6-K

 

 

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

Form 6-K

 

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16 OF

THE SECURITIES EXCHANGE ACT OF 1934

 

For the Quarter Ended March 31, 2023

 

Commission File Number 1-14840

 

AMDOCS LIMITED

Hirzel House, Smith Street,

St. Peter Port, Island of Guernsey, GY1 2NG

 

Amdocs, Inc.

625 Maryville Centre Drive, Suite 200 Saint Louis, Missouri 63141

(Address of principal executive offices)

 

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:

 

FORM 20-F ☑ FORM 40-F ☐

 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ☐

 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ☐

 

Indicate by check mark whether the registrant by furnishing the information contained in this form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934:

 

YES ☐ NO ☑

 

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82- _______

 

 


 

AMDOCS LIMITED

 

FORM 6-K

 

REPORT OF FOREIGN PRIVATE ISSUER

 

FOR THE QUARTER ENDED MARCH 31, 2023

INDEX

PART I FINANCIAL INFORMATION

3

Item 1. Financial Statements

3

Unaudited Consolidated Financial Statements

 

Consolidated Balance Sheets

3

Consolidated Statements of Income

4

Consolidated Statements of Comprehensive Income

5

Consolidated Statements of Changes in Equity

6

Consolidated Statements of Cash Flows

8

Notes to Unaudited Consolidated Financial Statements

9

Item 2. Operating and Financial Review and Prospects

20

PART II OTHER INFORMATION

29

Item 1. Changes in Securities, Use of Proceeds and Issuer Purchases of Equity Securities

29

Item 2. Reports on Form 6-K

29

SIGNATURES

29

 

This report on Form 6-K shall be incorporated by reference into any Registration Statement filed by the Registrant that by its terms automatically incorporates the Registrant's filings and submissions with the SEC under Sections 13(a), 13(c) or 15(d) of the Securities Exchange Act of 1934.

2

 


 

PART I FINANCIAL INFORMATION

 

Item 1. Financial Statements

 

AMDOCS LIMITED

CONSOLIDATED BALANCE SHEETS

(dollar and share amounts in thousands, except per share data)

 

 

As of

 

 

March 31,
2023

 

 

September 30,
2022

 

 

(Unaudited)

 

 

 

 

ASSETS

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

Cash and cash equivalents

 

$

623,404

 

 

$

573,377

 

Short-term interest-bearing investments

 

 

238,163

 

 

 

244,603

 

Accounts receivable, net

 

 

991,486

 

 

 

946,777

 

Prepaid expenses and other current assets

 

 

251,883

 

 

 

238,390

 

Total current assets

 

 

2,104,936

 

 

 

2,003,147

 

Property and equipment, net

 

 

797,023

 

 

 

794,287

 

Lease assets

 

 

157,587

 

 

 

176,884

 

Goodwill

 

 

2,662,825

 

 

 

2,662,825

 

Intangible assets, net

 

 

135,470

 

 

 

178,312

 

Other noncurrent assets

 

 

606,329

 

 

 

574,938

 

Total assets

 

$

6,464,170

 

 

$

6,390,393

 

LIABILITIES AND EQUITY

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

Accounts payable

 

$

212,364

 

 

$

134,400

 

Accrued expenses and other current liabilities

 

 

587,514

 

 

 

612,656

 

Accrued personnel costs

 

 

135,029

 

 

 

208,602

 

Lease liabilities

 

 

38,319

 

 

 

43,336

 

Deferred revenue

 

 

351,671

 

 

 

253,686

 

Total current liabilities

 

 

1,324,897

 

 

 

1,252,680

 

Deferred income taxes and taxes payable

 

 

260,282

 

 

 

312,237

 

Lease liabilities

 

 

120,170

 

 

 

138,378

 

Long-term debt, net of unamortized debt issuance costs

 

 

645,404

 

 

 

645,117

 

Other noncurrent liabilities

 

 

483,856

 

 

 

481,703

 

Total liabilities

 

 

2,834,609

 

 

 

2,830,115

 

Equity: Amdocs Limited Shareholders' equity:

 

 

 

 

 

 

Preferred Shares — Authorized 25,000 shares; £0.01 par value; 0 shares issued
   and outstanding

 

 

 

 

 

 

Ordinary Shares — Authorized 700,000 shares; £0.01 par value; 286,132 and
   284,400 issued and 120,244 and 120,842 outstanding, respectively

 

 

4,569

 

 

 

4,548

 

Additional paid-in capital

 

 

4,181,820

 

 

 

4,105,900

 

Treasury stock, at cost 165,888 and 163,558 ordinary shares, respectively

 

 

(6,937,426

)

 

 

(6,731,789

)

Accumulated other comprehensive loss

 

 

(53,734

)

 

 

(72,476

)

Retained earnings

 

 

6,390,912

 

 

 

6,211,586

 

Total Amdocs Limited Shareholders' equity

 

 

3,586,141

 

 

 

3,517,769

 

Noncontrolling interests

 

 

43,420

 

 

 

42,509

 

Total equity

 

 

3,629,561

 

 

 

3,560,278

 

Total liabilities and equity

 

$

6,464,170

 

 

$

6,390,393

 

 

The accompanying notes are an integral part of these consolidated financial statements.

3

 


 

AMDOCS LIMITED

CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

(dollar and share amounts in thousands, except per share data)

 

 

Three months ended
March 31,

 

 

Six months ended
March 31,

 

 

2023

 

 

2022

 

 

2023

 

 

2022

 

Revenue

 

$

1,223,304

 

 

$

1,145,271

 

 

$

2,409,024

 

 

$

2,249,903

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Cost of revenue

 

 

795,485

 

 

 

741,257

 

 

 

1,552,334

 

 

 

1,457,975

 

Research and development

 

 

89,274

 

 

 

87,064

 

 

 

185,000

 

 

 

169,009

 

Selling, general and administrative

 

 

143,328

 

 

 

134,982

 

 

 

286,550

 

 

 

263,058

 

Amortization of purchased intangible assets and other

 

 

12,940

 

 

 

18,317

 

 

 

28,253

 

 

 

36,064

 

Restructuring charges

 

 

 

 

 

 

 

 

24,536

 

 

 

 

 

 

1,041,027

 

 

 

981,620

 

 

 

2,076,673

 

 

 

1,926,106

 

Operating income

 

 

182,277

 

 

 

163,651

 

 

 

332,351

 

 

 

323,797

 

Interest and other expense, net

 

 

(2,938

)

 

 

(8,619

)

 

 

(7,901

)

 

 

(11,181

)

Gain from sale of a business

 

 

 

 

 

 

 

 

 

 

 

10,000

 

Income before income taxes

 

 

179,339

 

 

 

155,032

 

 

 

324,450

 

 

 

322,616

 

Income tax expense (benefit)

 

 

29,030

 

 

 

(3,465

)

 

 

44,269

 

 

 

30,517

 

Net income

 

$

150,309

 

 

$

158,497

 

 

$

280,181

 

 

$

292,099

 

Net income attributable to noncontrolling interests

 

 

706

 

 

 

 

 

 

911

 

 

 

 

Net income attributable to Amdocs Limited

 

$

149,603

 

 

$

158,497

 

 

$

279,270

 

 

$

292,099

 

Basic earnings per share attributable to Amdocs Limited

 

$

1.24

 

 

$

1.29

 

 

$

2.32

 

 

$

2.36

 

Diluted earnings per share attributable to Amdocs Limited

 

$

1.23

 

 

$

1.28

 

 

$

2.30

 

 

$

2.34

 

Cash dividends declared per ordinary share

 

$

0.435

 

 

$

0.395

 

 

$

0.830

 

 

$

0.755

 

 

The accompanying notes are an integral part of these consolidated financial statements.

4

 


 

AMDOCS LIMITED

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)

(dollar amounts in thousands)

 

 

Three months ended
March 31,

 

 

Six months ended
March 31,

 

 

2023

 

 

2022

 

 

2023

 

 

2022

 

Net income

 

$

150,309

 

 

$

158,497

 

 

$

280,181

 

 

$

292,099

 

Other comprehensive income (loss), net of tax:

 

 

 

 

 

 

 

 

 

 

 

 

Net change in fair value of cash flow hedges(1)

 

 

2,004

 

 

 

(4,722

)

 

 

13,197

 

 

 

(1,687

)

Net change in fair value of available-for-sale securities(2)

 

 

3,398

 

 

 

(10,389

)

 

 

5,545

 

 

 

(12,955

)

Other comprehensive income (loss), net of tax

 

 

5,402

 

 

 

(15,111

)

 

 

18,742

 

 

 

(14,642

)

Comprehensive income

 

$

155,711

 

 

$

143,386

 

 

$

298,923

 

 

$

277,457

 

Comprehensive income attributable to noncontrolling interests

 

 

706

 

 

 

 

 

 

911

 

 

 

 

Comprehensive income attributable to Amdocs Limited

 

$

155,005

 

 

$

143,386

 

 

$

298,012

 

 

$

277,457

 

 

(1)
Net of tax of $277 and $39 for the three months ended March 31, 2023 and 2022, respectively and of $286 and $161 for the six months ended March 31, 2023 and 2022, respectively.
(2)
No tax impact for the three and six months ended March 31, 2023 and 2022.

The accompanying notes are an integral part of these consolidated financial statements.

5

 


 

AMDOCS LIMITED

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (UNAUDITED)

(dollar and share amounts in thousands, except per share data)

 

 

Ordinary Shares

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shares

 

 

Amount

 

 

Additional
Paid-in
Capital

 

 

Treasury
Stock

 

 

Accumulated
Other
Comprehensive
Loss (1)

 

 

Retained
Earnings

 

 

Total
Amdocs
Limited
Shareholders’
Equity

 

 

Non-
controlling
Interests

 

 

Total
Equity

 

Balance as of December 31, 2022

 

 

120,588

 

 

$

4,559

 

 

$

4,139,980

 

 

$

(6,831,810

)

 

$

(59,136

)

 

$

6,293,618

 

 

$

3,547,211

 

 

$

42,714

 

 

$

3,589,925

 

Comprehensive income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

0

 

 

 

 

Net income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

149,603

 

 

 

149,603

 

 

 

706

 

 

 

150,309

 

Other comprehensive income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

5,402

 

 

 

 

 

 

5,402

 

 

 

 

 

 

5,402

 

Comprehensive income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

155,005

 

 

 

706

 

 

 

155,711

 

Employee stock options exercised

 

 

336

 

 

 

4

 

 

 

20,479

 

 

 

 

 

 

 

 

 

 

 

 

20,483

 

 

 

 

 

 

20,483

 

Repurchase of shares

 

 

(1,147

)

 

 

 

 

 

 

 

 

(105,616

)

 

 

 

 

 

 

 

 

(105,616

)

 

 

 

 

 

(105,616

)

Cash dividends declared ($0.435 per ordinary share)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(52,309

)

 

 

(52,309

)

 

 

 

 

 

(52,309

)

Issuance of restricted stock, net of forfeitures

 

 

467

 

 

 

6

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

6

 

 

 

 

 

 

6

 

Equity-based compensation expense related to employees

 

 

 

 

 

 

 

 

21,361

 

 

 

 

 

 

 

 

 

 

 

 

21,361

 

 

 

 

 

 

21,361

 

Balance as of March 31, 2023

 

 

120,244

 

 

$

4,569

 

 

$

4,181,820

 

 

$

(6,937,426

)

 

$

(53,734

)

 

$

6,390,912

 

 

$

3,586,141

 

 

$

43,420

 

 

$

3,629,561

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ordinary Shares

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shares

 

 

Amount

 

 

Additional
Paid-in
Capital

 

 

Treasury
Stock

 

 

Accumulated
Other
Comprehensive
(Loss) Income (1)

 

 

Retained
Earnings

 

 

Total
Amdocs
Limited
Shareholders’
Equity

 

 

Non-
controlling
Interests (2)

 

 

Total
Equity

 

Balance as of December 31, 2021

 

 

123,354

 

 

$

4,526

 

 

$

3,974,056

 

 

$

(6,394,221

)

 

$

9,807

 

 

$

5,940,129

 

 

$

3,534,297

 

 

$

42,509

 

 

$

3,576,806

 

Comprehensive income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

158,497

 

 

 

158,497

 

 

 

 

 

 

158,497

 

Other comprehensive loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(15,111

)

 

 

 

 

 

(15,111

)

 

 

 

 

 

(15,111

)

Comprehensive income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

143,386

 

 

 

 

 

 

143,386

 

Employee stock options exercised

 

 

774

 

 

 

10

 

 

 

44,698

 

 

 

 

 

 

 

 

 

 

 

 

44,708

 

 

 

 

 

 

44,708

 

Repurchase of shares

 

 

(1,667

)

 

 

 

 

 

 

 

 

(130,025

)

 

 

 

 

 

 

 

 

(130,025

)

 

 

 

 

 

(130,025

)

Cash dividends declared ($0.395 per ordinary share)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(48,527

)

 

 

(48,527

)

 

 

 

 

 

(48,527

)

Issuance of restricted stock, net of forfeitures

 

 

379

 

 

 

6

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

6

 

 

 

 

 

 

6

 

Equity-based compensation expense related to employees

 

 

 

 

 

 

 

 

17,837

 

 

 

 

 

 

 

 

 

 

 

 

17,837

 

 

 

 

 

 

17,837

 

Balance as of March 31, 2022

 

 

122,840

 

 

$

4,542

 

 

$

4,036,591

 

 

$

(6,524,246

)

 

$

(5,304

)

 

$

6,050,099

 

 

$

3,561,682

 

 

$

42,509

 

 

$

3,604,191

 

____________

 

(1)
As of March 31, 2023 and 2022, accumulated other comprehensive (loss) income is comprised of unrealized (loss) gain on derivatives, net of tax, of $(33,383) and $12,086 unrealized loss on short-term interest-bearing investments, net of tax, of $(17,252) and $(14,229), and unrealized loss on defined benefit plan, net of tax, of $(3,099) and $(3,161), respectively.
(2)
During the three and six months ended March 31, 2022 all of the Company’s net income is attributable to Amdocs Limited as the net income attributable to the Non-controlling interests is negligible.

 

The accompanying notes are an integral part of these consolidated financial statements.

6


 

 

 

Ordinary Shares

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shares

 

 

Amount

 

 

Additional
Paid-in
Capital

 

 

Treasury
Stock

 

 

Accumulated
Other
Comprehensive
Loss (1)

 

 

Retained
Earnings

 

 

Total
Amdocs
Limited
Shareholders’
Equity

 

 

Non-
controlling
interests

 

 

Total
Equity

 

Balance as of September 30, 2022

 

 

120,842

 

 

$

4,548

 

 

$

4,105,900

 

 

$

(6,731,789

)

 

$

(72,476

)

 

$

6,211,586

 

 

$

3,517,769

 

 

$

42,509

 

 

$

3,560,278

 

Comprehensive income:

 

0

 

 

0

 

 

0

 

 

0

 

 

0

 

 

0

 

 

 

 

 

0

 

 

 

 

Net income (2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

279,270

 

 

 

279,270

 

 

 

911

 

 

 

280,181

 

Other comprehensive income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

18,742

 

 

 

 

 

 

18,742

 

 

 

 

 

 

18,742

 

Comprehensive income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

298,012

 

 

 

911

 

 

 

298,923

 

Employee stock options exercised

 

 

583

 

 

 

7

 

 

 

35,069

 

 

 

 

 

 

 

 

 

 

 

 

35,076

 

 

 

 

 

 

35,076

 

Repurchase of shares

 

 

(2,330

)

 

 

 

 

 

 

 

 

(205,637

)

 

 

 

 

 

 

 

 

(205,637

)

 

 

 

 

 

(205,637

)

Cash dividends declared ($0.830 per ordinary share)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(99,944

)

 

 

(99,944

)

 

 

 

 

 

(99,944

)

Issuance of restricted stock, net of forfeitures

 

 

1,149

 

 

 

14

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

14

 

 

 

 

 

 

14

 

Equity-based compensation expense related to employees

 

 

 

 

 

 

 

 

40,851

 

 

 

 

 

 

 

 

 

 

 

 

40,851

 

 

 

 

 

 

40,851

 

Balance as of March 31, 2023

 

 

120,244

 

 

$

4,569

 

 

$

4,181,820

 

 

$

(6,937,426

)

 

$

(53,734

)

 

$

6,390,912

 

 

$

3,586,141

 

 

$

43,420

 

 

$

3,629,561