ST. LOUIS, Jan. 27, 2015 /PRNewswire/ --
Key highlights:
- First fiscal quarter revenue of $906
million, within the $895-$925
million guidance range, which had already embedded a
negative sequential impact of approximately $6 million from foreign currency movements.
Foreign currency movements negatively affected revenue by
approximately $10 million relative to
the fourth quarter of fiscal 2014. Excluding foreign currency
movements, revenue performance was roughly in line with the
midpoint of our expectations
- First fiscal quarter non-GAAP operating income of $153 million; non-GAAP operating margin of 16.9%;
GAAP operating income of $142
million
- First fiscal quarter diluted non-GAAP EPS of $0.88, above the $0.77-$0.83 guidance range, excluding
amortization of purchased intangible assets and other
acquisition-related costs, changes in fair value of certain
acquisition-related liabilities and equity-based compensation
expense, net of related tax effects. A lower non-GAAP effective tax
rate positively impacted diluted non-GAAP EPS. Adjusting for this,
diluted non-GAAP EPS was within the guidance range for the first
quarter
- Diluted GAAP EPS of $0.83 for the
first fiscal quarter, above the $0.60-$0.68 guidance range
- Free cash flow of $173 million
for the first fiscal quarter
- Repurchased $102 million of
ordinary shares during the first fiscal quarter
- Twelve-month backlog of $3.03
billion at the end of the first fiscal quarter, up
$30 million from the end of the
fourth quarter of fiscal 2014
- The board of directors approved a $0.17 per share quarterly cash dividend to be
paid on April 16, 2015, subject to
shareholders' approval at the January
2015 annual general meeting
- Second quarter fiscal 2015 guidance: Expected revenue of
approximately $900-$930 million.
Expected diluted non-GAAP EPS of approximately $0.78-$0.84, excluding amortization of purchased
intangible assets and other acquisition-related costs and
approximately $0.05-$0.06 per share
of equity-based compensation expense, net of related tax effects.
Expected diluted GAAP EPS of approximately $0.64-$0.72
- Full year fiscal 2015 revenue guidance: Reiterates fiscal 2015
revenue growth within the previous range of 2.5% to 5.5%
year-over-year on a constant currency basis relative to the
guidance provided last quarter. Expects fiscal 2015 reported
revenue growth of 1.5% to 4.5% year-over-year reflecting a negative
impact from foreign currency movements of approximately 1% relative
to the guidance provided last quarter
Amdocs Limited (NASDAQ: DOX) today reported that for its fiscal
quarter ended December 31, 2014,
revenue was $906.3 million, up 0.7%
sequentially from the fourth fiscal quarter of 2014 and up 4.9% as
compared to last year's first fiscal quarter. Net income on a
non-GAAP basis was $139.5 million, or
$0.88 per diluted share, compared to
non-GAAP net income of $122.6
million, or $0.76 per diluted
share, in the first quarter of fiscal 2014. Non-GAAP net income
excludes amortization of purchased intangible assets and other
acquisition-related costs, changes in fair value of certain
acquisition-related liabilities and equity-based compensation
expenses of $8.5 million, net of
related tax effects, in the first quarter of fiscal 2015 and
excludes such amortization and other acquisition-related costs and
equity-based compensation expenses of $21.1
million, net of related tax effects, in the first quarter of
fiscal 2014. The Company's GAAP net income for the first quarter of
fiscal 2015 was $131.0 million, or
$0.83 per diluted share, compared to
GAAP net income of $101.4 million, or
$0.63 per diluted share, in the prior
fiscal year's first quarter.
"Our recent sales momentum has been strong with our market
position enabling us to secure significant new awards with some of
the world's largest carriers. As we previously announced, Singtel
has selected Amdocs for major business transformation projects in
its key markets of Singapore and
Australia. Additionally, we are
today delighted to announce a new award at Vivo, Telefonica's brand
in Brazil and the group's largest
in Latin America. This influential
win includes a quad-play BSS transformation project with a
five-year maintenance and support services contract and will enable
Vivo to provide a seamless, multi-channel experience. Moreover,
this deal follows transformation projects already awarded at
Telefonica affiliates in Argentina, Chile and Peru and is further evidence of our expanding
relationship with this highly strategic customer," said
Eli Gelman, chief executive officer
of Amdocs Management Limited.
Gelman continued, "In North America, we continued to help our
customers respond to rapidly changing competitive dynamics in
wireless and Pay TV markets. Along these lines, we are today
pleased to announce that U.S. Cellular has entered into a five-year
managed services contract with Amdocs to manage the operations of a
range of its business and operational support systems. This
significant new agreement expands and strengthens our relationship
with this long-standing customer. Moreover, the arrangement follows
the recent delivery of a highly complex transformation project for
U.S. Cellular and is evidence of the ongoing value proposition we
expect to provide to this carrier as we enable their strategic goal
of delivering a superior customer experience."
Gelman concluded, "With the visibility provided by our backlog
and the pipeline of opportunity ahead of us we are encouraged by
our start to fiscal 2015. As a reminder, our outlook reflects many
moving parts, including with respect to macroeconomic and industry
specific trends. We are focused on delivering consistent execution
and operating efficiency, and we remain committed to returning cash
to shareholders while retaining the capacity to execute on our
long-term growth initiatives. Taking all these factors into
consideration, we continue to expect diluted non-GAAP earnings per
share growth of 4.5%-7.5% for the full fiscal year."
Financial Discussion of First Fiscal Quarter Results
Free cash flow was $173 million for
the quarter, comprised of cash flow from operations of $208 million less $35
million in net capital expenditures and other.
Twelve-month backlog, which includes anticipated revenue related
to contracts, estimated revenue from managed services contracts,
letters of intent, maintenance and estimated on-going support
activities, was $3.03 billion at the
end of the first quarter of fiscal 2015.
Financial Outlook
Amdocs expects that revenue for the second quarter of fiscal 2015
will be approximately $900-$930
million. This outlook takes into consideration macro and
industry specific risks and unknowns, including various
uncertainties resulting from current and potential customer
consolidation activity in North
America. However, we remind you that we cannot predict all
possible outcomes.
Diluted earnings per share on a non-GAAP basis for the second
fiscal quarter are expected to be $0.78-$0.84, excluding amortization of purchased
intangible assets and other acquisition-related costs and
approximately $0.05-$0.06 per share
of equity-based compensation expense, net of related tax effects.
Amdocs estimates GAAP diluted earnings per share for the second
fiscal quarter will be $0.64-$0.72.
Quarterly Cash Dividend Program
On January 27, 2015, the Board approved the
Company's next quarterly cash dividend payment of $0.17 per share and set March 31, 2015 as the record date for determining
the shareholders entitled to receive the dividend, which is payable
on April 16, 2015. The increased
dividend is subject to shareholders' approval at the Company's
Annual General Meeting on January 28, 2015.
Conference Call Details
Amdocs will host a conference
call on January 27, 2015 at
5:00 p.m. Eastern Time to discuss the
Company's first fiscal quarter results. To participate, please dial
+1 (888) 771-4371, or +1 (847) 585-4405 outside the United States, approximately 15 minutes
before the call and enter passcode 38725576. The call will also be
carried live on the Internet via 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 revenue, non-GAAP research and development, non-GAAP
selling, general and administrative, non-GAAP operating income,
non-GAAP operating margin, non-GAAP interest and other expense,
net, non-GAAP income taxes, non-GAAP effective tax rate, non-GAAP
net income and non-GAAP diluted earnings per share growth. These
non-GAAP measures exclude the following items:
- amortization of purchased intangible assets and other
acquisition-related costs;
- changes in fair value of certain acquisition-related
liabilities
- 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 revenue, non-GAAP research and
development, non-GAAP selling, general and administrative, non-GAAP
operating income, non-GAAP operating margin, non-GAAP interest and
other expense, net, non-GAAP income taxes, non-GAAP effective tax
rate, non-GAAP net income and non-GAAP diluted earnings per share
growth 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 and
other acquisition-related costs, changes in fair value of certain
acquisition-related liabilities, 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 items in reviewing its results and those of its
competitors, because the amounts of the items between companies can
vary greatly depending on the assumptions used by an individual
company in determining the amounts of the items.
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 revenue,
research and development, selling, general and administrative,
operating income, interest and other expense, net, 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
For more than 30 years, Amdocs has ensured service providers'
success and embraced their biggest challenges. To win in the
connected world, service providers rely on Amdocs to simplify the
customer experience, harness the data explosion, stay ahead with
new services and improve operational efficiency. The global company
uniquely combines a market-leading BSS, OSS and network control and
optimization product portfolio with value-driven professional
services and managed services operations. With revenue of
$3.6 billion in fiscal 2014, Amdocs
and its over 22,000 employees serve customers in more than 80
countries.
Amdocs: Embrace Challenge, Experience Success.
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, 2014
filed on December 8, 2014.
|
|
|
|
AMDOCS
LIMITED
Consolidated
Statements of Income
(in thousands,
except per share data)
|
|
|
|
|
|
|
|
Three months
ended
|
|
|
|
December
31,
|
|
|
|
2014
|
|
2013
|
|
|
|
|
|
Revenue
|
|
$
906,287
|
|
$
864,045
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
Cost of
revenue
|
|
573,446
|
|
557,403
|
|
Research and
development
|
|
63,641
|
|
62,325
|
|
Selling, general and
administrative
|
|
113,580
|
|
111,959
|
|
Amortization of
purchased intangible assets and other
|
|
14,099
|
|
11,668
|
|
|
|
764,766
|
|
743,355
|
|
Operating
income
|
|
141,521
|
|
120,690
|
|
|
|
|
|
|
|
Interest and other
income (expense), net
|
|
1,544
|
|
(1,404)
|
|
Income before income
taxes
|
|
143,065
|
|
119,286
|
|
|
|
|
|
|
|
Income
taxes
|
|
12,075
|
|
17,851
|
|
Net income
|
|
$
130,990
|
|
$
101,435
|
|
Basic earnings per
share
|
|
$
0.84
|
|
$
0.64
|
|
Diluted earnings per
share
|
|
$
0.83
|
|
$
0.63
|
|
Basic weighted
average number of shares outstanding
|
|
155,897
|
|
159,659
|
|
Diluted weighted
average number of shares outstanding
|
|
158,110
|
|
161,845
|
|
Cash dividends
declared per share
|
|
$
0.155
|
|
$
0.130
|
|
AMDOCS
LIMITED
Selected Financial
Metrics
(in thousands,
except per share data)
|
|
|
|
|
|
|
|
Three months
ended
|
|
|
|
December
31,
|
|
|
|
2014
|
|
2013
|
|
|
|
|
|
|
|
Revenue
|
|
$ 906,287
|
|
$ 864,045
|
|
|
|
|
|
|
|
Non-GAAP operating
income
|
|
152,962
|
|
145,323
|
|
|
|
|
|
|
|
Non-GAAP net
income
|
|
139,485
|
|
122,564
|
|
|
|
|
|
|
|
Non-GAAP diluted
earnings per share
|
|
$
0.88
|
|
$ 0.76
|
|
|
|
|
|
|
|
Diluted weighted
average number of shares outstanding
|
|
158,110
|
|
161,845
|
|
AMDOCS
LIMITED
Reconciliation of
Selected Financial Metrics from GAAP to Non-GAAP
(in
thousands)
|
|
|
|
Three months
ended December 31,
2014
|
|
|
Reconciliation
items
|
|
|
GAAP
|
Amortization of
purchased intangible assets and other
|
Equity based
compensation expense
|
Changes in fair
value of certain acquisition-related liabilities
|
Tax
effect
|
Non-GAAP
|
Operating
expenses:
|
|
|
|
|
|
|
Cost of
revenue
|
$ 573,446
|
$
-
|
$
(4,244)
|
$ 16,556
|
$
-
|
$ 585,758
|
Research and
development
|
63,641
|
-
|
(937)
|
-
|
-
|
62,704
|
Selling, general
and
administrative
|
113,580
|
-
|
(8,717)
|
-
|
-
|
104,863
|
Amortization
of
purchased intangible
assets and other
|
14,099
|
(14,099)
|
-
|
-
|
-
|
-
|
Total operating
expenses
|
764,766
|
(14,099)
|
(13,898)
|
16,556
|
-
|
753,325
|
|
|
|
|
|
|
|
Operating
income
|
141,521
|
14,099
|
13,898
|
(16,556)
|
-
|
152,962
|
|
|
|
|
|
|
|
Interest and
other
expense, net
|
(1,544)
|
-
|
-
|
3,921
|
-
|
2,377
|
|
|
|
|
|
|
|
Income
taxes
|
12,075
|
-
|
-
|
-
|
(975)
|
11,100
|
|
|
|
|
|
|
|
Net income
|
$ 130,990
|
$ 14,099
|
$ 13,898
|
$ (20,477)
|
$ 975
|
$ 139,485
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended December 31,
2013
|
|
|
|
Reconciliation
items
|
|
|
|
GAAP
|
Amortization of
purchased intangible assets and other
|
Equity based
compensation expense
|
Tax
effect
|
Non-GAAP
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
Cost of
revenue
|
|
$ 557,403
|
$
-
|
$ (4,554)
|
$
-
|
$ 552,849
|
Research
and development
|
|
62,325
|
-
|
(933)
|
-
|
61,392
|
Selling, general
and
administrative
|
|
111,959
|
-
|
(7,478)
|
-
|
104,481
|
Amortization of
purchased
intangible assets and
other
|
|
11,668
|
(11,668)
|
-
|
-
|
-
|
Total operating
expenses
|
|
743,355
|
(11,668)
|
(12,965)
|
-
|
718,722
|
|
|
|
|
|
|
|
Operating
income
|
|
120,690
|
11,668
|
12,965
|
-
|
145,323
|
|
|
|
|
|
|
|
Income
taxes
|
|
17,851
|
-
|
-
|
3,504
|
21,355
|
|
|
|
|
|
|
|
Net income
|
|
$ 101,435
|
$ 11,668
|
$ 12,965
|
$ (3,504)
|
$ 122,564
|
|
|
|
|
|
|
|
|
AMDOCS
LIMITED
Condensed
Consolidated Balance Sheets
(in
thousands)
|
|
|
|
As
of
|
|
|
December 31,
2014
|
|
September 30,
2014
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
Cash, cash
equivalents and short-term interest-bearing investments
|
|
$ 1,268,573
|
|
$ 1,424,465
|
Accounts receivable,
net, including unbilled of $105,611 and $134,523,
respectively
|
|
683,778
|
|
715,837
|
Deferred income taxes
and taxes receivable
|
|
158,761
|
|
148,346
|
Prepaid expenses and
other current assets
|
|
129,713
|
|
135,326
|
Total current assets
|
|
2,240,825
|
|
2,423,974
|
|
|
|
|
|
Equipment and
leasehold improvements, net
|
|
284,233
|
|
288,956
|
Goodwill and other
intangible assets, net
|
|
2,100,219
|
|
2,106,452
|
Other noncurrent
assets
|
|
348,735
|
|
365,895
|
Total
assets
|
|
$ 4,974,012
|
|
$ 5,185,277
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
Accounts payable,
accruals and other
|
|
$ 790,410
|
|
$ 785,548
|
Short-term financing
arrangements
|
|
-
|
|
210,000
|
Deferred
revenue
|
|
149,027
|
|
156,743
|
Deferred income taxes
and taxes payable
|
|
61,956
|
|
48,456
|
Total current liabilities
|
|
1,001,393
|
|
1,200,747
|
Other noncurrent
liabilities
|
|
553,719
|
|
588,694
|
Shareholders'
equity
|
|
3,418,900
|
|
3,395,836
|
Total liabilities and
shareholders' equity
|
|
$ 4,974,012
|
|
$ 5,185,277
|
AMDOCS
LIMITED
Consolidated
Statements of Cash Flows
(in
thousands)
|
|
|
|
|
|
Three months ended
December 31,
|
|
|
2014
|
|
2013
|
|
|
|
|
|
Cash Flow from
Operating Activities:
|
|
|
|
|
Net income
|
|
$
130,990
|
|
$
101,435
|
Reconciliation of net
income to net cash provided by operating activities:
|
|
|
|
|
Depreciation and amortization
|
|
39,709
|
|
35,729
|
Equity-based compensation expense
|
|
13,898
|
|
12,965
|
Deferred income taxes
|
|
(23,761)
|
|
5,397
|
Excess tax benefit
from equity-based compensation
|
|
(1,126)
|
|
(92)
|
(Gain) loss from short-term interest-bearing investments
|
|
(41)
|
|
308
|
Net changes in
operating assets and liabilities, net of amounts
acquired:
|
|
|
|
|
Accounts receivable
|
|
32,848
|
|
(3,660)
|
Prepaid expenses and other current assets
|
|
7,603
|
|
(7,596)
|
Other noncurrent assets
|
|
10,594
|
|
(14,453)
|
Accounts payable, accrued expenses and accrued personnel
|
|
9,602
|
|
34,514
|
Deferred revenue
|
|
(9,049)
|
|
20,460
|
Income taxes payable
|
|
15,263
|
|
(4,565)
|
Other noncurrent liabilities
|
|
(18,117)
|
|
6,096
|
Net cash provided by
operating activities
|
|
208,413
|
|
186,538
|
|
|
|
|
|
Cash Flow from
Investing Activities:
|
|
|
|
|
Payments for purchase
of equipment and leasehold improvements, net
|
|
(36,732)
|
|
(26,743)
|
Proceeds from sale of
short-term interest-bearing investments
|
|
53,153
|
|
83,763
|
Purchase of
short-term interest-bearing investments
|
|
(49,255)
|
|
(92,878)
|
Net cash paid for
acquisitions
|
|
(8,099)
|
|
(12,603)
|
Other
|
|
993
|
|
7,309
|
Net cash used in
investing activities
|
|
(39,940)
|
|
(41,152)
|
|
|
|
|
|
Cash Flow from
Financing Activities:
|
|
|
|
|
Payments under
financing arrangements
|
|
(210,000)
|
|
(200,000)
|
Repurchase of
shares
|
|
(101,632)
|
|
(84,019)
|
Proceeds from
employee stock options exercised
|
|
14,497
|
|
36,014
|
Payments of
dividends
|
|
(24,291)
|
|
(20,812)
|
Excess tax benefit
from equity-based compensation
|
|
1,126
|
|
92
|
Other
|
|
(3)
|
|
(270)
|
Net cash used in
financing activities
|
|
(320,303)
|
|
(268,995)
|
|
|
|
|
|
Net decrease in cash
and cash equivalents
|
|
(151,830)
|
|
(123,609)
|
Cash and cash
equivalents at beginning of period
|
|
1,103,269
|
|
1,014,192
|
Cash and cash
equivalents at end of period
|
|
$
951,439
|
|
$
890,583
|
AMDOCS
LIMITED
Supplementary
Information
(in
millions)
|
|
|
|
|
|
Three months
ended
|
|
|
December 31,
2014
|
|
September 30,
2014
|
|
June 30,
2014
|
|
March 31,
2014
|
|
December
31,
2013
|
North
America
|
|
$ 659.1
|
|
$ 662.7
|
|
$ 647.2
|
|
$ 651.7
|
|
$ 628.0
|
Europe
|
|
106.9
|
|
105.3
|
|
114.6
|
|
113.8
|
|
117.0
|
Rest of
World
|
|
140.3
|
|
132.3
|
|
140.7
|
|
131.4
|
|
119.0
|
Total
Revenue
|
|
$ 906.3
|
|
$ 900.3
|
|
$ 902.5
|
|
$ 896.9
|
|
$ 864.0
|
|
|
Three months
ended
|
|
|
December 31,
2014
|
|
September 30,
2014
|
|
June 30,
2014
|
|
March 31,
2014
|
|
December
31,
2013
|
Managed Services
Revenue
|
|
$ 467.1
|
|
$ 436.4
|
|
$ 438.0
|
|
$ 426.3
|
|
$ 429.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
|
|
December 31,
2014
|
|
September 30,
2014
|
|
June 30,
2014
|
|
March 31,
2014
|
|
December
31,
2013
|
|
Customer
Experience
Solutions
|
|
$ 882.4
|
|
$ 871.5
|
|
$ 870.8
|
|
$ 863.6
|
|
$ 829.6
|
|
Directory
|
|
23.9
|
|
28.8
|
|
31.7
|
|
33.3
|
|
34.4
|
|
Total
Revenue
|
|
$ 906.3
|
|
$ 900.3
|
|
$ 902.5
|
|
$ 896.9
|
|
$ 864.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As
of
|
|
|
December 31,
2014
|
|
September 30,
2014
|
|
June 30,
2014
|
|
March 31,
2014
|
|
December
31,
2013
|
|
12-Month
Backlog
|
|
$ 3,030
|
|
$ 3,000
|
|
$ 2,970
|
|
$ 2,940
|
|
$ 2,890
|
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/amdocs-limited-reports-record-quarterly-revenue-of-906m-up-49-yoy-300026576.html
SOURCE Amdocs Limited