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2014

Amdocs Limited Reports Record Annual and Quarterly Revenue

Amdocs Reports Growth in Quarterly Diluted Non-GAAP Earnings Per Share to

$0.54; Diluted GAAP Earnings Per Share of $0.43

Key highlights:

- Fourth quarter revenue increased 9% to $727 million, in line with

guidance

- 8% increase in fourth quarter diluted non-GAAP EPS, excluding

acquisition-related costs and equity-based compensation expense, net of

related tax effects, to $0.54, in line with guidance

- Diluted GAAP EPS of $0.43 for the quarter

- Free cash flow of $68 million for the quarter

- Fiscal 2007 revenue of $2.84 billion; diluted non-GAAP earnings per share

of $2.14; diluted GAAP earnings per share of $1.65

- First quarter fiscal 2008 guidance: Expected revenue of approximately

$735-$745 million and diluted non-GAAP EPS of $0.55-$0.57, excluding

acquisition-related costs and approximately $0.05-$0.06 per share of

equity-based compensation expense, net of related tax effects. Diluted GAAP

EPS is expected to be approximately $0.43-$0.46

- Fiscal 2008 guidance: Expected revenue of approximately $3.05-$3.15

billion and diluted non-GAAP EPS of $2.29-$2.39, excluding

acquisition-related costs and approximately $0.20-$0.23 per share of

equity-based compensation expense, net of related tax effects. Diluted GAAP

EPS is expected to be approximately $1.82-$1.95



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    ST. LOUIS, Oct. 31 /PRNewswire-FirstCall/ -- Amdocs Limited (NYSE:   DOX)
 today reported that for the quarter ended September 30, 2007, revenue was
 $726.7 million, an increase of 9.2% from last year's fourth quarter. Net
 income on a non-GAAP basis was $120.7 million, or $0.54 per diluted share
 (excluding acquisition-related costs, which include amortization of
 purchased intangible assets, and excluding equity-based compensation
 expense, net of related tax effects, of $24.5 million), compared to
 non-GAAP net income of $109.5 million, or $0.50 per diluted share, in the
 fourth quarter of fiscal 2006 (excluding acquisition-related costs, which
 include amortization of purchased intangible assets and the write-off of
 in-process research and development, and excluding equity-based
 compensation expense, net of related tax effects, of $33.6 million). The
 Company's GAAP net income was $96.2 million, or $0.43 per diluted share,
 compared to GAAP net income of $76.0 million, or $0.35 per diluted share,
 in the fourth quarter of fiscal 2006. Free cash flow for the quarter was
 $68.1 million, comprised of cash flow from operations of $107.2 million
 less $39.1 million in net capital expenditures and other.
     "Our solid growth in this quarter is a continuation of the success that
 we have had in fiscal 2007," said Dov Baharav, chief executive officer of
 Amdocs Management Limited. "During the year, we expanded our relationship
 with many of our key customers and delivered for them the customer
 experience systems that they need in order to succeed in a highly
 competitive market. Our real- life experience in this market, our ability
 to cope with complexity and our track record of successful delivery set us
 apart from the competition. Armed with the best products and a full range
 of services, we believe that Amdocs is well positioned for growth in fiscal
 2008. We are seeing good demand in the market for our offerings, and based
 on specific opportunities that we are pursuing today, we expect to
 accelerate our growth rate during fiscal 2008 as the year progresses."
     Amdocs had numerous wins across lines of business and geographies in
 the fourth quarter. Among those are two managed services projects including
 modernization and consolidation of systems, a transformation project
 including business process consulting, modernization and implementation for
 a leading provider of quadruple-play services in Europe, a new project
 supporting one of the largest wireless providers in Latin America, and
 several cable wins including a new logo in Europe.
     For the fiscal year ended September 30, 2007, revenue increased by
 14.4% to $2.84 billion. Fiscal 2007 net income on a non-GAAP basis was
 $473.9 million, or $2.14 per diluted share (excluding acquisition-related
 costs, which include amortization of purchased intangible assets,
 in-process research and development write-off and other, restructuring
 charges, and equity-based compensation expense, net of related tax effects,
 of $108.9 million), compared to non-GAAP net income of $401.2 million, or
 $1.85 per diluted share, in fiscal 2006 (excluding acquisition-related
 costs, which include amortization of purchased intangible assets,
 in-process research and development write-off and equity-based compensation
 expense, net of related tax effects, of $82.6 million). The Company's GAAP
 net income in fiscal 2007 was $364.9 million, or $1.65 per diluted share,
 compared to GAAP net income of $318.6 million, or $1.48 per diluted share,
 in fiscal 2006.
     Financial Outlook
     Amdocs expects that revenue for the first quarter of fiscal 2008 will
 be approximately $735-$745 million. Diluted earnings per share on a
 non-GAAP basis for the first quarter are expected to be $0.55-$0.57,
 excluding acquisition-related costs and approximately $0.05-$0.06 per share
 of equity- based compensation expense, net of related tax effects. Diluted
 GAAP EPS is expected to be approximately $0.43-$0.46.
     Fiscal 2008 guidance: Expected revenue of approximately $3.05-$3.15
 billion and diluted non-GAAP EPS of $2.29-$2.39, excluding
 acquisition-related costs and approximately $0.20-$0.23 per share of
 equity-based compensation expense, net of related tax effects. Diluted GAAP
 EPS is expected to be approximately $1.82-$1.95.
     Amdocs will host a conference call on October 31, 2007 at 5 p.m.
 Eastern Time to discuss the Company's fourth quarter results. The call will
 be carried live on the Internet via http://www.InvestorCalendar.com and the
 Amdocs website, http://www.amdocs.com.
     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 experience(TM) -- 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 $2.84 billion in
 fiscal 2007, Amdocs has over 16,000 employees and serves customers in more
 than 50 countries around the world. For more information, visit Amdocs at
 http://www.amdocs.com.
     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 September 30, 2006 and in our
 quarterly Form 6-K furnished on February 6, May 11 and August 6, 2007.
     Contact:
     Thomas G. O'Brien
     Treasurer and Vice President of Investor Relations
     Amdocs Limited
     314-212-8328
     Email: dox_info@amdocs.com
 
 
 
                                 AMDOCS LIMITED
 
                       Consolidated Statements of Income
 
                     (in thousands, except per share data)
 
                                  Three months ended      Twelve months ended
                                     September 30,            September 30,
                               -----------------------------------------------
                                   2007        2006         2007        2006
                               ----------  ----------   ----------  ----------
     Revenue:
        License                $   46,266  $   31,113   $  159,357  $  116,285
        Service                   680,423     634,332    2,676,816   2,363,765
                               ----------  ----------   ----------  ----------
                                  726,689     665,445    2,836,173   2,480,050
     Operating expenses:
        Cost of license               869       1,030        3,914       4,003
        Cost of service           461,692     414,813    1,792,468   1,579,823
        Research and development   55,515      55,368      230,444     186,760
        Selling, general
         and administrative        95,299      86,708      370,194     313,997
        Amortization of
         purchased
         intangible assets         19,174      14,022       74,959      37,610
        Restructuring charges,
         in-process research
         and development
         and other(1)                  -       17,310        6,761      25,725
                               ----------  ----------   ----------  ----------
                                  632,549     589,251    2,478,740   2,147,918
                               ----------  ----------   ----------  ----------
     Operating income              94,140      76,194      357,433     332,132
 
     Interest income
      and other, net               13,638       8,082       50,566      41,741
                               ----------  ----------   ----------  ----------
     Income before income taxes   107,778      84,276      407,999     373,873
 
     Income taxes                  11,535       8,321       43,062      55,237
                               ----------  ----------   ----------  ----------
     Net income                $   96,243  $   75,955   $  364,937  $  318,636
                               ==========  ==========   ==========  ==========
     Basic earnings
      per share                $     0.46  $     0.37   $     1.76  $     1.57
                               ==========  ==========   ==========  ==========
     Diluted earnings
      per share(2)             $     0.43  $     0.35   $     1.65  $     1.48
                               ==========  ==========   ==========  ==========
     Basic weighted average
      number of shares
      outstanding                 209,371     205,330      207,846     203,194
                               ==========  ==========   ==========  ==========
     Diluted weighted average
      number of shares
      outstanding                 224,033     221,236      223,256     218,534
                               ==========  ==========   ==========  ==========
 
     (1) Restructuring charges, in-process research and development and other
         for the twelve months ended September 30, 2007 include the following:
         restructuring charges of $6,011, in-process research and development
         of $2,666 offset by other acquisition related income of $1,916.
         Restructuring charges, in-process research and development and other
         for the three and twelve months ended September 30, 2006 include in-
         process research and development of $17,310 and $25,725, respectively.
     (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, 2007, respectively, and $985 and $3,948
         were added back to net income for the three and twelve months ended
         September 30, 2006, respectively, for the purpose of computing diluted
         earnings per share.
 
 
 
                                 AMDOCS LIMITED
                           Selected Financial Metrics
                     (in thousands, except per share data)
 
                                 Three months ended       Twelve months ended
                                     September 30,            September 30,
                               -----------------------------------------------
                                   2007        2006         2007        2006
                               ----------  ----------   ----------  ----------
     Revenue                   $  726,689  $  665,445   $2,836,173  $2,480,050
 
     Non-GAAP operating income    126,931     121,756      492,740     441,645
 
     Non-GAAP net income          120,708     109,533      473,871     401,211
 
     Non-GAAP diluted
      earnings per share(1)    $     0.54  $     0.50   $     2.14  $     1.85
 
     Diluted weighted
      average number of
      shares outstanding          224,033     221,236      223,256     218,534
 
     (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, 2007, respectively, and $985 and $3,948
         were added back to net income for the three and twelve months ended
         September 30, 2006, respectively, for the purpose of computing diluted
         earnings per share.
 
 
 
                                 AMDOCS LIMITED
       Reconciliation of Selected Financial Metrics from GAAP to Non-GAAP
                                 (in thousands)
 
                                         Three months ended
                                         September 30, 2007
                          ----------------------------------------------------
                                         Reconciliation items
                                   -------------------------------
                                   Amortization
                                        of        Equity
                                    purchased     based
                                    intangible compensation  Tax
                            GAAP      assets     expense    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
         administrative     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
                          ----------------------------------------------------
 
 
 
                                         Three months ended
                                         September 30, 2006
                    ----------------------------------------------------------
                                         Reconciliation items
                            ----------------------------------------
                            Amortization
                                 of    In-process   Equity
                             purchased  research    based
                             intangible    and   compensation  Tax
                      GAAP     assets  development expense    effect  Non-GAAP
                    ----------------------------------------------------------
     Operating expenses:
        Cost of
         license    $  1,030  $      -  $     -   $      -  $     -   $  1,030
        Cost of
         service     414,813         -        -     (5,805)       -    409,008
        Research and
         development  55,368         -        -     (1,670)       -     53,698
        Selling,
         general and
         admini-
         strative     86,708         -        -     (6,755)       -     79,953
        Amortization
         of purchased
         intangible
         assets       14,022   (14,022)       -          -        -          -
        in-process
         research and
         development  17,310         -   (17,310)        -        -          -
                    ----------------------------------------------------------
     Total operating
      expenses       589,251   (14,022)  (17,310)  (14,230)       -    543,689
                    ----------------------------------------------------------
                    ----------------------------------------------------------
     Operating
      income          76,194    14,022    17,310    14,230        -    121,756
                    ----------------------------------------------------------
                    ----------------------------------------------------------
     Income taxes      8,321         -         -         -    11,984    20,305
                    ----------------------------------------------------------
                    ----------------------------------------------------------
     Net income     $ 75,955  $ 14,022  $ 17,310  $ 14,230  $(11,984) $109,533
                    ----------------------------------------------------------
 
 
 
 
                                 AMDOCS LIMITED
       Reconciliation of Selected Financial Metrics from GAAP to Non-GAAP
                                 (in thousands)
 
                                       Twelve months ended
                                       September 30, 2007
                  -----------------------------------------------------------
                                    Reconciliation items
                            --------------------------------------
                                     Restructuring
                                        charges
                                       in-process
                                        research
                            Amortization  and
                                 of     develop-   Equity
                             purchased    ment     based
                             intangible   and   compensation  Tax
                       GAAP    assets    other    expense   effect   Non-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
       Reconciliation of Selected Financial Metrics from GAAP to Non-GAAP
                                 (in thousands)
 
                                        Twelve months ended
                                        September 30, 2006
                  -------------------------------------------------------------
                                    Reconciliation items
                           ----------------------------------------
                            Amortization
                                 of    In-process  Equity
                             purchased  research    based
                             intangible    and   compensation Tax
                      GAAP     assets  development expense   effect   Non-GAAP
                  -------------------------------------------------------------
     Operating
      expenses:
        Cost of
         license  $    4,003  $     -   $     -   $     -  $     -   $    4,003
        Cost of
         service   1,579,823        -         -    (18,042)      -    1,561,781
        Research and
         development 186,760        -         -     (4,711)      -      182,049
        Selling,
         general and
         admini-
         strative    313,997        -         -    (23,425)      -      290,572
        Amortization
         of purchased
         intangible
         assets       37,610   (37,610)       -         -        -           -
        In-process
         research and
         development  25,725        -    (25,725)       -        -           -
                  ----------  --------  --------  -------- --------- ----------
     Total operating
      expenses     2,147,918   (37,610)  (25,725)  (46,178)      -    2,038,405
                  ----------  --------  --------  -------- --------- ----------
     Operating
      income         332,132    37,610    25,725    46,178       -      441,645
                  ----------  --------  --------  -------- --------- ----------
     Income taxes     55,237        -         -         -    26,938      82,175
                  ----------  --------  --------  -------- --------- ----------
     Net income   $  318,636  $ 37,610  $ 25,725  $ 46,178 $(26,938) $  401,211
                  ----------  --------  --------  -------- --------- ----------
 
 
                                 AMDOCS LIMITED
                     Condensed Consolidated Balance Sheets
                                 (in thousands)
 
                                                              As of
                                                    ------------------------
                                                    September 30, September 30,
                                                        2007          2006
                                                    ----------    ----------
     ASSETS
 
     Current assets
     Cash, cash equivalents and short-term
      interest-bearing investments                  $1,179,280    $  979,381
     Accounts receivable, net, including unbilled
      of $63,441 and $54,117 respectively              493,418       425,805
     Deferred income taxes and taxes receivable        117,623       136,044
     Prepaid expenses and other current assets          98,746        97,476
                                                    ----------    ----------
          Total current assets                       1,889,067     1,638,706
 
     Equipment, vehicles and
      leasehold improvements, net                      283,839       220,290
     Goodwill and other intangible assets, net       1,792,588     1,809,322
     Other noncurrent assets                           379,105       294,510
                                                    ----------    ----------
     Total assets                                   $4,344,599    $3,962,828
                                                    ==========    ==========
     LIABILITIES AND SHAREHOLDERS' EQUITY
 
     Current Liabilities
     Accounts payable and accruals                  $  592,937    $  597,107
     Short-term portion of capital lease
      obligations and other financing arrangements       2,055         1,963
     Deferred revenue                                  173,775       253,376
     Deferred income taxes and taxes payable           205,960       179,241
                                                    ----------    ----------
          Total current liabilities                    974,727     1,031,687
     0.50% Convertible notes                           450,000       450,000
     Noncurrent liabilities and other                  319,629       326,976
     Shareholders' equity                            2,600,243     2,154,165
                                                    ----------    ----------
     Total liabilities and shareholders' equity     $4,344,599    $3,962,828
                                                    ==========    ==========
 
 

SOURCE Amdocs Limited

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