Second Quarter Results for Fiscal 2021

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Second Quarter Results for Fiscal 2021

Raises Outlook for Accelerated Revenue and Earnings per Share Growth in Fiscal 2021

Solidifies Cloud Domain Leadership with Acquisition of Sourced Group 

Second Quarter Fiscal 2021 Highlights

  • Revenue of $1,049 million, above the midpoint of the $1,015-$1,055 million guidance range; revenue included a negative impact from foreign currency movements of approximately $1 million compared to our guidance assumptions
  • Record managed services revenue of $635 million, equivalent to approximately 61% of total revenue
  • GAAP diluted EPS of $0.91, at the midpoint of the $0.87-$0.95 guidance range
  • Non-GAAP diluted EPS of $1.13, above the midpoint of the $1.09-$1.15 guidance range
  • GAAP operating income of $149 million; GAAP operating margin of 14.2%
  • Non-GAAP operating income of $185 million; increased non-GAAP operating margin of 17.6%
  • Returned record quarterly cash amount of $403 million to shareholders through share repurchases and quarterly cash dividends, including net proceeds received from the divestiture of OpenMarket
  • Quarterly free cash flow of $70 million, comprised of cash flow from operations of $120 million, less $49 million in net capital expenditures and other(1)
  • Normalized free cash flow of $133 million(1)
  • Twelve-month backlog of $3.54 billion up approximately $50 million sequentially; on a pro forma(2) basis, record twelve-month backlog was up 9.3% as compared to last year’s second fiscal quarter
  • The board of directors approved a quarterly cash dividend of $0.36 per share to be paid on July 23, 2021

ST. LOUIS, May 12, 2021 (GLOBE NEWSWIRE) -- Amdocs Limited (NASDAQ: DOX) today reported operating results for the three months ended March 31, 2021.

“I am pleased to report strong results for the second fiscal quarter. Revenue was well above the midpoint of guidance and driven by our best-ever quarter in North America on a pro forma(2) basis where we are seeing healthy activity levels at AT&T, T-Mobile and various other customers across the region. At the operating level, we maintained our focus on consistent project delivery, which translated to healthy cash collections and robust free cash flow generation. Additionally, we returned a record cash amount of more than $400 million to shareholders this quarter, including the net proceeds received from the divesture of OpenMarket, as we had committed to previously,” said Shuky Sheffer, president and chief executive officer of Amdocs Management Limited.

Sheffer continued, “Accelerating the communications industry’s journey to the cloud is core to Amdocs’ future growth and this quarter we took some important steps to further solidify our leadership in this domain. We are today pleased to announce the acquisition of Sourced Group, a leading global technology consultancy specializing in large-scale cloud transformations for sophisticated, high-end enterprise customers in different industries such as communications, financial services and others. Sourced’s proven cloud migration platform, deployment framework and trusted design process, alongside its deep partnerships with Amazon Web Services, Microsoft Azure and Google Cloud Platform, complement our portfolio of cloud-native products and services and further expands and diversifies our customer base.”

Sheffer concluded, “I am pleased to report an improved outlook for revenue and earnings per share growth for the full fiscal year 2021, mainly driven by our expectation for a stronger second half. Our confidence is based on the visibility of our 12-month backlog, which is up more than 9% from a year ago on a pro forma(2) basis. Moreover, we are focused on maintaining our recent sales momentum by executing our growth strategy which we believe is well-aligned with our customer’s multi-year investments in digital modernization, 5G, cloud migration, and next-generation OSS platforms.”

Revenue

Revenue for the second fiscal quarter ended March 31, 2021 was $1,049 million, which on a pro forma basis(2) was up 5.7% in constant currency as compared to last year’s second fiscal quarter. Revenue was down $37 million as reported from the first fiscal quarter of 2021, mainly reflecting the divestiture of OpenMarket on December 31, 2020. Revenue was up 0.1% as reported and down 1.4% in constant currency as compared to last year’s second fiscal quarter. Revenue for the second fiscal quarter of 2021 includes a positive impact from foreign currency movements of approximately $3.3 million relative to the first quarter of fiscal 2021. Revenue was above the midpoint of Amdocs’ guidance, and included negative impact from foreign currency movements of approximately $1 million compared to our guidance assumptions and contributions from recently completed acquisitions of less than $2 million which was not included in our guidance assumptions. Revenue for the second fiscal quarter of 2021 includes record managed services revenue of $635 million, up 5.1% as compared to last year’s second fiscal quarter and equivalent to approximately 61% of total revenue.

Net Income and Earnings Per Share

The Company's GAAP net income for the second quarter of fiscal 2021 was $119.1 million, or $0.91 per diluted share, compared to GAAP net income of $127.0 million, or $0.94 per diluted share, in the prior fiscal year’s second quarter. Net income on a non-GAAP basis was $148.1 million, or $1.13 per diluted share, compared to non-GAAP net income of $145.7 million, or $1.08 per diluted share, in the second quarter of fiscal 2020. 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 second quarter of fiscal 2021 as well as in the second quarter of fiscal 2020.

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 May 12, 2021, the Board approved the Company’s next quarterly cash dividend payment of $0.36 per share and set June 30, 2021 as the record date for determining the shareholders entitled to receive the dividend, which will be payable on July 23, 2021.
  • Share Repurchase Activity: Repurchased a record $360 million of ordinary shares during the second quarter of fiscal 2021, including the return of the net proceeds from the divestiture of OpenMarket. The board of directors has approved a share repurchase plan authorizing the repurchase of up to $1 billion of ordinary shares at the company’s discretion; this plan has no expiration date and is in addition to the current authorization, which, as of March 31, 2021, provided for up to $228 million of remaining repurchase authorization. Between the two authorizations, we have up to $1.228 billion of remaining repurchase authority.

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 $3.54 billion (excluding OpenMarket) at the end of the second quarter of fiscal 2021. On a pro forma(2) basis, twelve-month backlog was up approximately 9.3% as compared to last year’s second fiscal quarter.

Third Quarter Fiscal 2021 Outlook

  • Revenue of approximately $1,040-$1,080 million, assuming approximately $3 million sequential negative impact from foreign currency fluctuations as compared to the second quarter of fiscal 2021 and contributions from recently completed acquisitions
  • GAAP diluted EPS of approximately $0.91-$0.99. The impact of recent acquisitions on GAAP diluted EPS will not be known until after Amdocs completes the purchase price allocation
  • Non-GAAP diluted EPS of approximately $1.14-$1.20, excluding amortization of purchased intangible assets and other acquisition-related costs, changes in certain acquisitions related liabilities measured at fair value, and approximately $0.08-$0.10 per share of equity-based compensation expense, net of related tax effects.

Full Year Fiscal 2021 Outlook

  • Full year fiscal 2021 revenue guidance reflects the divestiture of OpenMarket as of December 31, 2020 and incorporates an expected positive impact from foreign currency fluctuations of about 1.0% year-over-year as compared with a positive impact of about 1.2% year-over-year previously and a positive contribution from recently completed acquisitions of about 0.5%
  • Expects pro forma(2) revenue growth of 5.0%-8.0% year-over-year on a constant currency basis as compared with 3.5%-7.5% year-over-year on a constant currency basis previously
  • Expects revenue growth of 1.0%-4.0% year-over-year on a reported basis as compared with (0.3)% -3.7% year-over-year previously
  • Expects revenue growth of 0.0%-3.0% year-over-year on a constant currency basis as compared with (1.5)% -2.5% year-over-year previously
  • Expects GAAP diluted earnings per share growth of roughly 39.0%-44.0% year-over-year, including gain, net of tax, from divestiture of OpenMarket, as compared with 37.5%-44.5% year-over-year previously. The impact of recent acquisitions on GAAP diluted EPS will not be known until after Amdocs completes the purchase price allocation
  • Expects non-GAAP diluted earnings per share growth of roughly 6.0%-9.0% year-over-year as compared with 4.0%-8.0% 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, approximately $0.32-$0.36 per share of equity-based compensation expense, and gain from divestiture of OpenMarket, net of related tax effects. The impact of recent acquisitions on Amdocs’ non-GAAP diluted earnings per share is expected to be neutral in the full fiscal year 2021
  • Expects pro forma(2) non-GAAP diluted earnings per share growth of roughly 7.5%-10.5% year-over-year as compared with 5.5%-9.5% 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, approximately $0.32-$0.36 per share of equity-based compensation expense, and gain from divestiture of OpenMarket, net of related tax effects
  • Expects free cash flow of approximately $620 million, comprised of cash flow from operations, less net capital expenditures and other, as compared with $600 million previously
  • Expects normalized free cash flow of approximately $820 million as compared with $800 million previously; normalized free cash flow excludes expected capital expenditure of $140 million related to the new campus development in Israel, $40 million of capital gains tax in relation to the divestiture of OpenMarket, and other items

Our third fiscal quarter 2021 and full year fiscal 2021 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, we note thatmarket dynamics continue to shift rapidly and wecannot predict all possible outcomes, including those resulting from the COVID-19 pandemic, which has created, and continues to create, a significant amount of uncertainty, or from current and potential customer consolidation or their other strategic corporate activities.

Conference Call Details
Amdocs will host a conference call on May 12, 2021 at 5:00 p.m. Eastern Time to discuss the Company's second quarter of fiscal 2021 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 3504547. 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 or benefits (such as a gain from divestiture of OpenMarket);
  • 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 non-recurring and unusual charges (such as capital gains tax in relation to the divestiture of OpenMarket), 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 liabilitiesmeasured at fair value, non-recurring and unusual charges or benefits, 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 27,000 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 $4.2 billion in fiscal 2020.

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, 2020 filed on December 14, 2020 and our Form 6-K furnished for the first quarter of fiscal 2021 on February 16, 2021.

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   Six months ended
    March 31,   March 31,
    2021(a)   2020   2021(a)   2020
                 
Revenue   $ 1,048,734     $ 1,047,933     $ 2,135,077     $ 2,089,890  
                 
Operating expenses:                
Cost of revenue     685,515       683,970       1,414,231       1,370,282  
Research and development     75,154       68,795       150,823       136,106  
Selling, general and administrative     116,951       119,108       238,839       242,575  
Amortization of purchased intangible assets and other     21,870       19,348       41,740       40,638  
      899,490       891,221       1,845,633       1,789,601  
Operating income     149,244       156,712       289,444       300,289  
                 
Interest and other expense, net     (3,542 )     (2,290 )     (10,032 )     (2,642 )
Gain from sale of a business     -       -       226,410       -  
Income before income taxes     145,702       154,422       505,822       297,647  
                 
Income taxes     26,635       27,384       87,123       54,677  
Net income   $ 119,067     $ 127,038     $ 418,699     $ 242,970  
Basic earnings per share   $ 0.92     $ 0.95     $ 3.21     $ 1.81  
Diluted earnings per share   $ 0.91     $ 0.94     $ 3.19     $ 1.80  
Basic weighted average number of shares outstanding     129,774       134,288       130,457       134,443  
Diluted weighted average number of shares outstanding     130,696       135,059       131,147       135,339  
Cash dividends declared per share   $ 0.36     $ 0.3275     $ 0.6875     $ 0.6125  
                 

 

 
AMDOCS LIMITED
Selected Financial Metrics
(In thousands, except per share data)
 
    Three months ended   Six months ended
    March 31,   March 31,
    2021(a)   2020   2021(a)   2020
                 
Revenue   $ 1,048,734   $ 1,047,933   $ 2,135,077   $ 2,089,890
                 
Non-GAAP operating income     184,883     180,524     372,864     358,464
                 
Non-GAAP net income     148,095     145,689     301,067     289,844
                 
Non-GAAP diluted earnings per share   $ 1.13   $ 1.08   $ 2.30   $ 2.14
                 
Diluted weighted average number of shares outstanding     130,696     135,059     131,147     135,339

 

Free Cash Flows and Normalized Free Cash Flow
(In thousands)
 
    Three months ended   Six months ended
    March 31,   March 31,
      2021       2020       2021       2020  
                   
Net Cash Provided by Operating Activities(a)   $ 119,736     $ 102,868     $ 536,221     $ 266,776  
                   
Purchases of property and equipment, net (c)     (49,245 )     (46,170 )     (99,310 )     (104,705 )
                   
Free Cash Flow     70,491       56,698       436,911       162,071  
                   
Tax payment on sale of business(b)     25,190       -       25,190       -  
                   
Payments of acquisition related liabilities     13,234       1,750       13,234       1,750  
                   
Payments for previously expensed restructuring charges     -       129       -       1,645  
                   
Net capital expenditures related to the new campus development     24,221       17,355       42,555       31,292  
                   
Normalized Free Cash Flow   $ 133,136     $ 75,932     $ 517,890     $ 196,758  
                                 

(a) Since January 1, 2021, OpenMarket results are not included in the Consolidated Statements of Income given its divestiture.
(b) Tax payment related to capital gain from divesture of OpenMarket, which was completed on December 31, 2020.
(c) The amounts under "Purchase of property and equipment, net” include proceeds from sale of property and equipment of $136 and $82 for the six months ended March 31, 2021 and 2020, respectively.

 
AMDOCS LIMITED
Reconciliation of Selected Financial Metrics from GAAP to Non-GAAP
(In thousands)
 
  Three months ended
March 31, 2021(a)
    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 $ 685,515     $ -     $ (5,582 )   $ (394 )   $ -     $ -     $ 679,539  
Research and development   75,154       -       (1,012 )     -       -       -       74,142  
Selling, general and administrative   116,951       -       (6,781 )     -       -       -       110,170  
Amortization of purchased intangible assets and other   21,870       (21,870 )     -       -       -       -       -  
                                                       
Total operating expenses   899,490       (21,870 )     (13,375 )     (394 )     -       -       863,851  
                                                       
Operating income   149,244       21,870       13,375       394       -       -       184,883  
                                                       
Interest and other expense, net   (3,542 )     -       -       -       (375 )     -       (3,917 )
                                                       
Income taxes   26,635       -       -       -       -       6,236       32,871  
                                                       
Net income $ 119,067     $ 21,870     $ 13,375     $ 394     $ (375 )   $ (6,236 )   $ 148,095  
                                                       

 

  Three months ended
  March 31, 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 $ 683,970   $ -     $ (4,693 )   $ 6,284     $ -     $ 685,561  
Research and development   68,795     -       (723 )     -       -       68,072  
Selling, general and administrative   119,108     -       (5,332 )     -       -       113,776  
Amortization of purchased intangible assets and other   19,348     (19,348 )     -       -       -       -  
Total operating expenses   891,221     (19,348 )     (10,748 )     6,284       -       867,409  
                                             
Operating income   156,712     19,348       10,748       (6,284 )     -       180,524  
                                             
Income taxes   27,384     -       -       -       5,161       32,545  
                                             
Net income $ 127,038   $ 19,348     $ 10,748     $ (6,284 )   $ (5,161 )   $ 145,689  

 

 
AMDOCS LIMITED
Reconciliation of Selected Financial Metrics from GAAP to Non-GAAP
(In thousands)
 
  Six months ended March 31, 2021(a)
          Reconciliation items      
  GAAP     Amortization
of
purchased
intangible
assets and
other
  Equity based
compensation
expense

 
  Changes in certain
acquisitions related
liabilities measured
at fair value
  Gain from
sale of a
business

 
  Other   Tax
effect

 
  Non-GAAP
Operating expenses:                                                            
Cost of revenue $ 1,414,231     $ -     $ (10,523 )   $ (15,728 )   $ -     $ -   $ -     $ 1,387,980  
Research and development   150,823       -       (1,844 )     -       -       -     -       148,979  
Selling, general and administrative   238,839       -       (13,585 )     -       -       -     -       225,254  
Amortization of purchased intangible assets and other   41,740       (41,740 )     -       -       -       -     -       -  
Total operating expenses   1,845,633       (41,740 )     (25,952 )     (15,728 )     -       -     -       1,762,213  
                                                             
Operating income   289,444       41,740       25,952       15,728       -       -     -       372,864  
                                                             
Interest and other expense, net   (10,032 )     -       -       -       -       824     -       (9,208 )
                                                             
Gain from sale of a business   226,410       -       -       -       (226,410 )     -     -       -  
                                                             
Income taxes   87,123       -       -       -       -       -     (24,534 )     62,589  
                                                             
Net income $ 418,699     $ 41,740     $ 25,952     $ 15,728     $ (226,410 )   $ 824   $ 24,534     $ 301,067  
                                                             

 

  Six months ended
  March 31, 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 $ 1,370,282   $ -     $ (10,039 )   $ 3,972     $ -     $ 1,364,215
Research and development   136,106     -       (1,526 )     -       -       134,580
Selling, general and administrative   242,575     -       (9,944 )     -       -       232,631
Amortization of purchased intangible assets and other   40,638     (40,638 )     -       -       -       -
Total operating expenses   1,789,601     (40,638 )     (21,509 )     3,972       -       1,731,426
                                           
Operating income   300,289     40,638       21,509       (3,972 )     -       358,464
                                           
Income taxes   54,677     -       -       -       11,301       65,978
                                           
Net income $ 242,970   $ 40,638     $ 21,509     $ (3,972 )   $ (11,301 )   $ 289,844

 

 
AMDOCS LIMITED
Condensed Consolidated Balance Sheets
(In thousands)
 
  As of
  March 31,
2021
  September 30,
2020
       
ASSETS      
       
Current assets      
Cash and cash equivalents $ 968,988   $  983,188
Short-term interest-bearing investments   194,684     752
Accounts receivable, net, including unbilled of $172,301 and $175,548, respectively   907,017     861,033
Prepaid expenses and other current assets   227,560     229,604
Total current assets   2,298,249     2,074,577
       
Property and equipment, net   640,253     607,951
Lease assets   266,719     295,494
Goodwill and other intangible assets, net   2,883,646     2,874,979
Other noncurrent assets   513,219     488,620
Total assets $ 6,602,086   $ 6,341,621
       
LIABILITIES AND SHAREHOLDERS’ EQUITY      
       
Current liabilities      
Accounts payable, accruals and other $ 961,670   $ 930,259
Short-term financing arrangement   100,000     100,000
Lease liabilities   58,794     59,100
Deferred revenue   219,199     126,841
Total current liabilities   1,339,663     1,216,200
Lease liabilities   209,276     230,076
Long-term debt, net of unamortized debt issuance costs   644,276     644,023
Other noncurrent liabilities   762,133     586,167
Total Amdocs Limited Shareholders’ equity   3,604,229     3,622,646
Noncontrolling interests   42,509     42,509
Total equity   3,646,738     3,665,155
Total liabilities and equity $ 6,602,086   $ 6,341,621
       

 

 
AMDOCS LIMITED
Consolidated Statements of Cash Flows
(In thousands)
 
    Six months ended
 March 31,
    2021   2020
         
Cash Flow from Operating Activities:                
Net income(a)   $ 418,699     $ 242,970  
Reconciliation of net income to net cash provided by operating activities:                
Depreciation and amortization     101,298       98,107  
Amortization of debt issuance costs     272       -  
Equity-based compensation expense     25,952       21,509  
Gain from sale of a business     (226,410 )     -  
Deferred income taxes     (27,778 )     9,150  
Loss from short-term interest-bearing investments     221       -  
Net changes in operating assets and liabilities, net of amounts acquired:                
Accounts receivable, net     (108,799 )     19,957  
Prepaid expenses and other current assets     (11,906 )     (22,637 )
Other noncurrent assets     (10,763 )     (1,653 )
Lease assets and liabilities, net     7,522       (11,947 )
Accounts payable, accrued expenses and accrued personnel     76,427       (96,647 )
Deferred revenue     226,904       17,616  
Income taxes payable, net     41,629       7,853  
Other noncurrent liabilities     22,953       (17,502 )
Net cash provided by operating activities     536,221       266,776  
                 
Cash Flow from Investing Activities:                
Purchase of property and equipment, net (c)     (99,310 )     (104,705 )
Proceeds from sale of short-term interest-bearing investments     4,258       -  
Purchase of short-term interest-bearing investments     (200,088 )     -  
Net cash paid for business and intangible assets acquisitions     (87,600 )     -  
Net cash received from sale of a business     290,789       -  
Other     562       (3,273 )
Net cash used in investing activities     (91,389 )     (107,978 )
                 
Cash Flow from Financing Activities:                
Borrowings under financing arrangements     -       350,000  
Repurchase of shares     (450,074 )     (210,048 )
Proceeds from employee stock options exercises     78,438       70,639  
Payments of dividends     (85,934 )     (76,770 )
Payment of contingent consideration from a business acquisition     (1,462 )     (1,411 )
Other     -       (238 )
Net cash (used in) provided by financing activities     (459,032 )     132,172  
                 
Net (decrease) increase in cash and cash equivalents     (14,200 )     290,970  
Cash and cash equivalents at beginning of period     983,188       471,632  
Cash and cash equivalents at end of period   $ 968,988     $ 762,602  

 

 
AMDOCS LIMITED
Supplementary Information
(In millions)
 
 
    Three months ended
    March 31,   December 31,   September 30,   June 30,   March 31,
2021(a) 2020 2020 2020 2020
North America   $ 679.1   $ 703.4   $ 681.6   $ 685.9   $ 691.3
Europe     148.8     171.6     165.3     145.4     148.3
Rest of the World     220.8     211.3     206.0     194.9     208.3
Total Revenue   $ 1,048.7   $ 1,086.3   $ 1,052.9   $ 1,026.2   $ 1,047.9
                     
                     
    Three months ended
    March 31,   December 31,   September 30,   June 30,   March 31,
2021 2020 2020 2020 2020
Managed Services Revenue   $ 634.6   $ 623.7   $ 610.5   $ 604.5   $ 604.0
                     
                     
    As of
    March 31,   December 31   September 30,   June 30,   March 31,
2021(d) 2020(d) 2020 2020 2020
12-Month Backlog   $ 3,540   $ 3,490   $ 3,620   $ 3,480   $ 3,460
                               

(d) Excludes OpenMarket  

 

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Source: Amdocs Management LTD