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, 2021.
“I could not be prouder of our outstanding achievements in
fiscal 2021, much of the credit for which belongs to our talented
people worldwide. Over the last few years, we have been building
Amdocs to support the next wave of growth, executing on our
strategy of delivering market-leading innovation that is well
aligned with the industry’s need for digital modernization, 5G
monetization, journey to the cloud and network automation. We are
at an exciting inflection point in our business as fiscal year 2021
revenue growth accelerated to 7.0% on a pro forma(2) constant
currency(3) basis. We ended the year on a strong note, setting us
up to continue to capture momentum as we enter fiscal year 2022. To
that end, we are thrilled that AT&T has selected us for
next-gen cloud operations of its business support systems evolution
(BSSe) under a long-term agreement, on top of choosing our
cloud-native products for the BSSe program earlier this year. We
believe this reflects our relentless dedication to driving customer
success across cloud journeys for the world’s leading
communications service providers,” said Shuky Sheffer, president
and chief executive officer of Amdocs Management Limited.
“Amdocs continues to lead the industry with innovative platforms
and exceptional delivery, as demonstrated by a record number of
production milestones we achieved for our customers in Q4 and for
the full 2021 fiscal year. Moreover, we delivered improved
profitability in fiscal 2021 and achieved our best-ever level of
cash collections. As a result, we delivered record normalized free
cash flow generation of $869 million for fiscal 2021 and returned a
similar amount to shareholders through share repurchases and
quarterly cash dividend payments,” said Tamar Rapaport-Dagim, chief
financial officer & chief operating officer of Amdocs
Management Limited.
Sheffer concluded, “As we look ahead to fiscal year 2022, we
believe we are in the early innings of a multi-year 5G and
cloud-driven investment and transformation cycle. We see a rich
pipeline of opportunity across the communications industry to
enable our customers to create amazing experiences for consumers
and enterprises. We believe our advantaged competitive position,
growing customer relationships, highly skilled talent and
disruptive innovation approach will further extend our lead in the
market. Tying it altogether, we expect to deliver accelerated
revenue growth of roughly 8%(5) in fiscal 2022.”
Revenue
(All comparisons are against the prior year period)
|
In millions |
|
Three months ended |
|
Fiscal year ended |
|
September 30, 2021 |
|
September 30, 2021 |
|
Actual |
PreviousGuidance |
|
Actual |
Previous Guidance |
Revenue |
$1,087 |
$1,065 - $1,105 |
|
$4,289 |
-- |
Revenue growth, as
reported(a) |
3.3% |
-- |
|
2.9% |
2.3% - 3.3% |
Pro forma(2) revenue growth,
constant currency(3) |
10.2% |
-- |
|
7.0% |
6.3% - 7.3% |
- Revenue for the
fourth fiscal quarter was above the midpoint of Amdocs’ guidance,
despite an unfavorable impact from foreign currency movements of
approximately $5 million compared to our guidance assumptions
- Revenue for the
fourth fiscal quarter of 2021 includes an unfavorable impact from
foreign currency movements of approximately $6 million relative to
the third quarter of fiscal 2021
Net Income and Earnings Per Share
|
In thousands, except per share
data |
|
Three months ended |
|
Fiscal year ended |
|
September 30, |
|
September 30, |
|
2021(a) |
|
2020 |
|
2021(a) |
|
2020 |
GAAP
Measures |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
$ |
123,525 |
|
$ |
134,463 |
|
$ |
688,374 |
|
$ |
497,840 |
|
|
|
|
|
|
|
|
Diluted earnings per
share |
$ |
0.97 |
|
$ |
1.01 |
|
$ |
5.32 |
|
$ |
3.71 |
|
|
|
|
|
|
|
|
Non-GAAP
Measures |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
$ |
147,470 |
|
$ |
162,716 |
|
$ |
621,820 |
|
$ |
595,758 |
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share |
$ |
1.16 |
|
$ |
1.23 |
|
$ |
4.81 |
|
$ |
4.44 |
- 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: M&A
Investments & Returning Cash to
Shareholders
- M&A Activity: On October 1, 2021, Amdocs
completed the acquisition of Roam Digital, a digital consultancy
agency in Southeast Asia Pacific, for $31 million in cash
- Quarterly Cash Dividend
Program: On November 2, 2021, the Board
approved the Company’s next quarterly cash dividend payment of
$0.36 per share and set December 31, 2021 as the record date for
determining the shareholders entitled to receive the dividend,
which will be payable on January 28, 2022
- The Board also approved a roughly 10% increase in the Company’s
quarterly cash dividend payment to $0.395 per share, which is
anticipated to be first paid in April 2022, provided that the
increase is approved by shareholders at the January 2022 annual
general meeting of shareholders
- Share Repurchase Activity: Repurchased $140
million of ordinary shares during the fourth quarter of fiscal
2021
Twelve-month
BacklogTwelve-month backlog was a record
$3.69 billion at the end of the fourth quarter of fiscal 2021, up
approximately 10.5% on a pro forma(2) basis 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 2022
Outlook
|
In millions, except per share data |
|
Q1 2022 |
Revenue |
$1,080-$1,120 |
GAAP diluted EPS |
$0.91-$0.99 |
Non-GAAP diluted EPS |
$1.15-$1.21 |
- First quarter
revenue guidance assumes approximately $2 million sequential
unfavorable impact from foreign currency fluctuations as compared
to the fourth quarter of fiscal 2021
- 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 $0.10-$0.12 per share of equity-based
compensation expense, net of related tax effects
Full Year Fiscal
2022 Outlook
|
FY 2022, year-over-year growth |
Revenue growth, as reported |
3.7%-7.7% |
Pro forma(2) revenue growth,
constant currency(3) |
6.0%-10.0% |
|
|
|
|
GAAP diluted EPS growth |
(23.0)% -(17.5)% |
Adjusted GAAP diluted EPS
growth(4) |
6.0%-13.0% |
Non-GAAP diluted EPS growth |
6.3%-10.3% |
Pro forma(2) non-GAAP diluted EPS
growth |
8.0%-12.0% |
|
|
|
In millions |
|
FY 2022, |
Free cash flow(1) |
~$500 |
Normalized free cash flow(1) |
~$650 |
- Full year fiscal
2022 revenue guidance incorporates an expected unfavorable impact
from foreign currency fluctuations of approximately 0.3%
year-over-year
- Non-GAAP diluted
earnings per share growth, and pro forma(2) 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 $0.45-$0.53 per share of equity-based compensation
expense, and gain from divestiture of OpenMarket, net of related
tax effects in the previous fiscal year 2021. Adjusted GAAP diluted
earnings per share growth, excludes gain from divestiture of
OpenMarket, net of related tax effects in the previous fiscal year
2021
- Free cash flow(1) is
comprised of cash flow from operations, less net capital
expenditures and other
- Normalized free cash
flow excludes expected capital expenditure of $131 million related
to the new campus development in Israel, and other items
Our first fiscal quarter 2022 and full year fiscal 2022 outlook
takes 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 the COVID-19 pandemic,
including its novel strains, which has 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 2, 2021 at 5:00 p.m. Eastern Time to discuss the Company's
fourth quarter of fiscal 2021 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
9941807. 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 28,000 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 $4.3 billion in fiscal 2021.
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, the
duration and severity of the COVID-19 pandemic, and its impact on
the global economy, 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, 2020 filed on December 14, 2020 and
our Form 6-K furnished for the first quarter of fiscal 2021 on
February 16, 2021 and for the second quarter of fiscal 2021 on May
24, 2021 and for the third quarter of fiscal 2021 on August 16,
2021.
Contact: Matthew SmithHead of Investor
RelationsAmdocs314-212-8328E-mail: dox_info@amdocs.com
(1) Please refer to the Selected Financial Metrics tables below
(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 the current fiscal year and comparable
fiscal year(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.(5) Assumes
midpoint of full year fiscal 2022 pro forma revenue growth guidance
of 6.0%-10% year-over-year, constant currency
AMDOCS LIMITED
Consolidated Statements of
Income (In thousands, except per share
data)
|
Three months ended |
|
Fiscal year ended |
|
September 30, |
|
September 30, |
|
2021(a) |
|
2020 |
|
2021(a) |
|
2020 |
|
|
|
|
|
|
|
|
|
|
Revenue |
$ |
1,087,309 |
|
$ |
1,052,948 |
|
$ |
4,288,640 |
|
$ |
4,169,039 |
|
|
|
|
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
|
|
|
|
Cost of revenue |
707,366 |
|
703,556 |
|
2,810,967 |
|
2,755,563 |
|
Research and development |
81,324 |
|
75,843 |
|
312,941 |
|
282,042 |
|
Selling, general and administrative |
126,015 |
|
106,352 |
|
487,255 |
|
458,539 |
|
Amortization of purchased intangible assets and other |
18,274 |
|
20,259 |
|
78,784 |
|
78,137 |
|
|
932,979 |
|
906,010 |
|
3,689,947 |
|
3,574,281 |
|
Operating income |
154,330 |
|
146,938 |
|
598,693 |
|
594,758 |
|
|
|
|
|
|
|
|
|
|
Interest and other expense, net |
(1,099 |
) |
(6,377 |
) |
(10,797 |
) |
(11,436 |
) |
Gain from sale of a business |
- |
|
- |
|
226,410 |
|
- |
|
Income before income taxes |
153,231 |
|
140,561 |
|
814,306 |
|
583,322 |
|
|
|
|
|
|
|
|
|
|
Income taxes |
29,706 |
|
6,098 |
|
125,932 |
|
85,482 |
|
Net income |
$ |
123,525 |
|
$ |
134,463 |
|
$ |
688,374 |
|
$ |
497,840 |
|
Basic earnings per share |
$ |
0.98 |
|
$ |
1.02 |
|
$ |
5.36 |
|
$ |
3.73 |
|
Diluted earnings per share |
$ |
0.97 |
|
$ |
1.01 |
|
$ |
5.32 |
|
$ |
3.71 |
|
Basic weighted average number of shares outstanding |
125,923 |
|
132,330 |
|
128,495 |
|
133,590 |
|
Diluted weighted average number of shares outstanding |
126,820 |
|
132,661 |
|
129,284 |
|
134,232 |
|
Cash dividends declared per share |
$ |
0.36 |
|
$ |
0.3275 |
|
$ |
1.4075 |
|
$ |
1.2675 |
|
AMDOCS LIMITEDSelected
Financial Metrics(In thousands, except per share
data)
|
Three months ended |
|
Fiscal year ended |
|
September 30, |
|
September 30, |
|
2021(a) |
|
2020 |
|
2021(a) |
|
2020 |
|
|
|
|
|
|
|
|
Revenue |
$ |
1,087,309 |
|
$ |
1,052,948 |
|
$ |
4,288,640 |
|
$ |
4,169,039 |
|
|
|
|
|
|
|
|
Non-GAAP operating income |
190,195 |
|
181,082 |
|
750,665 |
|
715,022 |
|
|
|
|
|
|
|
|
Non-GAAP net income |
147,470 |
|
162,716 |
|
621,820 |
|
595,758 |
|
|
|
|
|
|
|
|
Non-GAAP diluted earnings per share |
$ |
1.16 |
|
$ |
1.23 |
|
$ |
4.81 |
|
$ |
4.44 |
|
|
|
|
|
|
|
|
Diluted weighted average number of shares outstanding |
126,820 |
|
132,661 |
|
129,284 |
|
134,232 |
Free Cash Flows and Normalized Free Cash
Flow(In thousands)
|
Three months ended |
|
Fiscal year ended |
|
September 30, |
|
September 30, |
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Cash Provided by Operating Activities(a) |
$ |
199,713 |
|
|
$ |
204,680 |
|
|
$ |
925,807 |
|
|
$ |
658,136 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchases of property and equipment, net (c) |
(60,873 |
) |
|
(59,555 |
) |
|
(210,438 |
) |
|
(205,510 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Free Cash Flow |
138,840 |
|
|
145,125 |
|
|
715,369 |
|
|
452,626 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax payment on sale of business(b) |
809 |
|
|
- |
|
|
39,596 |
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
Payments of acquisition related liabilities |
- |
|
|
- |
|
|
13,234 |
|
|
9,417 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Payments for previously expensed restructuring charges |
- |
|
|
214 |
|
|
- |
|
|
2,143 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net capital expenditures related to the new campus
development |
32,801 |
|
|
15,975 |
|
|
100,680 |
|
|
62,727 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Normalized Free Cash Flow |
$ |
172,450 |
|
|
$ |
161,314 |
|
|
$ |
868,879 |
|
|
$ |
526,913 |
|
|
(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 divesture 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 $328 and
$194 for the Fiscal year ended September 30, 2021 and 2020,
respectively. |
AMDOCS
LIMITEDReconciliation of Selected
Financial Metrics from GAAP to Non-GAAP (In
thousands)
|
Three months ended |
|
September 30,
2021(a) |
|
Reconciliation items |
|
|
GAAP |
|
Amortizationof purchasedintangibleassets
andother |
|
Equity basedcompensationexpense |
|
Changes incertainacquisitionsrelated liabilitiesmeasured
atfair value |
|
Other |
|
Taxeffect |
|
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 |
|
|
Three months
endedSeptember 30, 2020 |
|
Reconciliation items |
|
GAAP |
|
Amortizationof purchasedintangibleassets
andother |
|
Equity basedcompensationexpense |
|
Changes incertainacquisitionsrelated liabilitiesmeasured
atfair value |
|
Other |
|
Tax
effect |
Non-GAAP |
Operating expenses: |
|
|
|
|
|
|
|
Cost of revenue |
$ |
703,556 |
|
$ |
- |
|
$ |
(4,981 |
) |
$ |
(4,021 |
) |
$ |
- |
|
$ |
- |
|
$ |
694,554 |
|
Research and development |
|
75,843 |
|
|
- |
|
|
(821 |
) |
|
- |
|
|
- |
|
|
- |
|
|
75,022 |
|
Selling, general and administrative |
|
106,352 |
|
|
- |
|
|
(4,062 |
) |
|
- |
|
|
- |
|
|
- |
|
|
102,290 |
|
Amortization of purchased intangible assets and other |
|
20,259 |
|
|
(20,259 |
) |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
Total
operating expenses |
|
906,010 |
|
|
(20,259 |
) |
|
(9,864 |
) |
|
(4,021 |
) |
|
- |
|
|
- |
|
|
871,866 |
|
|
|
|
|
|
|
|
|
Operating income |
|
146,938 |
|
|
20,259 |
|
|
9,864 |
|
|
4,021 |
|
|
- |
|
|
- |
|
|
181,082 |
|
|
|
|
|
|
|
|
|
Interest and other (expense)
income, net |
|
(6,377 |
) |
|
- |
|
|
- |
|
|
- |
|
|
(600 |
) |
|
- |
|
|
(6,977 |
) |
|
|
|
|
|
|
|
|
Income taxes |
|
6,098 |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
5,291 |
|
|
11,389 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
$ |
134,463 |
|
$ |
20,259 |
|
$ |
9,864 |
|
$ |
4,021 |
|
$ |
(600 |
) |
$ |
(5,291 |
) |
$ |
162,716 |
|
AMDOCS
LIMITEDReconciliation of Selected
Financial Metrics from GAAP to Non-GAAP(In
thousands)
|
Fiscal year ended September 30,
2021(a) |
|
Reconciliation items |
|
GAAP |
Amortizationof purchasedintangibleassets
andother |
Equity basedcompensationexpense |
Changes incertainacquisitionsrelated liabilitiesmeasured
atfair value |
Gain fromsale of
abusiness |
Other |
Tax
effect |
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 |
|
|
|
|
|
|
|
|
|
|
|
Fiscal year endedSeptember 30,
2020 |
|
Reconciliation items |
|
GAAP |
|
Amortizationof purchasedintangibleassets
andother |
|
Equity basedcompensationexpense |
|
Changes incertainacquisitionsrelated liabilitiesmeasured
atfair value |
Other |
|
Tax
effect |
Non-GAAP |
|
Operating expenses: |
|
|
|
|
|
|
|
Cost of revenue |
$ |
2,755,563 |
|
$ |
- |
|
$ |
(20,005 |
) |
$ |
307 |
$ |
- |
|
$ |
- |
|
$ |
2,735,865 |
|
Research and development |
|
282,042 |
|
|
- |
|
|
(3,058 |
) |
|
- |
|
- |
|
|
- |
|
|
278,984 |
|
Selling, general and administrative |
|
458,539 |
|
|
- |
|
|
(19,371 |
) |
|
- |
|
- |
|
|
- |
|
|
439,168 |
|
Amortization of purchased intangible assets and other |
|
78,137 |
|
|
(78,137 |
) |
|
- |
|
|
- |
|
- |
|
|
- |
|
|
- |
|
Total
operating expenses |
|
3,574,281 |
|
|
(78,137 |
) |
|
(42,434 |
) |
|
307 |
|
- |
|
|
- |
|
|
3,454,017 |
|
|
|
|
|
|
|
|
|
Operating income |
|
594,758 |
|
|
78,137 |
|
|
42,434 |
|
|
307 |
|
- |
|
|
- |
|
|
715,022 |
|
|
|
|
|
|
|
|
|
Interest and other (expense)
income, net |
|
(11,436 |
) |
|
- |
|
|
- |
|
|
- |
|
(600 |
) |
|
- |
|
|
(12,036 |
) |
|
|
|
|
|
|
|
|
Income taxes |
|
85,482 |
|
|
- |
|
|
- |
|
|
- |
|
- |
|
|
21,746 |
|
|
107,228 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
$ |
497,840 |
|
$ |
78,137 |
|
$ |
42,434 |
|
$ |
307 |
$ |
(600 |
) |
$ |
(21,746 |
) |
$ |
595,758 |
|
AMDOCS LIMITEDCondensed
Consolidated Balance Sheets (In
thousands)
|
As of |
|
September 30, 2021 |
|
September 30,2020 |
|
|
|
|
ASSETS |
|
|
|
|
|
|
|
Current assets |
|
|
|
Cash and cash
equivalents |
$ |
709,064 |
|
$ |
983,188 |
Short-term interest-bearing investments |
|
256,527 |
|
|
752 |
Accounts receivable, net,
including unbilled of $162,278 and $175,548, respectively |
|
866,819 |
|
|
861,033 |
Prepaid expenses and other
current assets |
|
235,089 |
|
|
229,604 |
Total current assets |
|
2,067,499 |
|
|
2,074,577 |
|
|
|
|
Property and equipment, net |
|
698,768 |
|
|
607,951 |
Lease assets |
|
233,162 |
|
|
295,494 |
Goodwill and other intangible
assets, net |
|
2,881,676 |
|
|
2,874,979 |
Other noncurrent assets |
|
630,669 |
|
|
488,620 |
Total assets |
$ |
6,511,774 |
|
$ |
6,341,621 |
|
|
|
|
LIABILITIES AND
SHAREHOLDERS’ EQUITY |
|
|
|
|
|
|
|
Current liabilities |
|
|
|
Accounts payable, accruals and
other |
$ |
1,007,777 |
|
$ |
930,259 |
Short-term financing
arrangement |
|
- |
|
|
100,000 |
Lease liabilities |
|
58,714 |
|
|
59,100 |
Deferred revenue |
|
237,374 |
|
|
126,841 |
Total current liabilities |
|
1,303,865 |
|
|
1,216,200 |
Lease liabilities |
|
177,906 |
|
|
230,076 |
Long-term debt, net of
unamortized debt issuance costs |
|
644,553 |
|
|
644,023 |
Other noncurrent liabilities |
|
750,266 |
|
|
586,167 |
Total Amdocs Limited
Shareholders’ equity |
|
3,592,675 |
|
|
3,622,646 |
Noncontrolling interests |
|
42,509 |
|
|
42,509 |
Total equity |
|
3,635,184 |
|
|
3,665,155 |
Total liabilities and equity |
$ |
6,511,774 |
|
$ |
6,341,621 |
AMDOCS
LIMITEDConsolidated Statements of Cash
Flows(In thousands)
|
Fiscal year ended September
30, |
|
|
2021 |
|
|
|
2020 |
|
|
|
|
|
Cash Flow from Operating Activities: |
|
|
|
Net income(a) |
$ |
688,374 |
|
|
$ |
497,840 |
|
Reconciliation of net income to net cash provided by operating
activities: |
|
|
|
Depreciation and amortization |
|
208,830 |
|
|
|
198,409 |
|
Amortization of debt issuance costs |
|
548 |
|
|
|
144 |
|
Equity-based compensation expense |
|
54,249 |
|
|
|
42,434 |
|
Gain from sale of a business |
|
(226,410 |
) |
|
|
- |
|
Deferred income taxes |
|
(50,605 |
) |
|
|
30,239 |
|
Loss from short-term interest-bearing investments |
|
1,726 |
|
|
|
- |
|
Net changes in operating assets and liabilities, net of amounts
acquired: |
|
|
|
Accounts receivable, net |
|
(69,051 |
) |
|
|
134,584 |
|
Prepaid expenses and other current assets |
|
(17,041 |
) |
|
|
(10,815 |
) |
Other noncurrent assets |
|
(50,038 |
) |
|
|
(23,329 |
) |
Lease assets and liabilities, net |
|
9,630 |
|
|
|
(7,881 |
) |
Accounts payable, accrued expenses and accrued personnel |
|
122,224 |
|
|
|
(190,354 |
) |
Deferred revenue |
|
193,655 |
|
|
|
(15,184 |
) |
Income taxes payable, net |
|
26,814 |
|
|
|
(9,281 |
) |
Other noncurrent liabilities |
|
32,902 |
|
|
|
11,330 |
|
Net cash provided by operating activities |
|
925,807 |
|
|
|
658,136 |
|
|
|
|
|
Cash Flow from Investing Activities: |
|
|
|
Purchase of property and equipment, net (c) |
|
(210,438 |
) |
|
|
(205,510 |
) |
Proceeds from sale of short-term interest-bearing
investments |
|
18,205 |
|
|
|
- |
|
Purchase of short-term interest-bearing investments |
|
(276,978 |
) |
|
|
(753 |
) |
Net cash paid for business and intangible assets
acquisitions |
|
(142,697 |
) |
|
|
(249,358 |
) |
Net cash received from sale of a business |
|
288,990 |
|
|
|
- |
|
Other |
|
(6,082 |
) |
|
|
(6,104 |
) |
Net cash used in investing activities |
|
(329,000 |
) |
|
|
(461,725 |
) |
|
|
|
|
Cash Flow from Financing
Activities: |
|
|
|
Borrowings under financing arrangements |
|
- |
|
|
|
450,000 |
|
Payments under financing arrangements |
|
(100,000 |
) |
|
|
(350,000 |
) |
Proceeds from issuance of debt, net |
|
- |
|
|
|
643,919 |
|
Repurchase of shares |
|
(679,996 |
) |
|
|
(360,912 |
) |
Proceeds from employee stock options exercises |
|
89,056 |
|
|
|
97,850 |
|
Payments of dividends |
|
(177,472 |
) |
|
|
(164,061 |
) |
Payment of contingent consideration from a business
acquisition |
|
(2,519 |
) |
|
|
(1,411 |
) |
Other |
|
- |
|
|
|
(240 |
) |
Net cash (used in) provided by financing activities |
|
(870,931 |
) |
|
|
315,145 |
|
|
|
|
|
Net (decrease) increase in cash and cash equivalents |
|
(274,124 |
) |
|
|
511,556 |
|
Cash and cash equivalents at beginning of period |
|
983,188 |
|
|
|
471,632 |
|
Cash and cash equivalents at end of period |
$ |
709,064 |
|
|
$ |
983,188 |
|
AMDOCS
LIMITEDSupplementary
Information (In millions)
|
Three months ended |
|
September 30,
2021(a) |
|
June 30,
2021(a) |
|
March 31,
2021(a) |
|
December 31,2020 |
|
September 30, 2020 |
North
America |
$ |
722.8 |
|
$ |
686.1 |
|
$ |
679.1 |
|
$ |
703.4 |
|
$ |
681.6 |
Europe |
|
146.8 |
|
|
155.7 |
|
|
148.8 |
|
|
171.6 |
|
|
165.3 |
Rest of the World |
|
217.7 |
|
|
224.5 |
|
|
220.8 |
|
|
211.3 |
|
|
206.0 |
Total Revenue |
$ |
1,087.3 |
|
$ |
1,066.3 |
|
$ |
1,048.7 |
|
$ |
1,086.3 |
|
$ |
1,052.9 |
|
Three months ended |
|
September 30, 2021 |
|
June 30, 2021 |
|
March 31, 2021 |
|
December 31,2020 |
|
September 30, 2020 |
Managed
Services Revenue |
$ |
637.5 |
|
$ |
650.5 |
|
$ |
634.6 |
|
$ |
623.7 |
|
$ |
610.5 |
|
As of |
|
September 30,
2021(d) |
|
June 30,
2021(d) |
|
March 31,
2021(d) |
|
December 31,2020(d) |
|
September 30, 2020 |
12-Month Backlog |
$ |
3,690 |
|
$ |
3,590 |
|
$ |
3,540 |
|
$ |
3,490 |
|
$ |
3,620 |
|
(d) Excludes OpenMarket, which we divested on December 31,
2020 |
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