Amdocs Limited (NASDAQ: DOX) today reported operating results for
the three months ended June 30, 2021.
“Our strong third quarter performance reflects the strategic
initiatives we have executed this year to accelerate Amdocs’
long-term growth. Revenue was up 9.4% from a year ago on a pro
forma(2) constant currency(3) basis and was led by a growing scope
of activities as our customers accelerate multi-year investments
focused around 5G modernization and the cloud. At the operating
level, profitability remained above the high-end of our target
range as we balanced operational excellence with accelerated
R&D investments, and we generated robust free cash flow of
which we returned a majority to shareholders through share
repurchases and our quarterly dividend program,” said Shuky
Sheffer, president and chief executive officer of Amdocs Management
Limited.
Sheffer continued, “During Q3, we strengthened our European
footprint as our customers’ progressed digital modernization
initiatives to support improved customer experience, better
operating efficiency and multiplay convergence strategies. We
entered into a multi-year managed transformation agreement with
Three UK, a subsidiary of CK Hutchison Holdings, that expands the
two companies’ collaboration in the business-to-business domain to
the consumer sector to provide subscribers with next-generation
digital experiences and 5G services. Additionally, Vodafone Group
selected Amdocs to provide next-generation inventory and OSS
capabilities to support mobile, fixed and cable offerings in
Germany, Romania, and Czech Republic, and we expanded our agreement
with Vodafone Spain to modernize its CRM systems in readiness for
5G and the cloud era.”
Sheffer concluded, “We enter the fourth fiscal quarter with
record 12-month backlog on a pro forma (2) basis, up 10.8% from a
year ago. Additionally, we expect to sustain strong sales momentum
by monetizing our market-leading offerings which we believe are
well-aligned with our customer’s needs for digital modernization,
5G, cloud migration, and next-generation OSS platforms. Overall, we
are raising our outlook for earnings per share growth in fiscal
2021 and we remain on track to deliver full year revenue growth
acceleration on a proforma basis.”
Revenue
Revenue for the third fiscal quarter ended June 30, 2021 was
$1,066 million, which was up $17 million as reported from the
second fiscal quarter of 2021. Revenue was up 3.9% as reported and
up 1.9% in constant currency(3) as compared to last year’s third
fiscal quarter. On a pro forma basis in constant currency(3),
revenue was up 9.4% compared to last year. Revenue for the third
fiscal quarter of 2021 includes a positive impact from foreign
currency movements of approximately $3 million relative to the
second quarter of fiscal 2021. Revenue was above the midpoint of
Amdocs’ guidance, and included positive impact from foreign
currency movements of approximately $5 million compared to our
guidance assumptions. Revenue for the third fiscal quarter of 2021
includes record managed services revenue of $651 million, up 7.6%
as compared to last year’s third fiscal quarter and equivalent to
approximately 61% of total revenue.
Net Income and Earnings Per Share
The Company's GAAP net income for the third quarter of fiscal
2021 was $146.2 million, or $1.14 per diluted share, compared to
GAAP net income of $120.4 million, or $0.90 per diluted share, in
the prior fiscal year’s third quarter. Net income on a non-GAAP
basis was $173.3 million, or $1.35 per diluted share, compared to
non-GAAP net income of $143.2 million, or $1.07 per diluted share,
in the third quarter of fiscal 2020. 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, and other, net of related tax effects, in the third
quarter of fiscal 2021 as well as in the third quarter of fiscal
2020.
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 4,
2021, the Board approved the Company’s next quarterly cash dividend
payment of $0.36 per share and set September 30, 2021 as the record
date for determining the shareholders entitled to receive the
dividend, which will be payable on October 29, 2021
- Share Repurchase Activity: Repurchased $90
million of ordinary shares during the third quarter of fiscal
2021
Twelve-month BacklogTwelve-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 $3.59
billion at the end of the third quarter of fiscal 2021. On a pro
forma(2) basis, twelve-month backlog was up approximately 10.8% as
compared to last year’s third fiscal quarter.
Fourth Quarter Fiscal 2021
Outlook
- Revenue of
approximately $1,065-$1,105 million, assuming approximately $1
million sequential negative impact from foreign currency
fluctuations as compared to the third quarter of fiscal 2021
- GAAP diluted EPS of
approximately $0.91-$0.99
- Non-GAAP diluted EPS
of approximately $1.13-$1.19, excluding amortization of purchased
intangible assets and other acquisition-related costs, changes in
certain acquisitions related liabilities measured at fair value,
and approximately $0.08-$0.10 per share of equity-based
compensation expense, net of related tax effects
Full Year Fiscal 2021
Outlook
- Full year fiscal
2021 revenue guidance reflects the divestiture of OpenMarket as of
December 31, 2020 and incorporates an expected positive impact from
foreign currency fluctuations of approximately 1.0% year-over-year,
consistent with the previous outlook
- Expects revenue
growth of 2.3%-3.3% year-over-year on a reported basis as compared
with 1.0%-4.0% year-over-year previously
- Expects pro forma(2)
revenue growth of 6.3%-7.3% year-over-year on a constant
currency(3) basis as compared with 5.0%-8.0% year-over-year on a
constant currency(3) basis previously
- Expects revenue
growth of 1.3%-2.3% year-over-year on a constant currency(3) basis
as compared with 0.0%-3.0% year-over-year previously
- Expects GAAP diluted
earnings per share growth of roughly 42.0%-44.0% year-over-year,
including gain, net of tax, from divestiture of OpenMarket, as
compared with 39.0%-44.0% year-over-year previously
- Expects non-GAAP
diluted earnings per share growth of roughly 7.6%-9.0%
year-over-year as compared with 6.0%-9.0% 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 $0.35-$0.37 per share of equity-based compensation
expense, and gain from divestiture of OpenMarket, net of related
tax effects
- Expects pro forma(2)
non-GAAP diluted earnings per share growth of roughly 9.1%-10.5%
year-over-year as compared with 7.5%-10.5% 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 $0.35-$0.37 per share of equity-based compensation
expense, and gain from divestiture of OpenMarket, net of related
tax effects
- Expects free cash
flow of approximately $650 million, comprised of cash flow from
operations, less net capital expenditures and other, as compared
with $620 million previously
- Reiterates expected
normalized free cash flow of approximately $820 million; normalized
free cash flow excludes expected capital expenditure of $110
million related to the new campus development in Israel, $40
million of capital gains tax in relation to the divestiture of
OpenMarket, and other items
Our fourth fiscal quarter 2021 and full year fiscal 2021 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,
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.
Appointment of Board Member Amdocs is pleased
to announce the appointment of Sarah Ruth Davis to the company’s
board of directors, effective August 2, 2021, and subject to
re-election at Amdocs’ next annual general meeting on Friday,
January 28, 2022. For more information, please visit the Investor
Relations section of Amdocs’ website at
https://investors.amdocs.com/board-directors
Conference Call Details Amdocs will host a
conference call on August 4, 2021 at 5:00 p.m. Eastern Time to
discuss the Company's third 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 3478186. 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, 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’ purpose is to enrich lives
and progress society, using creativity and technology to build a
better connected world. Amdocs and its 27,000 employees partner
with the leading players in the communications and media industry,
enabling next-generation experiences in 85 countries. Our
cloud-native, open and dynamic portfolio of digital solutions,
platforms and services brings greater choice, faster time to market
and flexibility, to better meet the evolving needs of our customers
as they drive growth, transform and take their business to the
cloud. Listed on the NASDAQ Global Select Market, Amdocs had
revenue of $4.2 billion in fiscal 2020.
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.
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 that
the exchange rates in the current period were unchanged from the
prior period
AMDOCS LIMITED
Consolidated Statements of
Income (In thousands, except per share
data)
|
Three months ended |
|
Nine months ended |
|
June 30, |
|
June 30, |
|
2021(a) |
|
2020 |
|
2021(a) |
|
2020 |
|
|
|
|
|
|
|
|
Revenue |
$ |
1,066,254 |
|
$ |
1,026,201 |
|
$ |
3,201,331 |
|
$ |
3,116,091 |
|
|
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
|
|
|
Cost of revenue |
689,370 |
|
681,725 |
|
2,103,601 |
|
2,052,007 |
Research and development |
80,794 |
|
70,093 |
|
231,617 |
|
206,199 |
Selling, general and administrative |
122,401 |
|
109,612 |
|
361,240 |
|
352,187 |
Amortization of purchased intangible assets and other |
18,770 |
|
17,240 |
|
60,510 |
|
57,878 |
|
911,335 |
|
878,670 |
|
2,756,968 |
|
2,668,271 |
Operating income |
154,919 |
|
147,531 |
|
444,363 |
|
447,820 |
|
|
|
|
|
|
|
|
Interest and other
income (expense), net |
334 |
|
(2,417) |
|
(9,698) |
|
(5,059) |
Gain from sale of a
business |
- |
|
- |
|
226,410 |
|
- |
Income before income
taxes |
155,253 |
|
145,114 |
|
661,075 |
|
442,761 |
|
|
|
|
|
|
|
|
Income taxes |
9,103 |
|
24,707 |
|
96,226 |
|
79,384 |
Net income |
$ |
146,150 |
|
$ |
120,407 |
|
$ |
564,849 |
|
$ |
363,377 |
Basic earnings per share |
$ |
1.15 |
|
$ |
0.90 |
|
$ |
4.37 |
|
$ |
2.71 |
Diluted earnings per
share |
$ |
1.14 |
|
$ |
0.90 |
|
$ |
4.34 |
|
$ |
2.70 |
Basic weighted average number
of shares outstanding |
127,172 |
|
133,150 |
|
129,362 |
|
134,013 |
Diluted weighted average
number of shares outstanding |
128,050 |
|
133,593 |
|
130,115 |
|
134,758 |
Cash dividends declared per
share |
$ |
0.36 |
|
$ |
0.3275 |
|
$ |
1.0475 |
|
$ |
0.94 |
AMDOCS LIMITEDSelected
Financial Metrics(In thousands, except per share
data)
|
Three months ended |
|
Nine months ended |
|
June 30, |
|
June 30, |
|
2021(a) |
|
2020 |
|
2021(a) |
|
2020 |
|
|
|
|
|
|
|
|
Revenue |
$ |
1,066,254 |
|
$ |
1,026,201 |
|
$ |
3,201,331 |
|
$ |
3,116,091 |
|
|
|
|
|
|
|
|
Non-GAAP operating income |
187,606 |
|
175,476 |
|
560,470 |
|
533,940 |
|
|
|
|
|
|
|
|
Non-GAAP net income |
173,283 |
|
143,198 |
|
474,350 |
|
433,042 |
|
|
|
|
|
|
|
|
Non-GAAP diluted earnings
per share |
$ |
1.35 |
|
$ |
1.07 |
|
$ |
3.65 |
|
$ |
3.21 |
|
|
|
|
|
|
|
|
Diluted weighted average
number of shares outstanding |
128,050 |
|
133,593 |
|
130,115 |
|
134,758 |
|
|
|
|
|
|
|
|
Free Cash Flows and Normalized Free Cash
Flow(In thousands)
|
Three months ended |
|
Nine months ended |
|
June 30, |
|
June 30, |
|
2021 |
|
2020 |
|
2021 |
|
2020 |
|
|
|
|
|
|
|
|
Net Cash Provided by
Operating Activities(a) |
$ |
189,873 |
|
$ |
186,680 |
|
$ |
726,094 |
|
$ |
453,456 |
|
|
|
|
|
|
|
|
Purchases of property and equipment, net (c) |
(50,255) |
|
(41,250) |
|
(149,565) |
|
(145,955) |
|
|
|
|
|
|
|
|
Free Cash Flow |
139,618 |
|
145,430 |
|
576,529 |
|
307,501 |
|
|
|
|
|
|
|
|
Tax payment on sale of
business(b) |
13,597 |
|
- |
|
38,787 |
|
- |
|
|
|
|
|
|
|
|
Payments of acquisition
related liabilities |
- |
|
7,667 |
|
13,234 |
|
9,417 |
|
|
|
|
|
|
|
|
Payments for previously
expensed restructuring charges |
- |
|
284 |
|
- |
|
1,929 |
|
|
|
|
|
|
|
|
Net capital expenditures
related to the new campus development |
25,324 |
|
15,460 |
|
67,879 |
|
46,752 |
|
|
|
|
|
|
|
|
Normalized Free Cash Flow |
$ |
178,539 |
|
$ |
168,841 |
|
$ |
696,429 |
|
$ |
365,599 |
|
|
|
|
|
|
|
|
|
|
|
|
(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 $233
and $133 for the nine months ended June 30, 2021 and 2020,
respectively.
AMDOCS
LIMITEDReconciliation of Selected
Financial Metrics from GAAP to Non-GAAP(In
thousands)
|
Three months ended June 30,
2021(a) |
|
|
Reconciliation items |
|
|
GAAP |
Amortizationof purchasedintangibleassets
andother |
Equity based compensationexpense |
Changes incertainacquisitionsrelated liabilitiesmeasured at
fairvalue |
Other |
Tax
effect |
Non-GAAP |
Operating expenses: |
|
|
|
|
|
|
|
Cost of revenue |
$ |
689,370 |
$ |
|
$ |
(6,020) |
$ |
74 |
$ |
- |
$ |
- |
$ |
683,424 |
Research and development |
80,794 |
- |
(1,032) |
- |
- |
- |
79,762 |
Selling, general and administrative |
122,401 |
- |
(6,939) |
- |
- |
- |
115,462 |
Amortization of purchased intangible assets and
other |
18,770 |
(18,770) |
- |
- |
- |
- |
- |
Total
operating expenses |
911,335 |
(18,770) |
(13,991) |
74 |
- |
- |
878,648 |
|
|
|
|
|
|
|
|
Operating income |
154,919 |
18,770 |
13,991 |
(74) |
- |
- |
187,606 |
|
|
|
|
|
|
|
|
Interest and other income
(expense), net |
334 |
- |
- |
- |
(1,510) |
- |
(1,176) |
|
|
|
|
|
|
|
|
Income taxes |
9,103 |
- |
- |
- |
- |
4,044 |
13,147 |
|
|
|
|
|
|
|
|
Net
income |
$ |
146,150 |
$ |
18,770 |
$ |
13,991 |
$ |
(74) |
$ |
(1,510) |
$ |
(4,044) |
$ |
173,283 |
|
Three months endedJune 30,
2020 |
|
|
Reconciliation item |
|
|
GAAP |
Amortization ofpurchasedintangibleassets
andother |
Equity basedcompensationexpense |
Changes in certainacquisitions relatedliabilities
measuredat fair value |
Tax
effect |
Non-GAAP |
Operating expenses: |
|
|
|
|
|
|
Cost of revenue |
$ |
681,725 |
$ |
- |
$ |
(4,985) |
$ |
356 |
$ |
- |
$ |
677,096 |
Research and development |
70,093 |
- |
(711) |
- |
- |
69,382 |
Selling, general and administrative |
109,612 |
- |
(5,365) |
- |
- |
104,247 |
Amortization of purchased
intangible assets and other |
17,240 |
(17,240) |
- |
- |
- |
- |
Total
operating expenses |
878,670 |
(17,240) |
(11,061) |
356 |
- |
850,725 |
|
|
|
|
|
|
|
Operating income |
147,531 |
17,240 |
11,061 |
(356) |
- |
175,476 |
|
|
|
|
|
|
|
Income taxes |
24,707 |
- |
- |
- |
5,154 |
29,861 |
|
|
|
|
|
|
|
Net income |
$ |
120,407 |
$ |
17,240 |
$ |
11,061 |
$ |
(356) |
$ |
(5,154) |
$ |
143,198 |
AMDOCS
LIMITEDReconciliation of Selected Financial
Metrics from GAAP to Non-GAAP(In
thousands)
|
Nine months endedJune 30,
2021(a) |
|
|
Reconciliation items |
|
|
GAAP |
Amortizationofpurchasedintangibleassets
andother |
Equity basedcompensationexpense |
Changes in certainacquisitions relatedliabilities
measuredat fair value |
Gain fromsale of
abusiness |
Other |
Tax
effect |
Non-GAAP |
Operating expenses: |
|
|
|
|
|
|
|
|
Cost of revenue |
$ |
2,103,601 |
$ |
- |
$ |
(16,543) |
$ |
(15,654) |
$ |
- |
$ |
- |
$ |
- |
$ |
2,071,404 |
Research and development |
231,617 |
- |
(2,876) |
- |
- |
- |
- |
228,741 |
Selling, general and administrative |
361,240 |
- |
(20,524) |
- |
- |
- |
- |
340,716 |
Amortization of purchased intangible assets and
other |
60,510 |
(60,510) |
- |
- |
- |
- |
- |
- |
Total
operating expenses |
2,756,968 |
(60,510) |
(39,943) |
(15,654) |
- |
- |
- |
2,640,861 |
|
|
|
|
|
|
|
|
|
Operating income |
444,363 |
60,510 |
39,943 |
15,654 |
- |
- |
- |
560,470 |
|
|
|
|
|
|
|
|
|
Interest and other income
(expense), net |
(9,698) |
- |
- |
- |
- |
(686) |
- |
(10,384) |
|
|
|
|
|
|
|
|
|
Gain from sale of a business |
226,410 |
- |
- |
- |
(226,410) |
- |
- |
- |
|
|
|
|
|
|
|
|
|
Income taxes |
96,226 |
- |
- |
- |
- |
- |
(20,490) |
75,736 |
|
|
|
|
|
|
|
|
|
Net income |
$ |
564,849 |
$ |
60,510 |
$ |
39,943 |
$ |
15,654 |
$ |
(226,410) |
$ |
(686) |
$ |
20,490 |
$ |
474,350 |
|
Nine months endedJune 30,
2020 |
|
|
Reconciliation items |
|
|
GAAP |
Amortizationofpurchasedintangibleassets
andother |
Equity basedcompensationexpense |
Changes in certainacquisitions relatedliabilities
measuredat fair value |
Tax effect |
Non-GAAP |
Operating expenses: |
|
|
|
|
|
|
Cost of revenue |
$ |
2,052,007 |
$ |
- |
$ |
(15,024) |
$ |
4,328 |
$ |
- |
$ |
2,041,311 |
Research and development |
206,199 |
- |
(2,237) |
- |
- |
203,962 |
Selling, general and administrative |
352,187 |
- |
(15,309) |
- |
- |
336,878 |
Amortization of purchased intangible
assets and other |
57,878 |
(57,878) |
- |
- |
- |
- |
Total
operating expenses |
2,668,271 |
(57,878) |
(32,570) |
4,328 |
- |
2,582,151 |
|
|
|
|
|
|
|
Operating income |
447,820 |
57,878 |
32,570 |
(4,328) |
- |
533,940 |
|
|
|
|
|
|
|
Income taxes |
79,384 |
- |
- |
- |
16,455 |
95,839 |
|
|
|
|
|
|
|
Net income |
$ |
363,377 |
$ |
57,878 |
$ |
32,570 |
$ |
(4,328) |
$ |
(16,455) |
$ |
433,042 |
|
|
|
|
|
|
|
|
|
|
|
|
|
AMDOCS LIMITEDCondensed
Consolidated Balance Sheets(In
thousands)
|
As of |
|
June 30, 2021 |
|
September 30,2020 |
|
|
|
|
ASSETS |
|
|
|
|
|
|
|
Current
assets |
|
|
|
Cash and cash equivalents |
$ |
853,301 |
|
$ |
983,188 |
Short-term interest-bearing
investments |
193,353 |
|
752 |
Accounts
receivable, net, including unbilled of $177,166 and $175,548,
respectively |
925,118 |
|
861,033 |
Prepaid
expenses and other current assets |
213,387 |
|
229,604 |
Total current assets |
2,185,159 |
|
2,074,577 |
|
|
|
|
Property
and equipment, net |
654,111 |
|
607,951 |
Lease
assets |
253,322 |
|
295,494 |
Goodwill
and other intangible assets, net |
2,898,365 |
|
2,874,979 |
Other
noncurrent assets |
576,544 |
|
488,620 |
Total
assets |
$ |
6,567,501 |
|
$ |
6,341,621 |
|
|
|
|
LIABILITIES AND SHAREHOLDERS’ EQUITY |
|
|
|
|
|
|
|
Current
liabilities |
|
|
|
Accounts
payable, accruals and other |
$ |
996,785 |
|
$ |
930,259 |
Short-term financing arrangement |
- |
|
100,000 |
Lease
liabilities |
58,031 |
|
59,100 |
Deferred
revenue |
220,389 |
|
126,841 |
Total current liabilities |
1,275,205 |
|
1,216,200 |
Lease
liabilities |
195,844 |
|
230,076 |
Long-term debt, net of unamortized debt issuance costs |
644,414 |
|
644,023 |
Other
noncurrent liabilities |
778,290 |
|
586,167 |
Total
Amdocs Limited Shareholders’ equity |
3,631,239 |
|
3,622,646 |
Noncontrolling interests |
42,509 |
|
42,509 |
Total
equity |
3,673,748 |
|
3,665,155 |
Total
liabilities and equity |
$ |
6,567,501 |
|
$ |
6,341,621 |
|
|
|
|
|
|
AMDOCS
LIMITEDConsolidated Statements of Cash
Flows(In thousands)
|
Nine months ended June
30, |
|
2021 |
|
2020 |
|
|
|
|
Cash Flow from Operating Activities: |
|
|
|
Net
income(a) |
$ |
564,849 |
|
$ |
363,377 |
Reconciliation of net income to net cash provided by operating
activities: |
|
|
|
Depreciation and amortization |
157,024 |
|
144,715 |
Amortization of debt issuance costs |
409 |
|
9 |
Equity-based compensation expense |
39,943 |
|
32,570 |
Gain from sale of a business |
(226,410) |
|
- |
Deferred income taxes |
(64,882) |
|
43,916 |
Loss from short-term interest-bearing
investments |
1,006 |
|
- |
Net changes in operating assets and liabilities, net of amounts
acquired: |
|
|
|
Accounts receivable, net |
(121,653) |
|
18,522 |
Prepaid expenses and other current
assets |
(434) |
|
(12,603) |
Other noncurrent assets |
(19,387) |
|
(14,110) |
Lease assets and liabilities, net |
6,724 |
|
(9,869) |
Accounts payable, accrued expenses and
accrued personnel |
110,982 |
|
(98,670) |
Deferred revenue |
205,915 |
|
917 |
Income taxes payable, net |
44,711 |
|
(13,752) |
Other noncurrent liabilities |
27,297 |
|
(1,566) |
Net cash provided by operating activities |
726,094 |
|
453,456 |
|
|
|
|
Cash Flow from Investing Activities: |
|
|
|
Purchase of property and equipment, net
(c) |
(149,565) |
|
(145,955) |
Proceeds from sale of short-term interest-bearing
investments |
14,333 |
|
- |
Purchase of short-term interest-bearing investments |
(208,626) |
|
- |
Net cash paid for business and intangible assets
acquisitions |
(111,932) |
|
(29,258) |
Net cash received from sale of a business |
288,990 |
|
- |
Other |
(332) |
|
(5,290) |
Net cash used in investing activities |
(167,132) |
|
(180,503) |
|
|
|
|
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 |
- |
|
645,685 |
Repurchase of shares |
(539,969) |
|
(270,062) |
Proceeds from employee stock options exercises |
84,474 |
|
95,979 |
Payments of dividends |
(131,892) |
|
(120,493) |
Payment of contingent consideration from a business
acquisition |
(1,462) |
|
(1,411) |
Other |
- |
|
(240) |
Net cash (used in) provided by financing activities |
(688,849) |
|
449,458 |
|
|
|
|
Net (decrease) increase in cash and cash equivalents |
(129,887) |
|
722,411 |
Cash and cash equivalents at beginning of period |
983,188 |
|
471,632 |
Cash and cash equivalents at end of period |
$ |
853,301 |
|
$ |
1,194,043 |
|
|
|
|
|
|
AMDOCS
LIMITEDSupplementary
Information(In millions)
|
Three months ended |
|
June 30,
2021(a) |
|
March 31,
2021(a) |
|
December 31,2020 |
|
September 30, 2020 |
|
June 30, 2020 |
North
America |
$ |
686.1 |
|
$ |
679.1 |
|
$ |
703.4 |
|
$ |
681.6 |
|
$ |
685.9 |
Europe |
155.7 |
|
148.8 |
|
171.6 |
|
165.3 |
|
145.4 |
Rest of the World |
224.5 |
|
220.8 |
|
211.3 |
|
206.0 |
|
194.9 |
Total Revenue |
$ |
1,066.3 |
|
$ |
1,048.7 |
|
$ |
1,086.3 |
|
$ |
1,052.9 |
|
$ |
1,026.2 |
|
Three months ended |
|
June 30, 2021 |
|
March 31, 2021 |
|
December 31,2020 |
|
September 30, 2020 |
|
June 30, 2020 |
Managed
ServicesRevenue |
$ |
650.5 |
|
$ |
634.6 |
|
$ |
623.7 |
|
$ |
610.5 |
|
$ |
604.5 |
|
As of |
|
June 30,
2021(d) |
|
March 31,
2021(d) |
|
December 31,2020(d) |
|
September 30, 2020 |
|
June 30, 2020 |
12-Month
Backlog |
$ |
3,590 |
|
$ |
3,540 |
|
$ |
3,490 |
|
$ |
3,620 |
|
$ |
3,480 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(d) Excludes OpenMarket
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