Expects Fiscal 2017 Revenue
Growth of 2.0-6.0% YoY
Amdocs Limited (NASDAQ:DOX) today reported that for its fourth
fiscal quarter ended September 30, 2016, revenue was $940.7
million, up 1.1% or $10.5 million sequentially from the third
fiscal quarter of 2016 and up 1.5% as compared to last year’s
fourth fiscal quarter. Revenue for the fourth fiscal quarter of
2016 includes a negative impact from foreign currency movements of
approximately $2 million relative to the third quarter of fiscal
2016. The Company's GAAP net income for the fourth quarter of
fiscal 2016 was $95.7 million, or $0.64 per diluted share, compared
to GAAP net income of $91.1 million, or $0.59 per diluted share, in
the prior fiscal year’s fourth quarter. Net income on a non-GAAP
basis was $132.4 million, or $0.89 per diluted share, compared to
non-GAAP net income of $130.4 million, or $0.84 per diluted share,
in the fourth quarter of fiscal 2015. Non-GAAP net income excludes
amortization of purchased intangible assets and other
acquisition-related costs and equity-based compensation expenses of
$36.7 million, net of related tax effects, in the fourth quarter of
fiscal 2016, and excludes such amortization and other
acquisition-related costs, nonrecurring restructuring charges
associated with the acquisition of the Comverse BSS assets and
equity-based compensation expenses of $39.2 million, net of related
tax effects, in the fourth quarter of fiscal 2015.
“Our fourth quarter performance was solid and
culminated in a stronger second half along the lines we predicted a
year ago. North America showed further signs of stabilization,
while Europe and Rest of World delivered strong double-digit growth
for the full year notwithstanding normal fluctuations in customer
activity in Q4. Late in the quarter, we expanded our digital
capabilities with the combined acquisitions of Pontis, Brite:Bill
and Vindicia for roughly $260 million in cash. We also delivered on
our plan to return 100% of free cash flow to shareholders in the
second half of the fiscal year, consistent with our ongoing
commitment to the disciplined and proactive allocation of cash,”
said Eli Gelman, president and chief executive officer of Amdocs
Management Limited.
Gelman continued, “During the fourth quarter we
expanded our activities with several important customers. In Latin
America, Telefónica selected the Amdocs Data Hub as the next
logical step in the quad-play transformation project we are
supporting at its Vivo operations in Brazil. The Amdocs
solution extracts and analyzes large volumes of customer data from
a wide range of operational platforms and will give Telefónica
Brazil the business insights needed to react quickly to changing
market dynamics. In the Philippines, Globe Telecom selected Amdocs
Revenue Guard for automated, analytics-driven revenue assurance, a
service that builds on the market-leading technology we secured
through our acquisition of cVidya in January 2016.”
Gelman concluded, “We enter fiscal 2017 focused on
building the engines to support our customers in strategic areas
such as digital modernization, the enterprise segment, Pay TV and
network function virtualization. With the visibility provided by
our record 12-month backlog we are targeting full year non-GAAP
earnings per share growth of 4.5% to 8.5% while monitoring various
macro and industry specific risks, including the impact of
consolidation activity in North America. Finally, we are pleased to
announce a planned increase in the quarterly cash dividend of
nearly 13% to 22 cents per share, payable in April 2017 if approved
by shareholders at the annual meeting in January 2017. This marks
the fourth consecutive year that our Board has approved an increase
in the dividend and further demonstrates our confidence in the
future success of Amdocs.”
Financial Discussion of Fourth Fiscal
Quarter ResultsFree cash flow was $125 million for the
fourth quarter of fiscal 2016, comprised of cash flow from
operations of $153 million, less $28 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 $3.17 billion at the end of the
fourth quarter of fiscal 2016, up $60 million from the end of the
prior quarter, with approximately half of the increase due to
acquisitions.
Fiscal Year 2016 ResultsFor the
fiscal year ended September 30, 2016, revenue increased by 2.0% to
$3.7 billion. The Company's GAAP net income in fiscal 2016 was
$409.3 million, or $2.71 per diluted share, compared to GAAP net
income of $446.2 million, or $2.85 per diluted share, in fiscal
2015. Fiscal 2016 net income on a non-GAAP basis was $540.1
million, or $3.57 per diluted share (excluding amortization of
purchased intangible assets and other acquisition-related costs and
equity-based compensation expenses of $130.8 million, net of
related tax effects), compared to non-GAAP net income of $529.7
million, or $3.38 per diluted share, in fiscal 2015 (excluding
amortization of purchased intangible assets and other
acquisition-related costs, nonrecurring restructuring charges
associated with the acquisition of the Comverse BSS assets, changes
in fair value of certain acquisition-related liabilities and
equity-based compensation expenses of $83.5 million, net of related
tax effects).
Financial Outlook Amdocs expects
that revenue for the first quarter of fiscal 2017 will be
approximately $935-$975 million. Embedded within this guidance is
an immaterial sequential impact from foreign currency fluctuations
as compared to the fourth quarter of fiscal 2016. This outlook
takes into consideration the company’s expectations regarding macro
and industry specific risks and various uncertainties and certain
assumptions that we will discuss on our earnings conference call.
However, Amdocs notes that it cannot predict all possible outcomes,
including those resulting from AT&T’s proposed merger with Time
Warner or from other current and potential customer consolidation
activity in North America.
Amdocs estimates GAAP diluted earnings per share
for the first fiscal quarter of 2017 will be $0.59-$0.67. Diluted
earnings per share on a non-GAAP basis for the first quarter of
fiscal 2017 is expected to be $0.87-$0.93, excluding amortization
of purchased intangible assets and other acquisition-related costs
and approximately $0.09-$0.10 per share of equity-based
compensation expense, net of related tax effects.
Quarterly Cash Dividend ProgramOn
November 8, 2016, the Board approved the Company’s next quarterly
cash dividend payment of $0.195 per share and set December 30, 2016
as the record date for determining the shareholders entitled to
receive the dividend, which will be payable on January 13, 2017.
The Board also approved an increase in the Company’s quarterly cash
dividend payment to $0.22 per share, which is anticipated to be
paid in April 2017, provided that the increase is approved by
shareholders at the January 2017 annual general meeting of
shareholders.
Conference Call Details Amdocs
will host a conference call on November 8, 2016 at 5:00 p.m.
Eastern Time to discuss the Company's fourth fiscal quarter and
fiscal year 2016 results. To participate, please dial +1 (844)
513-7152, or +1 (508) 637-5600 outside the United States,
approximately 15 minutes before the call and enter passcode
97721633. The call will also be carried live on the Internet via
the Amdocs website, www.amdocs.com.
Amdocs Analyst & Investor
BriefingAmdocs will host an Analyst and Investor briefing
on Wednesday, December 14 at the NASDAQ market site headquarters in
New York City’s midtown. Please contact investor relations for
further details and check our investor relations website several
days in advance for details on how to access the live webcast.
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;
- nonrecurring restructuring charges associated with the Comverse
acquisition;
- 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, nonrecurring
restructuring charges associated with the acquisition of the
Comverse BSS assets, 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 AmdocsAmdocs is the market
leader in customer experience software solutions and services for
the world’s largest communications, entertainment and media service
providers. For more than 30 years, Amdocs solutions, which
include BSS, OSS, network control, optimization and network
functions virtualization, coupled with professional and managed
services, have accelerated business value for its customers by
simplifying business complexity, reducing costs and delivering a
world-class customer experience.
The Amdocs portfolio enables service providers to
capture the world of digital immediacy by operating across digital
dimensions to engage customers with personalized, omni-channel
experiences; creating a diversified business to capture new revenue
streams; becoming data empowered to make business and operational
decisions based on insight-based and predictive analytics; and
achieving service agility to accelerate the fast rollout of new
technologies and hybrid network services.
Amdocs and its 25,000 employees serve customers in
over 90 countries. Listed on the NASDAQ Global Select Market,
Amdocs had revenue of $3.7 billion in fiscal 2016.
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, 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, 2015 filed on December 10, 2015 and
our Form 6-K furnished for the first quarter of fiscal 2016 on
February 16, 2016, for the second quarter of fiscal 2016 on May 17,
2016 and for the third quarter of fiscal 2016 on August 8,
2016.
AMDOCS LIMITED |
Consolidated Statements of Income |
(in thousands, except per share data) |
|
|
|
Three months ended |
|
Fiscal year ended |
|
|
September 30, |
|
September 30, |
|
|
|
2016 |
|
|
|
2015 |
|
|
|
2016 |
|
|
|
2015 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
|
$ |
940,656 |
|
|
$ |
926,776 |
|
|
$ |
3,718,229 |
|
|
$ |
3,643,538 |
|
|
|
|
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
|
|
|
|
Cost of
revenue |
|
|
611,107 |
|
|
|
603,105 |
|
|
|
2,408,040 |
|
|
|
2,349,488 |
|
Research and
development |
|
|
61,043 |
|
|
|
65,900 |
|
|
|
252,292 |
|
|
|
254,944 |
|
Selling,
general and administrative |
|
|
117,030 |
|
|
|
111,191 |
|
|
|
464,883 |
|
|
|
440,085 |
|
Amortization
of purchased intangible assets and other |
|
|
32,979 |
|
|
|
23,880 |
|
|
|
109,873 |
|
|
|
70,073 |
|
Restructuring charges |
|
|
- |
|
|
|
13,000 |
|
|
|
- |
|
|
|
13,000 |
|
|
|
|
822,159 |
|
|
|
817,076 |
|
|
|
3,235,088 |
|
|
|
3,127,590 |
|
Operating income |
|
|
118,497 |
|
|
|
109,700 |
|
|
|
483,141 |
|
|
|
515,948 |
|
|
|
|
|
|
|
|
|
|
Interest and other income
(expense), net |
|
|
649 |
|
|
|
(1,375 |
) |
|
|
1,557 |
|
|
|
(2,544 |
) |
Income before income
taxes |
|
|
119,146 |
|
|
|
108,325 |
|
|
|
484,698 |
|
|
|
513,404 |
|
|
|
|
|
|
|
|
|
|
Income taxes |
|
|
23,437 |
|
|
|
17,195 |
|
|
|
75,367 |
|
|
|
67,241 |
|
Net income |
|
$ |
95,709 |
|
|
$ |
91,130 |
|
|
$ |
409,331 |
|
|
$ |
446,163 |
|
Basic earnings per
share |
|
$ |
0.65 |
|
|
$ |
0.60 |
|
|
$ |
2.74 |
|
|
$ |
2.89 |
|
Diluted earnings per
share |
|
$ |
0.64 |
|
|
$ |
0.59 |
|
|
$ |
2.71 |
|
|
$ |
2.85 |
|
Basic weighted average
number of shares outstanding |
|
|
147,281 |
|
|
|
152,601 |
|
|
|
149,168 |
|
|
|
154,423 |
|
Diluted weighted average
number of shares outstanding |
|
|
148,984 |
|
|
|
155,201 |
|
|
|
151,176 |
|
|
|
156,809 |
|
Cash dividends declared
per share |
|
$ |
0.195 |
|
|
$ |
0.170 |
|
|
$ |
0.755 |
|
|
$ |
0.665 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AMDOCS LIMITED |
Selected Financial Metrics |
(in thousands, except per share data) |
|
|
|
Three months ended |
|
Fiscal year ended |
|
|
September 30, |
|
September 30, |
|
|
|
2016 |
|
|
|
2015 |
|
|
|
2016 |
|
|
|
2015 |
|
|
|
|
|
|
|
|
|
|
Revenue |
|
$ |
940,656 |
|
|
$ |
926,776 |
|
|
$ |
3,718,229 |
|
|
$ |
3,643,538 |
|
|
|
|
|
|
|
|
|
|
Non-GAAP operating
income |
|
|
161,078 |
|
|
|
156,917 |
|
|
|
635,714 |
|
|
|
618,675 |
|
|
|
|
|
|
|
|
|
|
Non-GAAP net
income |
|
|
132,360 |
|
|
|
130,353 |
|
|
|
540,116 |
|
|
|
529,700 |
|
|
|
|
|
|
|
|
|
|
Non-GAAP diluted
earnings per share |
|
$ |
0.89 |
|
|
$ |
0.84 |
|
|
$ |
3.57 |
|
|
$ |
3.38 |
|
|
|
|
|
|
|
|
|
|
Diluted weighted
average number of shares outstanding |
|
|
148,984 |
|
|
|
155,201 |
|
|
|
151,176 |
|
|
|
156,809 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AMDOCS LIMITED |
Reconciliation of Selected Financial Metrics from GAAP
to Non-GAAP |
(in thousands) |
|
|
Three months endedSeptember 30, 2016 |
|
|
|
Reconciliation items |
|
|
|
|
|
GAAP |
Amortization of purchased intangible assets and
other |
Equity based compensation expense |
Tax effect
|
Non-GAAP |
|
Operating
expenses: |
|
|
|
|
|
|
Cost of revenue |
$ |
611,107 |
|
$ |
- |
|
$ |
(4,802 |
) |
$ |
- |
|
$ |
606,305 |
|
|
Research and development |
|
61,043 |
|
|
- |
|
|
(929 |
) |
|
- |
|
|
60,114 |
|
|
Selling, general and administrative |
|
117,030 |
|
|
- |
|
|
(3,871 |
) |
|
- |
|
|
113,159 |
|
|
Amortization of purchased intangible assets and
other |
|
32,979 |
|
|
(32,979 |
) |
|
- |
|
|
- |
|
|
- |
|
|
Total
operating expenses |
|
822,159 |
|
|
(32,979 |
) |
|
(9,602 |
) |
|
- |
|
|
779,578 |
|
|
|
|
|
|
|
|
|
Operating
income |
|
118,497 |
|
|
32,979 |
|
|
9,602 |
|
|
- |
|
|
161,078 |
|
|
|
|
|
|
|
|
|
Income
taxes |
|
23,437 |
|
|
- |
|
|
- |
|
|
5,930 |
|
|
29,367 |
|
|
|
|
|
|
|
|
|
Net
income |
$ |
95,709 |
|
$ |
32,979 |
|
$ |
9,602 |
|
$ |
(5,930 |
) |
$ |
132,360 |
|
|
|
|
|
|
|
|
|
|
Three months endedSeptember 30,
2015 |
|
|
Reconciliation items |
|
|
GAAP |
Amortization of purchased intangible assets and
other |
Equity based compensation expense |
Restructuring charges |
Tax effect
|
Non-GAAP |
Operating expenses: |
|
|
|
|
|
|
Cost of
revenue |
$ |
603,105 |
|
$ |
- |
|
$ |
(3,854 |
) |
$ |
- |
|
$ |
- |
|
$ |
599,251 |
|
Research
and development |
|
65,900 |
|
|
- |
|
|
(830 |
) |
|
- |
|
|
- |
|
|
65,070 |
|
Selling,
general and administrative |
|
111,191 |
|
|
- |
|
|
(5,653 |
) |
|
- |
|
|
- |
|
|
105,538 |
|
Amortization
of purchased intangible assets and other |
|
23,880 |
|
|
(23,880 |
) |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
Restructuring charges |
|
13,000 |
|
|
- |
|
|
- |
|
|
(13,000 |
) |
|
- |
|
|
- |
|
Total operating
expenses |
|
817,076 |
|
|
(23,880 |
) |
|
(10,337 |
) |
|
(13,000 |
) |
|
- |
|
|
769,859 |
|
|
|
|
|
|
|
|
Operating income |
|
109,700 |
|
|
23,880 |
|
|
10,337 |
|
|
13,000 |
|
|
- |
|
|
156,917 |
|
|
|
|
|
|
|
|
Income taxes |
|
17,195 |
|
|
- |
|
|
- |
|
|
- |
|
|
7,994 |
|
|
25,189 |
|
|
|
|
|
|
|
|
Net income |
$ |
91,130 |
|
$ |
23,880 |
|
$ |
10,337 |
|
$ |
13,000 |
|
$ |
(7,994 |
) |
$ |
130,353 |
|
|
|
|
|
|
|
|
|
AMDOCS LIMITED |
|
|
Reconciliation of Selected Financial Metrics from GAAP
to Non-GAAP |
|
|
(in thousands) |
|
|
|
|
|
|
|
Fiscal year endedSeptember 30, 2016 |
|
|
|
|
Reconciliation items |
|
|
|
|
|
|
GAAP |
Amortization of purchased intangible assets and
other |
Equity based compensation expense |
Tax effect
|
Non-GAAP |
|
|
Operating
expenses: |
|
|
|
|
|
|
|
Cost of revenue |
$ |
2,408,040 |
|
$ |
- |
|
$ |
(18,249 |
) |
$ |
- |
|
$ |
2,389,791 |
|
|
|
Research and development |
|
252,292 |
|
|
- |
|
|
(3,742 |
) |
|
- |
|
|
248,550 |
|
|
|
Selling, general and administrative |
|
464,883 |
|
|
- |
|
|
(20,709 |
) |
|
- |
|
|
444,174 |
|
|
|
Amortization of purchased intangible assets and
other |
|
109,873 |
|
|
(109,873 |
) |
|
- |
|
|
- |
|
|
- |
|
|
|
Total
operating expenses |
|
3,235,088 |
|
|
(109,873 |
) |
|
(42,700 |
) |
|
- |
|
|
3,082,515 |
|
|
|
|
|
|
|
|
|
|
|
Operating
income |
|
483,141 |
|
|
109,873 |
|
|
42,700 |
|
|
- |
|
|
635,714 |
|
|
|
|
|
|
|
|
|
|
|
Income
taxes |
|
75,367 |
|
|
- |
|
|
- |
|
|
21,788 |
|
|
97,155 |
|
|
|
|
|
|
|
|
|
|
|
Net
income |
$ |
409,331 |
|
$ |
109,873 |
|
$ |
42,700 |
|
$ |
(21,788 |
) |
$ |
540,116 |
|
|
|
|
|
|
|
|
|
|
|
Fiscal year endedSeptember 30,
2015 |
|
|
Reconciliation items |
|
|
GAAP |
Amortization of purchased intangible assets and
other |
|
Equity based compensation expense |
|
Restructuring charges |
|
Changes in fair value of certain
acquisition-related liabilities |
Tax effect
|
Non-GAAP |
Operating expenses: |
|
|
|
|
|
|
|
Cost of
revenue |
$ |
2,349,488 |
|
$ |
- |
|
$ |
(15,621 |
) |
$ |
- |
|
$ |
24,906 |
|
$ |
- |
|
$ |
2,358,773 |
|
Research
and development |
|
254,944 |
|
|
- |
|
|
(3,400 |
) |
|
- |
|
|
- |
|
|
- |
|
|
251,544 |
|
Selling,
general and administrative |
|
440,085 |
|
|
- |
|
|
(25,539 |
) |
|
- |
|
|
- |
|
|
- |
|
|
414,546 |
|
Amortization
of purchased intangible assets and other |
|
70,073 |
|
|
(70,073 |
) |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
Restructuring charges |
|
13,000 |
|
|
- |
|
|
- |
|
|
(13,000 |
) |
|
- |
|
|
- |
|
|
- |
|
Total operating
expenses |
|
3,127,590 |
|
|
(70,073 |
) |
|
(44,560 |
) |
|
(13,000 |
) |
|
24,906 |
|
|
- |
|
|
3,024,863 |
|
|
|
|
|
|
|
|
|
Operating income |
|
515,948 |
|
|
70,073 |
|
|
44,560 |
|
|
13,000 |
|
|
(24,906 |
) |
|
- |
|
|
618,675 |
|
Interest and other
expense, net |
|
2,544 |
|
|
- |
|
|
- |
|
|
- |
|
|
3,921 |
|
|
- |
|
|
6,465 |
|
|
|
|
|
|
|
|
|
Income taxes |
|
67,241 |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
15,269 |
|
|
82,510 |
|
|
|
|
|
|
|
|
|
Net income |
$ |
446,163 |
|
$ |
70,073 |
|
$ |
44,560 |
|
$ |
13,000 |
|
$ |
(28,827 |
) |
$ |
(15,269 |
) |
$ |
529,700 |
|
AMDOCS LIMITED |
Condensed Consolidated Balance Sheets |
(in thousands) |
|
|
|
As of |
|
|
September 30, 2016 |
|
September 30, 2015 |
|
|
|
|
|
ASSETS |
|
|
|
|
|
|
|
|
|
Current assets |
|
|
|
|
Cash, cash equivalents and short-term
interest-bearing investments |
|
$ |
1,095,723 |
|
|
$ |
1,354,012 |
|
Accounts receivable, net,
including unbilled of $134,122 and $80,197, respectively |
|
|
818,531 |
|
|
|
714,784 |
|
Deferred income taxes |
|
|
- |
|
|
|
150,733 |
|
Prepaid expenses and other
current assets |
|
|
186,137 |
|
|
|
158,633 |
|
Total
current assets |
|
|
2,100,391 |
|
|
|
2,378,162 |
|
|
|
|
|
|
Equipment and leasehold
improvements, net |
|
|
331,728 |
|
|
|
309,320 |
|
Goodwill and other
intangible assets, net |
|
|
2,493,166 |
|
|
|
2,301,610 |
|
Other noncurrent
assets |
|
|
406,070 |
|
|
|
335,560 |
|
Total assets |
|
$ |
5,331,355 |
|
|
$ |
5,324,652 |
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS’
EQUITY |
|
|
|
|
|
|
|
|
|
Current liabilities |
|
|
|
|
Accounts payable, accruals
and other |
|
$ |
992,679 |
|
|
$ |
945,033 |
|
Short-term financing
arrangements |
|
|
200,000 |
|
|
|
220,000 |
|
Deferred revenue |
|
|
173,331 |
|
|
|
198,470 |
|
Total
current liabilities |
|
|
1,366,010 |
|
|
|
1,363,503 |
|
Other noncurrent
liabilities |
|
|
511,784 |
|
|
|
554,307 |
|
Shareholders’ equity |
|
|
3,453,561 |
|
|
|
3,406,842 |
|
Total liabilities and
shareholders’ equity |
|
$ |
5,331,355 |
|
|
$ |
5,324,652 |
|
|
|
|
|
|
|
|
|
|
____________
Due to the early adoption of Accounting Standard
Update 2015-17, starting the first quarter of fiscal year 2016, all
deferred tax assets and liabilities are classified as noncurrent on
the balance sheet. Prior balance sheets were not retrospectively
adjusted.
|
AMDOCS LIMITED |
Consolidated Statements of Cash Flows |
(in thousands) |
|
|
|
Fiscal year ended September 30, |
|
|
|
2016 |
|
|
|
2015 |
|
|
|
|
|
|
Cash Flow from Operating
Activities: |
|
|
|
|
Net income |
|
$ |
409,331 |
|
|
$ |
446,163 |
|
Reconciliation of net income to net cash provided
by operating activities: |
|
|
|
|
Depreciation
and amortization |
|
|
211,791 |
|
|
|
174,795 |
|
Equity-based
compensation expense |
|
|
42,700 |
|
|
|
44,560 |
|
Deferred
income taxes |
|
|
(2,315 |
) |
|
|
(26,887 |
) |
Excess tax
benefit from equity-based compensation |
|
|
(6,913 |
) |
|
|
(5,949 |
) |
Loss from
short-term interest-bearing investments |
|
|
407 |
|
|
|
476 |
|
Net changes in operating assets and liabilities,
net of amounts acquired: |
|
|
|
|
Accounts
receivable |
|
|
(70,859 |
) |
|
|
39,829 |
|
Prepaid
expenses and other current assets |
|
|
(11,164 |
) |
|
|
22,690 |
|
Other
noncurrent assets |
|
|
2,587 |
|
|
|
7,406 |
|
Accounts
payable, accrued expenses and accrued personnel |
|
|
59,982 |
|
|
|
63,894 |
|
Deferred
revenue |
|
|
(49,828 |
) |
|
|
2,434 |
|
Income taxes
payable |
|
|
10,112 |
|
|
|
23,474 |
|
Other
noncurrent liabilities |
|
|
24,403 |
|
|
|
(20,263 |
) |
Net cash provided by operating activities |
|
|
620,234 |
|
|
|
772,622 |
|
|
|
|
|
|
Cash Flow from Investing
Activities: |
|
|
|
|
Payments for purchase of equipment and leasehold
improvements, net |
|
|
(130,086 |
) |
|
|
(120,503 |
) |
Proceeds from sale of short-term interest-bearing
investments |
|
|
361,960 |
|
|
|
252,818 |
|
Purchase of short-term interest-bearing
investments |
|
|
(370,742 |
) |
|
|
(250,184 |
) |
Net cash paid for acquisitions |
|
|
(283,450 |
) |
|
|
(263,193 |
) |
Other |
|
|
(18,533 |
) |
|
|
1,408 |
|
Net cash used in investing activities |
|
|
(440,851 |
) |
|
|
(379,654 |
) |
|
|
|
|
|
Cash Flow from Financing
Activities: |
|
|
|
|
Borrowings under financing arrangements |
|
|
200,000 |
|
|
|
220,000 |
|
Payments under financing arrangements |
|
|
(220,000 |
) |
|
|
(210,000 |
) |
Repurchase of shares |
|
|
(413,422 |
) |
|
|
(454,020 |
) |
Proceeds from employee stock options
exercised |
|
|
89,600 |
|
|
|
78,206 |
|
Payments of dividends |
|
|
(109,304 |
) |
|
|
(100,790 |
) |
Excess tax benefit from equity-based
compensation |
|
|
6,913 |
|
|
|
5,949 |
|
Other |
|
|
(83 |
) |
|
|
(9 |
) |
Net cash used in financing activities |
|
|
(446,296 |
) |
|
|
(460,664 |
) |
|
|
|
|
|
Net decrease in cash and cash equivalents |
|
|
(266,913 |
) |
|
|
(67,696 |
) |
Cash and cash equivalents at beginning of
period |
|
|
1,035,573 |
|
|
|
1,103,269 |
|
Cash and cash equivalents at end of period |
|
$ |
768,660 |
|
|
$ |
1,035,573 |
|
|
|
|
|
|
|
|
|
|
AMDOCS LIMITED |
Supplementary Information |
(in millions) |
|
|
|
|
|
Three months ended |
|
|
September 30, 2016 |
|
June 30, 2016 |
|
March
31, 2016 |
|
December 31, 2015 |
|
September 30, 2015 |
North America |
|
$ |
626.2 |
|
|
$ |
591.8 |
|
|
$ |
586.4 |
|
|
$ |
576.7 |
|
|
$ |
626.6 |
|
Europe |
|
|
118.9 |
|
|
|
126.3 |
|
|
|
139.2 |
|
|
|
128.9 |
|
|
|
115.3 |
|
Rest of the World |
|
|
195.6 |
|
|
|
212.0 |
|
|
|
200.3 |
|
|
|
215.9 |
|
|
|
184.9 |
|
Total Revenue |
|
$ |
940.7 |
|
|
$ |
930.1 |
|
|
$ |
925.9 |
|
|
$ |
921.5 |
|
|
$ |
926.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended |
|
|
September 30, 2016 |
|
June 30, 2016 |
|
March
31, 2016 |
|
December 31, 2015 |
|
September 30, 2015 |
|
Managed Services Revenue |
|
$ |
478.5 |
|
|
$ |
479.2 |
|
|
$ |
501.1 |
|
|
$ |
487.6 |
|
|
$ |
466.6 |
|
|
|
|
Three months ended |
|
|
September 30, 2016 |
|
June 30, 2016 |
|
March 31, 2016 |
|
December 31, 2015 |
|
September 30, 2015 |
Customer Experience
Systems |
|
|
924.9 |
|
|
|
908.1 |
|
|
|
902.3 |
|
|
|
894.4 |
|
|
|
899.4 |
|
Directory |
|
|
15.8 |
|
|
|
22.0 |
|
|
|
23.6 |
|
|
|
27.1 |
|
|
|
27.4 |
|
Total Revenue |
|
$ |
940.7 |
|
|
$ |
930.1 |
|
|
$ |
925.9 |
|
|
$ |
921.5 |
|
|
$ |
926.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of |
|
|
September 30, 2016 |
|
June 30, 2016 |
|
March 31, 2016 |
|
December 31, 2015 |
|
September 30, 2015 |
12-Month Backlog |
|
$ |
3,170 |
|
|
$ |
3,110 |
|
|
$ |
3,100 |
|
|
$ |
3,090 |
|
|
$ |
3,080 |
|
Contact:
Matthew Smith
Head of Investor Relations
Amdocs
314-212-8328
E-mail: dox_info@amdocs.com
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