Fourth quarter revenue increases 31.9% to $415.4 million
Annual revenue tops $1.5 billion
Board of Directors authorizes stock repurchase
St. Louis, MO – November 6, 2001 -- Amdocs Limited (NYSE: DOX) today reported that for the fourth quarter ended September 30, 2001, revenue reached $415.4 million, an increase of 31.9% over last year’s fourth quarter. Excluding acquisition-related charges, net income increased 39.8% to $78.3 million, while earnings per share increased 40.0% to $0.35 per diluted share, compared to net income of $56.0 million, or $0.25 per diluted share, in the fourth quarter of fiscal 2000. The Company’s as-reported net income, which includes acquisition-related charges for amortization of goodwill and purchased intangible assets and related tax effects, was $19.9 million, or $0.09 per diluted share, compared to a net income of $13.0 million, or $0.06 per diluted share, in the fourth quarter of fiscal 2000.
Avi Naor, Chief Executive Officer of Amdocs Management Limited, noted, “We achieved strong revenue and operating results this quarter. Our ability to achieve stability and growth in the current business environment is based on our long-term relationships with the market leaders, which generate a solid, constantly expanding flow of recurring revenues. Our extensive portfolio of products and services, together with our global presence, adds stability by allowing us to adjust to shifting needs and opportunities within the evolving communications market. Moreover, in the current environment, Amdocs’ reliability and stability have become decisive criteria in vendor selection. These factors are fueling continued growth through new sales in both the wireline and mobile sectors.”
Naor continued, “We are focusing efforts on further strengthening our leadership position in the market. These initiatives encompass products, expanded customer base and operations. Through our strong R&D program, together with the pending acquisition of Clarify, a leading CRM vendor, we are expanding our market coverage and enhancing our product line. This is helping us drive the expansion of our customer base. We believe these initiatives can significantly strengthen our leadership of the communications CRM and billing market and will facilitate continued growth moving forward.”
The Company also announced a stock buyback program. Earlier today, Amdocs’ Board of Directors authorized the repurchase of up to 11 million shares, or approximately 5% of the Company's outstanding common stock, on the open market, at times and prices considered appropriate by the Company. The Company intends to fund the repurchase with available funds.
Mr. Naor stated that the repurchase reflects management’s confidence in the Company’s future. Naor said, ”The underlying fundamentals of our business are excellent. CRM and billing systems are mission-critical for our customers as they seek, for example, to improve customer retention, enhance productivity and support advanced data services. Even in today’s environment, we are experiencing strong demand for our offerings. As the vendor of choice for the world’s leading communications providers, we have a full, diverse pipeline and high visibility. While we have encountered longer sales cycles, the fundamentals of our business are compelling – we are the foremost vendor in an outstanding market. Looking forward, we are very confident regarding our future business prospects.”
The Company also noted that for the fiscal year ended September 30, 2001, revenue grew by 37.2% to a record $1.53 billion. Excluding acquisition-related charges of amortization of goodwill and purchased intangible assets and related tax effects, and in fiscal 2000 also in-process research and development and other indirect acquisition costs, net income for fiscal 2001 increased 47.8% to $281.1 million, while diluted earnings per share increased 40.9% to $1.24.
Amdocs is the world’s leading provider of CRM, billing and order management systems for the communications industry. Amdocs has an unparalleled success record in project delivery of its mission-critical products. With human resources of over 8,600 information systems professionals, Amdocs supports a global customer base. For more information visit our Web site at www.amdocs.com.
Amdocs will host a conference call on November 6 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.
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, 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 Form 6-K filed on August 9, 2001 and in our Form 20-F/A filed on April 3, 2001.
Thomas G. O'Brien
Treasurer and Director of Investor Relations