PR Newswire: news distribution, targeting and monitoring
2014

Amdocs Limited Reports Strong Revenue Growth

Amdocs Reports Record Quarterly Revenue of $774 Million, Exceeding Guidance

Key highlights:

-- Second quarter revenue increased to $774 million, exceeding guidance of

$757-$767 million

-- Second quarter diluted non-GAAP EPS, excluding acquisition-related costs

and equity-based compensation expense, net of related tax effects,

increased to $0.58, in line with guidance of $0.57-$0.59 diluted EPS

-- Diluted GAAP EPS of $0.46 for the quarter

-- Free cash flow of $63 million for the quarter

-- Third quarter fiscal 2008 guidance: Expected revenue of approximately

$790-$805 million and diluted non-GAAP EPS of $0.59-$0.61, excluding

acquisition-related costs and approximately $0.06-$0.07 per share of

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

EPS is expected to be approximately $0.45-$0.48, without taking into

account potential purchase price adjustments relating to the acquisition of

Jacobs Rimell in April 2008

-- Updated fiscal 2008 guidance: Expected revenue of approximately

$3.09-$3.15 billion and diluted non-GAAP EPS of $2.31-$2.37, excluding

acquisition-related costs and approximately $0.21-$0.24 per share of

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

EPS is expected to be approximately $1.81-$1.90, without taking into

account potential purchase price adjustments relating to the acquisition of

Jacobs Rimell in April 2008



Share with Twitter Share with LinkedIn
    ST. LOUIS, Mo., April 17 /PRNewswire-FirstCall/ -- Amdocs Limited
 (NYSE:   DOX) today reported that for the quarter ended March 31, 2008,
 revenue was $774.3 million, an increase of 9.6% from last year's second
 quarter. Net income on a non-GAAP basis was $126.6 million, or $0.58 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 $26.8 million),
 compared to non-GAAP net income of $114.5 million, or $0.52 per diluted
 share, in the second quarter of fiscal 2007 (excluding acquisition-related
 costs, which include amortization of purchased intangible assets,
 in-process research and development write-off and other, and excluding
 restructuring charges and equity-based compensation expense, net of related
 tax effects, of $27.3 million). The Company's GAAP net income was $99.9
 million, or $0.46 per diluted share, compared to GAAP net income of $87.2
 million, or $0.40 per diluted share, in the second quarter of fiscal 2007.
 Free cash flow for the quarter was $63.1 million, comprised of cash flow
 from operations of $97.3 million less $34.2 million in net capital
 expenditures and other.
 
     "We are pleased to report that we have exceeded our plans for this
 quarter and for the first half of fiscal 2008," said Dov Baharav, chief
 executive officer of Amdocs Management Limited. "Our strong results are
 driven by an expansion of our managed services business and by expanding
 our implementations of mission-critical systems in both developed and
 emerging markets. We recognize that there is uncertainty in the market as
 economic conditions have become more challenging and we believe that our
 forecasts for the second half of this fiscal year take this into account.
 Our customers recognize that Amdocs systems including our new CES 7.5
 offering can help them to increase revenue and reduce costs; the result for
 Amdocs is greater customer commitments and a strong pipeline of potential
 business. We continue to see demand for projects supporting new initiatives
 as well as from projects focused more on cost savings, including managed
 services opportunities, and we look forward to continued growth in the
 second half of fiscal 2008."
 
     In the second quarter Amdocs had numerous wins across lines of business
 and geographies. The Company continued to show progress in the operational
 support systems (OSS) area by winning a strategic deal with a large North
 American service provider. In Europe, Amdocs signed an important CRM deal
 with a large wireless carrier to help them improve their customer
 experience. The Company had several wins with wireless carriers including a
 consulting engagement to help a service provider introduce new, innovative
 offerings. Amdocs won several new deals in emerging markets based on the
 Amdocs Compact Convergence Suite.
 
     Amdocs is continuing to expand and strengthen its position in the
 broadband cable and satellite market with several wins and a recent
 acquisition. In addition to the wins noted above, a large broadband cable
 operator in North America has chosen Amdocs to provide self-service
 capabilities including an eBill presentment and payment solution. The
 Company also won service projects related to requirements scoping, which
 can be the initial phase of system transformation. Shortly after the end of
 the quarter, Amdocs announced the acquisition of Jacobs Rimell in order to
 expand its capabilities in OSS for broadband.
 
     Financial Outlook
 
     Amdocs expects that revenue for the third quarter of fiscal 2008 will
 be approximately $790-$805 million. Diluted earnings per share on a
 non-GAAP basis for the third quarter are expected to be $0.59-$0.61,
 excluding acquisition-related costs and approximately $0.06-$0.07 per share
 of equity-based compensation expense, net of related tax effects. Diluted
 GAAP EPS is expected to be approximately $0.45-$0.48, without taking into
 account potential purchase price adjustments relating to the acquisition of
 Jacobs Rimell in April 2008.
 
     Updated fiscal 2008 guidance: Expected revenue of approximately
 $3.09-$3.15 billion and diluted non-GAAP EPS of $2.31-$2.37, excluding
 acquisition-related costs and approximately $0.21-$0.24 per share of
 equity-based compensation expense, net of related tax effects. Diluted GAAP
 EPS is expected to be approximately $1.81-$1.90, without taking into
 account potential purchase price adjustments relating to the acquisition of
 Jacobs Rimell in April 2008.
 
     Amdocs will host a conference call on April 17, 2008 at 5 p.m. Eastern
 Time to discuss the Company's second quarter results. The call will be
 carried live on the Internet via www.InvestorCalendar.com and the Amdocs
 website, 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 more than 17,000 employees and serves customers in more than 50 countries around the world. For more information, visit Amdocs at 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, 2007 filed on December 3, 2007 and on Form 6-K furnished on February 11, 2008.
AMDOCS LIMITED Consolidated Statements of Income (in thousands, except per share data) Three months ended Six months ended March 31, March 31, ---------------------- ------------------------ 2008 2007 2008 2007 --------- --------- ----------- ----------- Revenue: License $ 32,109 $ 37,526 $ 58,326 $ 69,270 Service 742,172 668,835 1,458,205 1,328,123 --------- --------- ----------- ----------- 774,281 706,361 1,516,531 1,397,393 Operating expenses: Cost of license 938 1,016 1,712 2,085 Cost of service 493,956 446,860 964,697 881,981 Research and development 56,088 57,734 112,103 118,202 Selling, general and administrative 98,666 91,280 196,331 180,450 Amortization of purchased intangible assets 21,753 18,912 43,506 36,610 Restructuring charges, in-process research and development and other - 6,761 - 6,761 --------- --------- ----------- ----------- 671,401 622,563 1,318,349 1,226,089 --------- --------- ----------- ----------- Operating income 102,880 83,798 198,182 171,304 Interest income and other, net 8,822 10,899 17,638 22,638 --------- --------- ----------- ----------- Income before income taxes 111,702 94,697 215,820 193,942 Income taxes 11,843 7,526 20,297 13,429 --------- --------- ----------- ----------- Net income $ 99,859 $ 87,171 $ 195,523 $ 180,513 ========= ========= =========== =========== Basic earnings per share $ 0.48 $ 0.42 $ 0.94 $ 0.87 ========= ========= =========== =========== Diluted earnings per share (1) $ 0.46 $ 0.40 $ 0.89 $ 0.82 ========= ========= =========== =========== Basic weighted average number of shares outstanding 206,759 207,293 207,437 206,867 ========= ========= =========== =========== Diluted weighted average number of shares outstanding 219,786 222,499 220,912 222,608 ========= ========= =========== =========== (1) To reflect the impact of assumed conversion of the convertible notes, $985 and $1,970, representing interest expense and amortization of issuance costs, were added back to net income for the three and six months ended March 31, 2008 and 2007, for the purpose of computing diluted earnings per share.
AMDOCS LIMITED Selected Financial Metrics (in thousands, except per share data) Three months ended Six months ended March 31, March 31, --------------------- ------------------------ 2008 2007 2008 2007 --------- ---------- ----------- ----------- Revenue $774,281 $706,361 $1,516,531 $1,397,393 Non-GAAP operating income 138,046 121,437 269,317 241,966 Non-GAAP net income 126,647 114,471 249,937 232,587 Non-GAAP diluted earnings per share (1) $ 0.58 $ 0.52 $ 1.14 $ 1.05 Diluted weighted average number of shares outstanding 219,786 222,499 220,912 222,608 (1) To reflect the impact of assumed conversion of the convertible notes, $985 and $1,970, representing interest expense and amortization of issuance costs, were added back to net income for the three and six months ended March 31, 2008 and 2007, 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 March 31, 2008 ----------------------------------------------------- Reconciliation items ---------------------------------- GAAP Amortization Equity based Tax Non- of purchased compensation effect GAAP intangible expense assets ----------------------------------------------------- Operating expenses: Cost of license $ 938 $ - $ - $ - $ 938 Cost of service 493,956 - (5,431) - 488,525 Research and development 56,088 - (1,146) - 54,942 Selling, general and administrative 98,666 - (6,836) - 91,830 Amortization of purchased intangible assets 21,753 (21,753) - - - ----------------------------------------------------- Total operating expenses 671,401 (21,753) (13,413) - 636,235 ----------------------------------------------------- Operating income 102,880 21,753 13,413 - 138,046 ----------------------------------------------------- Income taxes 11,843 - - 8,378 20,221 ----------------------------------------------------- Net income $ 99,859 $ 21,753 $ 13,413 $ (8,378) $126,647 ----------------------------------------------------- Three months ended March 31, 2007 ----------------------------------------------------------- Reconciliation items ---------------------------------------- Restructuring charges in-process research Amortization and of develop- Equity purchased ment based intangible and compensation Tax Non- GAAP assets other expense effect GAAP ----------------------------------------------------------- Operating expenses: Cost of license $ 1,016 $ - $ - $ - $ - $ 1,016 Cost of service 446,860 - - (6,005) - 440,855 Research and development 57,734 - - (1,587) - 56,147 Selling, general and administ- rative 91,280 - - (4,374) - 86,906 Amortization of purchased intangible assets 18,912 (18,912) - - - - Restructuring charges, in-process research and development and other 6,761 - (6,761) - - - ------------------------------------------------------------- Total operating expenses 622,563 (18,912) (6,761) (11,966) - 584,924 ------------------------------------------------------------- Operating income 83,798 18,912 6,761 11,966 - 121,437 ------------------------------------------------------------- Income taxes 7,526 - - - 10,339 17,865 ------------------------------------------------------------- Net income $ 87,171 $ 18,912 $ 6,761 $11,966 $(10,339) $114,471 ------------------------------------------------------------- AMDOCS LIMITED Reconciliation of Selected Financial Metrics from GAAP to Non-GAAP (in thousands) Six months ended March 31, 2008 ----------------------------------------------------- Reconciliation items ---------------------------------- GAAP Amortization Equity based Tax Non- of purchased compensation effect GAAP intangible expense assets ------------------------------------------------------ Operating expenses: Cost of license $ 1,712 $ - $ - $ - $ 1,712 Cost of service 964,697 - (11,713) - 952,984 Research and development 112,103 - (2,522) - 109,581 Selling, general and administrative 196,331 - (13,394) - 182,937 Amortization of purchased intangible assets 43,506 (43,506) - - - ------------------------------------------------------- Total operating expenses 1,318,349 (43,506) (27,629) - 1,247,214 ------------------------------------------------------- Operating income 198,182 43,506 27,629 - 269,317 ------------------------------------------------------- Income taxes 20,297 - - 16,721 37,018 ------------------------------------------------------- Net income $ 195,523 $ 43,506 $ 27,629 $(16,721) $ 249,937 ------------------------------------------------------- Six months ended March 31, 2007 ------------------------------------------------------------ Reconciliation items --------------------------------------- Restructuring charges in-process research Amortization and of develop- Equity purchased ment based intangible and compensation Tax Non- GAAP assets other expense effect GAAP ----------------------------------------------------------- Operating expenses: Cost of license $ 2,085 $ - $ - $ - $ - $ 2,085 Cost of service 881,981 - - (12,327) - 869,654 Research and development 118,202 - - (3,365) - 114,837 Selling, general and administ- rative 180,450 - - (11,599) - 168,851 Amortization of purchased intangible assets 36,610 (36,610) - - - - Restructuring charges, in-process research and development and other 6,761 - (6,761) - - - ------------------------------------------------------------ Total operating expenses 1,226,089 (36,610) (6,761) (27,291) - 1,155,427 ------------------------------------------------------------ Operating income 171,304 36,610 6,761 27,291 - 241,966 ------------------------------------------------------------ Income taxes 13,429 - - - 18,588 32,017 ------------------------------------------------------------ Net income $ 180,513 $36,610 $ 6,761 $27,291 $(18,588) $232,587 ------------------------------------------------------------ AMDOCS LIMITED Condensed Consolidated Balance Sheets (in thousands) As of -------------------------------- March 31, September 30, 2008 2007 -------------- ---------------- ASSETS Current assets Cash, cash equivalents and short-term interest-bearing investments $1,181,797 $1,179,280 Accounts receivable, net, including unbilled of $41,300 and $43,870 respectively (*) 568,503 473,847 Deferred income taxes and taxes receivable 108,959 117,623 Prepaid expenses and other current assets 113,463 98,746 -------------- ---------------- Total current assets 1,972,722 1,869,496 Equipment, vehicles and leasehold improvements, net 296,288 283,839 Goodwill and other intangible assets, net 1,772,346 1,792,588 Other noncurrent assets (*) 464,047 399,427 -------------- ---------------- Total assets $4,505,403 $4,345,350 ============== ================ LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities Accounts payable and accruals $ 581,437 $ 592,937 Short-term portion of capital lease obligations and other financing arrangements 2,178 2,055 Deferred revenue (*) 209,226 174,526 Deferred income taxes and taxes payable 35,882 205,960 -------------- ---------------- Total current liabilities 828,723 975,478 0.50% Convertible notes 450,000 450,000 Noncurrent liabilities and other 502,986 319,629 Shareholders' equity 2,723,694 2,600,243 -------------- ---------------- Total liabilities and shareholders' equity $4,505,403 $4,345,350 ============== ================ (*) Certain amounts in prior period financial statements have been reclassified to conform to the current period presentation.

SOURCE Amdocs Limited

Featured Video

Journalists and Bloggers

Visit PR Newswire for Journalists for releases, photos, ProfNet experts, and customized feeds just for Media.

View and download archived video content distributed by MultiVu on The Digital Center.

Share with Twitter Share with LinkedIn
 

Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

 

 
 

PR Newswire Membership

Fill out a PR Newswire membership form or contact us at (888) 776-0942.

 
 

Learn about PR Newswire services

Request more information about PR Newswire products and services or call us at (888) 776-0942.

 

Online Member Center

Not a Member?
Click Here to Join
Login
Search News Releases
Advanced Search
Search
  1. PR Newswire Services
  2. Knowledge Center
  3. Browse News Releases
  4. Contact PR Newswire
  5. Send a News Release