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 June 30, 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 JUNE 30, 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

22

PART II OTHER INFORMATION

31

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

31

Item 2. Reports on Form 6-K

31

SIGNATURES

31

 

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

 

 

June 30,
2023

 

 

September 30,
2022

 

 

(Unaudited)

 

 

 

 

ASSETS

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

Cash and cash equivalents

 

$

517,657

 

 

$

573,377

 

Short-term interest-bearing investments

 

 

231,858

 

 

 

244,603

 

Accounts receivable, net

 

 

1,076,123

 

 

 

946,777

 

Prepaid expenses and other current assets

 

 

270,197

 

 

 

238,390

 

Total current assets

 

 

2,095,835

 

 

 

2,003,147

 

Property and equipment, net

 

 

783,257

 

 

 

794,287

 

Lease assets

 

 

149,586

 

 

 

176,884

 

Goodwill

 

 

2,721,970

 

 

 

2,662,825

 

Intangible assets, net

 

 

175,370

 

 

 

178,312

 

Other noncurrent assets

 

 

613,324

 

 

 

574,938

 

Total assets

 

$

6,539,342

 

 

$

6,390,393

 

LIABILITIES AND EQUITY

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

Accounts payable

 

$

293,064

 

 

$

134,400

 

Accrued expenses and other current liabilities

 

 

590,930

 

 

 

612,656

 

Accrued personnel costs

 

 

170,035

 

 

 

208,602

 

Lease liabilities

 

 

39,609

 

 

 

43,336

 

Deferred revenue

 

 

307,708

 

 

 

253,686

 

Total current liabilities

 

 

1,401,346

 

 

 

1,252,680

 

Deferred income taxes and taxes payable

 

 

249,948

 

 

 

312,237

 

Lease liabilities

 

 

111,869

 

 

 

138,378

 

Long-term debt, net of unamortized debt issuance costs

 

 

645,549

 

 

 

645,117

 

Other noncurrent liabilities

 

 

478,354

 

 

 

481,703

 

Total liabilities

 

 

2,887,066

 

 

 

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; 286,306 and 284,400 issued and 119,026 and 120,842 outstanding, respectively

 

 

4,571

 

 

 

4,548

 

Additional paid-in capital

 

 

4,217,048

 

 

 

4,105,900

 

Treasury stock, at cost 167,280 and 163,558 ordinary shares, respectively

 

 

(7,066,288

)

 

 

(6,731,789

)

Accumulated other comprehensive loss

 

 

(45,512

)

 

 

(72,476

)

Retained earnings

 

 

6,498,559

 

 

 

6,211,586

 

Total Amdocs Limited Shareholders' equity

 

 

3,608,378

 

 

 

3,517,769

 

Noncontrolling interests

 

 

43,898

 

 

 

42,509

 

Total equity

 

 

3,652,276

 

 

 

3,560,278

 

Total liabilities and equity

 

$

6,539,342

 

 

$

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
June 30,

 

 

Nine months ended
June 30,

 

 

2023

 

 

2022

 

 

2023

 

 

2022

 

Revenue

 

$

1,235,962

 

 

$

1,160,290

 

 

$

3,644,986

 

 

$

3,410,193

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Cost of revenue

 

 

804,007

 

 

 

748,214

 

 

 

2,356,341

 

 

 

2,206,189

 

Research and development

 

 

92,162

 

 

 

89,479

 

 

 

277,162

 

 

 

258,488

 

Selling, general and administrative

 

 

143,777

 

 

 

136,110

 

 

 

430,327

 

 

 

399,168

 

Amortization of purchased intangible assets and other

 

 

13,302

 

 

 

17,173

 

 

 

41,555

 

 

 

53,237

 

Restructuring charges

 

 

 

 

 

 

 

 

24,536

 

 

 

 

 

 

1,053,248

 

 

 

990,976

 

 

 

3,129,921

 

 

 

2,917,082

 

Operating income

 

 

182,714

 

 

 

169,314

 

 

 

515,065

 

 

 

493,111

 

Interest and other expense, net

 

 

(4,421

)

 

 

(7,811

)

 

 

(12,322

)

 

 

(18,992

)

Gain from sale of a business

 

 

 

 

 

 

 

 

 

 

 

10,000

 

Income before income taxes

 

 

178,293

 

 

 

161,503

 

 

 

502,743

 

 

 

484,119

 

Income tax expense

 

 

18,178

 

 

 

33,037

 

 

 

62,447

 

 

 

63,554

 

Net income

 

$

160,115

 

 

$

128,466

 

 

$

440,296

 

 

$

420,565

 

Net income attributable to noncontrolling interests

 

 

687

 

 

 

 

 

 

1,598

 

 

 

 

Net income attributable to Amdocs Limited

 

$

159,428

 

 

$

128,466

 

 

$

438,698

 

 

$

420,565

 

Basic earnings per share attributable to Amdocs Limited

 

$

1.33

 

 

$

1.05

 

 

$

3.65

 

 

$

3.41

 

Diluted earnings per share attributable to Amdocs Limited

 

$

1.32

 

 

$

1.04

 

 

$

3.62

 

 

$

3.39

 

Cash dividends declared per ordinary share

 

$

0.435

 

 

$

0.395

 

 

$

1.265

 

 

$

1.150

 

 

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
June 30,

 

 

Nine months ended
June 30,

 

 

2023

 

 

2022

 

 

2023

 

 

2022

 

Net income

 

$

160,115

 

 

$

128,466

 

 

$

440,296

 

 

$

420,565

 

Other comprehensive income (loss), net of tax:

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

8,774

 

 

 

(48,248

)

 

 

21,971

 

 

 

(49,935

)

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

 

 

(552

)

 

 

(3,264

)

 

 

4,993

 

 

 

(16,219

)

Other comprehensive income (loss), net of tax

 

 

8,222

 

 

 

(51,512

)

 

 

26,964

 

 

 

(66,154

)

Comprehensive income

 

$

168,337

 

 

$

76,954

 

 

$

467,260

 

 

$

354,411

 

Comprehensive income attributable to noncontrolling interests

 

 

687

 

 

 

 

 

 

1,598

 

 

 

 

Comprehensive income attributable to Amdocs Limited

 

$

167,650

 

 

$

76,954

 

 

$

465,662

 

 

$

354,411

 

 

(1)
Net of tax of $14 and $2,335 for the three months ended June 30, 2023 and 2022, respectively and of $271 and $2,174 for the nine months ended June 30, 2023 and 2022, respectively.
(2)
No tax impact for the three and nine months ended June 30, 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 (2)

 

 

Total
Equity

 

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

 

Comprehensive income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

159,428

 

 

 

159,428

 

 

 

687

 

 

 

160,115

 

Other comprehensive income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

8,222

 

 

 

 

 

 

8,222

 

 

 

 

 

 

8,222

 

Comprehensive income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

167,650

 

 

 

687

 

 

 

168,337

 

Employee stock options exercised

 

 

175

 

 

 

2

 

 

 

11,174

 

 

 

 

 

 

 

 

 

 

 

 

11,176

 

 

 

 

 

 

11,176

 

Repurchase of shares

 

 

(1,391

)

 

 

 

 

 

 

 

 

(128,862

)

 

 

 

 

 

 

 

 

(128,862

)

 

 

 

 

 

(128,862

)

Cash dividends declared ($0.435 per ordinary share)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(51,781

)

 

 

(51,781

)

 

 

 

 

 

(51,781

)

Issuance of restricted stock, net of forfeitures

 

 

(2

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity-based compensation expense related to employees

 

 

 

 

 

 

 

 

24,054

 

 

 

 

 

 

 

 

 

 

 

 

24,054

 

 

 

 

 

 

24,054

 

Distribution to noncontrolling interests (2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(209

)

 

 

(209

)

Balance as of June 30,2023

 

 

119,026

 

 

$

4,571

 

 

$

4,217,048

 

 

$

(7,066,288

)

 

$

(45,512

)

 

$

6,498,559

 

 

$

3,608,378

 

 

$

43,898

 

 

$

3,652,276

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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 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

 

Comprehensive income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

128,466

 

 

 

128,466

 

 

 

 

 

 

128,466

 

Other comprehensive loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(51,512

)

 

 

 

 

 

(51,512

)

 

 

 

 

 

(51,512

)

Comprehensive income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

76,954

 

 

 

 

 

 

76,954

 

Employee stock options exercised

 

 

363

 

 

 

4

 

 

 

22,115

 

 

 

 

 

 

 

 

 

 

 

 

22,119

 

 

 

 

 

 

22,119

 

Repurchase of shares

 

 

(1,221

)

 

 

 

 

 

 

 

 

(99,993

)

 

 

 

 

 

 

 

 

(99,993

)

 

 

 

 

 

(99,993

)

Cash dividends declared ($0.395 per ordinary share)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(48,180

)

 

 

(48,180

)

 

 

 

 

 

(48,180

)

Issuance of restricted stock, net of forfeitures

 

 

(21

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity-based compensation expense related to employees

 

 

 

 

 

 

 

 

18,122

 

 

 

 

 

 

 

 

 

 

 

 

18,122

 

 

 

 

 

 

18,122

 

Balance as of June 30, 2022

 

 

121,961

 

 

$

4,546

 

 

$

4,076,828

 

 

$

(6,624,239

)

 

$

(56,816

)

 

$

6,130,385

 

 

$

3,530,704

 

 

$

42,509

 

 

$

3,573,213

 

____________

 

(1)
As of June 30, 2023 and 2022, accumulated other comprehensive loss is comprised of unrealized loss on derivatives, net of tax, of $24,609 and $36,162 unrealized loss on short-term interest-bearing investments, net of tax, of $17,804 and $17,493, and unrealized loss on defined benefit plan, net of tax, of $3,099 and $3,161, respectively.
(2)
During the three and nine months ended June 30, 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. Starting fiscal year 2023, the Company distributes earnings to the noncontrolling interests, for further details please refer to Note 2, “A summary of Significant Accounting Policies “, in the Company’s Annual Report on Form 20-F for the fiscal year 2022.

 

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

 

 

 

 

 

 

 

 

 

 

 

6


 

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 (2)

 

 

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:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

438,698

 

 

 

438,698

 

 

 

1,598

 

 

 

440,296

 

Other comprehensive income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

26,964

 

 

 

 

 

 

26,964

 

 

 

 

 

 

26,964

 

Comprehensive income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

465,662

 

 

 

1,598

 

 

 

467,260

 

Employee stock options exercised

 

 

758

 

 

 

9

 

 

 

46,243

 

 

 

 

 

 

 

 

 

 

 

 

46,252

 

 

 

 

 

 

46,252

 

Repurchase of shares

 

 

(3,721

)

 

 

 

 

 

 

 

 

(334,499

)

 

 

 

 

 

 

 

 

(334,499

)

 

 

 

 

 

(334,499

)

Cash dividends declared ($1.265 per ordinary share)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(151,725

)

 

 

(151,725

)

 

 

 

 

 

(151,725

)

Issuance of restricted stock, net of forfeitures

 

 

1,147

 

 

 

14

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

14

 

 

 

 

 

 

14

 

Equity-based compensation expense related to employees

 

 

 

 

 

 

 

 

64,905

 

 

 

 

 

 

 

 

 

 

 

 

64,905

 

 

 

 

 

 

64,905

 

Distribution to noncontrolling interests (2)