, net, including unbilled
of $48,264 and $43,870 respectively (*) 573,764 473,847
Deferred income taxes and taxes receivable 84,515 117,623
Prepaid expenses and other current assets 102,930 98,746
---------- ----------
Total current assets 2,005,587 1,869,496
Equipment, vehicles and leasehold
improvements, net 317,081 283,839
Goodwill and other intangible assets, net 1,796,922 1,792,588
Other noncurrent assets (*) 459,473 399,427
---------- ----------
Total assets $4,579,063 $4,345,350
========== ==========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
Accounts payable and accruals $ 600,285 $ 592,937
Short-term portion of capital lease
obligations and other financing arrangements 1,660 2,055
Deferred revenue (*) 197,851 174,526
Deferred income taxes and taxes payable 30,228 205,960
---------- ----------
Total current liabilities 830,024 975,478
0.50% Convertible notes 450,000 450,000
Noncurrent liabilities and other 493,848 319,629
Shareholders' equity 2,805,191 2,600,243
---------- ----------
Total liabilities and shareholders' equity $4,579,063 $4,345,350
========== ==========
(*) Certain amounts in prior period financial statements have been
reclassified to conform to the current period presentation.
SOURCE Amdocs Limited
RELATED LINKS
http://www.amdocs.com
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