Amdocs Limited (NASDAQ: DOX), a leading provider of software and
services to communications and media companies, today reported
operating results for the fourth fiscal quarter and full fiscal
year ended September 30, 2022.
“Fiscal 2022 was a landmark year for Amdocs, and I could not be
prouder of our talented employees and our many amazing
achievements. We delivered accelerated full year revenue growth of
10.3% on a pro forma(2) constant currency (3) basis as we executed
our strategy to support the industry’s need for digital
modernization, 5G monetization, cloud, and network automation with
market-leading innovation. Strong sales momentum throughout fiscal
2022 continued in Q4 and included a five-year agreement to migrate
Amdocs systems to the cloud for AT&T Mexico. Additionally, we
are working with Rogers to move existing Amdocs services and
applications to Rogers' private cloud. Overall, we ended fiscal
2022 with record-high 12-month backlog of $3.97 billion, up
approximately 8% from a year ago”, said Shuky Sheffer, president
and chief executive officer of Amdocs Management Limited.
“Amdocs’ reputation for project execution is unrivalled in our
industry, as demonstrated by a record number of production
milestones achieved for our customers in Q4 and the full 2022
fiscal year. At the same time, we maintained consistent
profitability and generated robust free cash flow, primarily driven
by strong levels of customer cash collections throughout the fiscal
year. Fiscal year 2022 was also a record year in managed services
where recent customer activity included new long-term strategic
agreements that strengthen and broaden our relationships with
Charter in North America, Telefonica Hispanoamerica in Argentina,
Chile and Peru, and SES in Europe,” said Tamar Rapaport-Dagim,
chief financial officer & chief operating officer of Amdocs
Management Limited.
Sheffer concluded, “We are confident in our unique and resilient
business model given the strategic and mission critical nature of
our products and services that we provide under multi-year customer
engagements. While we are not immune to the current macro
uncertainty, our role as a trusted partner is especially valuable
during such times as we work to help service providers improve
customer experience, accelerate cost reduction, and increase
efficiency with our digital, cloud, automation and 5G monetization
capabilities. Taking everything into consideration, we are
positioned to deliver fiscal year 2023 revenue growth in line with
the midpoint of our long-term target range of 6% to 10% on a
constant currency(3) basis while delivering strong earnings to cash
conversion.”
Revenue
(All comparisons are against the prior year period)
|
In millions |
|
Three months ended |
|
Twelve months ended |
|
September 30, 2022 |
|
September 30, 2022 |
|
Actual |
PreviousGuidance |
|
Actual |
Previous Guidance |
Revenue |
$1,167 |
$1,145 - $1,185 |
|
$4,577 |
-- |
Revenue growth, as reported |
7.3% |
-- |
|
6.7% |
6.2% - 7.2% |
Revenue growth, constant
currency(3) |
9.5% |
-- |
|
-- |
-- |
Pro forma(2) revenue growth,
constant currency(3) |
-- |
-- |
|
10.3% |
9.6% - 10.6% |
- Revenue for the fourth fiscal quarter of 2022 was slightly
above the midpoint of Amdocs’ guidance, despite unfavorable foreign
currency movements of roughly $9 million compared to our guidance
assumptions
- Revenue for the fourth fiscal quarter includes an unfavorable
impact from foreign currency movements of approximately $12 million
relative to the third quarter of fiscal 2022
- Revenue for the full year fiscal 2022 includes an unfavorable
impact from foreign currency movements of approximately 1.4%
year-over-year
Net Income and Earnings Per Share
|
In thousands, except per share
data |
|
Three months ended |
|
Twelve months ended |
|
September 30, |
|
September 30, |
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
2021(a) |
GAAP
Measures |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
$ |
128,936 |
|
$ |
123,525 |
|
$ |
549,501 |
|
$ |
688,374 |
|
|
|
|
|
|
|
|
Diluted earnings per
share |
$ |
1.05 |
|
$ |
0.97 |
|
$ |
4.44 |
|
$ |
5.32 |
|
|
|
|
|
|
|
|
Non-GAAP
Measures |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
$ |
157,548 |
|
$ |
147,470 |
|
$ |
655,147 |
|
$ |
621,820 |
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share |
$ |
1.29 |
|
$ |
1.16 |
|
$ |
5.30 |
|
$ |
4.81 |
- Non-GAAP net income excludes amortization of purchased
intangible assets and other acquisition-related costs, changes in
certain acquisition related liabilities measured at fair value,
equity-based compensation expenses, gain from divestiture of
OpenMarket and other, net of related tax effects, in all the
periods presented
- In fiscal year 2021, the GAAP net income includes a gain from
divestiture of OpenMarket, net of related tax effects, at the
amount of $1.44 per share, which is excluded from the Non-GAAP net
income
For further details of the reconciliation of selected financial
metrics from GAAP to Non-GAAP, please refer to the tables
below.
Capital Allocation: Returning Cash to
Shareholders
- Quarterly Cash Dividend Program: On November
8, 2022, the Board approved the Company’s next quarterly cash
dividend payment of $0.395 per share and set December 30, 2022 as
the record date for determining the shareholders entitled to
receive the dividend, which will be payable on January 27,
2023
- The Board also approved a 10% increase in the Company’s
quarterly cash dividend payment to $0.435 per share, which is
anticipated to be first paid in April 2023, provided that the
increase is approved by shareholders at the January 2023 annual
general meeting of shareholders
- Share Repurchase Activity: Repurchased $108
million of ordinary shares during the fourth quarter of fiscal
2022
Twelve-month BacklogTwelve-month backlog was a
record $3.97 billion at the end of the fourth quarter of fiscal
2022, up approximately 7.6% as compared to last year’s fourth
fiscal quarter. Twelve-month backlog includes anticipated revenue
related to contracts, estimated revenue from managed services
contracts, letters of intent, maintenance and estimated on-going
support activities.
First Quarter Fiscal
2023 Outlook
|
In millions, except per share data |
|
Q1
2023 |
Revenue |
$1,155-$1,195 |
GAAP diluted EPS |
$1.00-$1.08 |
Non-GAAP diluted EPS |
$1.29-$1.35 |
- First quarter revenue guidance assumes approximately $7 million
sequential unfavorable impact from foreign currency fluctuations as
compared to the fourth quarter of fiscal 2022
- First quarter non-GAAP diluted EPS guidance excludes
amortization of purchased intangible assets and other
acquisition-related costs, changes in certain acquisitions related
liabilities measured at fair value, and approximately $0.13-$0.15
per share of equity-based compensation expense and other, net of
related tax effects
Full Year Fiscal
2023 Outlook
|
FY 2023, year-over-year
growth |
Revenue growth, as reported |
4.0%-8.0% |
Revenue growth, constant
currency(3) |
6.0%-10.0% |
|
|
|
|
GAAP diluted EPS growth |
3.0% - 10.0% |
Non-GAAP diluted EPS growth |
8.0%-12.0% |
|
|
|
In millions |
|
FY 2023, |
Free cash flow(1) |
~$700 |
|
|
- Full year fiscal 2023 revenue guidance incorporates an expected
unfavorable impact from foreign currency fluctuations of
approximately 2% year-over-year
- Non-GAAP diluted earnings per share growth excludes
amortization of purchased intangible assets and other
acquisition-related costs, changes in certain acquisitions related
liabilities measured at fair value, approximately $0.61-$0.69 per
share of equity-based compensation expense, and other, net of
related tax effects.
- Non-GAAP effective tax rate is anticipated to be within a range
of 13.0% to 17.0% for the full year fiscal 2023
- Free cash flow(1) is comprised of cash flow from operations,
less net capital expenditures and other
The forward looking statements regarding our first fiscal
quarter 2023 and full year fiscal 2023 guidance take into
consideration the Company’s current expectations regarding macro
and industry specific risks and various uncertainties and certain
assumptions that we will discuss on our earnings conference call.
However, we note that market dynamics continue to shift rapidly and
we cannot predict all possible outcomes, including those resulting
from certain geopolitical events, the current inflationary
environment, the COVID-19 pandemic and the prevailing level of
macro-economic, business and operational uncertainty, which have
created, and continues to create, a significant amount of
uncertainty, or from current and potential customer consolidation
or their other strategic corporate activities.
Conference Call and Earnings Webcast Presentation
Details Amdocs will host a conference call and earnings
webcast presentation on November 8, 2022 at 5:00 p.m. Eastern Time
to discuss the Company's fourth quarter of fiscal 2022 results.
To participate in the call, please register here to receive the
dial-in numbers and unique access PIN. The conference call and
webcast will also be carried live on the Internet and may be
accessed via the Amdocs website at https://investors.amdocs.com.
Presentation slides will be available shortly before the webcast.
Non-GAAP Financial Measures This release includes
non-GAAP diluted earnings per share and other non-GAAP financial
measures, including free cash flow and normalized free cash flow,
revenue on a constant currency(3) basis, 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 expenses, net, non-GAAP income
taxes, non-GAAP effective tax rate, non-GAAP net income and
non-GAAP diluted earnings per share growth. These other non-GAAP
measures exclude the following items:
- amortization of
purchased intangible assets and other acquisition-related
costs;
- changes in certain
acquisition-related liabilities measured at fair value;
- non-recurring and
unusual charges or benefits (such as a gain from divestiture of
OpenMarket);
- equity-based
compensation expense;
- other; and
- tax effects related
to the above.
Free cash flow equals cash generated by operating activities
less net capital expenditures and other. Normalized free cash flow,
a measure of our operating performance, is further adjusted to
exclude net capital expenditures related to the new campus
development, payments for non-recurring and unusual charges (such
as capital gains tax in relation to the divestiture of OpenMarket),
and payments of acquisition related liabilities. 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 and normalized 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 expenses, 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 certain
acquisition-related liabilities measured at fair value,
non-recurring and unusual charges or benefits, equity-based
compensation expense, other 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 expenses, 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.
Supporting Resources
- Keep up with Amdocs news by visiting the Company’s website
- Subscribe to Amdocs’ RSS Feed and follow us on Twitter,
Facebook, LinkedIn and YouTube
About AmdocsAmdocs helps those who build the
future to make it amazing. With our market-leading portfolio of
software products and services, we unlock our customers’ innovative
potential, empowering them to provide next-generation communication
and media experiences for both the individual end user and large
enterprise customers. Our 31,000 employees around the globe are
here to accelerate service providers’ migration to the cloud,
enable them to differentiate in the 5G era, and digitalize and
automate their operations. Listed on the NASDAQ Global Select
Market, Amdocs had revenue of $4.58 billion in fiscal 2022.
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 and years. 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 macro-economic
conditions, including as a result of geopolitical events or other
global or regional events such as the COVID-19 pandemic, as
well as the current inflationary environment, and the effects of
these conditions on the company’s clients’ businesses and levels of
business activity, 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, Amdocs specifically disclaims any
obligation to do so. These and other risks are discussed at
greater length in Amdocs’ filings with the Securities and Exchange
Commission, including in our Annual Report on Form 20-F for the
fiscal year ended September 30, 2021 filed on December 9, 2021 and
our Form 6-K furnished for the first quarter of fiscal 2022 on
February 14, 2022, the second quarter of fiscal 2022 on May 24,
2022 and for the third quarter of fiscal 2022 on August 15,
2022..
Contact: Matthew Smith Head of Investor
Relations Amdocs 314-212-8328 E-mail: dox_info@amdocs.com
|
AMDOCS LIMITEDConsolidated Statements of
Income(In thousands, except per share
data) |
|
|
|
Three months ended |
|
Fiscal year ended |
|
|
September 30, |
|
September 30, |
|
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
2021(a) |
|
|
|
|
|
|
|
|
|
Revenue |
|
$ |
1,166,504 |
|
|
$ |
1,087,309 |
|
|
$ |
4,576,697 |
|
|
$ |
4,288,640 |
|
|
|
|
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
|
|
|
|
Cost of revenue |
|
|
751,358 |
|
|
|
707,366 |
|
|
|
2,957,547 |
|
|
|
2,810,967 |
|
Research and development |
|
|
96,218 |
|
|
|
81,324 |
|
|
|
354,706 |
|
|
|
312,941 |
|
Selling, general and administrative |
|
|
129,404 |
|
|
|
126,015 |
|
|
|
528,572 |
|
|
|
487,255 |
|
Amortization of purchased intangible assets and other |
|
|
17,838 |
|
|
|
18,274 |
|
|
|
71,075 |
|
|
|
78,784 |
|
|
|
|
994,818 |
|
|
|
932,979 |
|
|
|
3,911,900 |
|
|
|
3,689,947 |
|
Operating income |
|
|
171,686 |
|
|
|
154,330 |
|
|
|
664,797 |
|
|
|
598,693 |
|
|
|
|
|
|
|
|
|
|
Interest and other expense, net |
|
|
(7,399 |
) |
|
|
(1,099 |
) |
|
|
(26,391 |
) |
|
|
(10,797 |
) |
Gain from sale of a business |
|
|
- |
|
|
|
- |
|
|
|
10,000 |
|
|
|
226,410 |
|
Income before income taxes |
|
|
164,287 |
|
|
|
153,231 |
|
|
|
648,406 |
|
|
|
814,306 |
|
|
|
|
|
|
|
|
|
|
Income taxes |
|
|
35,351 |
|
|
|
29,706 |
|
|
|
98,905 |
|
|
|
125,932 |
|
Net income |
|
$ |
128,936 |
|
|
$ |
123,525 |
|
|
$ |
549,501 |
|
|
$ |
688,374 |
|
Basic earnings per share |
|
$ |
1.06 |
|
|
$ |
0.98 |
|
|
$ |
4.47 |
|
|
$ |
5.36 |
|
Diluted earnings per share |
|
$ |
1.05 |
|
|
$ |
0.97 |
|
|
$ |
4.44 |
|
|
$ |
5.32 |
|
Basic weighted average number of shares outstanding |
|
|
121,449 |
|
|
|
125,923 |
|
|
|
122,812 |
|
|
|
128,495 |
|
Diluted weighted average number of shares outstanding |
|
|
122,320 |
|
|
|
126,820 |
|
|
|
123,650 |
|
|
|
129,284 |
|
Cash dividends declared per share |
|
$ |
0.395 |
|
|
$ |
0.36 |
|
|
$ |
1.545 |
|
|
$ |
1.4075 |
|
|
AMDOCS
LIMITED Selected Financial Metrics
(In thousands, except per share data) |
|
|
|
Three months ended |
|
|
Fiscal year ended |
|
|
September 30, |
|
|
September 30, |
|
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021(a) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
|
$ |
1,166,504 |
|
|
$ |
1,087,309 |
|
|
$ |
4,576,697 |
|
|
$ |
4,288,640 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP operating income |
|
|
205,337 |
|
|
|
190,195 |
|
|
|
804,894 |
|
|
|
750,665 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP net income |
|
|
157,548 |
|
|
|
147,470 |
|
|
|
655,147 |
|
|
|
621,820 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP diluted earnings per share |
|
$ |
1.29 |
|
|
$ |
1.16 |
|
|
$ |
5.30 |
|
|
$ |
4.81 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted weighted average number of shares outstanding |
|
|
122,320 |
|
|
|
126,820 |
|
|
|
123,650 |
|
|
|
129,284 |
|
|
Free Cash
Flows and Normalized Free Cash Flow (In
thousands) |
|
|
|
Three months
ended |
|
Fiscal year ended |
|
|
September 30, |
|
September 30, |
|
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
2021(a) |
|
|
|
|
|
|
|
|
|
Net Cash Provided by Operating Activities |
|
$ |
216,919 |
|
|
$ |
199,713 |
|
|
$ |
756,719 |
|
|
$ |
925,807 |
|
|
|
|
|
|
|
|
|
|
Purchases of property and equipment, net(c) |
|
|
(81,819 |
) |
|
|
(60,873 |
) |
|
|
(227,219 |
) |
|
|
(210,438 |
) |
|
|
|
|
|
|
|
|
|
Free Cash Flow |
|
|
135,100 |
|
|
|
138,840 |
|
|
|
529,500 |
|
|
|
715,369 |
|
|
|
|
|
|
|
|
|
|
Tax payment on sale of business(b) |
|
|
- |
|
|
|
809 |
|
|
|
3,193 |
|
|
|
39,596 |
|
|
|
|
|
|
|
|
|
|
Payments of acquisition related liabilities |
|
|
1,925 |
|
|
|
- |
|
|
|
16,275 |
|
|
|
13,234 |
|
|
|
|
|
|
|
|
|
|
Net capital expenditures related to the new campus development |
|
|
38,683 |
|
|
|
32,801 |
|
|
|
116,359 |
|
|
|
100,680 |
|
|
|
|
|
|
|
|
|
|
Normalized Free Cash Flow |
|
$ |
175,708 |
|
|
$ |
172,450 |
|
|
$ |
665,327 |
|
|
$ |
868,879 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Since January 1, 2021, OpenMarket results are
not included in the Consolidated Statements of Income given its
divestiture. |
(b) Tax payment related to capital gain from
divestiture of OpenMarket, which was completed on December 31,
2020. |
(c) The amounts
under "Purchase of property and equipment, net” include proceeds
from sale of property and equipment of $521 and $328 for the Fiscal
years ended September 30, 2022 and 2021, respectively. |
|
AMDOCS
LIMITED Reconciliation of Selected Financial
Metrics from GAAP to Non-GAAP (In
thousands) |
|
|
Three months ended September 30,
2022 |
|
|
Reconciliation items |
|
|
|
|
GAAP |
Amortization of purchased intangible assets and
other |
Equity based compensation expense |
Changes in certain acquisitions related liabilities
measured at fair value |
Other |
Tax effect |
Non-GAAP |
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenue |
$ |
751,358 |
|
$ |
- |
|
$ |
(8,356 |
) |
$ |
3,294 |
|
$ |
- |
|
$ |
- |
|
$ |
746,296 |
|
Research and development |
|
96,218 |
|
|
|
|
|
(1,538 |
) |
|
|
|
|
|
|
|
|
|
|
94,680 |
|
Selling, general and administrative |
|
129,404 |
|
|
|
|
|
(9,213 |
) |
|
|
|
|
|
|
|
|
|
|
120,191 |
|
Amortization of purchased intangible assets and
other |
|
17,838 |
|
|
(17,838 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
- |
|
Total operating expenses |
|
994,818 |
|
|
(17,838 |
) |
|
(19,107 |
) |
|
3,294 |
|
|
- |
|
|
- |
|
|
961,167 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income |
|
171,686 |
|
|
17,838 |
|
|
19,107 |
|
|
(3,294 |
) |
|
|
|
|
|
|
|
205,337 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and other expense, net |
|
(7,399 |
) |
|
|
|
|
|
|
|
|
|
|
400 |
|
|
|
|
|
(6,999 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income taxes |
|
35,351 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
5,439 |
|
|
40,790 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
$ |
128,936 |
|
$ |
17,838 |
|
$ |
19,107 |
|
$ |
(3,294 |
) |
$ |
400 |
|
$ |
(5,439 |
) |
$ |
157,548 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended September 30,
2021 |
|
|
Reconciliation items |
|
|
|
|
GAAP |
Amortization of purchased intangible assets and
other |
Equity based compensation expense |
Changes in certain acquisitions related liabilities
measured at fair value |
Other |
Tax effect |
Non-GAAP |
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenue |
$ |
707,366 |
|
$ |
- |
|
$ |
(6,148 |
) |
$ |
(3,285 |
) |
$ |
- |
|
$ |
- |
|
$ |
697,933 |
|
Research and development |
|
81,324 |
|
|
- |
|
|
(1,145 |
) |
|
- |
|
|
- |
|
|
- |
|
|
80,179 |
|
Selling, general and administrative |
|
126,015 |
|
|
- |
|
|
(7,013 |
) |
|
- |
|
|
- |
|
|
- |
|
|
119,002 |
|
Amortization of purchased intangible assets and
other |
|
18,274 |
|
|
(18,274 |
) |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
Total operating expenses |
|
932,979 |
|
|
(18,274 |
) |
|
(14,306 |
) |
|
(3,285 |
) |
|
- |
|
|
- |
|
|
897,114 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income |
|
154,330 |
|
|
18,274 |
|
|
14,306 |
|
|
3,285 |
|
|
- |
|
|
- |
|
|
190,195 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and other expense, net |
|
(1,099 |
) |
|
- |
|
|
- |
|
|
- |
|
|
(4,360 |
) |
|
- |
|
|
(5,459 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income taxes |
|
29,706 |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
7,560 |
|
|
37,266 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
$ |
123,525 |
|
$ |
18,274 |
|
$ |
14,306 |
|
$ |
3,285 |
|
$ |
(4,360 |
) |
$ |
(7,560 |
) |
$ |
147,470 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AMDOCS
LIMITED Reconciliation of Selected Financial
Metrics from GAAP to Non-GAAP (In
thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal year
ended |
|
September 30, 2022 |
|
|
|
|
Reconciliation items |
|
|
|
|
|
GAAP |
|
|
Amortization of purchasedintangibleassets and
other |
|
|
Equity basedcompensationexpense |
|
|
Changes in certainacquisitions relatedliabilities measured
atfair value |
|
|
Gain fromsale of abusiness |
|
|
Other |
|
|
Taxeffect |
|
|
Non-GAAP |
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenue |
$ |
2,957,547 |
|
$ |
- |
|
$ |
(32,096 |
) |
$ |
2,785 |
|
$ |
- |
|
$ |
- |
|
$ |
- |
|
$ |
2,928,236 |
|
Research and development |
|
354,706 |
|
|
|
|
|
(5,631 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
349,075 |
|
Selling, general and administrative |
|
528,572 |
|
|
|
|
|
(34,080 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
494,492 |
|
Amortization of purchased intangible assets and other |
|
71,075 |
|
|
(71,075 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- |
|
Total operating expenses |
|
3,911,900 |
|
|
(71,075 |
) |
|
(71,807 |
) |
|
2,785 |
|
|
- |
|
|
|
|
|
- |
|
|
3,771,803 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income |
|
664,797 |
|
|
71,075 |
|
|
71,807 |
|
|
(2,785 |
) |
|
- |
|
|
|
|
|
|
|
|
804,894 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and other expense, net |
|
(26,391 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
(1,605 |
) |
|
|
|
|
(27,996 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain from sale of a business |
|
10,000 |
|
|
|
|
|
|
|
|
|
|
|
(10,000 |
) |
|
|
|
|
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income taxes |
|
98,905 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
22,846 |
|
|
121,751 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
$ |
549,501 |
|
$ |
71,075 |
|
$ |
71,807 |
|
$ |
(2,785 |
) |
$ |
(10,000 |
) |
$ |
(1,605 |
) |
$ |
(22,846 |
) |
$ |
655,147 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal year ended |
|
September 30, 2021(a) |
|
|
|
|
Reconciliation items |
|
|
|
|
|
GAAP |
|
|
Amortization of purchasedintangibleassets and
other |
|
|
Equity basedcompensationexpense |
|
|
Changes in certainacquisitions relatedliabilities measured
atfair value |
|
|
Gain fromsale of abusiness |
|
|
Other |
|
|
Taxeffect |
|
|
Non-GAAP |
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenue |
$ |
2,810,967 |
|
$ |
- |
|
$ |
(22,691 |
) |
$ |
(18,939 |
) |
$ |
- |
|
$ |
- |
|
$ |
- |
|
$ |
2,769,337 |
|
Research and development |
|
312,941 |
|
|
- |
|
|
(4,021 |
) |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
308,920 |
|
Selling, general and administrative |
|
487,255 |
|
|
- |
|
|
(27,537 |
) |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
459,718 |
|
Amortization of purchased intangible assets and other |
|
78,784 |
|
|
(78,784 |
) |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
Total operating expenses |
|
3,689,947 |
|
|
(78,784 |
) |
|
(54,249 |
) |
|
(18,939 |
) |
|
- |
|
|
- |
|
|
- |
|
|
3,537,975 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income |
|
598,693 |
|
|
78,784 |
|
|
54,249 |
|
|
18,939 |
|
|
- |
|
|
- |
|
|
- |
|
|
750,665 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and other expense, net |
|
(10,797 |
) |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
(5,046 |
) |
|
- |
|
|
(15,843 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain from sale of a business |
|
226,410 |
|
|
- |
|
|
- |
|
|
- |
|
|
(226,410 |
) |
|
- |
|
|
- |
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income taxes |
|
125,932 |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
(12,930 |
) |
|
113,002 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
$ |
688,374 |
|
$ |
78,784 |
|
$ |
54,249 |
|
$ |
18,939 |
|
$ |
(226,410 |
) |
$ |
(5,046 |
) |
$ |
12,930 |
|
$ |
621,820 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AMDOCS
LIMITED Condensed Consolidated Balance
Sheets (In thousands) |
|
|
As
of |
|
|
|
September 30, 2022 |
|
|
September 30, 2021 |
|
|
|
|
|
|
|
|
|
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current assets |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
573,377 |
|
|
$ |
709,064 |
|
Short-term interest-bearing investments |
|
|
244,603 |
|
|
|
256,527 |
|
Accounts receivable, net, including unbilled of $157,165 and
$162,278, respectively |
|
|
946,777 |
|
|
|
866,819 |
|
Prepaid expenses and other current assets |
|
|
238,390 |
|
|
|
235,089 |
|
Total current assets |
|
|
2,003,147 |
|
|
|
2,067,499 |
|
|
|
|
|
|
|
|
|
|
Property and equipment, net |
|
|
794,287 |
|
|
|
698,768 |
|
Lease assets |
|
|
176,884 |
|
|
|
233,162 |
|
Goodwill and other intangible assets, net |
|
|
2,841,137 |
|
|
|
2,881,676 |
|
Other noncurrent assets |
|
|
574,938 |
|
|
|
630,669 |
|
Total assets |
|
$ |
6,390,393 |
|
|
$ |
6,511,774 |
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current liabilities |
|
|
|
|
|
|
|
|
Accounts payable, accruals and other |
|
$ |
955,658 |
|
|
$ |
1,007,777 |
|
Lease liabilities |
|
|
43,336 |
|
|
|
58,714 |
|
Deferred revenue |
|
|
253,686 |
|
|
|
237,374 |
|
Total current liabilities |
|
|
1,252,680 |
|
|
|
1,303,865 |
|
Lease liabilities |
|
|
138,378 |
|
|
|
177,906 |
|
Long-term debt, net of unamortized debt issuance costs |
|
|
645,117 |
|
|
|
644,553 |
|
Other noncurrent liabilities |
|
|
793,940 |
|
|
|
750,266 |
|
Total Amdocs Limited Shareholders’ equity |
|
|
3,517,769 |
|
|
|
3,592,675 |
|
Noncontrolling interests |
|
|
42,509 |
|
|
|
42,509 |
|
Total equity |
|
|
3,560,278 |
|
|
|
3,635,184 |
|
Total liabilities and equity |
|
$ |
6,390,393 |
|
|
$ |
6,511,774 |
|
|
AMDOCS
LIMITED Consolidated Statements of Cash
Flows (In thousands) |
|
|
|
Fiscal year ended September
30, |
|
|
|
2022 |
|
2021(a) |
|
|
|
|
|
Cash Flow from Operating Activities: |
|
|
|
|
Net income |
|
$ |
549,501 |
|
|
$ |
688,374 |
|
Reconciliation of net income to net cash provided by operating
activities: |
|
|
|
|
Depreciation, amortization and impairment |
|
|
224,535 |
|
|
|
208,830 |
|
Amortization of debt issuance costs |
|
|
564 |
|
|
|
548 |
|
Equity-based compensation expense |
|
|
71,807 |
|
|
|
54,249 |
|
Gain from sale of a business |
|
|
(10,000 |
) |
|
|
(226,410 |
) |
Deferred income taxes |
|
|
(3,292 |
) |
|
|
(50,605 |
) |
Loss from short-term interest-bearing investments |
|
|
2,728 |
|
|
|
1,726 |
|
Net changes in operating assets and liabilities, net of amounts
acquired: |
|
|
|
|
Accounts receivable, net |
|
|
(64,978 |
) |
|
|
(69,051 |
) |
Prepaid expenses and other current assets |
|
|
(3,527 |
) |
|
|
(17,041 |
) |
Other noncurrent assets |
|
|
19,760 |
|
|
|
(50,038 |
) |
Lease assets and liabilities, net |
|
|
1,394 |
|
|
|
9,630 |
|
Accounts payable, accrued expenses and accrued personnel |
|
|
(83,932 |
) |
|
|
122,224 |
|
Deferred revenue |
|
|
(22,456 |
) |
|
|
193,655 |
|
Income taxes payable, net |
|
|
15,648 |
|
|
|
26,814 |
|
Other noncurrent liabilities |
|
|
58,967 |
|
|
|
32,902 |
|
Net cash provided by operating activities |
|
|
756,719 |
|
|
|
925,807 |
|
|
|
|
|
|
Cash Flow from Investing Activities: |
|
|
|
|
Purchase of property and equipment, net(c) |
|
|
(227,219 |
) |
|
|
(210,438 |
) |
Proceeds from sale of short-term interest-bearing investments |
|
|
21,948 |
|
|
|
18,205 |
|
Purchase of short-term interest-bearing investments |
|
|
(34,275 |
) |
|
|
(276,978 |
) |
Net cash paid for business and intangible assets acquisitions |
|
|
(24,430 |
) |
|
|
(142,697 |
) |
Net cash received from sale of a business |
|
|
10,000 |
|
|
|
288,990 |
|
Other |
|
|
(8,525 |
) |
|
|
(6,082 |
) |
Net cash used in investing activities |
|
|
(262,501 |
) |
|
|
(329,000 |
) |
|
|
|
|
|
Cash Flow from Financing Activities: |
|
|
|
|
Payments under financing arrangements |
|
|
- |
|
|
|
(100,000 |
) |
Repurchase of shares |
|
|
(508,472 |
) |
|
|
(679,996 |
) |
Proceeds from employee stock options exercises |
|
|
82,924 |
|
|
|
89,056 |
|
Payments of dividends |
|
|
(186,073 |
) |
|
|
(177,472 |
) |
Payment of contingent consideration from a business
acquisition |
|
|
(18,284 |
) |
|
|
(2,519 |
) |
Net cash used in financing activities |
|
|
(629,905 |
) |
|
|
(870,931 |
) |
|
|
|
|
|
Net decrease in cash and cash equivalents |
|
|
(135,687 |
) |
|
|
(274,124 |
) |
Cash and cash equivalents at beginning of period |
|
|
709,064 |
|
|
|
983,188 |
|
Cash and cash equivalents at end of period |
|
$ |
573,377 |
|
|
$ |
709,064 |
|
|
AMDOCS
LIMITED Supplementary Information
(In millions) |
|
|
|
Three months ended |
|
|
|
September 30,2022 |
|
|
June 30,2022 |
|
|
March 31,2022 |
|
|
December 31, 2021 |
|
|
September 30,2021 |
North America |
|
$ |
794.4 |
|
$ |
788.0 |
|
$ |
772.2 |
|
$ |
745.5 |
|
$ |
722.8 |
Europe |
|
|
146.4 |
|
|
146.1 |
|
|
147.2 |
|
|
142.5 |
|
|
146.8 |
Rest of the World |
|
|
225.7 |
|
|
226.2 |
|
|
225.9 |
|
|
216.6 |
|
|
217.7 |
Total Revenue |
|
$ |
1,166.5 |
|
$ |
1,160.3 |
|
$ |
1,145.3 |
|
$ |
1,104.6 |
|
$ |
1,087.3 |
|
|
Three months ended |
|
|
|
September 30,2022 |
|
|
June 30,2022 |
|
|
March 31,2022 |
|
|
December 31, 2021 |
|
|
September 30,2021 |
Managed Services Revenue |
|
$ |
714.6 |
|
$ |
717.9 |
|
$ |
663.4 |
|
$ |
659.7 |
|
$ |
637.5 |
|
|
As of |
|
|
|
September 30,2022 |
|
|
June 30,2022 |
|
|
March 31,2022 |
|
|
December 31, 2021 |
|
|
September 30,2021 |
12-Month Backlog |
|
$ |
3,970 |
|
$ |
3,950 |
|
$ |
3,890 |
|
$ |
3,830 |
|
$ |
3,690 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Please refer to the Selected Financial Metrics tables
(figures may not sum because of rounding).
(2) Pro forma growth rate excludes the financial impact of
OpenMarket (which was divested on December 31, 2020) from fiscal
year 2021
(3) Revenue on a constant currency basis assumes exchange rates
in the current period were unchanged from the prior period
(4) Adjusted GAAP excludes the gain from the sale of OpenMarket,
which was divested on December 31, 2020, from the current and
comparable fiscal years
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