Third Quarter Results for Fiscal 2020

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Third Quarter Results for Fiscal 2020

Quarterly Revenue of $1.03 Billion, Exceeding Midpoint of Guidance

Raises Fiscal 2020 Revenue Growth Outlook to 1.1%-2.1% YoY as Reported and 1.6%-2.6% YoY in Constant Currency

Expects Announced Acquisition of Openet to Close in Fourth Quarter Fiscal 2020 

Third Quarter Fiscal 2020 Highlights

  • Revenue of $1,026 million, exceeding the midpoint of the $990-$1,040 million guidance range, also after adjusting for a positive impact from foreign currency movements of approximately $5 million compared to our guidance assumptions
  • Record managed services revenue of $604 million, up 4.6% as compared to last year’s third fiscal quarter and equivalent to approximately 59% of total revenue
  • GAAP diluted EPS of $0.90, above the midpoint $0.81-$0.91 guidance range
  • Non-GAAP diluted EPS of $1.07, above the midpoint of the $1.00-$1.08 guidance range
  • GAAP operating income of $148 million; GAAP operating margin of 14.4%
  • Non-GAAP operating income of $175 million; non-GAAP operating margin of 17.1%
  • Quarterly free cash flow of $146 million, comprised of cash flow from operations of $187 million, less $41 million in net capital expenditures and other; normalized free cash flow of $169 million (1)
  • Cash and cash equivalents of $1,194 million, including aggregate borrowings of $750 million
  • Twelve-month backlog of $3.48 billion, up $20 million sequentially and up 2.4% as compared to last year’s third fiscal quarter
  • The board of directors approved a quarterly cash dividend of $0.3275 per share to be paid on October 23, 2020

    (1) Please refer to the Selected Financial Metrics tables below (figures may not sum because of rounding).

ST. LOUIS, Aug. 05, 2020 (GLOBE NEWSWIRE) -- Amdocs Limited (NASDAQ: DOX) today reported operating results for the three months ended June 30, 2020.

“Our fiscal Q3 was our first full quarter operating under the global conditions of the COVID-19 pandemic, considering which I am proud of the company’s performance. Revenue exceeded the midpoint of our guidance and included healthy year-over-year growth in North America and another record quarter in managed services. Our operating execution was especially noteworthy this quarter as we delivered a significant number of live deployments, maintained stable profitability and generated robust free cash flow. Additionally, the pace of deal signings accelerated during Q3 and included an agreement to support Bell Canada’s cloud-native strategy, an enterprise digital transformation project in the Philippines and our first-ever modernization award at Three UK,” said Shuky Sheffer, president and chief executive officer of Amdocs Management Limited.

Sheffer continued, “As part of our strategy to accelerate the pace of taking the communications industry to the cloud, we recently announced an agreement to acquire Openet, a leading provider of 5G charging, policy and cloud technologies whose customers include several of the world’s top 10 largest service providers. Openet’s technologies naturally complement our own portfolio of 5G solutions, the combination of which will greatly strengthen our leading technology position in the market. Moreover, we are excited by the opportunity to bring Openet to our global customer base of more than 350 service providers, helping them to further succeed in the wave of 5G advancements around cloud, edge compute, IoT and new customer experiences. Overall, we believe Openet represents the right acquisition at the right time in the industry and we look forward to welcoming their innovative team of software professionals to Amdocs upon closing later in Q4.”

Sheffer concluded, “Our 12-month backlog increased quarter-on-quarter and year-over-year in Q3. This supports a stronger fourth quarter revenue outlook than we previously forecasted, the midpoint of which includes the resumption of growth on a sequential basis. We are on-track to generate normalized free cash flow of $500 million in fiscal 2020, which is slightly better than the original guidance we provided at the beginning of the year. Moreover, we see an attractive and increasing pipeline of opportunity ahead, which we believe can sustain future long-term growth as we leverage our market-leading product offerings, track-record of execution, and pedigree for innovation. To add a final important point, I would like to recognize our global base of talented employees to whom we are thankful for the extraordinary professionalism and commitment they have shown during the global pandemic.”

Revenue

Revenue for the third fiscal quarter ended June 30, 2020 was $1,026 million, down $22 million sequentially from the second fiscal quarter of 2020 and up 0.1% as reported and 1.0% in constant currency as compared to last year’s third fiscal quarter. Revenue for the third fiscal quarter of 2020 includes a negative impact from foreign currency movements of approximately $3 million relative to the second quarter of fiscal 2020. Revenue was above the midpoint of Amdocs’ guidance, also after adjusting for the positive impact of approximately $5 million of foreign currency movements relative to guidance.

Net Income and Earnings Per Share

The Company's GAAP net income for the third quarter of fiscal 2020 was $120.4 million, or $0.90 per diluted share, compared to GAAP net income of $131.4 million, or $0.96 per diluted share, in the prior fiscal year’s third quarter. Net income on a non-GAAP basis was $143.2 million, or $1.07 per diluted share, compared to non-GAAP net income of $163.1 million, or $1.19 per diluted share, in the third quarter of fiscal 2019. 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 2020 and in the third quarter of fiscal 2019. 

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 5, 2020, the Board approved the Company’s next quarterly cash dividend payment of $0.3275 per share and set September 30, 2020 as the record date for determining the shareholders entitled to receive the dividend, which will be payable on October 23, 2020.
  • Share Repurchase Activity: Repurchased $60 million of ordinary shares during the third quarter of fiscal 2020.

Twelve-month Backlog

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 $3.48 billion at the end of the third quarter of fiscal 2020, up $20 million from the end of the prior quarter and up 2.4% as compared to last year’s third fiscal quarter.

Fourth Quarter Fiscal 2020 Outlook

  • Revenue of approximately $1,015-$1,055 million, assuming approximately $4 million sequential positive impact from foreign currency fluctuations as compared to the third quarter of fiscal 2020. Fourth quarter fiscal 2020 guidance does not incorporate revenue from the announced acquisition of Openet as the transaction has not yet closed
  • GAAP diluted EPS of approximately $0.95-$1.03. The impact of the announced acquisition of Openet on GAAP diluted EPS will not be known until after Amdocs completes the purchase price allocation
  • Non-GAAP diluted EPS of approximately $1.16-$1.22, excluding amortization of purchased intangible assets and other acquisition-related costs, changes in certain acquisitions related liabilities measured at fair value, and approximately $0.06-$0.08 per share of equity-based compensation expense, net of related tax effects. The impact of the announced acquisition of Openet on Amdocs’ non-GAAP diluted earnings per share is expected to be neutral in the fourth quarter of fiscal 2020

Full Year Fiscal 2020 Outlook

  • Revenue growth of 1.1%-2.1% year-over-year on a reported basis as compared with (0.5%) -2.5% year-over-year previously
  • Revenue growth of 1.6%-2.6% year-over-year on a constant currency basis as compared with 0.5%-3.5% year-over-year previously
  • Full year fiscal 2020 revenue guidance incorporates just over 1% of growth from the acquisition of TTS Wireless, and a negative impact from foreign currency fluctuations of approximately 0.5% as compared with an 1% negative impact year-over-year previously, but does not incorporate revenue from the announced acquisition of Openet as the transaction has not yet closed
  • GAAP diluted earnings per share growth of roughly 5.0%-7.5% year-over-year as compared with 4.0%-10.0% year-over-year previously. The impact of the announced acquisition of Openet on GAAP diluted EPS will not be known until after Amdocs completes the purchase price allocation
  • Non-GAAP diluted earnings per share growth of roughly 1.6%-3.0% year-over-year as compared with 0.0%-4.0% 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, and approximately $0.25-$0.27 per share of equity-based compensation expense, net of related tax effects. The impact of the announced acquisition of Openet on Amdocs’ non-GAAP diluted earnings per share is expected to be neutral in the full fiscal years 2020 and 2021, and accretive thereafter
  • Expects free cash flow of approximately $420 million as compared with $400 million previously disclosed, comprised of cash flow from operations, less net capital expenditures and other
  • Reiterates normalized free cash flow of approximately $500 million; normalized free cash flow excludes capital expenditure of up to $70 million related to the new campus development in Israel, and other items, as compared with capital expenditure of up to $90 million previously disclosed

Our fourth fiscal quarter 2020 and full year fiscal 2020 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, Amdocs notes market dynamics continue to shift rapidly and that it cannot predict all possible outcomes, including those resulting from the COVID-19 pandemic, which has created a significant amount of uncertainty, and from T-Mobile’s recently completed merger with Sprint, or from other current and potential customer consolidation activity.

Conference Call Details

Amdocs will host a conference call on August 5, 2020 at 5:00 p.m. Eastern Time to discuss the Company's third quarter of fiscal 2020 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 3378515. 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, 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 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;
  • 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 previously expensed restructuring charges, payments for legal dispute settlement, 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, 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

About Amdocs

Amdocs’ purpose is to enrich lives and progress society, using creativity and technology to build a better connected world. Amdocs and its 25,000 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 $4.1 billion in fiscal 2019.

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, 2019 filed on December 16, 2019 and our Form 6-K furnished for the first quarter of fiscal 2020 on February 18, 2020 and for the second quarter of fiscal 2020 on May 18, 2020.

Contact:
Matthew Smith
Head of Investor Relations
Amdocs
314-212-8328
E-mail: dox_info@amdocs.com

 

 
AMDOCS LIMITED
 
Consolidated Statements of Income
(in thousands, except per share data)
         
    Three months ended   Nine months ended
    June 30,   June 30,
    2020   2019   2020   2019
                         
Revenue   $ 1,026,201   $ 1,024,704   $ 3,116,091   $ 3,056,416
                         
Operating expenses:                        
Cost of revenue     681,725     664,862     2,052,007     1,986,043
Research and development     70,093     68,376     206,199     203,827
Selling, general and administrative     109,612     125,088     352,187     367,411
Amortization of purchased intangible assets and other     17,240     24,058     57,878     73,543
      878,670     882,384     2,668,271     2,630,824
Operating income     147,531     142,320     447,820     425,592
                         
Interest and other expense, net     2,417     3,959     5,059     4,303
Income before income taxes     145,114     138,361     442,761     421,289
                         
Income taxes     24,707     6,913     79,384     63,870
Net income   $ 120,407   $ 131,448   $ 363,377   $ 357,419
Basic earnings per share   $ 0.90   $ 0.96   $ 2.71   $ 2.59
Diluted earnings per share   $ 0.90   $ 0.96   $ 2.70   $ 2.58
Basic weighted average number of shares outstanding     133,150     136,541     134,013     138,126
Diluted weighted average number of shares outstanding     133,593     137,082     134,758     138,769
Cash dividends declared per share   $ 0.3275   $ 0.285   $ 0.940   $ 0.820
                         

 

AMDOCS LIMITED
Selected Financial Metrics
(In thousands, except per share data)
         
    Three months ended   Nine months ended
    June 30,   June 30,
    2020   2019   2020   2019
                         
Revenue   $ 1,026,201   $ 1,024,704   $ 3,116,091   $ 3,056,416
                         
Non-GAAP operating income     175,476     177,289     533,940     529,900
                         
Non-GAAP net income     143,198     163,126     433,042     447,952
                         
Non-GAAP diluted earnings per share   $ 1.07   $ 1.19   $ 3.21   $ 3.23
                         
Diluted weighted average number of shares outstanding     133,593     137,082     134,758     138,769
                         

 

Free Cash Flows and Normalized Free Cash Flow
(In thousands)
         
    Three months ended   Nine months ended
    June 30,   June 30,
      2020       2019       2020       2019  
                                 
Net Cash Provided by Operating Activities   $ 186,680     $ 164,473     $ 453,456     $ 442,752  
                                 
Purchases of property and equipment, net (*)     (41,250 )     (35,833 )     (145,955 )     (93,761 )
                                 
Free Cash Flow     145,430       128,640       307,501       348,991  
                                 
Payments for legal dispute settlement     -       -       -       55,000  
                                 
Payments of acquisition related liabilities     7,667       7,667       9,417       7,667  
                                 
Payments for previously expensed restructuring charges     284       3,455       1,929       14,394  
                                 
Net capital expenditures related to the new campus development (*)     15,460       3,410       46,752       (2,206 )
                                 
Normalized Free Cash Flow   $ 168,841     $ 143,172     $ 365,599     $ 423,846  
                                 
__________________________________________________________________________________________
(*) The amounts under "Purchase of property and equipment, net” and the amounts under “Net capital expenditures related to the new campus development”, include proceeds from sale of property and equipment of $133 and $74, for the nine months ended June 30, 2020 and 2019, respectively, and proceeds of $9,676 relating to the refund of betterment levy, for the nine months ended June 30, 2019 ($4,776 of which was a refund to the noncontrolling interests).
 

 

AMDOCS LIMITED
Reconciliation of Selected Financial Metrics from GAAP to Non-GAAP

 (In thousands)
   
  Three months ended
June 30, 2020
    Reconciliation items  
  GAAP Amortization of
purchased
intangible
assets and
other
Equity based
compensation
expense
Changes in certain
acquisitions related
liabilities measured
at 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
                                 

 

  Three months ended
June 30, 2019
    Reconciliation items  
  GAAP Amortization of
purchased
intangible
assets and
other
Equity based
compensation
expense
Changes in certain
acquisitions related
liabilities measured
at fair value
Other

 
Tax 
effect
   

 
Non-GAAP
Operating expenses:              
Cost of revenue $ 664,862 $ -   $ (5,080 ) $ (2,076 ) $ -   $ -   $ 657,706
Research and development   68,376   -     (608 )   -     -     -     67,768
Selling, general and administrative   125,088   -     (3,147 )   -     -     -     121,941
Amortization of purchased intangible assets and other   24,058   (24,058 )   -     -     -     -     -
Total operating expenses   882,384   (24,058 )   (8,835 )   (2,076 )   -     -     847,415
                                       
Operating income   142,320   24,058     8,835     2,076     -     -     177,289
                                       
Interest and other expense, net   3,959   -     -     -     (2,025 )   -     1,934
                                       
Income taxes   6,913   -     -     -     -     5,316     12,229
                                       
Net income $ 131,448 $ 24,058   $ 8,835   $ 2,076   $ 2,025   $ (5,316 ) $ 163,126
                                       

 

AMDOCS LIMITED
Reconciliation of Selected Financial Metrics from GAAP to Non-GAAP
 (In thousands)
  Nine months ended
June 30, 2020
    Reconciliation items  
  GAAP Amortization of
purchased
intangible
assets and
other
Equity based
compensation
expense
Changes in certain
acquisitions related
liabilities measured
at 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
                                 

 

  Nine months ended
June 30, 2019
    Reconciliation items  
  GAAP Amortization of
purchased
intangible
assets and
other
Equity based
compensation
expense
Changes in certain
acquisitions related
liabilities measured
at fair value
Other Tax
effect
Non-GAAP
Operating expenses:              
Cost of revenue $ 1,986,043 $ -   $ (15,261 ) $ (199 ) $ -   $ -   $ 1,970,583
Research and development   203,827   -     (1,957 )   -     -     -     201,870
Selling, general and administrative   367,411   -     (13,348 )   -     -     -     354,063
Amortization of purchased intangible assets and other   73,543   (73,543 )   -     -     -     -     -
Total operating expenses   2,630,824   (73,543 )   (30,566 )   (199 )   -     -     2,526,516
               
Operating income   425,592   73,543     30,566     199     -     -     529,900
               
Interest and other expense, net   4,303   -     -     -     (2,025 )   -     2,278
               
Income taxes   63,870   -     -     -     -     15,800     79,670
               
Net income $ 357,419 $ 73,543   $ 30,566   $ 199   $ 2,025   $ (15,800 ) $ 447,952
                                       

 

AMDOCS LIMITED
Condensed Consolidated Balance Sheets
 (In thousands)
   
  As of
    June 30,
2020
  September 30,
2019
             
ASSETS            
             
Current assets            
Cash and cash equivalents   $ 1,194,043   $ 471,632
Accounts receivable, net, including unbilled of $182,847 and $227,061, respectively     952,543     987,858
Prepaid expenses and other current assets     252,711     216,084
Total current assets     2,399,297     1,675,574
             
Property and equipment, net     573,948     525,314
Lease assets     304,501     -
Goodwill and other intangible assets, net     2,652,325     2,667,997
Other noncurrent assets     454,284     423,941
Total assets   $ 6,384,355   $ 5,292,826
             
LIABILITIES AND SHAREHOLDERS’ EQUITY            
             
Current liabilities            
Accounts payable, accruals and other   $ 1,020,404   $ 1,089,748
Short-term financing arrangements     100,000     -
Lease liabilities     62,549     -
Deferred revenue     124,004     118,182
Total current liabilities     1,306,957     1,207,930
Lease liabilities     233,699     -
Long-term debt, net of unamortized debt issuance costs     643,798     -
Other noncurrent liabilities     552,734     542,430
Total Amdocs Limited Shareholders’ equity     3,604,658     3,499,957
Noncontrolling interests     42,509     42,509
Total equity     3,647,167     3,542,466
Total liabilities and equity   $ 6,384,355   $ 5,292,826
             

 

AMDOCS LIMITED
Consolidated Statements of Cash Flows
(In thousands)
 
    Nine months ended
 June 30,
      2020       2019  
                 
Cash Flow from Operating Activities:                
Net income   $ 363,377     $ 357,419  
Reconciliation of net income to net cash provided by operating activities:                
Depreciation and amortization     144,715       155,258  
Amortization of debt issuance costs     9       -  
Equity-based compensation expense     32,570       30,566  
Deferred income taxes     43,916       (9,455 )
Loss from short-term interest-bearing investments     -       538  
Net changes in operating assets and liabilities, net of amounts acquired:                
Accounts receivable, net     18,522       22,721  
Prepaid expenses and other current assets     (12,603 )     4,655  
Other noncurrent assets     (14,110 )     3,370  
Lease assets and liabilities, net     (9,869 )     -  
Accounts payable, accrued expenses and accrued personnel     (98,670 )     (79,232 )
Deferred revenue     917       (36,192 )
Income taxes payable, net     (13,752 )     (4,605 )
Other noncurrent liabilities     (1,566 )     (2,291 )
Net cash provided by operating activities     453,456       442,752  
                 
Cash Flow from Investing Activities:                
Purchases of property and equipment, net (*)     (145,955 )     (93,761 )
Proceeds from sale of short-term interest-bearing investments     -       51,473  
Net cash paid for business and intangible assets acquisitions     (29,258 )     (8,782 )
Other     (5,290 )     1,116  
Net cash used in investing activities     (180,503 )     (49,954 )
                 
Cash Flow from Financing Activities:                
Borrowings under financing arrangements     450,000       -  
Payments of financing arrangements     (350,000 )     -  
Proceeds from issuance of debt, net     645,685       -  
Repurchase of shares     (270,062 )     (308,036 )
Proceeds from employee stock options exercised     95,979       25,706  
Payments of dividends     (120,493 )     (108,886 )
Investment by noncontrolling interests, net (*)     -       (4,776 )
Payment of contingent consideration from a business acquisition     (1,411 )     (7,470 )
Other     (240 )     (331 )
Net cash provided by (used in) financing activities     449,458       (403,793 )
                 
Net increase (decrease) in cash and cash equivalents     722,411       (10,995 )
Cash and cash equivalents at beginning of period     471,632       418,783  
Cash and cash equivalents at end of period   $ 1,194,043     $ 407,788  
                 
__________________________________________________________________________________________
(*) The amounts under "Purchase of property and equipment, net”, include proceeds from sale of property and equipment of $133 and $74, for the nine months ended June 30, 2020 and 2019, respectively, and proceeds of $9,676 relating to the refund of betterment levy for the nine months ended June 30, 2019 ($4,776 of which was a refund to the noncontrolling interests).

 

AMDOCS LIMITED
Supplementary Information
 (In millions)
 
    Three months ended
    June 30,
 2020
  March 31,
 2020
  December 31,
2019
  September 30,
 2019
  June 30,
 2019
North America   $ 685.9   $ 691.3   $ 662.1   $ 644.2   $ 643.9
Europe     145.4     148.3     154.7     156.1     145.5
Rest of the World     194.9     208.3     225.2     230.0     235.3
Total Revenue   $ 1,026.2   $ 1,047.9   $ 1,042.0   $ 1,030.3   $ 1,024.7

 

    Three months ended
    June 30,
 2020
  March 31,
 2020
  December 31,
2019
  September 30,
 2019
  June 30,
 2019
Managed Services Revenue   $    604.5   $    604.0   $    579.7   $    583.3   $    578.1

 

    As of
    June 30,
 2020
  March 31,
 2020
  December 31,
2019
  September 30,
 2019
  June 30,
 2019
12-Month Backlog   $ 3,480   $ 3,460   $ 3,520   $ 3,490   $ 3,400

 

 

amdocs-206-x-45.jpg

 

Source: Amdocs Management LTD