Fourth Quarter Results for Fiscal 2002
St. Louis, MO - November 6, 2002 -- Amdocs Limited (NYSE: DOX) today reported that for the fourth quarter ended September 30, 2002, revenue was $355.5 million, a decrease of 14.4% from last year's fourth quarter. Excluding acquisition-related costs and other non-recurring items and related tax effects, net income decreased 47.9% to $40.7 million, or $0.19 per diluted share, compared to net income of $78.3 million, or $0.35 per diluted share, in the fourth quarter of fiscal 2001. The Company's as-reported results, which include acquisition-related charges for amortization of goodwill and purchased intangible assets and other non-recurring items related to gain from repurchase of convertible notes, a restructuring charge related to cost reduction measures and related tax effects, showed a net loss of $9.0 million, or $0.04 per diluted share, compared to net income of $19.9 million, or $0.09 per diluted share, in the fourth quarter of fiscal 2001.
- Revenue of $355.5 million, a decrease of 14.4% from prior year
- Proforma EPS of $0.19
- Free cash flow of $82 million in quarter
- Cash balance increased to $1.048 billion at end of quarter
- Fiscal 2002 revenue increased 5.2% to $1.6 billion
- First quarter fiscal 2003 guidance: revenue of $333-$338 million and proforma EPS of $0.18-$0.20
Dov Baharav, Chief Executive Officer of Amdocs Management Limited, said, "The telecom market continued to weaken during the fourth quarter with service providers very hesitant to commit to new projects. Despite these challenges, Amdocs achieved its financial and business goals for the quarter through disciplined execution. We generated strong cash flow from operations, which contributed to an increased quarter-end cash balance. We also expanded our market presence with five new wins. We do not expect the market to improve in the next quarter. We believe in the market long-term and accordingly, continue to make significant investments in product development to ensure our growth when the market recovers."
Under the leadership of its new management team, Amdocs implemented a new organizational structure during the quarter. The Company's operations will be centered around two main groups, the Offering Group and the Delivery Group. The Offering Group is focusing on developing and marketing best-in-class products that meet the current and future needs of our customers and enhances the Company's existing suite of leading products. The Delivery Group is leveraging all existing geographic-based, customer service groups and is focusing on enhancing the Company's unparalleled track record of service delivery by being closer to the customer and their business processes.
During the fourth quarter, Amdocs won five new projects:
Operating And Financial Highlights
- End-to-end billing system supporting regional operations for Cable & Wireless, one of the largest service providers in the world.
- Amdocs Mobile to support prepaid-postpaid convergence for excelcom, a leading mobile carrier in Indonesia.
- Amdocs Enabler supporting convergent voice and data billing for Connex (MobiFon S.A.), a Vodafone associate which is the largest cellular operator in Romania.
- For an existing mobile customer - a major expansion of Amdocs data center and billing operations support services.
- Amdocs ClarifyCRM for a major mobile carrier.
Amdocs also extended its outsourcing agreement with Sensis (a Telstra subsidiary for advertising, information and directories) through to 2007.
During the fourth quarter:
The Company also noted that for the fiscal year ended September 30, 2002, revenue grew by 5.2% to $1.61 billion. Excluding acquisition-related charges and other items, net income for fiscal 2002 decreased 11.4% to $249.0 million, while diluted earnings per share decreased 9.7% to $1.12. The Company's as-reported results for fiscal 2002, which included acquisition-related charges and other items, showed a net loss of $5.1 million, or $0.02 per diluted share, compared to net income of $66.4 million, or $0.29 per diluted share, in fiscal 2001.
- TA Orange, a wireless carrier in Thailand, went live with Amdocs end-to-end billing system.
- Amdocs released version 11.0 of Amdocs ClarifyCRM, with new browser-based applications.
- Amdocs implemented its previously-announced cost-reduction program aimed at reducing expenses by approximately $30 million each quarter, primarily in personnel and facilities-related savings, compared to expense levels in the third quarter.
- The Company used approximately $49 million to repurchase convertible notes with a face value of approximately $55 million.
- Free cash flow, defined as cash flow from operations less capital expenditures and payments on capital leases, was $82 million in the quarter.
The Company expects that revenue for the first quarter ending December 31, 2002, will be approximately $333-$338 million, with proforma earnings per share for the quarter expected to be approximately $0.18-$0.20, excluding acquisition-related costs.
Amdocs will host a conference call on November 6, 2002 at 5 p.m. Eastern Standard Time to discuss the Company's fourth quarter results. The call will be carried live on the Internet via www.vcall.com and the Amdocs website, www.amdocs.com.
Amdocs is the world's leading provider of billing and CRM to the communications industry. With a 20-year track record of delivery excellence, our products empower major communications operators around the globe. We enable rapid time-to-market for next generation voice, content, commerce and application services, while enhancing subscriber loyalty and lowering total cost of ownership. We offer our customers flexible modes of delivery -- products, solutions and outsourcing. For more information, visit our web site at www.amdocs.com
This press release may contain forward-looking statements as defined under the Securities Act of 1933, as amended, 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 mobile, wireline and IP business segments, 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. 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 filed December 27, 2001 and our Form 6-K filed on August 15, 2002.
Thomas G. O’Brien
Treasurer and Director of Investor Relations