Reiterates FY16 Non-GAAP Diluted EPS Growth Outlook of 3.5%-7.5% YoY
Key highlights:
- Second fiscal quarter revenue of $926 million, within the $905-$945 million guidance range, including foreign currency
movements that negatively affected revenue by approximately $1 million relative to the first quarter of fiscal 2016. Revenue was
at the midpoint of Amdocs’ guidance, excluding foreign currency movements
- Second fiscal quarter diluted non-GAAP EPS of $0.92, above the $0.84-$0.90 guidance range (non-GAAP EPS excludes amortization
of purchased intangible assets and other acquisition-related costs, and equity-based compensation expense, net of related tax
effects). Foreign exchange gains, included under the interest and other income (expense), net line item, coupled with a lower
non-GAAP effective tax rate positively impacted diluted non-GAAP EPS. Adjusting for these items, diluted non-GAAP EPS was within
the guidance range for the second quarter
- Diluted GAAP EPS of $0.71 for the second fiscal quarter, at the high-end of the $0.63-$0.71 guidance range
- Second fiscal quarter non-GAAP operating income of $158 million; non-GAAP operating margin of 17.1%; GAAP operating income of
$120 million
- Free cash flow of $91 million for the second fiscal quarter
- Repurchased $101 million of ordinary shares during the second fiscal quarter
- Twelve-month backlog of $3.10 billion at the end of the second fiscal quarter, up $10 million from the end of the first
quarter of fiscal 2016
- The board of directors approved a $0.195 per share quarterly cash dividend to be paid on July 15, 2016
- Third quarter fiscal 2016 guidance: Expected revenue of approximately $910-$950 million. Expected diluted non-GAAP EPS of
approximately $0.84-$0.90 (which excludes amortization of purchased intangible assets and other acquisition-related costs and
approximately $0.05-$0.06 per share of equity-based compensation expense, net of related tax effects). Expected diluted GAAP EPS
of approximately $0.63-$0.71
- Full year fiscal 2016 guidance: Expects fiscal 2016 non-GAAP diluted earnings per share growth towards the midpoint of the
guidance range of 3.5-7.5% year-over-year, including the impact of share repurchase activity anticipated over the course of the
fiscal year. Expects fiscal 2016 revenue growth, on a constant currency basis, slightly below the midpoint of the guidance range
of 2.0-6.0% year-over-year, and reported revenue growth slightly below the midpoint of the guidance range of 0.5-4.5%
year-over-year, including a negative impact from foreign currency movements of approximately 1.5% year-over-year
ST. LOUIS, May 04, 2016 (GLOBE NEWSWIRE) -- Amdocs Limited (NASDAQ:DOX) today reported that for its second fiscal quarter
ended March 31, 2016, revenue was $925.9 million, up 0.5% or $4.4 million sequentially from the first fiscal quarter of 2016 and up
2.6% as compared to last year’s second fiscal quarter. Revenue for the second fiscal quarter of 2016 includes a negative impact
from foreign currency movements of approximately $1 million relative to the first quarter of fiscal 2016. Net income on a non-GAAP
basis was $140.2 million, or $0.92 per diluted share, compared to non-GAAP net income of $128.6 million, or $0.82 per diluted
share, in the second 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 $32.4 million, net of related tax effects, in the second
quarter of fiscal 2016, and excludes such amortization and other acquisition-related costs, changes in fair value of certain
acquisition-related liabilities and equity-based compensation expenses of $12.4 million, net of related tax effects, in the second
quarter of fiscal 2015. The Company's GAAP net income for the second quarter of fiscal 2016 was $107.7 million, or $0.71 per
diluted share, compared to GAAP net income of $116.3 million, or $0.74 per diluted share, in the prior fiscal year’s second
quarter.
“We are pleased to report solid results for the second fiscal quarter, which included revenue at the midpoint of our guidance on
a constant currency basis, encouraging signs of stabilization in North America, and sustained growth in Europe. During the quarter,
we launched Amdocs CES 10, a major new product stack release specifically designed to accelerate service providers’ transition from
traditional to digital business models. At the same time, we delivered non-GAAP operating margins at the high-end of our long-term
target range of 16.2% to 17.2%. This performance is in line with our guidance from the start of the fiscal year and reflects our
focus on maintaining consistent execution as we deploy a record number of transformation projects worldwide,” said Eli Gelman,
president and chief executive officer of Amdocs Management Limited.
Gelman continued, “Our managed services capabilities continue to gain acceptance with leading service providers in Europe and
Rest of World. In March, Three Ireland announced a five-year managed services contract with Amdocs to support its IT digital
transformation across all lines of business. Additionally, Amdocs has been selected to assume responsibility for Vodafone India’s
postpaid billing systems under a five-year managed services model which we believe demonstrates our growing strategic relationship
with the Vodafone group. Our service offerings are also resonating with former Comverse customers. For instance, Botswana
Telecommunications has awarded Amdocs a five-year managed services contract for business support systems modernization, while Sky
Italia has upgraded its billing system to the latest Amdocs Kenan release and assigned Amdocs end-to-end responsibility of the
program with a multi-year maintenance contract.”
Gelman concluded, “Along the lines we discussed last quarter, our outlook includes a stronger contribution from AT&T in the
second half of the year and continued business momentum with former Comverse customers. Nevertheless, our forecast reflects many
moving parts and unknowns, including those resulting from consolidation activity among wireless and Pay TV operators. With these
factors in mind, we expect to deliver revenue growth for the full fiscal year 2016 slightly below the midpoint of our guidance
range of 2% to 6% on a constant currency basis. Additionally, we are on track to meet our full year target for non-GAAP earnings
per share growth of 3.5% to 7.5% and our cash balance is healthy as a result of robust free cash flow generation and recent stock
option exercises. We therefore plan to increase the capital we return to shareholders to roughly 100% of free cash flow
through the second half of fiscal 2016, which we believe we can do while retaining significant capacity to execute M&A as
another vehicle to support our strategy.”
Financial Discussion of Second Fiscal Quarter Results
Free cash flow was $91 million for the second quarter of fiscal 2016, comprised of cash flow from operations of $118
million, less $27 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 $3.10 billion at the end of the second
quarter of fiscal 2016, up $10 million from the end of the prior quarter.
Financial Outlook
Amdocs expects that revenue for the third quarter of fiscal 2016 will be approximately $910-$950 million. Embedded
within this guidance is a positive sequential impact of approximately $5 million from foreign currency fluctuations as compared to
the second quarter of fiscal 2016. This outlook takes into consideration the company’s expectations regarding macro and industry
specific risks and various uncertainties resulting from current and potential customer consolidation activity in North America.
However, Amdocs notes that it cannot predict all possible outcomes.
Diluted earnings per share on a non-GAAP basis for the third quarter of fiscal 2016 is expected to be $0.84-$0.90, excluding
amortization of purchased intangible assets and other acquisition-related costs and approximately $0.05-$0.06 per share of
equity-based compensation expense, net of related tax effects. Amdocs estimates GAAP diluted earnings per share for the third
fiscal quarter of 2016 will be $0.63-$0.71.
Quarterly Cash Dividend Program
On May 4, 2016, the Board approved the Company’s next quarterly cash dividend payment of $0.195 per share and set June
30, 2016 as the record date for determining the shareholders entitled to receive the dividend, which will be payable on July 15,
2016.
Conference Call Details
Amdocs will host a conference call on May 4, 2016 at 5:00 p.m. Eastern Time to discuss the Company's second quarter of
fiscal 2016. To participate, please dial +1 (855) 870-4313, or +1 (330) 863-3318 outside the United States, approximately 15
minutes before the call and enter passcode 81097784. The call will also be carried live on the Internet via the Amdocs website,
www.amdocs.com.
Non-GAAP Financial Measures
This release includes non-GAAP diluted earnings per share and other non-GAAP financial measures, including free cash flow, non-GAAP
cost of revenue, non-GAAP research and development, non-GAAP selling, general and administrative, non-GAAP operating income,
non-GAAP operating margin, non-GAAP interest and other expense, net, non-GAAP income taxes, non-GAAP effective tax rate, non-GAAP
net income and non-GAAP diluted earnings per share growth. These non-GAAP measures exclude the following items:
- amortization of purchased intangible assets and other acquisition-related costs;
- changes in fair value of certain acquisition-related liabilities;
- equity-based compensation expense; and
- tax effects related to the above.
These non-GAAP financial measures are not in accordance with, or an alternative for, generally accepted accounting principles
and may be different from non-GAAP financial measures used by other companies. In addition, these non-GAAP financial measures are
not based on any comprehensive set of accounting rules or principles. Amdocs believes that non-GAAP financial measures have
limitations in that they do not reflect all of the amounts associated with Amdocs’ results of operations as determined in
accordance with GAAP and that these measures should only be used to evaluate Amdocs’ results of operations in conjunction with the
corresponding GAAP measures.
Amdocs believes that the presentation of non-GAAP diluted earnings per share and other financial measures, including free cash
flow, non-GAAP cost of revenue, non-GAAP research and development, non-GAAP selling, general and administrative, non-GAAP operating
income, non-GAAP operating margin, non-GAAP interest and other expense, net, non-GAAP income taxes, non-GAAP effective tax rate,
non-GAAP net income and non-GAAP diluted earnings per share growth when shown in conjunction with the corresponding GAAP measures,
provides useful information to investors and management regarding financial and business trends relating to its financial condition
and results of operations, as well as the net amount of cash generated by its business operations after taking into account capital
spending required to maintain or expand the business.
For its internal budgeting process and in monitoring the results of the business, Amdocs’ management uses financial statements
that do not include amortization of purchased intangible assets and other acquisition-related costs, changes in fair value of
certain acquisition-related liabilities, equity-based compensation expense and related tax effects. Amdocs’ management also uses
the foregoing non-GAAP financial measures, in addition to the corresponding GAAP measures, in reviewing the financial results of
Amdocs. In addition, Amdocs believes that significant groups of investors exclude these items in reviewing its results and those of
its competitors, because the amounts of the items between companies can vary greatly depending on the assumptions used by an
individual company in determining the amounts of the items.
Amdocs further believes that, where the adjustments used in calculating non-GAAP diluted earnings per share are based on
specific, identified amounts that impact different line items in the Consolidated Statements of Income (including cost of revenue,
research and development, selling, general and administrative, operating income, interest and other expense, net, income taxes and
net income), it is useful to investors to understand how these specific line items in the Consolidated Statements of Income are
affected by these adjustments. Please refer to the Reconciliation of Selected Financial Metrics from GAAP to Non-GAAP tables
below.
About Amdocs
Amdocs 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 24,000 employees serve customers in over 90 countries. Listed on the NASDAQ Global Select Market, Amdocs had
revenue of $3.6 billion in fiscal 2015.
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.
|
AMDOCS LIMITED |
|
|
|
|
|
Consolidated Statements of Income |
(in thousands, except per share
data) |
|
|
|
|
|
|
|
Three months ended |
|
Six months ended |
|
|
March 31, |
|
March 31, |
|
|
2016 |
|
2015 |
|
2016 |
|
2015 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
|
$ |
925,935 |
|
|
$ |
902,578 |
|
|
$ |
1,847,440 |
|
|
$ |
1,808,865 |
|
|
|
|
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
|
|
|
|
Cost of revenue |
|
|
600,116 |
|
|
|
580,571 |
|
|
|
1,195,684 |
|
|
|
1,154,017 |
|
Research and development |
|
|
63,711 |
|
|
|
62,805 |
|
|
|
126,198 |
|
|
|
126,446 |
|
Selling, general and administrative |
|
|
114,474 |
|
|
|
107,186 |
|
|
|
234,022 |
|
|
|
220,766 |
|
Amortization of purchased intangible assets and other |
|
|
27,487 |
|
|
|
14,016 |
|
|
|
51,854 |
|
|
|
28,115 |
|
|
|
|
805,788 |
|
|
|
764,578 |
|
|
|
1,607,758 |
|
|
|
1,529,344 |
|
Operating income |
|
|
120,147 |
|
|
|
138,000 |
|
|
|
239,682 |
|
|
|
279,521 |
|
|
|
|
|
|
|
|
|
|
Interest and other income (expense), net |
|
|
1,460 |
|
|
|
(1,669 |
) |
|
|
(205 |
) |
|
|
(125 |
) |
Income before income taxes |
|
|
121,607 |
|
|
|
136,331 |
|
|
|
239,477 |
|
|
|
279,396 |
|
|
|
|
|
|
|
|
|
|
Income taxes |
|
|
13,887 |
|
|
|
20,070 |
|
|
|
30,915 |
|
|
|
32,145 |
|
Net income |
|
$ |
107,720 |
|
|
$ |
116,261 |
|
|
$ |
208,562 |
|
|
$ |
247,251 |
|
Basic earnings per share |
|
$ |
0.72 |
|
|
$ |
0.75 |
|
|
$ |
1.39 |
|
|
$ |
1.59 |
|
Diluted earnings per share |
|
$ |
0.71 |
|
|
$ |
0.74 |
|
|
$ |
1.37 |
|
|
$ |
1.57 |
|
Basic weighted average number of shares outstanding |
|
|
149,924 |
|
|
|
155,106 |
|
|
|
150,279 |
|
|
|
155,506 |
|
Diluted weighted average number of shares outstanding |
|
|
151,948 |
|
|
|
157,357 |
|
|
|
152,502 |
|
|
|
157,738 |
|
Cash dividends declared per share |
|
$ |
0.195 |
|
|
$ |
0.170 |
|
|
$ |
0.365 |
|
|
$ |
0.325 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AMDOCS LIMITED |
|
|
|
|
|
Selected Financial Metrics |
(in thousands, except per share
data) |
|
|
|
|
|
|
|
Three months ended |
|
Six months ended |
|
|
March 31, |
|
March 31, |
|
|
2016 |
|
2015 |
|
2016 |
|
2015 |
|
|
|
|
|
|
|
|
|
Revenue |
|
$ |
925,935 |
|
|
$ |
902,578 |
|
|
$ |
1,847,440 |
|
|
$ |
1,808,865 |
|
|
|
|
|
|
|
|
|
|
Non-GAAP operating income |
|
|
157,950 |
|
|
|
153,491 |
|
|
|
314,822 |
|
|
|
306,453 |
|
|
|
|
|
|
|
|
|
|
Non-GAAP net income |
|
|
140,165 |
|
|
|
128,647 |
|
|
|
272,185 |
|
|
|
268,132 |
|
|
|
|
|
|
|
|
|
|
Non-GAAP diluted earnings per share |
|
$ |
0.92 |
|
|
$ |
0.82 |
|
|
$ |
1.78 |
|
|
$ |
1.70 |
|
|
|
|
|
|
|
|
|
|
Diluted weighted average number of
shares outstanding |
|
|
151,948 |
|
|
|
157,357 |
|
|
|
152,502 |
|
|
|
157,738 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AMDOCS LIMITED |
Reconciliation of Selected Financial Metrics
from GAAP to Non-GAAP |
(in
thousands) |
|
|
|
|
|
|
|
Three months ended |
|
|
March 31,
2016
|
|
Reconciliation items
|
|
|
GAAP |
Amortization of
purchased
intangible assets
and other |
Equity based
compensation
expense |
Tax
effect |
Non-GAAP |
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenue |
$ |
600,116 |
|
$ |
- |
|
$ |
(4,917 |
) |
$ |
- |
|
$ |
595,199 |
|
|
Research and |
|
63,711 |
|
|
- |
|
|
(1,018 |
) |
|
- |
|
|
62,693 |
|
|
development |
Selling, general and |
|
114,474 |
|
|
- |
|
|
(4,381 |
) |
|
- |
|
|
110,093 |
|
|
administrative |
Amortization of |
|
27,487 |
|
|
(27,487 |
) |
|
- |
|
|
- |
|
|
- |
|
|
purchased intangible assets and other |
Total operating expenses |
|
805,788 |
|
|
(27,487 |
) |
|
(10,316 |
) |
|
- |
|
|
767,985 |
|
|
|
|
|
|
|
|
|
Operating income |
|
120,147 |
|
|
27,487 |
|
|
10,316 |
|
|
- |
|
|
157,950 |
|
|
|
|
|
|
|
|
|
Income taxes |
|
13,887 |
|
|
- |
|
|
- |
|
|
5,358 |
|
|
19,245 |
|
|
|
|
|
|
|
|
|
Net income |
$ |
107,720 |
|
$ |
27,487 |
|
$ |
10,316 |
|
$ |
(5,358 |
) |
$ |
140,165 |
|
|
|
|
|
|
|
|
|
|
Three months ended |
March 31,
2015 |
|
|
|
Reconciliation items |
|
|
|
GAAP |
Amortization of
purchased
intangible assets
and other |
Equity based
compensation
expense |
Changes in fair
value of certain
acquisition-
related liabilities |
Tax
effect |
Non-GAAP
|
|
|
Operating expenses: |
|
|
|
|
|
|
|
Cost of revenue |
$ |
580,571 |
|
$ |
- |
|
$ |
(3,737 |
) |
$ |
8,350 |
|
$ |
- |
|
$ |
585,184 |
|
|
Research and |
|
62,805 |
|
|
- |
|
|
(817 |
) |
|
- |
|
|
- |
|
61,988 |
|
|
development |
|
|
Selling, general and |
|
107,186 |
|
|
- |
|
|
(5,271 |
) |
|
- |
|
|
- |
|
101,915 |
|
|
administrative |
|
|
Amortization of |
|
14,016 |
|
|
(14,016 |
) |
|
- |
|
|
- |
|
|
- |
|
- |
|
|
purchased intangible assets and other |
|
|
Total operating expenses |
|
764,578 |
|
|
(14,016 |
) |
|
(9,825 |
) |
|
8,350 |
|
|
- |
|
|
749,087 |
|
|
|
|
|
|
|
|
|
|
Operating income |
|
138,000 |
|
|
14,016 |
|
|
9,825 |
|
|
(8,350 |
) |
|
- |
|
|
153,491 |
|
|
|
|
|
|
|
|
|
|
Income taxes |
|
20,070 |
|
|
- |
|
|
- |
|
|
- |
|
|
3,105 |
|
|
23,175 |
|
|
|
|
|
|
|
|
|
|
Net income |
$ |
116,261 |
|
$ |
14,016 |
|
$ |
9,825 |
|
$ |
(8,350 |
) |
($ |
3,105 |
) |
$ |
128,647 |
|
|
|
|
|
|
|
|
|
AMDOCS LIMITED |
|
Reconciliation of Selected Financial Metrics
from GAAP to Non-GAAP |
|
(in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six months ended |
|
|
March 31,
2016 |
|
|
Reconciliation
items |
|
|
GAAP |
Amortization of
purchased
intangible assets
and other |
Equity based
compensation
expense |
Tax effect |
Non-GAAP |
|
|
|
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
|
|
|
Cost of revenue |
$ |
1,195,684 |
|
$ |
- |
|
|
$ |
(9,041 |
) |
$ |
- |
|
$ |
1,186,643 |
|
|
Research and |
126,198 |
|
|
- |
|
|
|
(1,860 |
) |
- |
|
124,338 |
|
development |
|
|
|
|
Selling, general and |
234,022 |
|
|
- |
|
|
|
(12,385 |
) |
- |
|
221,637 |
|
administrative |
|
|
|
|
Amortization of |
51,854 |
|
|
(51,854 |
) |
|
|
- |
|
- |
|
- |
|
purchased intangible assets and other |
|
|
|
|
Total operating expenses |
|
1,607,758 |
|
|
(51,854 |
) |
|
|
(23,286 |
) |
|
- |
|
|
1,532,618 |
|
|
|
|
|
|
|
|
|
|
Operating income |
|
239,682 |
|
|
51,854 |
|
|
|
23,286 |
|
|
- |
|
|
314,822 |
|
|
|
|
|
|
|
|
|
|
Income taxes |
|
30,915 |
|
|
- |
|
|
|
- |
|
|
11,517 |
|
|
42,432 |
|
|
|
|
|
|
|
|
|
|
Net income |
$ |
208,562 |
|
$ |
51,854 |
|
|
$ |
23,286 |
|
$ |
(11,517 |
) |
$ |
272,185 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six months ended |
|
|
March 31,
2015 |
|
|
Reconciliation
items |
|
|
GAAP |
Amortization of
purchased
intangible assets
and other |
Equity based
compensation
expense |
Changes in fair
value of certain
acquisition-
related liabilities |
Tax
effect |
Non-GAAP |
|
|
|
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
|
|
|
Cost of revenue |
$ |
1,154,017 |
|
$ |
- |
|
$ |
(7,981 |
) |
$ |
24,906 |
|
$ |
- |
|
$ |
1,170,942 |
|
|
Research and |
126,446 |
|
|
- |
|
|
(1,754 |
) |
- |
|
- |
|
124,692 |
|
development |
|
|
|
|
Selling, general and |
220,766 |
|
|
- |
|
|
(13,988 |
) |
- |
|
- |
|
206,778 |
|
administrative |
|
|
|
|
Amortization of |
28,115 |
|
|
(28,115 |
) |
|
- |
|
- |
|
- |
|
- |
|
|
purchased intangible assets and other |
|
|
|
|
|
Total operating expenses |
|
1,529,344 |
|
|
(28,115 |
) |
|
(23,723 |
) |
|
24,906 |
|
|
- |
|
|
1,502,412 |
|
|
|
|
|
|
|
|
|
|
Operating income |
|
279,521 |
|
|
28,115 |
|
|
23,723 |
|
|
(24,906 |
) |
|
- |
|
|
306,453 |
|
|
|
|
|
|
|
|
|
|
Interest and other |
125 |
|
- |
|
- |
|
3,921 |
|
- |
|
4,046 |
|
|
expense, net |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income taxes |
|
32,145 |
|
|
- |
|
|
- |
|
|
- |
|
|
2,130 |
|
|
34,275 |
|
|
|
|
|
|
|
|
|
|
Net income |
$ |
247,251 |
|
$ |
28,115 |
|
$ |
23,723 |
|
$ |
(28,827 |
) |
$ |
(2,130 |
) |
$ |
268,132 |
|
|
|
|
|
|
|
|
|
|
AMDOCS LIMITED |
Condensed Consolidated Balance
Sheets |
(in thousands) |
|
|
|
As of |
|
|
March 31, 2016 |
|
September 30, 2015 |
|
|
|
|
|
ASSETS |
|
|
|
|
|
|
|
|
|
Current assets |
|
|
|
|
Cash, cash equivalents and short-term interest-bearing investments |
|
$ |
1,150,085 |
|
|
$ |
1,354,012 |
|
Accounts receivable, net, including unbilled of $92,812 and $80,197, respectively |
|
|
755,381 |
|
|
|
714,784 |
|
Deferred income taxes |
|
|
- |
|
|
|
150,733 |
|
Prepaid expenses and other current assets |
|
|
202,144 |
|
|
|
158,633 |
|
Total current assets |
|
|
2,107,610 |
|
|
|
2,378,162 |
|
|
|
|
|
|
Equipment and leasehold improvements, net |
|
|
311,723 |
|
|
|
309,320 |
|
Goodwill and other intangible assets, net |
|
|
2,269,272 |
|
|
|
2,301,610 |
|
Other noncurrent assets |
|
|
402,922 |
|
|
|
335,560 |
|
Total assets |
|
$ |
5,091,527 |
|
|
$ |
5,324,652 |
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
|
Current liabilities |
|
|
|
|
Accounts payable, accruals and other |
|
$ |
936,417 |
|
|
$ |
945,033 |
|
Short-term financing arrangements |
|
|
- |
|
|
|
220,000 |
|
Deferred revenue |
|
|
205,786 |
|
|
|
198,470 |
|
Total current liabilities |
|
|
1,142,203 |
|
|
|
1,363,503 |
|
Other noncurrent liabilities |
|
|
474,341 |
|
|
|
554,307 |
|
Shareholders’ equity |
|
|
3,474,983 |
|
|
|
3,406,842 |
|
Total liabilities and shareholders’ equity |
|
$ |
5,091,527 |
|
|
$ |
5,324,652 |
|
|
|
|
|
|
|
|
|
|
____________ |
|
|
|
|
|
|
|
|
Due to the early adoption of Accounting Standard Update 2015-17, starting
the first quarter of fiscal 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) |
|
|
|
|
|
Six months ended March
31, |
|
|
|
2016 |
|
|
|
2015 |
|
|
|
|
|
|
Cash Flow from Operating Activities: |
|
|
|
|
Net income |
|
$ |
208,562 |
|
|
$ |
247,251 |
|
Reconciliation of net income to net cash provided by operating activities: |
|
|
|
|
Depreciation and amortization |
|
|
104,225 |
|
|
|
83,303 |
|
Equity-based compensation expense |
|
|
23,286 |
|
|
|
23,723 |
|
Deferred income taxes |
|
|
(7,614 |
) |
|
|
(27,260 |
) |
Excess tax benefit from equity-based compensation |
|
|
(5,248 |
) |
|
|
(3,628 |
) |
Loss from short-term interest-bearing investments |
|
|
445 |
|
|
|
283 |
|
Net changes in operating assets and liabilities, net of amounts acquired: |
|
|
|
|
Accounts receivable |
|
|
(23,061 |
) |
|
|
(14,623 |
) |
Prepaid expenses and other current assets |
|
|
(28,684 |
) |
|
|
3,522 |
|
Other noncurrent assets |
|
|
3,352 |
|
|
|
14,898 |
|
Accounts payable, accrued expenses and accrued personnel |
|
|
27,784 |
|
|
|
8,428 |
|
Deferred revenue |
|
|
(3,023 |
) |
|
|
18,762 |
|
Income taxes payable |
|
|
2,416 |
|
|
|
18,363 |
|
Other noncurrent liabilities |
|
|
14,233 |
|
|
|
(29,388 |
) |
Net cash provided by operating activities |
|
|
316,673 |
|
|
|
343,634 |
|
|
|
|
|
|
Cash Flow from Investing Activities: |
|
|
|
|
Payments for purchase of equipment and leasehold improvements, net |
|
|
(67,289 |
) |
|
|
(59,334 |
) |
Proceeds from sale of short-term interest-bearing investments |
|
|
191,648 |
|
|
|
123,073 |
|
Purchase of short-term interest-bearing investments |
|
|
(199,988 |
) |
|
|
(121,585 |
) |
Net cash paid for acquisitions |
|
|
(24,993 |
) |
|
|
(8,099 |
) |
Other |
|
|
(20,602 |
) |
|
|
509 |
|
Net cash used in investing activities |
|
|
(121,224 |
) |
|
|
(65,436 |
) |
|
|
|
|
|
Cash Flow from Financing Activities: |
|
|
|
|
Payments under financing arrangements |
|
|
(220,000 |
) |
|
|
(210,000 |
) |
Repurchase of shares |
|
|
(200,608 |
) |
|
|
(212,195 |
) |
Proceeds from employee stock options exercised |
|
|
59,060 |
|
|
|
58,116 |
|
Payments of dividends |
|
|
(51,262 |
) |
|
|
(48,377 |
) |
Excess tax benefit from equity-based compensation |
|
|
5,248 |
|
|
|
3,628 |
|
Other |
|
|
(4 |
) |
|
|
(5 |
) |
Net cash used in financing activities |
|
|
(407,566 |
) |
|
|
(408,833 |
) |
|
|
|
|
|
Net decrease in cash and cash equivalents |
|
|
(212,117 |
) |
|
|
(130,635 |
) |
Cash and cash equivalents at beginning of period |
|
|
1,035,573 |
|
|
|
1,103,269 |
|
Cash and cash equivalents at end of period |
|
$ |
823,456 |
|
|
$ |
972,634 |
|
|
|
|
|
|
|
|
|
|
AMDOCS LIMITED |
Supplementary Information |
(in
millions) |
|
|
|
|
|
|
Three months ended |
|
|
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
|
|
2016 |
|
|
2015 |
|
|
2015 |
|
|
2015 |
|
|
2015 |
|
|
North America |
|
$ |
586.4 |
|
|
$ |
576.7 |
|
|
$ |
626.6 |
|
|
$ |
623.1 |
|
|
$ |
646.7 |
|
|
Europe |
|
|
139.2 |
|
|
|
128.9 |
|
|
|
115.3 |
|
|
|
102.3 |
|
|
|
97.6 |
|
|
Rest of the World |
|
|
200.3 |
|
|
|
215.9 |
|
|
|
184.9 |
|
|
|
182.5 |
|
|
|
158.3 |
|
|
Total Revenue |
|
$ |
925.9 |
|
|
$ |
921.5 |
|
|
$ |
926.8 |
|
|
$ |
907.9 |
|
|
$ |
902.6 |
|
|
|
|
|
|
|
Three months ended |
|
|
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
|
|
2016 |
|
|
2015 |
|
|
2015 |
|
|
2015 |
|
|
2015 |
|
Managed Services Revenue |
|
$ |
501.1 |
|
|
$ |
487.6 |
|
|
$ |
466.6 |
|
|
$ |
460.6 |
|
|
$ |
448.8 |
|
|
|
|
|
|
Three months ended |
|
|
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
|
|
2016 |
|
|
2015 |
|
|
2015 |
|
|
2015 |
|
|
2015 |
|
|
Customer Experience |
|
$ |
902.3 |
|
|
$ |
894.4 |
|
|
$ |
899.4 |
|
|
$ |
883.7 |
|
|
$ |
877.1 |
|
|
Systems |
|
Directory |
|
|
23.6 |
|
|
|
27.1 |
|
|
|
27.4 |
|
|
|
24.2 |
|
|
|
25.5 |
|
|
Total Revenue |
|
$ |
925.9 |
|
|
$ |
921.5 |
|
|
$ |
926.8 |
|
|
$ |
907.9 |
|
|
$ |
902.6 |
|
|
|
|
|
|
As of |
|
|
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
|
|
2016 |
|
|
2015 |
|
|
2015 |
|
|
2015 |
|
|
2015 |
|
|
12-Month Backlog |
|
$ |
3,100 |
|
|
$ |
3,090 |
|
|
$ |
3,080 |
|
|
$ |
3,010 |
|
|
$ |
3,000 |
|
|
Contact: Matthew Smith Head of Investor Relations Amdocs 314-212-8328 E-mail: dox_info@amdocs.com