Stock Repurchase Plan Expanded to 20 Million Shares by Board of Directors
St. Louis, MO – April 23, 2002 -- Amdocs Limited (NYSE: DOX) today reported that for the second quarter ended March 31, 2002, revenue reached $455.3 million, an increase of 22.3% over last year's second quarter. Excluding acquisition-related costs, net income increased 22.5% to $82.9 million, while earnings per share increased 23.3% to $0.37 per diluted share, compared to net income of $67.6 million, or $0.30 per diluted share, in the second quarter of fiscal 2001. 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 $26.4 million, or $0.12 per diluted share, compared to a net income of $15.4 million, or $0.07 per diluted share, in the second quarter of fiscal 2001.
Avi Naor, Chief Executive Officer of Amdocs Management Limited, said, "This quarter, we continued to meet revenue and profitability targets and our ability to generate cash remains very high. In light of the current economy, I am very satisfied with the results. We expanded our customer base and had a very strong presence with wireline customers. We leveraged our outstanding set of offerings, including billing for next generation services and outsourcing services. We saw particular momentum in the CRM area with several new customer wins reflecting our unique ability to offer both full integration with our customer care and billing product and standalone offerings. Notably, our pipeline of new prospects continues to grow reflecting our ability to offer customers the products that meet changing market needs.”
“Carriers are being very careful about committing to new capital expenditures. During the second quarter, we encountered further delays in customers finalizing their buying decisions, even for mission-critical software. We see more decisions being made in a phased approach, with some customers committing only to project elements that are immediately essential. This reflects a more prolonged and deeper market deterioration than had been originally anticipated,” Naor noted. Amdocs expects that revenue for fiscal year ending September 30, 2002, will be approximately $1.73 billion, with pro forma earnings per share for the fiscal year expected to be approximately $1.40, excluding acquisition-related costs and nonrecurring charge.
Naor concluded, “Many procurement decisions for new systems are currently postponed, but the demand is still there, resulting in an expanding pipeline for Amdocs. We believe these mission-critical systems remain a top priority for carriers and will be the first projects to benefit from a recovery in capital spending. Carriers recognize the growing need for the market differentiation offered by Amdocs systems. Leveraging our strong offering and broad, high-quality customer base, we are poised for accelerated growth as the industry emerges from the current transition period. Due to our market leadership position and proven business model, we are very confident of our long term business prospects.”
The Company also announced that its Board of Directors has expanded the existing stock repurchase plan to authorize the purchase of up to 20 million shares, or approximately 9% of the Company’s outstanding common stock. This represents an increase from the 11 million shares originally authorized when the plan was instituted in November 2001. These purchases may be made on the open market, or in privately negotiated transactions, at times and prices considered appropriate by the Company, which intends to fund the repurchases with available funds.
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 9,100 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 April 23, 2002 at 5 p.m. Eastern Daylight Time to discuss the Company's second 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, 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 January 30, 2002.
Thomas G. O’Brien
Treasurer and Director of Investor Relations