Amdocs Limited (NASDAQ: DOX) today reported operating results for
the three months ended June 30, 2019.
“We are pleased to report solid Q3 results which included record
revenue, stable profitability, healthy free cash flow and our
best-ever quarter in managed services. Among the Q3 regional
highlights, we announced today that Amdocs is enabling the
operation of Comcast’s Xfinity Mobile service under a multi-year
managed services agreement, and have been chosen by Charter to
support the growth of its Spectrum Mobile business. Over in Europe,
we signed an additional multi-year managed services agreement with
Sky Italia to support its move into fixed broadband and won a new
deal to provide our Amdocs NFV solution for SES, a leading global
satellite provider. Meanwhile in Rest of World, we extended our
managed service arrangement with Vodafone Idea in India for several
more years and signed a significant managed transformation
agreement with XL Axiata in Indonesia to automate and digitize
their operations,” said Shuky Sheffer, president and chief
executive -officer of Amdocs Management Limited.
Sheffer continued, “Highlighting our commitment to be the
leading independent provider of network services for 5G and the new
generation of open cloud networks, we are today excited to announce
the acquisition of TTS Wireless. With its field-proven 5G network
planning and optimization experience, we believe TTS Wireless will
immediately expand our customer footprint at leading American
operators. Additionally, we believe TTS Wireless’ highly-skilled
network engineering team will enhance Amdocs’ Open 5G portfolio,
helping us to execute on our strategy of providing an end-to-end 5G
solution that can accelerate and simplify the deployment and
monetization of open and smart 5G networks for our customers.
Sheffer concluded, “We are pleased with our operational and
financial execution for the fiscal year to date, and we enter our
fourth quarter with strong sales momentum as we continue to bring
the innovative solutions that our customers need to modernize,
automate and digitize their business. Taking everything into
consideration, we are on-track to meet our full year targets for
constant currency revenue growth and normalized free cash flow.
Moreover, we now expect to deliver diluted non-GAAP earnings per
share growth in the range of 6.2% to 7.8% for the full fiscal year
2019, the midpoint of which represents an increase of approximately
50 basis points over our previous guidance.”
Revenue
Revenue for the third fiscal quarter ended June 30, 2019 was
$1,025 million, up $5 million sequentially from the second fiscal
quarter of 2019 and up 2.2% as reported and 3.4% in constant
currency as compared to last year’s third fiscal quarter. Revenue
for the third fiscal quarter of 2019 includes a negative impact
from foreign currency movements of approximately $3 million
relative to the second quarter of fiscal 2019. Revenue was slightly
above the midpoint of Amdocs’ guidance, adjusting for the negative
impact of approximately $1 million of foreign currency movements
relative to guidance.
Net Income and Earnings Per Share
The Company's GAAP net income for the third quarter of fiscal
2019 was $131.4 million, or $0.96 per diluted share, compared to
GAAP net income of $91.5 million, or $0.64 per diluted share, in
the prior fiscal year’s third quarter. Net income on a non-GAAP
basis was $163.1 million, or $1.19 per diluted share, compared to
non-GAAP net income of $147.5 million, or $1.03 per diluted share,
in the third quarter of fiscal 2018. Non-GAAP net income excludes
amortization of purchased intangible assets and other
acquisition-related costs, changes in certain acquisitions related
liabilities measured at fair value, equity-based compensation
expenses, other, net of related tax effects, in the third quarter
of fiscal 2019. For further details of reconciliation of selected
financial metrics from GAAP to Non-GAAP, please refer to the tables
below.
Returning Cash to Shareholders
- Quarterly Cash Dividend Program: On August 7,
2019, the Board approved the Company’s next quarterly cash dividend
payment of $0.285 per share and set September 30, 2019 as the
record date for determining the shareholders entitled to receive
the dividend, which will be payable on October 25, 2019.
- Share Repurchase Activity: Repurchased $89
million of ordinary shares during the third quarter of fiscal
2019.
Twelve-month Backlog
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 $3.40 billion at the end of the third quarter of
fiscal 2019, up $10 million from the end of the prior quarter.
Fourth Quarter Fiscal 2019
Outlook
- Revenue of approximately $1,015-$1,055 million, assuming
approximately $2 million sequential positive impact from foreign
currency fluctuations as compared to the third quarter of fiscal
2019, and a partial quarter revenue contribution from the
acquisition of TTS Wireless which closed earlier this week
- GAAP diluted EPS of approximately $0.81-$0.89. The impact of
the acquisition of TTS Wireless on GAAP diluted EPS will not be
known until after Amdocs completes the purchase price
allocation
- Non-GAAP diluted EPS of approximately $1.04-$1.10, excluding
amortization of purchased intangible assets and other
acquisition-related costs, changes in certain acquisitions related
liabilities measured at fair value, and approximately $0.05-$0.07
per share of equity-based compensation expense, net of related tax
effects. The impact of the acquisition of TTS Wireless on Amdocs’
non-GAAP diluted earnings per share is expected to be neutral in
the fourth quarter of fiscal 2019
Full Year Fiscal 2019
Outlook
- Expects revenue growth of 2.4%-3.4% year-over-year as reported
compared with 1.8%-3.8% year-over-year previously
- Expects revenue growth of 3.6%-4.6% year-over-year on a
constant currency basis, the midpoint of which is slightly higher
compared with 3.0%-5.0% year-over-year previously
- Full year fiscal 2019 revenue guidance incorporates an expected
negative impact from foreign currency fluctuations of about 1.2%
year-over-year, consistent with our previous expectation
- Expects GAAP diluted earnings per share growth of roughly
37.0%-41.0% year-over-year compared with 33.0%-41.0% year-over-year
previously. The impact of the acquisition of TTS Wireless on GAAP
diluted EPS will not be known until after Amdocs completes the
purchase price allocation
- Expects non-GAAP diluted earnings per share growth of roughly
6.2%-7.8% year-over-year compared with 4.5%-8.5% year-over-year
previously, excluding amortization of purchased intangible assets
and other acquisition-related costs, changes in certain
acquisitions related liabilities measured at fair value,
approximately $0.24-$0.26 per share of equity-based compensation
expense and other, net of related tax effects. The impact of the
acquisition of TTS Wireless on Amdocs’ non-GAAP diluted earnings
per share is expected to be neutral in fiscal year 2019, and
neutral in the first full year after closing thereafter
- Reiterates free cash flow guidance of approximately $500
million, comprised of cash flow from operations, less net capital
expenditures and other, and normalized free cash flow of
approximately $600 million
Our fourth fiscal quarter 2019 and full year fiscal 2019 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 market dynamics continue to shift rapidly and
that it cannot predict all possible outcomes, including those
resulting from T-Mobile’s proposed merger with Sprint, or from
other current and potential customer consolidation activity.
Appointment of Board MemberAmdocs is pleased to
announce the appointment of John A. MacDonald to the company’s
board of directors, effective August 5, 2019, and subject to
re-election at Amdocs’ next annual general meeting on Friday,
January 31, 2020. For more information, please visit the
Investor Relations section of Amdocs’ website at
www.amdocs.com.
Conference Call Details Amdocs will host a
conference call on August 7, 2019 at 5:00 p.m. Eastern Time to
discuss the Company's third quarter of fiscal 2019 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 5692979. 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 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. These 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;
- 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, and normalized free cash
flow is adjusted to exclude net capital expenditures related to the
new campus development, payments for previously expensed
restructuring charges, payments for legal dispute settlement, 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, 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 is a leading software and
services provider to communications and media companies of all
sizes, accelerating the industry’s dynamic and continuous digital
transformation. With a rich set of innovative solutions, long-term
business relationships with 350 communications and media providers,
and technology and distribution ties to 600 content creators,
Amdocs delivers business improvements to drive growth. Amdocs and
its 25,000 employees serve customers in over 85 countries. Listed
on the NASDAQ Global Select Market, Amdocs had revenue of $4.0
billion in fiscal 2018.
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, 2018 filed on December 10, 2018 and our Form
6-K furnished for the first quarter of fiscal 2019 on February 19,
2019 and for the second quarter of fiscal 2019 on May 28, 2019.
Contact: Matthew Smith Head of Investor
Relations Amdocs 314-212-8328 E-mail: dox_info@amdocs.com
AMDOCS LIMITED
Consolidated Statements of
Income(in thousands, except per share
data)
|
|
Three months ended |
|
Nine months ended |
|
|
June 30, |
|
June 30, |
|
|
2019 |
|
2018 |
|
2019 |
|
2018 |
|
|
|
|
|
|
|
|
|
Revenue |
|
$ |
1,024,704 |
|
|
$ |
1,002,198 |
|
|
$ |
3,056,416 |
|
|
$ |
2,972,249 |
|
|
|
|
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
|
|
|
|
Cost of revenue |
|
|
664,862 |
|
|
|
650,569 |
|
|
|
1,986,043 |
|
|
|
1,940,353 |
|
Research and development |
|
|
68,376 |
|
|
|
72,729 |
|
|
|
203,827 |
|
|
|
205,832 |
|
Selling, general and administrative |
|
|
125,088 |
|
|
|
116,396 |
|
|
|
367,411 |
|
|
|
355,263 |
|
Amortization of purchased intangible assets and other |
|
|
24,058 |
|
|
|
26,929 |
|
|
|
73,543 |
|
|
|
81,256 |
|
Restructuring charges |
|
|
- |
|
|
|
30,057 |
|
|
|
- |
|
|
|
30,057 |
|
|
|
|
882,384 |
|
|
|
896,680 |
|
|
|
2,630,824 |
|
|
|
2,612,761 |
|
Operating income |
|
|
142,320 |
|
|
|
105,518 |
|
|
|
425,592 |
|
|
|
359,488 |
|
|
|
|
|
|
|
|
|
|
Interest and other expense,
net |
|
|
3,959 |
|
|
|
3,212 |
|
|
|
4,303 |
|
|
|
3,330 |
|
Income before income
taxes |
|
|
138,361 |
|
|
|
102,306 |
|
|
|
421,289 |
|
|
|
356,158 |
|
|
|
|
|
|
|
|
|
|
Income taxes |
|
|
6,913 |
|
|
|
10,776 |
|
|
|
63,870 |
|
|
|
46,028 |
|
Net income |
|
$ |
131,448 |
|
|
$ |
91,530 |
|
|
$ |
357,419 |
|
|
$ |
310,130 |
|
Basic earnings per share |
|
$ |
0.96 |
|
|
$ |
0.64 |
|
|
$ |
2.59 |
|
|
$ |
2.17 |
|
Diluted earnings per
share |
|
$ |
0.96 |
|
|
$ |
0.64 |
|
|
$ |
2.58 |
|
|
$ |
2.15 |
|
Basic weighted average number
of shares outstanding |
|
|
136,541 |
|
|
|
141,972 |
|
|
|
138,126 |
|
|
|
142,982 |
|
Diluted weighted average
number of shares outstanding |
|
|
137,082 |
|
|
|
143,196 |
|
|
|
138,769 |
|
|
|
144,320 |
|
Cash dividends declared per
share |
|
$ |
0.285 |
|
|
$ |
0.250 |
|
|
$ |
0.820 |
|
|
$ |
0.720 |
|
AMDOCS LIMITED
Selected Financial
Metrics(In thousands, except per share
data)
|
|
Three months ended |
|
Nine months ended |
|
|
June 30, |
|
June 30, |
|
|
|
2019 |
|
|
|
2018 |
|
|
|
2019 |
|
|
|
2018 |
|
|
|
|
|
|
|
|
|
|
Revenue |
|
$ |
1,024,704 |
|
|
$ |
1,002,198 |
|
|
$ |
3,056,416 |
|
|
$ |
2,972,249 |
|
|
|
|
|
|
|
|
|
|
Non-GAAP operating income |
|
|
177,289 |
|
|
|
173,590 |
|
|
|
529,900 |
|
|
|
514,414 |
|
|
|
|
|
|
|
|
|
|
Non-GAAP net income |
|
|
163,126 |
|
|
|
147,547 |
|
|
|
447,952 |
|
|
|
439,363 |
|
|
|
|
|
|
|
|
|
|
Non-GAAP diluted earnings per
share |
|
$ |
1.19 |
|
|
$ |
1.03 |
|
|
$ |
3.23 |
|
|
$ |
3.04 |
|
|
|
|
|
|
|
|
|
|
Diluted weighted average
number of shares outstanding |
|
|
137,082 |
|
|
|
143,196 |
|
|
|
138,769 |
|
|
|
144,320 |
|
Free Cash Flows and Normalized Free Cash
Flow(In thousands)
|
|
Three months ended |
|
Nine months ended |
|
|
June 30, |
|
June 30, |
|
|
|
2019 |
|
|
|
2018 |
|
|
|
2019 |
|
|
|
2018 |
|
|
|
|
|
|
|
|
|
|
Net Cash Provided by Operating
Activities |
|
$ |
164,473 |
|
|
$ |
163,571 |
|
|
$ |
442,752 |
|
|
$ |
441,900 |
|
|
|
|
|
|
|
|
|
|
Purchases of property and
equipment, net (*) |
|
|
(35,833 |
) |
|
|
(35,127 |
) |
|
|
(93,761 |
) |
|
|
(197,253 |
) |
|
|
|
|
|
|
|
|
|
Other |
|
|
- |
|
|
|
(213 |
) |
|
|
- |
|
|
|
(323 |
) |
|
|
|
|
|
|
|
|
|
Free Cash Flow |
|
|
128,640 |
|
|
|
128,231 |
|
|
|
348,991 |
|
|
|
244,324 |
|
|
|
|
|
|
|
|
|
|
Payments for legal dispute
settlement |
|
|
- |
|
|
|
- |
|
|
|
55,000 |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
Payments for previously
expensed restructuring charges |
|
|
3,455 |
|
|
|
- |
|
|
|
14,394 |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net capital expenditures
related to the new campus development (*) |
|
|
3,410 |
|
|
|
980 |
|
|
|
(2,206 |
) |
|
|
95,011 |
|
|
|
|
|
|
|
|
|
|
Payments of acquisition
related liabilities |
|
|
7,667 |
|
|
|
- |
|
|
|
7,667 |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
Normalized Free Cash Flow |
|
$ |
143,172 |
|
|
$ |
129,211 |
|
|
$ |
423,846 |
|
|
$ |
339,335 |
|
(*) The amounts under "Purchase of property and
equipment, net”, and the amounts under “Net capital expenditures
related to the new campus development” include proceeds of $9,676
relating to the refund of betterment levy for the nine months ended
30 June 2019 and proceeds from sale of property and equipment of
$11 and $74, $57 and $113, for the three and nine months ended 30
June 2019 and 2018, respectively.
AMDOCS
LIMITED
Reconciliation of Selected Financial
Metrics from GAAP to Non-GAAP (In
thousands)
|
|
Three months endedJune 30,
2019 |
|
|
Reconciliation items |
|
GAAP |
Amortization of purchased intangible assets and
other |
Equity-based compensation expense |
Changes in certain acquisition related liabilities measured
at fair value |
Other |
Tax effect |
Non-GAAP |
Operating expenses: |
|
|
|
|
|
|
|
Cost of revenue |
$ |
664,862 |
$ |
- |
|
$ |
(5,080 |
) |
$ |
(2,076 |
) |
$ |
- |
|
$ |
- |
|
$ |
657,706 |
Research and development |
|
68,376 |
|
- |
|
|
(608 |
) |
|
- |
|
|
- |
|
|
- |
|
|
67,768 |
Selling, general and administrative |
|
125,088 |
|
- |
|
|
(3,147 |
) |
|
- |
|
|
- |
|
|
- |
|
|
121,941 |
Amortization of purchased intangible assets and other |
|
24,058 |
|
(24,058 |
) |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
Total operating expenses |
|
882,384 |
|
(24,058 |
) |
|
(8,835 |
) |
|
(2,076 |
) |
|
- |
|
|
- |
|
|
847,415 |
|
|
|
|
|
|
|
|
Operating income |
|
142,320 |
|
24,058 |
|
|
8,835 |
|
|
2,076 |
|
|
- |
|
|
- |
|
|
177,289 |
|
|
|
|
|
|
|
|
Interest and other expense,
net |
|
3,959 |
|
- |
|
|
- |
|
|
- |
|
|
(2,025 |
) |
|
- |
|
|
1,934 |
|
|
|
|
|
|
|
|
Income taxes |
|
6,913 |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
5,316 |
|
|
12,229 |
|
|
|
|
|
|
|
|
Net income |
$ |
131,448 |
$ |
24,058 |
|
$ |
8,835 |
|
$ |
2,076 |
|
$ |
2,025 |
|
$ |
(5,316 |
) |
$ |
163,126 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months endedJune 30,
2018 |
|
|
Reconciliation items |
|
GAAP |
Amortization of purchased intangible assets and
other |
Equity-based compensation expense |
Changes in certain acquisitions related liabilities
measured at fair value |
Restructuring charges |
Tax effect |
Non-GAAP |
Operating expenses: |
|
|
|
|
|
|
|
Cost of revenue |
$ |
650,569 |
$ |
- |
|
$ |
(5,074 |
) |
$ |
(572 |
) |
$ |
- |
|
$ |
- |
|
$ |
644,923 |
Research and development |
|
72,729 |
|
- |
|
|
(1,071 |
) |
|
- |
|
|
- |
|
|
- |
|
|
71,658 |
Selling, general and administrative |
|
116,396 |
|
- |
|
|
(4,369 |
) |
|
- |
|
|
- |
|
|
- |
|
|
112,027 |
Amortization of purchased intangible assets and other |
|
26,929 |
|
(26,929 |
) |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
Restructuring charges |
|
30,057 |
|
- |
|
|
- |
|
|
- |
|
|
(30,057 |
) |
|
- |
|
|
- |
Total operating expenses |
|
896,680 |
|
(26,929 |
) |
|
(10,514 |
) |
|
(572 |
) |
|
(30,057 |
) |
|
- |
|
|
828,608 |
|
|
|
|
|
|
|
|
Operating income |
|
105,518 |
|
26,929 |
|
|
10,514 |
|
|
572 |
|
|
30,057 |
|
|
- |
|
|
173,590 |
|
|
|
|
|
|
|
|
Income taxes |
|
10,776 |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
12,055 |
|
|
22,831 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
$ |
91,530 |
$ |
26,929 |
|
$ |
10,514 |
|
$ |
572 |
|
$ |
30,057 |
|
$ |
(12,055 |
) |
$ |
147,547 |
AMDOCS
LIMITED
Reconciliation of Selected Financial
Metrics from GAAP to Non-GAAP (In
thousands)
|
Nine months endedJune 30,
2019 |
|
|
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 |
$ |
1,986,043 |
$ |
- |
|
$ |
(15,261 |
) |
$ |
(199 |
) |
$ |
- |
|
$ |
- |
|
$ |
1,970,583 |
Research and development |
|
203,827 |
|
- |
|
|
(1,957 |
) |
|
- |
|
|
- |
|
|
- |
|
|
201,870 |
Selling, general and administrative |
|
367,411 |
|
- |
|
|
(13,348 |
) |
|
- |
|
|
- |
|
|
- |
|
|
354,063 |
Amortization of purchased intangible assets and other |
|
73,543 |
|
(73,543 |
) |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
Total
operating expenses |
|
2,630,824 |
|
(73,543 |
) |
|
(30,566 |
) |
|
(199 |
) |
|
- |
|
|
- |
|
|
2,526,516 |
|
|
|
|
|
|
|
|
Operating income |
|
425,592 |
|
73,543 |
|
|
30,566 |
|
|
199 |
|
|
- |
|
|
- |
|
|
529,900 |
|
|
|
|
|
|
|
|
Interest and other expense,
net |
|
4,303 |
|
- |
|
|
- |
|
|
- |
|
|
(2,025 |
) |
|
- |
|
|
2,278 |
|
|
|
|
|
|
|
|
Income taxes |
|
63,870 |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
15,800 |
|
|
79,670 |
|
|
|
|
|
|
|
|
Net income |
$ |
357,419 |
$ |
73,543 |
|
$ |
30,566 |
|
$ |
199 |
|
$ |
2,025 |
|
$ |
(15,800 |
) |
$ |
447,952 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine months endedJune 30,
2018 |
|
|
Reconciliation items |
|
|
GAAP |
Amortization of purchased intangible assets and
other |
Equity-based compensation expense |
Changes in certain acquisitions related liabilities
measured at fair value |
Restructuring charges |
Tax effect |
Non-GAAP |
Operating expenses: |
|
|
|
|
|
|
|
Cost of revenue |
$ |
1,940,353 |
$ |
- |
|
$ |
(14,502 |
) |
$ |
(9,033 |
) |
$ |
- |
|
$ |
- |
|
$ |
1,916,818 |
Research and development |
|
205,832 |
|
- |
|
|
(2,664 |
) |
|
- |
|
|
- |
|
|
- |
|
|
203,168 |
Selling, general and
administrative |
|
355,263 |
|
- |
|
|
(17,414 |
) |
|
- |
|
|
- |
|
|
- |
|
|
337,849 |
Amortization of purchased
intangible assets and other |
|
81,256 |
|
(81,256 |
) |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
Restructuring charges |
|
30,057 |
|
- |
|
|
- |
|
|
- |
|
|
(30,057 |
) |
|
- |
|
|
- |
Total operating expenses |
|
2,612,761 |
|
(81,256 |
) |
|
(34,580 |
) |
|
(9,033 |
) |
|
(30,057 |
) |
|
- |
|
|
2,457,835 |
|
|
|
|
|
|
|
|
Operating income |
|
359,488 |
|
81,256 |
|
|
34,580 |
|
|
9,033 |
|
|
30,057 |
|
|
- |
|
|
514,414 |
|
|
|
|
|
|
|
|
Income taxes |
|
46,028 |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
25,693 |
|
|
71,721 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
$ |
310,130 |
$ |
81,256 |
|
$ |
34,580 |
|
$ |
9,033 |
|
$ |
30,057 |
|
$ |
(25,693 |
) |
$ |
439,363 |
AMDOCS LIMITEDCondensed
Consolidated Balance Sheets (In
thousands)
|
|
As of |
|
|
June 30,2019 |
|
September 30,2018 |
|
|
|
|
|
ASSETS |
|
|
|
|
|
|
|
|
|
Current assets |
|
|
|
|
Cash, cash equivalents and short-term interest-bearing
investments |
|
$ |
457,707 |
|
|
$ |
519,216 |
|
Accounts receivable, net,
including unbilled of $206,285 and $263,997, respectively |
|
|
952,891 |
|
|
|
971,502 |
|
Prepaid expenses and other
current assets |
|
|
235,644 |
|
|
|
229,999 |
|
Total current assets |
|
|
1,646,242 |
|
|
|
1,720,717 |
|
|
|
|
|
|
Property and equipment,
net |
|
|
492,718 |
|
|
|
496,585 |
|
Goodwill and other intangible
assets, net |
|
|
2,648,395 |
|
|
|
2,710,144 |
|
Other noncurrent assets |
|
|
447,264 |
|
|
|
420,369 |
|
Total assets |
|
$ |
5,234,619 |
|
|
$ |
5,347,815 |
|
|
|
|
|
|
LIABILITIES
AND SHAREHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
|
Current liabilities |
|
|
|
|
Accounts payable, accruals and
other |
|
$ |
1,067,065 |
|
|
$ |
1,162,543 |
|
Deferred revenue |
|
|
115,963 |
|
|
|
132,414 |
|
Total current liabilities |
|
|
1,183,028 |
|
|
|
1,294,957 |
|
Other noncurrent
liabilities |
|
|
523,906 |
|
|
|
560,816 |
|
Total Amdocs Limited
Shareholders’ equity |
|
|
3,485,332 |
|
|
|
3,448,879 |
|
Noncontrolling interests |
|
|
42,353 |
|
|
|
43,163 |
|
Total equity |
|
|
3,527,685 |
|
|
|
3,492,042 |
|
Total liabilities and
equity |
|
$ |
5,234,619 |
|
|
$ |
5,347,815 |
|
AMDOCS
LIMITEDConsolidated Statements of Cash
Flows(In thousands)
|
|
Nine months ended June
30, |
|
|
|
2019 |
|
|
|
2018 |
|
|
|
|
|
|
Cash Flow from
Operating Activities: |
|
|
|
|
Net income |
|
$ |
357,419 |
|
|
$ |
310,130 |
|
Reconciliation of net income
to net cash provided by operating activities: |
|
|
|
|
Depreciation and amortization |
|
|
155,258 |
|
|
|
157,421 |
|
Equity-based compensation expense |
|
|
30,566 |
|
|
|
34,580 |
|
Deferred income taxes |
|
|
(9,455 |
) |
|
|
7,947 |
|
Loss from short-term interest-bearing investments |
|
|
538 |
|
|
|
1,324 |
|
Net changes in operating
assets and liabilities, net of amounts acquired: |
|
|
|
|
Accounts receivable, net |
|
|
22,721 |
|
|
|
(81,690 |
) |
Prepaid expenses and other current assets |
|
|
4,655 |
|
|
|
(21,796 |
) |
Other noncurrent assets |
|
|
3,370 |
|
|
|
2,006 |
|
Accounts payable, accrued expenses and accrued personnel |
|
|
(79,232 |
) |
|
|
42,374 |
|
Deferred revenue |
|
|
(36,192 |
) |
|
|
21,221 |
|
Income taxes payable, net |
|
|
(4,605 |
) |
|
|
(15,428 |
) |
Other noncurrent liabilities |
|
|
(2,291 |
) |
|
|
(16,189 |
) |
Net cash provided by operating
activities |
|
|
442,752 |
|
|
|
441,900 |
|
|
|
|
|
|
Cash Flow from
Investing Activities: |
|
|
|
|
Purchases of property and
equipment, net (*) |
|
|
(93,761 |
) |
|
|
(197,253 |
) |
Proceeds from sale of
short-term interest-bearing investments |
|
|
51,473 |
|
|
|
302,949 |
|
Purchase of short-term
interest-bearing investments |
|
|
- |
|
|
|
(76,037 |
) |
Net cash paid for
acquisitions |
|
|
(8,782 |
) |
|
|
(352,599 |
) |
Other |
|
|
1,116 |
|
|
|
(2,414 |
) |
Net cash used in investing
activities |
|
|
(49,954 |
) |
|
|
(325,354 |
) |
|
|
|
|
|
Cash Flow from
Financing Activities: |
|
|
|
|
Borrowings under financing
arrangements |
|
|
- |
|
|
|
120,000 |
|
Payments under financing
arrangements |
|
|
- |
|
|
|
(120,000 |
) |
Repurchase of shares |
|
|
(308,036 |
) |
|
|
(329,593 |
) |
Proceeds from employee stock
options exercised |
|
|
25,706 |
|
|
|
76,236 |
|
Payments of dividends |
|
|
(108,886 |
) |
|
|
(98,929 |
) |
Investment by noncontrolling
interests, net |
|
|
(4,776 |
) |
|
|
47,013 |
|
Payment of contingent
consideration from a business acquisition |
|
|
(7,470 |
) |
|
|
- |
|
Other |
|
|
(331 |
) |
|
|
(323 |
) |
Net cash used in financing
activities |
|
|
(403,793 |
) |
|
|
(305,596 |
) |
|
|
|
|
|
Net decrease in cash and cash
equivalents |
|
|
(10,995 |
) |
|
|
(189,050 |
) |
Cash and cash equivalents at
beginning of period |
|
|
418,783 |
|
|
|
649,611 |
|
Cash and cash equivalents at
end of period |
|
$ |
407,788 |
|
|
$ |
460,561 |
|
(*) The amounts under "Purchase of property and
equipment, net”, include proceeds of $9,676 relating to the refund
of betterment levy for the nine months ended June 30, 2019 and
proceeds from sale of property and equipment of $74 and $113, for
the nine months ended June 30, 2019 and 2018, respectively.
AMDOCS
LIMITEDSupplementary
Information (In millions)
|
|
Three months ended |
|
|
June 30, 2019 |
|
March 31, 2019 |
|
December 31,2018 |
|
September 30, 2018 |
|
June 30, 2018 |
North America |
|
$ |
643.9 |
|
$ |
634.2 |
|
$ |
660.5 |
|
$ |
638.2 |
|
$ |
644.8 |
Europe |
|
|
145.5 |
|
|
151.0 |
|
|
146.1 |
|
|
150.6 |
|
|
139.3 |
Rest of the World |
|
|
235.3 |
|
|
234.5 |
|
|
205.5 |
|
|
213.8 |
|
|
218.1 |
Total Revenue |
|
$ |
1,024.7 |
|
$ |
1,019.7 |
|
$ |
1,012.1 |
|
$ |
1,002.6 |
|
$ |
1,002.2 |
|
|
Three months ended |
|
|
June 30, 2019 |
|
March 31, 2019 |
|
December 31,2018 |
|
September 30, 2018 |
|
June 30, 2018 |
Managed Services Revenue |
|
$ |
578.1 |
|
$ |
559.5 |
|
$ |
525.5 |
|
$ |
508.9 |
|
$ |
515.0 |
|
|
As of |
|
|
June 30, 2019 |
|
March 31, 2019 |
|
December 31,2018 |
|
September 30, 2018 |
|
June 30, 2018 |
12-Month Backlog |
|
$ |
3,400 |
|
$ |
3,390 |
|
$ |
3,370 |
|
$ |
3,360 |
|
$ |
3,330 |
###
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