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 UNDER
THE SECURITIES EXCHANGE ACT OF 1934
For the month of October, 2007.
Commission File Number 1-14840
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 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 X
On October 31, 2007, Amdocs Limited ("Amdocs") issued a press release announcing
financial results for the quarter and fiscal year ended September 30, 2007. A
copy of the press release is furnished as Exhibit 99.1 to this Report of Foreign
Private Issuer on Form 6-K.
The information in this Form 6-K (including Exhibit 99.1) shall not be deemed
"filed" for purposes of Section 18 of the Securities Exchange Act of 1934 (the
"Exchange Act") or otherwise subject to the liabilities of that section, nor
shall it be deemed incorporated by reference in any filing under the Securities
Act of 1933 or the Exchange Act.
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
/s/ Thomas G. O'Brien
________________________
Thomas G. O'Brien
Treasurer and Secretary
Authorized U.S. Representative
Date: October 31, 2007
EXHIBIT INDEX
EXHIBIT NO. DESCRIPTION
99.1 Amdocs Limited Press Release dated October 31, 2007.
EXHIBIT 99.1
PRESS RELEASE AMDOCS
- --------------------------------------------------------------------------------
AMDOCS LIMITED REPORTS RECORD ANNUAL AND QUARTERLY REVENUE
AMDOCS REPORTS GROWTH IN QUARTERLY DILUTED NON-GAAP EARNINGS PER SHARE
TO $0.54; DILUTED GAAP EARNINGS PER SHARE OF $0.43
Key highlights:
- Fourth quarter revenue increased 9% to $727 million, in line with
guidance
- 8% increase in fourth quarter diluted non-GAAP EPS, excluding
acquisition-related costs and equity-based compensation expense, net
of related tax effects, to $0.54, in line with guidance
- Diluted GAAP EPS of $0.43 for the quarter
- Free cash flow of $68 million for the quarter
- Fiscal 2007 revenue of $2.84 billion; diluted non-GAAP earnings per
share of $2.14; diluted GAAP earnings per share of $1.65
- First quarter fiscal 2008 guidance: Expected revenue of approximately
$735-$745 million and diluted non-GAAP EPS of $0.55-$0.57, excluding
acquisition-related costs and approximately $0.05-$0.06 per share of
equity-based compensation expense, net of related tax effects. Diluted
GAAP EPS is expected to be approximately $0.43-$0.46
- Fiscal 2008 guidance: Expected revenue of approximately $3.05--$3.15
billion and diluted non-GAAP EPS of $2.29-$2.39, excluding
acquisition-related costs and approximately $0.20-$0.23 per share of
equity-based compensation expense, net of related tax effects. Diluted
GAAP EPS is expected to be approximately $1.82-$1.95
ST. LOUIS, MO -- OCTOBER 31, 2007 -- Amdocs Limited (NYSE: DOX) today reported
that for the quarter ended September 30, 2007, revenue was $726.7 million, an
increase of 9.2% from last year's fourth quarter. Net income on a non-GAAP basis
was $120.7 million, or $0.54 per diluted share (excluding acquisition-related
costs, which include amortization of purchased intangible assets, and excluding
equity-based compensation expense, net of related tax effects, of $24.5
million), compared to non-GAAP net income of $109.5 million, or $0.50 per
diluted share, in the fourth quarter of fiscal 2006 (excluding
acquisition-related costs, which include amortization of purchased intangible
assets and the write-off of in-process research and development, and excluding
equity-based compensation expense, net of related tax effects, of $33.6
million). The Company's GAAP net income was $96.2 million, or $0.43 per diluted
share, compared to GAAP net income of $76.0 million, or $0.35 per diluted share,
in the fourth quarter of fiscal 2006. Free cash flow for the quarter was $68.1
million, comprised of cash flow from operations of $107.2 million less $39.1
million in net capital expenditures and other.
"Our solid growth in this quarter is a continuation of the success that we have
had in fiscal 2007," said Dov Baharav, chief executive officer of Amdocs
Management Limited. "During the year, we expanded our relationship with many of
our key customers and delivered for them the customer experience systems that
they need in order to succeed in a highly competitive market. Our real-life
experience in this market, our ability to cope with complexity and our track
record of successful delivery set us apart from the competition. Armed with the
best products and a full range of services, we believe that Amdocs is well
positioned for growth in fiscal 2008. We are seeing good demand in the market
for our offerings, and based on specific opportunities that we are pursuing
today, we expect to accelerate our growth rate during fiscal 2008 as the year
progresses."
Amdocs had numerous wins across lines of business and geographies in the fourth
quarter. Among those are two managed services projects including modernization
and consolidation of systems, a transformation project including business
process consulting, modernization and implementation for a leading provider of
quadruple-play services in Europe, a new project supporting one of the largest
wireless providers in Latin America, and several cable wins including a new logo
in Europe.
For the fiscal year ended September 30, 2007, revenue increased by 14.4% to
$2.84 billion. Fiscal 2007 net income on a non-GAAP basis was $473.9 million, or
$2.14 per diluted share (excluding acquisition-related costs, which include
amortization of purchased intangible assets, in-process research and development
write-off and other, restructuring charges, and equity-based compensation
expense, net of related tax effects, of $108.9 million), compared to non-GAAP
net income of $401.2 million, or $1.85 per diluted share, in fiscal 2006
(excluding acquisition-related costs, which include amortization of purchased
intangible assets, in-process research and development write-off and
equity-based compensation expense, net of related tax effects, of $82.6
million). The Company's GAAP net income in fiscal 2007 was $364.9 million, or
$1.65 per diluted share, compared to GAAP net income of $318.6 million, or $1.48
per diluted share, in fiscal 2006.
FINANCIAL OUTLOOK
Amdocs expects that revenue for the first quarter of fiscal 2008 will be
approximately $735-$745 million. Diluted earnings per share on a non-GAAP basis
for the first quarter are expected to be $0.55-$0.57, excluding
acquisition-related costs and approximately $0.05-$0.06 per share of
equity-based compensation expense, net of related tax effects. Diluted GAAP EPS
is expected to be approximately $0.43-$0.46.
Fiscal 2008 guidance: Expected revenue of approximately $3.05-$3.15 billion and
diluted non-GAAP EPS of $2.29-$2.39, excluding acquisition-related costs and
approximately $0.20-$0.23 per share of equity-based compensation expense, net of
related tax effects. Diluted GAAP EPS is expected to be approximately
$1.82-$1.95.
Amdocs will host a conference call on October 31, 2007 at 5 p.m. Eastern Time to
discuss the Company's fourth quarter results. The call will be carried live on
the Internet via www.InvestorCalendar.com and 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, non-GAAP cost of service, non-GAAP
research and development, non-GAAP selling, general and administrative, non-GAAP
operating income, non-GAAP income taxes and non-GAAP net income. These non-GAAP
measures exclude the following items:
- amortization of purchased intangible assets;
- in-process research and development write-off and other;
- restructuring charges;
- equity-based compensation expense; and
- tax effects related to the above.
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, non-GAAP cost of service,
non-GAAP research and development, non-GAAP selling, general and administrative,
non-GAAP operating income, non-GAAP income taxes and non-GAAP net income, 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, in-process research and development
write-off and other, restructuring charges, equity-based compensation expense,
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 non-cash expenses in reviewing its results and
those of its competitors, because the amounts of the expenses between companies
can vary greatly depending on the assumptions used by an individual company in
determining the amounts of the expenses.
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
service, research and development, selling, general and administrative,
operating income, 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.
ABOUT AMDOCS
Amdocs is the market leader in customer experience systems innovation, enabling
world-leading service providers to deliver an integrated, innovative and the
intentional customer experience(TM) -- at every point of service. Amdocs
provides solutions that deliver customer experience excellence, combining the
software, service and expertise to help its customers execute their strategies
and achieve service, operational and financial excellence. A global company with
revenue of $2.84 billion in fiscal 2007, Amdocs has over 16,000 employees and
serves customers in more than 50 countries around the world. 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, 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, the Company specifically disclaims any obligation
to do so. 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 for the fiscal year ended September 30, 2006 and in our
quarterly Form 6-K furnished on February 6, May 11 and August 6, 2007.
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
CONSOLIDATED STATEMENTS OF INCOME
(IN THOUSANDS, EXCEPT PER SHARE DATA)
THREE MONTHS ENDED TWELVE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
-------------------------- --------------------------
2007 2006 2007 2006
---------- ---------- ---------- ----------
Revenue:
License $ 46,266 $ 31,113 $ 159,357 $ 116,285
Service 680,423 634,332 2,676,816 2,363,765
---------- ---------- ---------- ----------
726,689 665,445 2,836,173 2,480,050
Operating expenses:
Cost of license 869 1,030 3,914 4,003
Cost of service 461,692 414,813 1,792,468 1,579,823
Research and development 55,515 55,368 230,444 186,760
Selling, general and
administrative 95,299 86,708 370,194 313,997
Amortization of purchased
intangible assets 19,174 14,022 74,959 37,610
Restructuring charges,
in-process research and
development and other (1) -- 17,310 6,761 25,725
---------- ---------- ---------- ----------
632,549 589,251 2,478,740 2,147,918
---------- ---------- ---------- ----------
Operating income 94,140 76,194 357,433 332,132
Interest income and other, net 13,638 8,082 50,566 41,741
---------- ---------- ---------- ----------
Income before income taxes 107,778 84,276 407,999 373,873
Income taxes 11,535 8,321 43,062 55,237
---------- ---------- ---------- ----------
Net income $ 96,243 $ 75,955 $ 364,937 $ 318,636
========== ========== ========== ==========
Basic earnings per share $ 0.46 $ 0.37 $ 1.76 $ 1.57
========== ========== ========== ==========
Diluted earnings per share (2) $ 0.43 $ 0.35 $ 1.65 $ 1.48
========== ========== ========== ==========
Basic weighted average number of
shares outstanding 209,371 205,330 207,846 203,194
========== ========== ========== ==========
Diluted weighted average number
of shares outstanding 224,033 221,236 223,256 218,534
========== ========== ========== ==========
(1) Restructuring charges, in-process research and development and other for
the twelve months ended September 30, 2007 include the following:
restructuring charges of $6,011, in-process research and development of
$2,666 offset by other acquisition related income of $1,916. Restructuring
charges, in-process research and development and other for the three and
twelve months ended September 30, 2006 include in-process research and
development of $17,310 and $25,725, respectively.
(2) To reflect the impact of assumed conversion of the convertible notes, $985
and $3,940, representing interest expense and amortization of issuance
costs, were added back to net income for the three and twelve months ended
September 30, 2007, respectively, and $985 and $3,948 were added back to
net income for the three and twelve months ended September 30, 2006,
respectively, for the purpose of computing diluted earnings per share.
AMDOCS LIMITED
SELECTED FINANCIAL METRICS
(IN THOUSANDS, EXCEPT PER SHARE DATA)
THREE MONTHS ENDED TWELVE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
-------------------------- --------------------------
2007 2006 2007 2006
---------- ---------- ---------- ----------
Revenue $ 726,689 $ 665,445 $2,836,173 $2,480,050
Non-GAAP operating income 126,931 121,756 492,740 441,645
Non-GAAP net income 120,708 109,533 473,871 401,211
Non-GAAP diluted earnings per
share (1) $ 0.54 $ 0.50 $ 2.14 $ 1.85
Diluted weighted average number
of shares outstanding 224,033 221,236 223,256 218,534
(1) To reflect the impact of assumed conversion of the convertible notes, $985
and $3,940, representing interest expense and amortization of issuance
costs, were added back to net income for the three and twelve months ended
September 30, 2007, respectively, and $985 and $3,948 were added back to
net income for the three and twelve months ended September 30, 2006,
respectively, for the purpose of computing diluted earnings per share.
AMDOCS LIMITED
RECONCILIATION OF SELECTED FINANCIAL METRICS FROM GAAP TO NON-GAAP
(IN THOUSANDS)
THREE MONTHS ENDED
SEPTEMBER 30, 2007
-------------------------------------------------------------------------------
RECONCILIATION ITEMS
----------------------------------------------
AMORTIZATION EQUITY BASED
GAAP OF PURCHASED COMPENSATION TAX
INTANGIBLE EXPENSE EFFECT NON-GAAP
ASSETS
------------ ------------ ------------ ------------ ------------
Operating expenses:
Cost of license $ 869 $ -- $ -- $ -- $ 869
Cost of service 461,692 -- (6,504) -- 455,188
Research and
development 55,515 -- (1,475) -- 54,040
Selling, general and
administrative 95,299 -- (5,638) -- 89,661
Amortization of
purchased intangible
assets 19,174 (19,174) -- -- --
-------------------------------------------------------------------------------
Total operating expenses 632,549 (19,174) (13,617) -- 599,758
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
Operating income 94,140 19,174 13,617 -- 126,931
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
Income taxes 11,535 -- -- 8,326 19,861
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
Net income $ 96,243 $ 19,174 $ 13,617 $ (8,326) $ 120,708
-------------------------------------------------------------------------------
THREE MONTHS ENDED
SEPTEMBER 30, 2006
-------------------------------------------------------------------------------------------------
RECONCILIATION ITEMS
---------------------------------------------------------------
AMORTIZATION EQUITY
GAAP OF PURCHASED IN-PROCESS BASED TAX
INTANGIBLE RESEARCH AND COMPENSATION EFFECT NON-GAAP
ASSETS DEVELOPMENT EXPENSE
------------ ------------ ------------ ------------ ------------ ------------
Operating expenses:
Cost of license $ 1,030 $ -- $ -- $ -- $ -- $ 1,030
Cost of service 414,813 -- -- (5,805) -- 409,008
Research and
development 55,368 -- -- (1,670) -- 53,698
Selling, general and
administrative 86,708 -- -- (6,755) -- 79,953
Amortization of
purchased intangible
assets 14,022 (14,022) -- -- -- --
in-process research and
development 17,310 -- (17,310) -- -- --
-------------------------------------------------------------------------------------------------
Total operating expenses 589,251 (14,022) (17,310) (14,230) -- 543,689
-------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------
Operating income 76,194 14,022 17,310 14,230 -- 121,756
-------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------
Income taxes 8,321 -- -- -- 11,984 20,305
-------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------
Net income $ 75,955 $ 14,022 $ 17,310 $ 14,230 $ (11,984) $ 109,533
-------------------------------------------------------------------------------------------------
AMDOCS LIMITED
RECONCILIATION OF SELECTED FINANCIAL METRICS FROM GAAP TO NON-GAAP
(IN THOUSANDS)
TWELVE MONTHS ENDED
SEPTEMBER 30, 2007
------------------------------------------------------------------------------------------------
RECONCILIATION ITEMS
------------------------------------------------------------
RESTRUCTURING
CHARGES,
AMORTIZATION IN-PROCESS EQUITY
GAAP OF PURCHASED RESEARCH AND BASED TAX NON-GAAP
INTANGIBLE DEVELOPMENT COMPENSATION EFFECT
ASSETS AND OTHER EXPENSE
------------------------------------------------------------------------------------------------
Operating expenses:
Cost of license $ 3,914 $ -- $ -- $ -- $ -- $ 3,914
Cost of service 1,792,468 -- -- (25,418) -- 1,767,050
Research and development 230,444 -- -- (6,574) -- 223,870
Selling, general and
administrative 370,194 -- -- (21,595) -- 348,599
Amortization of
purchased intangible
assets 74,959 (74,959) -- -- -- --
Restructuring charges,
in-process research
and development and
other 6,761 -- (6,761) -- -- --
------------------------------------------------------------------------------------------------
Total operating expenses 2,478,740 (74,959) (6,761) (53,587) -- 2,343,433
------------------------------------------------------------------------------------------------
Operating income 357,433 74,959 6,761 53,587 -- 492,740
------------------------------------------------------------------------------------------------
Income taxes 43,062 -- -- -- 26,373 69,435
------------------------------------------------------------------------------------------------
Net income $ 364,937 $ 74,959 $ 6,761 $ 53,587 $ (26,373) $ 473,871
------------------------------------------------------------------------------------------------
AMDOCS LIMITED
RECONCILIATION OF SELECTED FINANCIAL METRICS FROM GAAP TO NON-GAAP
(IN THOUSANDS)
TWELVE MONTHS ENDED
SEPTEMBER 30, 2006
------------------------------------------------------------------------------------------------
RECONCILIATION ITEMS
--------------------------------------------------------------
GAAP AMORTIZATION EQUITY
OF PURCHASED IN-PROCESS BASED TAX NON-GAAP
INTANGIBLE RESEARCH AND COMPENSATION EFFECT
ASSETS DEVELOPMENT EXPENSE
------------------------------------------------------------------------------------------------
Operating expenses:
Cost of license $ 4,003 $ -- $ -- $ -- $ -- $ 4,003
Cost of service 1,579,823 -- -- (18,042) -- 1,561,781
Research and development 186,760 -- -- (4,711) -- 182,049
Selling, general and
administrative 313,997 -- -- (23,425) -- 290,572
Amortization of
purchased intangible
assets 37,610 (37,610) -- -- -- --
In-process research and
development 25,725 -- (25,725) -- -- --
------------------------------------------------------------------------------------------------
Total operating expenses 2,147,918 (37,610) (25,725) (46,178) -- 2,038,405
------------------------------------------------------------------------------------------------
Operating income 332,132 37,610 25,725 46,178 -- 441,645
------------------------------------------------------------------------------------------------
Income taxes 55,237 -- -- -- 26,938 82,175
------------------------------------------------------------------------------------------------
Net income $ 318,636 $ 37,610 $ 25,725 $ 46,178 $ (26,938) $ 401,211
------------------------------------------------------------------------------------------------
AMDOCS LIMITED
CONDENSED CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS)
AS OF
--------------------------------
SEPTEMBER 30, SEPTEMBER 30,
2007 2006
------------ ------------
ASSETS
Current assets
Cash, cash equivalents and short-term interest-bearing investments $ 1,179,280 $ 979,381
Accounts receivable, net, including unbilled of $63,441 and $54,117
respectively 493,418 425,805
Deferred income taxes and taxes receivable 117,623 136,044
Prepaid expenses and other current assets 98,746 97,476
------------ ------------
Total current assets 1,889,067 1,638,706
Equipment, vehicles and leasehold improvements, net 283,839 220,290
Goodwill and other intangible assets, net 1,792,588 1,809,322
Other noncurrent assets 379,105 294,510
------------ ------------
Total assets $ 4,344,599 $ 3,962,828
============ ============
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
Accounts payable and accruals $ 592,937 $ 597,107
Short-term portion of capital lease obligations and other financing
arrangements 2,055 1,963
Deferred revenue 173,775 253,376
Deferred income taxes and taxes payable 205,960 179,241
------------ ------------
Total current liabilities 974,727 1,031,687
0.50% Convertible notes 450,000 450,000
Noncurrent liabilities and other 319,629 326,976
Shareholders' equity 2,600,243 2,154,165
------------ ------------
Total liabilities and shareholders' equity $ 4,344,599 $ 3,962,828
============ ============
