Amdocs Limited Reports Record Quarterly Revenue of $826M, Up 2.4% YoY

    Amdocs Limited Reports Record Quarterly Revenue of $826M, Up 2.4% YoY

Delivers Record Quarterly Diluted Non-GAAP EPS of $0.73, Up 14% YoY

Quarterly Diluted GAAP EPS of $0.61, Up 15% YoY

PR Newswire

ST. LOUIS, Jan. 30, 2013

ST. LOUIS, Jan. 30, 2013 /PRNewswire/ --

Key highlights:

  oFirst fiscal quarter revenue of $826 million, within the $810-$840 million
    guidance range. Foreign currency movements positively affected revenue by
    approximately $1.5 million relative to the fourth quarter of fiscal 2012
  oFirst fiscal quarter non-GAAP operating income of $137 million; non-GAAP
    operating margin of 16.6%; GAAP operating income of $113 million
  oFirst fiscal quarter diluted non-GAAP EPS of $0.73, compared to the
    $0.68-$0.74 guidance range, excluding amortization of purchased intangible
    assets and other acquisition related costs and equity-based compensation
    expense, net of related tax effects
  oDiluted GAAP EPS of $0.61 for the first fiscal quarter, compared to the
    $0.56-$0.64 guidance range
  oFree cash flow of $115 million for the first fiscal quarter
  oTwelve-month backlog of $2.8 billion at the end of the first fiscal
    quarter, up $10 million from the end of the fourth quarter of fiscal 2012
  oRepurchased $104 million of ordinary shares during the first fiscal
    quarter
  oThe board of directors approved $0.13 per share quarterly cash dividend to
    be paid on April 19, 2013.
  oSecond quarter fiscal 2013 guidance: Expected revenue of approximately
    $820-$850 million and diluted non-GAAP EPS of $0.69-$0.75, 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. Diluted GAAP EPS is expected to be
    approximately $0.58-$0.66

Amdocs Limited (NYSE: DOX) today reported that for its fiscal quarter ended
December 31, 2012, revenue was $826.4 million, up 0.5% sequentially from the
fourth fiscal quarter of 2012 and up 2.4% as compared to last year's first
fiscal quarter. Net income on a non-GAAP basis was $119.4 million, or $0.73
per diluted share, compared to non-GAAP net income of $111.3 million, or $0.64
per diluted share, in the first quarter of fiscal 2012. Non-GAAP net income
excludes amortization of purchased intangible assets and other acquisition
related costs and equity-based compensation expenses of $20.4 million, net of
related tax effects, in the first quarter of fiscal 2013 and excludes such
amortization and other acquisition related costs and equity-based compensation
expenses of $18.5 million, net of related tax effects, in the first quarter of
fiscal 2012. The Company's GAAP net income for the first quarter of fiscal
2013 was $99.0 million, or $0.61 per diluted share, compared to GAAP net
income of $92.7 million, or $0.53 per diluted share, in the prior fiscal
year's first quarter.

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"We began fiscal 2013 with a record quarter for revenue that was partly driven
by a return to year-on-year growth in our North American market. Specifically,
we see renewed momentum at AT&T, which is focused on the implementation of its
new strategy, including data monetization. In our emerging markets, we
delivered 19% year-on-year growth in the first quarter and we are on-track to
achieve our goal of double-digit growth in this region in fiscal 2013. In
Europe, we experienced year-on-year declines owing to difficult macroeconomic
conditions and the anticipated ramp down of some transformation projects with
certain customers. However, we believe our competitive position in Europe
remains strong, and we continue to see opportunities for new business across
our portfolio of products and services," said Eli Gelman, chief executive
officer of Amdocs Management Limited.

Gelman continued, "Within emerging markets, Latin America remains a critical
growth region for Amdocs. Our strategy to focus on securing the large carriers
of the region, including America Movil, Telefonica and TIM, is resulting in
new customer wins and increased market penetration. We are delighted to
announce that Claro Chile, a wholly owned entity of America Movil, has
selected Amdocs to consolidate its business and operational support systems
(BSS/OSS). Similarly, we recently announced that Amdocs was selected by
Telefonica Argentina to implement a transformation program, marking our first
project with the Telefonica group in Latin America."

Gelman concluded, "This was another quarter of solid execution that comes on
the heels of our strong competitive position and focus. Combined with the
strict control of our operating margins, we are comfortable that we can meet
our fiscal 2013 guidance and provide an attractive total return to our
shareholders."

Financial Discussion of First Fiscal Quarter Results
Free cash flow was $115 million for the quarter, comprised of cash flow from
operations of $145 million less $30 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 $2.8 billion at the
end of the first quarter of fiscal 2013.

Financial Outlook
Amdocs expects that revenue for the second quarter of fiscal 2013 will be
approximately $820-$850 million. Diluted earnings per share on a non-GAAP
basis for the second fiscal quarter are expected to be $0.69-$0.75, 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 second fiscal quarter will be $0.58-$0.66.

Quarterly Cash Dividend Program
On January 30, 2013, the Board approved the next quarterly cash dividend
payment and set March 28, 2013 as the record date for determining the
shareholders entitled to receive the dividend, which is payable on April 19,
2013.

Conference Call Details
Amdocs will host a conference call on January 30, 2013 at 5:00 p.m. Eastern
Time to discuss the Company's first fiscal quarter results. The call will 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 service,
non-GAAP research and development, non-GAAP selling, general and
administrative, non-GAAP operating income, non-GAAP operating margin, non-GAAP
income taxes, non-GAAP net income, and non-GAAP diluted earnings per share.
These non-GAAP measures exclude the following items:

  oamortization of purchased intangible assets and other acquisition related
    costs;
  oequity-based compensation expense; and
  otax 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
service, non-GAAP research and development, non-GAAP selling, general and
administrative, non-GAAP operating income, non-GAAP operating margin, non-GAAP
income taxes, non-GAAP net income, and non-GAAP diluted earnings per share
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, 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 service, 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
For 30 years, Amdocs has ensured service providers' success and embraced their
biggest challenges. To win in the connected world, service providers rely on
Amdocs to simplify the customer experience, harness the data explosion, stay
ahead with new services and improve operational efficiency. The global company
uniquely combines a market-leading BSS, OSS and network control product
portfolio with value-driven professional services and managed services
operations. With revenue of $3.2 billion in fiscal 2012, Amdocs and its
20,000 employees serve customers in more than 60 countries.

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, the Company specifically disclaims any obligation to do
so. These and other risks are discussed at greater length in the Company's
filings with the Securities and Exchange Commission, including in our Annual
Report on Form 20-F for the fiscal year ended September 30, 2012 filed on
December 11, 2012.



AMDOCS LIMITED
Consolidated Statements of Income
(in thousands, except per share data)
                                     Three months ended
                                     December 31,
                                     2012                  2011
Revenue:
License                              $       18,916  $      
                                                           35,796
Service                              807,443               771,214
                                     826,359               807,010
Operating expenses:
Cost of license                      636                   931
Cost of service                      535,013               516,181
Research and development             59,360                61,307
Selling, general and administrative  107,460               106,337
Amortization of purchased            11,233                13,206
intangible assets and other
                                     713,702               697,962
Operating income                     112,657               109,048
Interest and other expense, net      108                   3,613
Income before income taxes           112,549               105,435
Income taxes                         13,534                12,704
Net income                           $       99,015  $      
                                                           92,731
Basic earnings per share             $             $        
                                     0.61                  0.54
Diluted earnings per share           $             $        
                                     0.61                  0.53
Basic weighted average number of     162,176               172,712
shares outstanding
Diluted weighted average number of   163,587               173,812
shares outstanding
Cash dividends declared per share    $             $         
                                     0.13                   -



AMDOCS LIMITED
Selected Financial Metrics
(in thousands, except per share data)
                                            Three months ended
                                            December 31,
                                            2012              2011
Revenue                                     $   826,359     $   807,010
Non-GAAP operating income                   137,215           132,807
Non-GAAP net income                         119,424           111,254
Non-GAAP diluted earnings per share         $      0.73  $      0.64
Diluted weighted average number of shares   163,587           173,812
outstanding



AMDOCS LIMITED
Reconciliation of Selected Financial Metrics from GAAP to Non-GAAP
(in thousands)
                    Three months ended

                    December 31, 2012
                              Reconciliation items
                              Amortization of
                              purchased       Equity based   Tax
                    GAAP      intangible      compensation   effect  Non-GAAP
                              assets and      expense
                              other
Operating expenses:
Cost of license     $     $        $        $    $    
                    636        -              -               -  636
Cost of service     535,013   -               (5,033)        -       529,980
Research            59,360    -               (1,025)        -       58,335
anddevelopment
Selling, general    107,460   -               (7,267)        -       100,193
and administrative
Amortization of
purchased           11,233    (11,233)        -              -       -
intangible assets
and other
Total operating     713,702   (11,233)        (13,325)       -       689,144
expenses
Operating income    112,657   11,233          13,325         -       137,215
Income taxes        13,534    -               -              4,149   17,683
Net income          $        $   11,233   $    13,325 $      $ 
                    99,015                                  (4,149) 119,424

                   Three months ended

                   December 31, 2011
                             Reconciliation items
                             Amortization
                             of purchased   Equity based   Tax
                   GAAP      intangible     compensation   effect    Non-GAAP
                             assets and     expense
                             other
Operating
expenses:
Cost of license    $     $        $        $     $    
                   931         -           -              -      931
Cost of service    516,181   -              (5,603)        -         510,578
Research and     61,307    -              (1,041)        -         60,266
development
Selling, general   106,337   -              (3,909)        -         102,428
and administrative
Amortization of
purchased          13,206    (13,206)       -              -         -
intangible assets
and other
Total operating    697,962   (13,206)       (10,553)       -         674,203
expenses
Operating income   109,048   13,206         10,553         -         132,807
Income taxes       12,704    -              -              5,236     17,940
Net income         $        $   13,206  $    10,553 $        $ 
                   92,731                                 (5,236)   111,254



AMDOCS LIMITED
Condensed Consolidated Balance Sheets
(in thousands)
                                           As of
                                            December 31,      September 30,
                                            2012              2012
ASSETS
Current assets
Cash, cash equivalents and short-term       $   961,324    $   1,118,177
interest-bearing investments
Accounts receivable, net, including
unbilled of $128,405 and $130,697,          682,268           687,223
respectively
Deferred income taxes and taxes receivable  124,681           109,282
Prepaid expenses and other current assets   151,800           126,388
 Total current assets                    1,920,073         2,041,070
Equipment and leasehold improvements, net   272,923           277,907
Goodwill and other intangible assets, net   1,871,666         1,883,064
Other noncurrent assets                     432,937           443,182
Total assets                                $   4,497,599  $   4,645,223
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
Accounts payable, accruals and other        $   680,909    $   690,823
Short-term financing arrangements           -                 200,000
Deferred revenue                            140,082           145,184
Deferred income taxes and taxes payable     22,830            29,551
 Total current liabilities               843,821           1,065,558
Other noncurrent liabilities                559,324           546,463
Shareholders' equity                        3,094,454         3,033,202
Total liabilities and shareholders' equity  $   4,497,599  $   4,645,223



AMDOCS LIMITED
Consolidated Statements of Cash Flows
(in thousands)
                                              Three months ended December 31,
                                              2012             2011
Cash Flow from Operating Activities:
Net income                                    $         $       
                                              99,015           92,731
Reconciliation of net income to net cash
provided by operating activities:
 Depreciation and amortization             39,288           40,542
 Equity-based compensation expense         13,325           10,553
 Deferred income taxes                     3,782            (5,776)
Excess tax benefit from equity-based          (56)             (37)
compensation
 Loss from short-term interest-bearing     481              602
investments
Net changes in operating assets and
liabilities:
 Accounts receivable                       9,306            (20,673)
 Prepaid expenses and other current assets (21,054)         (1,470)
 Other noncurrent assets                   (3,879)          (6,239)
 Accounts payable, accrued expenses and    9,868            40,203
accrued personnel
 Deferred revenue                          (7,155)          (6,580)
 Income taxes payable                      (8,752)          9,049
 Other noncurrent liabilities              11,294           (2,959)
Net cash provided by operating activities     145,463          149,946
Cash Flow from Investing Activities:
Payments for purchase of equipment and        (29,903)         (28,314)
leasehold improvements, net
Proceeds from sale of short-term              76,296           74,108
interest-bearing investments
Purchase of short-term interest-bearing       (158,059)        (61,675)
investments
Other                                         (1,530)          (2,967)
Net cash used in investing activities         (113,196)        (18,848)
Cash Flow from Financing Activities:
Payments under financing arrangements         (200,000)        (250,000)
Repurchase of shares                          (103,707)        (139,715)
Proceeds from employee stock options          54,358           23,852
exercised
Payment of dividend                           (21,120)         -
Payments under capital lease and other        (181)            (190)
Net cash used in financing activities         (270,650)        (366,053)
Net decrease in cash and cash equivalents     (238,383)        (234,955)
Cash and cash equivalents at beginning of     879,158          831,371
period
Cash and cash equivalents at end of period    $          $      
                                              640,775          596,416



AMDOCS LIMITED
Supplementary Information
(in millions)
                 Three months ended
                 December31,  September30,  June 30,  March     December31,
                 2012          2012           2012      31,       2011
                                                        2012
North America    $   593.6  $   570.4   $       $       $   573.8
                                              558.7    563.2
Europe           99.2          113.1          106.5     111.8     110.3
Rest of the      133.6         138.6          143.6     133.9     122.9
World
Total Revenue    $   826.4  $   822.1   $       $       $   807.0
                                              808.8    808.9
                 As of
                 December 31,  September 30,  June 30,  March     December 31,
                 2012          2012           2012      31,       2011
                                                        2012
Emerging Markets $   98.2   $   99.9    $       $       $   82.5
Revenue                                       101.7    89.4
                 As of
                 December 31,  September 30,  June 30,  March     December 31,
                 2012          2012           2012      31,       2011
                                                        2012
Managed Services $   429.8  $   423.7   $       $       $   419.7
Revenue                                       426.8    414.4
                 Three months ended
                 December 31,  September 30,  June 30,  March     December 31,
                 2012          2012           2012      31,       2011
                                                        2012
Customer                                      $       $  
Experience       $   783.8  $   783.1   766.2    758.9    $   758.0
Systems
Directory        42.6          39.0           42.6      50.0      49.0
Total Revenue    $   826.4  $   822.1   $       $       $   807.0
                                              808.8    808.9
                 As of
                 December 31,  September 30,  June 30,  March     December 31,
                 2012          2012           2012      31,       2011
                                                        2012
12-Month Backlog $   2,800  $   2,790   $       $       $   2,690
                                              2,760    2,725



SOURCE Amdocs

Website: http://www.amdocs.com
Contact: Elizabeth W. Grausam McDermon, Vice President, Corporate Strategy and
Investor Relations, Amdocs, +1-314-212-8328, dox_info@amdocs.com
 
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