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 Month of July, 2003 AMDOCS LIMITED Suite 5, Tower Hill House Le Bordage St. Peter Port, Island of Guernsey, GY1 3QT Channel Islands Amdocs, Inc. 1390 Timberlake Manor Parkway, Chesterfield, Missouri 63017 (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 [X] FORM 40-F [ ] 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 [X]
AMDOCS LIMITED FORM 6-K REPORT OF FOREIGN PRIVATE ISSUER FOR THE MONTH OF JULY, 2003 The Company has been informed that the Midwest Regional Office of the Securities and Exchange Commission is conducting a private investigation into the events leading up to the announcement by the Company in June 2002 of revised projected revenue for the third and fourth quarters of fiscal 2002. The investigation appears to be focused on, but is not explicitly limited to, the Company's forecasting beginning with its April 23, 2002 press release. Although the Company believes that it will be able to satisfy any concerns the SEC staff may have in this regard, the Company is unable to predict the duration, scope, or outcome of the investigation. The Company is cooperating fully with the SEC staff. Attached as Exhibit 99.1 and incorporated herein by reference in its entirety is a copy of the press release issued by Amdocs Limited on July 23, 2003 announcing the Company's results for the third quarter ended June 30, 2003. Attached as Exhibit 99.2 and incorporated herein by reference in its entirety is a copy of the press release issued by Amdocs Limited on July 23, 2003 announcing an agreement with Sprint. EXHIBITS EXHIBIT NO. DESCRIPTION 99.1 Amdocs Press Release dated July 23, 2003. 99.2 Amdocs Press Release dated July 23, 2003.
SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. AMDOCS LIMITED Date: July 23, 2003 /s/ Thomas G. O'Brien ------------------------ Thomas G. O'Brien Treasurer and Secretary Authorized U.S. Representative
EXHIBIT INDEX EXHIBIT NO. DESCRIPTION 99.1 Amdocs Press Release dated July 23, 2003. 99.2 Amdocs Press Release dated July 23, 2003.
Exhibit 99.1 AMDOCS LIMITED REPORTS SEQUENTIAL GROWTH IN THIRD QUARTER AND EXCEEDS GUIDANCE Key highlights: - Revenue of $377.2 million, exceeding guidance of $360-$370 million - Sequential revenue growth of 6.2% - Diluted GAAP EPS of $0.21, proforma EPS of $0.23 - Major progress with Tier One carriers, including Bell Canada and Sprint PCS - Gaining momentum in a difficult market - Fourth quarter fiscal 2003 guidance: Expected revenue of $410 million and proforma EPS of $0.23. Diluted GAAP EPS results expected to be approximately $0.02 less than proforma EPS. St. Louis, MO - July 23, 2003 - Amdocs Limited (NYSE: DOX) today reported that for the third quarter ended June 30, 2003, revenue was $377.2 million, representing sequential growth of 6.2% and a decrease of less than 1.0% from last year's third quarter. Excluding acquisition-related costs and related tax effects, net income increased sequentially by $2.0 million to $50.8 million, or $0.23 per diluted share, and increased by $6.1 million, or 13.6%, when compared to net income of $44.7 million, or $0.20 per diluted share, in the third quarter of fiscal 2002. The Company's GAAP net income, which includes acquisition-related charges for amortization of purchased intangible assets and related tax effects, and, for the third quarter of fiscal 2002 only, the acquisition-related charges for amortization of goodwill, was $47.4 million, or $0.21 per diluted share, compared to net loss of $26.9 million, or $0.12 per diluted share, in the third quarter of fiscal 2002. Dov Baharav, Chief Executive Officer of Amdocs Management Limited, said, "Despite continued softness in the market, we achieved very good results this quarter. A key event this quarter was the expansion of our relationship with Bell Canada, including our purchase of their ownership interest in Certen. As a result, beginning in July 2003, Amdocs has a comprehensive outsourcing agreement through the year 2010. The Bell Canada project reinforces our unique ability to effectively deliver large-scale managed services, as well as system modernization and consolidation to Tier One communications providers. Another major achievement is the very significant expansion of our relationship with Sprint PCS. We will be migrating all Sprint PCS customers to the Amdocs system. Looking at the overall market, while there are some initial signs of stability, we continue to encounter delays in commitments from customers. However, we are confident that the telecom market can and will ultimately recover, enabling renewed sustainable growth for Amdocs." SALES HIGHLIGHTS During the third quarter, our new business included the following seven new key wins: - Amdocs was chosen by Sprint PCS to migrate its more than 18 million wireless customers onto the Amdocs convergent billing and CRM platform. - Continuing Amdocs momentum in the Vodafone Group of companies, Vodafone Hungary selected Amdocs. Amdocs will implement Amdocs Enabler together with provisioning, resource management, accounts receivable, collection and bill formatter, to support the full end-to-end billing process. - Two of the leading communications service providers in North America selected Amdocs eCare product. Amdocs eCare facilitates fully automated self-care, as well as electronic bill presentment and payment.
- A leading North American directory publisher selected new products and services from Amdocs to support Web-enabled customer relationship management capabilities. - A major North American carrier selected Amdocs Partner Relationship Management (PRM) product for support of content partnerships. - A major mobile operator in Latin America will upgrade its existing Amdocs billing platform with Amdocs Enabler together with additional pre-integrated modules, for full end-to-end convergent support for voice and data services across multiple networks and operations. OPERATING AND FINANCIAL HIGHLIGHTS During the third quarter: - Amdocs announced the release of Amdocs Enabler version 5.0. Version 5.0 includes out-of-the-box integration with Amdocs ClarifyCRM, advanced online charging capabilities, and support for multi-market or multinational operations on a single platform. Amdocs Enabler won the Best New Billing Product award at the Telestrategies Billing World conference held in Florida in June. - Amdocs announced the release of Amdocs ClarifyCRM 12, the latest version of its CRM software. Version 12.0 includes out of the box integration with Amdocs Enabler, advanced user interface technology incorporating support for browser-based access, and new functionality designed to transform the high-volume call center into a more efficient and effective, multi-channel customer contact center. - Amdocs completed the full-scale deployment of its customer care and billing platform at Nextel, recently referenced by Nextel as a significant contributor to their success. - T-Mobile USA implemented Amdocs Enabler, achieving the flexibility needed to enable convergent support for data, content, commerce and voice. - mobilkom austria implemented Amdocs Enabler, allowing mobilkom austria to quickly introduce innovative new services, such as multimedia messaging, to the market. - COSMOTE, the dominant mobile provider in Greece, has successfully deployed the Amdocs Partner Relationship Management (PRM) product, to manage the entire lifecycle of content and inter-carrier partnerships, and the Amdocs Collections module, for full automation of COSMOTE's collection processes. - Wind Telecomunicazioni SpA, the leading Italian telecommunications provider of convergent fixed-line, mobile and Internet services, completed the successful rollout of Amdocs ClarifyCRM. - Free cash flow, defined as cash flow from operations less net capital expenditures and payments on capital leases, was $67 million in the quarter. Effective October 1, 2002, Amdocs adopted Statement of Financial Accounting Standards No. 142 and therefore no longer amortizes goodwill resulting from acquisitions. Adjusting prior year's as-reported results to eliminate the effects of $50.5 million of goodwill amortization and related tax recorded in the third quarter of fiscal 2002 would have resulted in operating income, net income and earnings per diluted share of $53.6 million, $23.6 million and $0.11, respectively. FINANCIAL OUTLOOK Amdocs expects that revenue for the fourth quarter ending September 30, 2003, will be approximately $410 million. Proforma earnings per share for the quarter are expected to be approximately $0.23, excluding
acquisition-related costs and related tax effects. Diluted GAAP earnings per share, including acquisition-related costs and related tax effects, for the quarter are expected to be approximately $0.02 less than proforma EPS. Amdocs will host a conference call on July 23, 2003 at 5 p.m. Eastern Daylight Time to discuss the Company's third quarter results. The call will be carried live on the Internet via www.vcall.com and the Amdocs website, www.amdocs.com. ABOUT AMDOCS Amdocs is the world's leading provider of billing and CRM. With a more than 20-year track record of delivery excellence, our products empower major communications operators around the globe. We enable rapid time-to-market for next generation voice, content, commerce and application services, while enhancing subscriber loyalty and lowering total cost of ownership. We offer our customers flexible modes of delivery -- products, solutions and outsourcing. For more information, visit our web site at www.amdocs.com CAUTIONARY STATEMENTS Investors are cautioned that this press release contains proforma information that is not prepared in accordance with GAAP. Investors should not construe the proforma financial measures as being superior to GAAP. The Company's management uses proforma financial information in its internal analysis because it enables the management to consistently analyze the critical components and results of operations and to have a meaningful comparison to prior periods. The Company's management believes that such measures provide useful information to investors for meaningful comparison to prior periods and analysis of the critical components and results of operations. 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, Amdocs' ability to grow in the mobile, wireline and IP business segments, adverse effects of market competition, rapid technological shifts that may render the Company's products and services obsolete, potential loss of a major customer, our ability to develop long-term relationships with our customers, and risks associated with operating businesses in the international market. These and other risks are discussed at greater length in the Company's filings with the Securities and Exchange Commission, including in our Annual Report on Form 20-F, filed on March 24, 2003, and our Form 6-K, filed on May 15, 2003. CONTACT: Thomas G. O'Brien Treasurer and Vice President of Investor Relations Amdocs Limited 314/212-8328 E-mail: dox_info@amdocs.com
AMDOCS LIMITED PRO FORMA CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) EXCLUDING RESTRUCTURING CHARGES, PURCHASED IN-PROCESS RESEARCH AND DEVELOPMENT, AMORTIZATION OF GOODWILL AND PURCHASED INTANGIBLE ASSETS AND RELATED TAX EFFECTS (IN THOUSANDS, EXCEPT PER SHARE DATA) THREE MONTHS ENDED NINE MONTHS ENDED JUNE 30, JUNE 30, ---------------------------- ------------------------------ 2003 (1) 2002 (1) 2003 (2) 2002 (2) -------- -------- -------- -------- Revenue: License $ 11,491 $ 36,778 $ 51,176 $ 124,596 Service 365,677 343,357 1,020,392 1,133,449 -------- ---------- ---------- ---------- 377,168 380,135 1,071,568 1,258,045 Operating expenses: Cost of license 1,455 1,189 4,137 4,257 Cost of service 230,323 231,648 646,389 710,799 Research and development 29,941 32,822 88,888 92,281 Selling, general and administrative 50,943 55,411 153,644 170,213 -------- ---------- ---------- ---------- 312,662 321,070 893,058 977,550 -------- ---------- ---------- ---------- Operating income 64,506 59,065 178,510 280,495 Interest income and other, net 3,269 3,080 12,432 8,790 -------- ---------- ---------- ---------- Income before income taxes 67,775 62,145 190,942 289,285 Income taxes 16,945 17,401 47,737 81,000 -------- ---------- ---------- ---------- Net income $ 50,830 $ 44,744 $ 143,205 $ 208,285 ======== ========== ========== ========== Diluted earnings per share $ 0.23 $ 0.20 $ 0.65 $ 0.93 ======== ========== ========== ========== Diluted weighted average number of shares outstanding 220,792 221,615 218,953 223,968 ======== ========== ========== ========== (1) Excludes $0 and $51,142 for amortization of goodwill, $4,524 and $5,420 for amortization of purchased intangible assets, and tax effects related to the above of $(1,132) and $15,033 for the three months ended June 30, 2003 and 2002, respectively. Including the above items, income before income taxes was $63,251 and $5,583 and diluted earnings (loss) per share were $0.21 and $(0.12) for the three months ended June 30, 2003 and 2002, respectively. (2) Excludes $0 and $153,414 for amortization of goodwill, $14,303 and $21,824 for amortization of purchased intangible assets, $0 and $17,400 for write-off of purchased in-process research and development related to the Clarify acquisition, $9,956 and $13,311 of restructuring charges related to the cost reduction measures and the consolidation of data centers, respectively, and tax effects related to the above of $(6,066) and $(1,589) for the nine months ended June 30, 2003 and 2002, respectively. Including the above items, income before income taxes was $166,683 and $83,336, and diluted earnings per share were $0.57 and $0.02 for the nine months ended June 30, 2003 and 2002, respectively.
AMDOCS LIMITED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) (IN THOUSANDS, EXCEPT PER SHARE DATA) THREE MONTHS ENDED NINE MONTHS ENDED JUNE 30, JUNE 30, ---------------------------- ------------------------------ 2003 2002(1) 2003 2002(1) Revenue: License $ 11,491 $ 36,778 $ 51,176 $ 124,596 Service 365,677 343,357 1,020,392 1,133,449 --------- ----------- ---------- ---------- 377,168 380,135 1,071,568 1,258,045 Operating expenses: Cost of license 1,455 1,189 4,137 4,257 Cost of service 230,323 231,648 646,389 710,799 Research and development 29,941 32,822 88,888 92,281 Selling, general and administrative 50,943 55,411 153,644 170,213 Amortization of goodwill and purchased intangible assets 4,524 56,562 14,303 175,238 Restructuring charges and in-process research and development -- -- 9,956 30,711 --------- ----------- ---------- ---------- 317,186 377,632 917,317 1,183,499 --------- ----------- ---------- ---------- Operating income 59,982 2,503 154,251 74,546 Interest income and other, net 3,269 3,080 12,432 8,790 --------- ----------- ---------- ---------- Income before income taxes 63,251 5,583 166,683 83,336 Income taxes 15,813 32,434 41,671 79,411 --------- ----------- ---------- ---------- Net income (loss) $ 47,438 $ (26,851) $ 125,012 $ 3,925 ========= =========== ========== ========== Basic earnings (loss) per share $ 0.22 $ (0.12) $ 0.58 $ 0.02 ========= =========== ========== ========== Diluted earnings (loss) per share $ 0.21 $ (0.12) $ 0.57 $ 0.02 ========= =========== ========== ========== Basic weighted average number of shares outstanding 215,938 220,245 215,786 221,979 ========= =========== ========== ========== Diluted weighted average number of shares outstanding 220,792 220,245(2) 218,953 223,968 ========= =========== ========== ========== (1) Includes $51,142 and $153,414 of goodwill amortization and $(679) and $(2,038) related tax effects for the three months and nine months ended June 30, 2002, respectively. Net income and diluted earnings per share excluding these items (as if Statement of Financial Accounting Standards No. 142 had been implemented) for the three months and nine months ended June 30, 2002 would have been $23,612 and $155,301 and $0.11 and $0.69, respectively. (2) Due to net loss, contingently issuable shares are excluded from the computation of diluted weighted average number of shares.
AMDOCS LIMITED CONDENSED CONSOLIDATED BALANCE SHEETS (IN THOUSANDS) AS OF ------------------------------ JUNE 30, SEPTEMBER 30, 2003 2002 ---- ---- (UNAUDITED) ASSETS Current assets Cash, cash equivalents and short-term interest-bearing investments $1,288,717 $1,047,819 Accounts receivable, net, including unbilled of $21,330 and $24,144, respectively 280,273 312,732 Deferred income taxes and taxes receivable 44,146 48,154 Prepaid expenses and other current assets 98,527 72,196 ---------- ---------- Total current assets 1,711,663 1,480,901 Equipment, vehicles and leasehold improvements, net 148,907 160,902 Goodwill and other intangible assets, net 724,619 750,530 Other noncurrent assets 161,850 147,761 ---------- ---------- Total assets $2,747,039 $2,540,094 ========== ========== LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities Accounts payable and accruals $ 287,894 $ 279,071 Short-term portion of capital lease obligations 7,873 10,347 Convertible notes 445,054 -- Deferred revenue 197,479 149,590 Deferred income taxes and taxes payable 111,300 103,315 ---------- ---------- Total current liabilities 1,049,600 542,323 Convertible notes and other noncurrent liabilities 140,522 581,496 Shareholders' equity 1,556,917 1,416,275 ---------- ---------- Total liabilities and shareholders' equity $2,747,039 $2,540,094 ========== ========== # # #
EXHIBIT 99.2 AMDOCS WINS SPRINT CONTRACT More than 18 Million Sprint wireless subscribers to migrate to Amdocs billing and CRM platform ST. LOUIS, MO. -- July 23, 2003 -- Amdocs (NYSE: DOX), the world's leading provider of billing and CRM, today announced that it has secured an agreement with Sprint to support the company's more than 18 million business and consumer wireless subscribers on the Amdocs billing and CRM platform. Sprint and Amdocs have already begun the migration of all Sprint wireless subscribers for voice and data services. "Amdocs software products and service solutions are based on the industry's largest investment in R&D to ensure that leading operators, such as Sprint, can rapidly deploy innovative services while maximizing their billing and CRM investments," said Michael Matthews, Chief Marketing Officer at Amdocs. "We are delighted to have been chosen by Sprint to migrate its more than 18 million wireless customers onto our convergent billing and CRM platform. This is a key milestone in our long-standing relationship." ABOUT AMDOCS Amdocs is the world's leading provider of billing and CRM. With a 20-year track record of delivery excellence, our products empower major communications operators around the globe. We enable rapid time-to-market for next generation voice, content, commerce and application services, while enhancing subscriber loyalty and lowering total cost of ownership. We offer our customers flexible modes of delivery -- products, solutions and outsourcing. For more information, visit our web site at www.amdocs.com. MEDIA CONTACT: AMDOCS Dan Ginsburg Porter Novelli for Amdocs Tel: 212-601-8020 Fax: 212-601-8101 E-Mail: dginsburg@porternovelli.com