AMDOCS LIMITED |
||||
/s/ Thomas G. O'Brien | ||||
Thomas G. OBrien | ||||
Date: November 8, 2011 | Treasurer and Secretary Authorized U.S. Representative |
Exhibit No. | Description | |||
99.1 | Amdocs Limited Press Release dated November 8, 2011. |
P R E S S R E L E A S E |
| Fourth fiscal quarter revenue of $812 million, compared to the $800-$815 million guidance range. The acquisition of Bridgewater Systems Corporation positively affected revenue by approximately $7 million which was not reflected in the companys guidance. Additionally, foreign currency movements negatively affected revenue by approximately $4 million sequentially relative to the third fiscal quarter of 2011 |
| Fourth fiscal quarter non-GAAP operating income of $134 million; non-GAAP operating margin of 16.5%; GAAP operating income of $105 million |
| Fourth fiscal quarter diluted non-GAAP EPS of $0.62, compared to the $0.58-$0.64 guidance range, excluding amortization of purchased intangible assets and other acquisition related costs and equity-based compensation expense, net of related tax effects |
| Diluted GAAP EPS of $0.49 for the fourth fiscal quarter, compared to the $0.46-$0.54 guidance range |
| Free cash flow of $118 million for the fourth fiscal quarter |
| Twelve-month backlog of $2.67 billion at the end of the fourth fiscal quarter, up $50 million from the end of the third fiscal quarter of 2011 |
| Repurchased $192 million of ordinary shares during the fourth fiscal quarter |
| First quarter fiscal 2012 guidance: Expected revenue of approximately $805-$825 million and diluted non-GAAP EPS of $0.61-$0.67, excluding amortization of purchased intangible assets and other 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 $0.49-$0.57 |
| Fiscal 2012 guidance: Expected non-GAAP earnings per share growth of at least 10-12% and revenue growth of approximately 5-6% in fiscal 2012 compared to fiscal 2011 |
1
2
3
| amortization of purchased intangible assets and other acquisition related costs; |
| equity-based compensation expense; |
| loss from divestiture of a subsidiary; and |
| tax effects related to the above. |
4
5
6
Three months ended | Twelve months ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
Revenue: |
||||||||||||||||
License |
$ | 31,543 | $ | 25,276 | $ | 119,237 | $ | 100,967 | ||||||||
Service |
780,660 | 736,918 | 3,058,491 | 2,883,256 | ||||||||||||
812,203 | 762,194 | 3,177,728 | 2,984,223 | |||||||||||||
Operating expenses: |
||||||||||||||||
Cost of license |
1,099 | 375 | 2,627 | 2,021 | ||||||||||||
Cost of service |
524,251 | 485,916 | 2,066,740 | 1,903,645 | ||||||||||||
Research and development |
58,944 | 54,287 | 221,886 | 207,836 | ||||||||||||
Selling, general and administrative |
103,729 | 96,531 | 409,465 | 373,585 | ||||||||||||
Amortization of purchased intangible
assets and other |
19,628 | 22,197 | 72,646 | 86,703 | ||||||||||||
707,651 | 659,306 | 2,773,364 | 2,573,790 | |||||||||||||
Operating income |
104,552 | 102,888 | 404,364 | 410,433 | ||||||||||||
Interest and other (expense) income, net |
(5,405 | ) | 2,109 | (8,657 | ) | (25,135 | ) | |||||||||
Income before income taxes |
99,147 | 104,997 | 395,707 | 385,298 | ||||||||||||
Income taxes |
11,768 | 10,259 | 49,042 | 41,392 | ||||||||||||
Net income |
$ | 87,379 | $ | 94,738 | $ | 346,665 | $ | 343,906 | ||||||||
Basic earnings per share |
$ | 0.49 | $ | 0.49 | $ | 1.87 | $ | 1.70 | ||||||||
Diluted earnings per share |
$ | 0.49 | $ | 0.48 | $ | 1.86 | $ | 1.69 | ||||||||
Basic weighted average number of shares
outstanding |
178,232 | 195,189 | 185,213 | 202,584 | ||||||||||||
Diluted weighted average number of
shares outstanding |
179,378 | 196,487 | 186,559 | 204,076 | ||||||||||||
7
Three months ended | Twelve months ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
Revenue |
$ | 812,203 | $ | 762,194 | $ | 3,177,728 | $ | 2,984,223 | ||||||||
Non-GAAP operating income |
133,883 | 137,212 | 513,641 | 541,591 | ||||||||||||
Non-GAAP net income |
111,187 | 122,351 | 434,580 | 471,708 | ||||||||||||
Non-GAAP diluted
earnings per share |
$ | 0.62 | $ | 0.62 | $ | 2.33 | $ | 2.31 | ||||||||
Diluted weighted average
number of shares
outstanding |
179,378 | 196,487 | 186,559 | 204,076 |
8
Three months ended | ||||||||||||||||||||
September 30, 2011 | ||||||||||||||||||||
Reconciliation items | ||||||||||||||||||||
GAAP | Amortization of | Equity based | Tax effect | Non-GAAP | ||||||||||||||||
purchased | compensation | |||||||||||||||||||
intangible assets | expense | |||||||||||||||||||
and other | ||||||||||||||||||||
Operating expenses: |
||||||||||||||||||||
Cost of license |
$ | 1,099 | $ | | $ | | $ | | $ | 1,099 | ||||||||||
Cost of service |
524,251 | | (4,718 | ) | | 519,533 | ||||||||||||||
Research and
development |
58,944 | | (714 | ) | | 58,230 | ||||||||||||||
Selling, general and
administrative |
103,729 | | (4,271 | ) | | 99,458 | ||||||||||||||
Amortization of
purchased intangible
assets and other |
19,628 | (19,628 | ) | | | | ||||||||||||||
Total operating expenses |
707,651 | (19,628 | ) | (9,703 | ) | | 678,320 | |||||||||||||
Operating income |
104,552 | 19,628 | 9,703 | | 133,883 | |||||||||||||||
Income taxes |
11,768 | | | 5,523 | 17,291 | |||||||||||||||
Net income |
$ | 87,379 | $ | 19,628 | $ | 9,703 | $ | (5,523 | ) | $ | 111,187 | |||||||||
Three months ended | ||||||||||||||||||||
September 30, 2010 | ||||||||||||||||||||
Reconciliation items | ||||||||||||||||||||
GAAP | Amortization of | Equity based | Tax effect | Non-GAAP | ||||||||||||||||
purchased | compensation | |||||||||||||||||||
intangible assets | expense | |||||||||||||||||||
and other | ||||||||||||||||||||
Operating expenses: |
||||||||||||||||||||
Cost of license |
$ | 375 | $ | | $ | | $ | | $ | 375 | ||||||||||
Cost of service |
485,916 | | (5,438 | ) | | 480,478 | ||||||||||||||
Research and
development |
54,287 | | (1,064 | ) | | 53,223 | ||||||||||||||
Selling, general and
administrative |
96,531 | | (5,625 | ) | | 90,906 | ||||||||||||||
Amortization of
purchased
intangible assets and
other |
22,197 | (22,197 | ) | | | | ||||||||||||||
Total operating expenses |
659,306 | (22,197 | ) | (12,127 | ) | | 624,982 | |||||||||||||
Operating income |
102,888 | 22,197 | 12,127 | | 137,212 | |||||||||||||||
Income taxes |
10,259 | | | 6,711 | 16,970 | |||||||||||||||
Net income |
$ | 94,738 | $ | 22,197 | $ | 12,127 | $ | (6,711 | ) | $ | 122,351 | |||||||||
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Twelve months ended | ||||||||||||||||||||
September 30, 2011 | ||||||||||||||||||||
Reconciliation items | ||||||||||||||||||||
GAAP | Amortization of | Equity based | Tax effect | Non-GAAP | ||||||||||||||||
purchased | compensation | |||||||||||||||||||
intangible assets | expense | |||||||||||||||||||
and other | ||||||||||||||||||||
Operating expenses: |
||||||||||||||||||||
Cost of license |
$ | 2,627 | $ | | $ | | $ | | $ | 2,627 | ||||||||||
Cost of service |
2,066,740 | | (14,641 | ) | | 2,052,099 | ||||||||||||||
Research and
development |
221,886 | | (2,701 | ) | | 219,185 | ||||||||||||||
Selling, general and
administrative |
409,465 | | (19,289 | ) | | 390,176 | ||||||||||||||
Amortization of
purchased intangible
assets and other |
72,646 | (72,646 | ) | | | | ||||||||||||||
Total operating expenses |
2,773,364 | (72,646 | ) | (36,631 | ) | | 2,664,087 | |||||||||||||
Operating income |
404,364 | 72,646 | 36,631 | | 513,641 | |||||||||||||||
Income taxes |
49,042 | | | 21,362 | 70,404 | |||||||||||||||
Net income |
$ | 346,665 | $ | 72,646 | $ | 36,631 | $ | (21,362 | ) | $ | 434,580 | |||||||||
Twelve months ended | ||||||||||||||||||||||||
September 30, 2010 | ||||||||||||||||||||||||
Reconciliation items | ||||||||||||||||||||||||
GAAP | Amortization of purchased |
Equity based | Loss from | Tax effect | Non-GAAP | |||||||||||||||||||
intangible assets | compensation | divestiture of a | ||||||||||||||||||||||
and other | expense | subsidiary | ||||||||||||||||||||||
Operating expenses: |
||||||||||||||||||||||||
Cost of license |
$ | 2,021 | $ | | $ | | $ | | $ | | $ | 2,021 | ||||||||||||
Cost of service |
1,903,645 | | (20,061 | ) | | | 1,883,584 | |||||||||||||||||
Research and
development |
207,836 | | (4,218 | ) | | | 203,618 | |||||||||||||||||
Selling, general and
administrative |
373,585 | | (20,176 | ) | | | 353,409 | |||||||||||||||||
Amortization of
purchased
intangible assets
and other |
86,703 | (86,703 | ) | | | | | |||||||||||||||||
Total operating expenses |
2,573,790 | (86,703 | ) | (44,455 | ) | | | 2,442,632 | ||||||||||||||||
Operating income |
410,433 | 86,703 | 44,455 | | | 541,591 | ||||||||||||||||||
Interest and other
(expense) income, net |
(25,135 | ) | | | 23,399 | | (1,736 | ) | ||||||||||||||||
Income taxes |
41,392 | | | | 26,755 | 68,147 | ||||||||||||||||||
Net income |
$ | 343,906 | $ | 86,703 | $ | 44,455 | $ | 23,399 | $ | (26,755 | ) | $ | 471,708 | |||||||||||
10
As of | ||||||||
September 30, 2011 | September 30, 2010 | |||||||
ASSETS |
||||||||
Current assets
Cash, cash equivalents and short-term interest-bearing investments |
$ | 1,173,470 | $ | 1,433,299 | ||||
Accounts receivable, net, including unbilled of $72,048 and $62,246, respectively |
565,853 | 580,000 | ||||||
Deferred income taxes and taxes receivable |
112,656 | 126,083 | ||||||
Prepaid expenses and other current assets |
127,341 | 112,417 | ||||||
Total current assets |
1,979,320 | 2,251,799 | ||||||
Equipment and leasehold improvements, net |
258,402 | 258,273 | ||||||
Goodwill and other intangible assets, net |
1,933,154 | 1,856,178 | ||||||
Other noncurrent assets |
465,696 | 454,354 | ||||||
Total assets |
$ | 4,636,572 | $ | 4,820,604 | ||||
LIABILITIES AND SHAREHOLDERS EQUITY |
||||||||
Current liabilities
Accounts payable, accruals and other |
$ | 594,603 | $ | 621,549 | ||||
Short-term financing arrangements |
250,000 | 200,000 | ||||||
Deferred revenue |
151,423 | 184,481 | ||||||
Deferred income taxes and taxes payable |
15,180 | 18,117 | ||||||
Total current liabilities |
1,011,206 | 1,024,147 | ||||||
Other noncurrent liabilities |
602,065 | 567,077 | ||||||
Shareholders equity |
3,023,301 | 3,229,380 | ||||||
Total liabilities and shareholders equity |
$ | 4,636,572 | $ | 4,820,604 | ||||
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Year ended September 30, | ||||||||
2011 | 2010 | |||||||
Cash Flow from Operating Activities: |
||||||||
Net income |
$ | 346,665 | $ | 343,906 | ||||
Reconciliation of net income to net cash provided by operating activities: |
||||||||
Depreciation and amortization |
181,477 | 195,940 | ||||||
Loss from divestiture of a subsidiary |
| 23,399 | ||||||
Equity-based compensation expense |
36,631 | 44,455 | ||||||
Deferred income taxes |
1,252 | (19,137 | ) | |||||
Excess tax benefit from equity-based compensation |
(178 | ) | (126 | ) | ||||
Loss (gain) from short-term interest-bearing investments |
1,386 | (1,284 | ) | |||||
Net changes in operating assets and liabilities, net of amounts acquired: |
||||||||
Accounts receivable, net |
38,062 | (131,387 | ) | |||||
Prepaid expenses and other current assets |
(10,741 | ) | 9,009 | |||||
Other noncurrent assets |
(15,807 | ) | (35,948 | ) | ||||
Accounts payable, accrued expenses and accrued personnel |
(46,976 | ) | 187,652 | |||||
Deferred revenue |
(34,444 | ) | 33,927 | |||||
Income taxes payable |
27,289 | 20,272 | ||||||
Other noncurrent liabilities |
10,876 | 14,520 | ||||||
Net cash provided by operating activities |
535,492 | 685,198 | ||||||
Cash Flow from Investing Activities: |
||||||||
Payments for purchase of equipment and leasehold improvements, net |
(109,779 | ) | (86,945 | ) | ||||
Proceeds from sale of short-term interest-bearing investments |
591,147 | 1,503,231 | ||||||
Purchase of short-term interest-bearing investments |
(521,999 | ) | (1,449,494 | ) | ||||
Net cash paid for acquisitions |
(162,964 | ) | (200,307 | ) | ||||
Net cash received from divestiture of a subsidiary |
| 20,275 | ||||||
Other |
(18,076 | ) | 1,734 | |||||
Net cash used in investing activities |
(221,671 | ) | (211,506 | ) | ||||
Cash Flow from Financing Activities: |
||||||||
Borrowings under financing arrangements |
250,000 | 200,000 | ||||||
Payments under financing arrangements |
(200,000 | ) | | |||||
Repurchase of shares |
(624,241 | ) | (389,287 | ) | ||||
Proceeds from employee stock options exercised |
56,474 | 23,644 | ||||||
Payments under capital lease, short-term financing arrangements and other |
(878 | ) | (616 | ) | ||||
Net cash used in financing activities |
(518,645 | ) | (166,259 | ) | ||||
Net (decrease) increase in cash and cash equivalents |
(204,824 | ) | 307,433 | |||||
Cash and cash equivalents at beginning of year |
1,036,195 | 728,762 | ||||||
Cash and cash equivalents at end of year |
$ | 831,371 | $ | 1,036,195 | ||||
12
Three months ended | ||||||||||||||||||||
September 30, | June 30, | March 31, | ||||||||||||||||||
2011 | 2011 | 2011 | December 31, 2010 | September 30, 2010 | ||||||||||||||||
North America |
$ | 585.1 | $ | 584.9 | $ | 598.4 | $ | 564.6 | $ | 569.7 | ||||||||||
Europe |
102.0 | 105.5 | 97.2 | 98.4 | 91.0 | |||||||||||||||
Rest of World |
125.1 | 111.0 | 93.3 | 112.2 | 101.5 | |||||||||||||||
Total Revenue |
$ | 812.2 | $ | 801.4 | $ | 788.9 | $ | 775.2 | $ | 762.2 | ||||||||||
Three months ended | ||||||||||||||||||||
September 30, | June 30, | March 31, | ||||||||||||||||||
2011 | 2011 | 2011 | December 31, 2010 | September 30, 2010 | ||||||||||||||||
Emerging Markets Revenue |
$ | 79.5 | $ | 73.2 | $ | 52.1 | $ | 67.8 | $ | 69.5 |
Three months ended | ||||||||||||||||||||
September 30, | June 30, | March 31, | ||||||||||||||||||
2011 | 2011 | 2011 | December 31, 2010 | September 30, 2010 | ||||||||||||||||
Managed Services Revenue |
$ | 384.8 | $ | 384.2 | $ | 382.6 | $ | 371.2 | $ | 355.5 |
Three months ended | ||||||||||||||||||||
September 30, | June 30, | March 31, | ||||||||||||||||||
2011 | 2011 | 2011 | December 31, 2010 | September 30, 2010 | ||||||||||||||||
Customer Experience Systems |
$ | 764.6 | $ | 751.1 | $ | 737.2 | $ | 725.4 | $ | 714.9 | ||||||||||
Directory |
47.6 | 50.3 | 51.7 | 49.8 | 47.3 | |||||||||||||||
Total Revenue |
$ | 812.2 | $ | 801.4 | $ | 788.9 | $ | 775.2 | $ | 762.2 | ||||||||||
As of | ||||||||||||||||||||
September 30, | June 30, | March 31, | ||||||||||||||||||
2011 | 2011 | 2011 | December 31, 2010 | September 30, 2010 | ||||||||||||||||
12-Month Backlog |
$ | 2,670 | $ | 2,620 | $ | 2,590 | $ | 2,560 | $ | 2,525 | ||||||||||
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