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 April 2006 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 April 26, 2006, Amdocs Limited ("Amdocs") issued a press release announcing financial results for the quarter ended March 31, 2006. 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: April 27, 2006
EXHIBIT INDEX EXHIBIT NO. DESCRIPTION 99.1 Amdocs Limited Press Release dated April 26, 2006.
EXHIBIT 99.1 PRESS RELEASE [AMDOCS COMPANY LOGO] AMDOCS LIMITED REPORTS 23% GROWTH IN REVENUE TO A RECORD $601 MILLION FOR THE SECOND QUARTER OF FISCAL 2006 26% GROWTH IN DILUTED EARNINGS PER SHARE BEFORE CERTAIN ITEMS TO $0.44; DILUTED GAAP EPS OF $0.38 Key highlights: o Second quarter revenue grew 23% to $601 million o 26% increase in second quarter diluted EPS, excluding acquisition-related costs and equity-based compensation expense, net of related tax effects, to $0.44; Exceeds guidance of $0.42 o Diluted GAAP EPS of $0.38 o Free cash flow of $86 million for the quarter o Sprint Nextel selected Amdocs to provide a single platform to support its more than 45 million wireless subscribers o After the quarter, Amdocs announced that it had signed an agreement to acquire Qpass, a leading provider of digital commerce software and solutions, for $275 million in cash o Third quarter fiscal 2006 guidance: Expected revenue of approximately $622 million and diluted EPS of $0.46, excluding acquisition-related costs, net of related tax effects, and approximately $0.04-$0.05 per share of equity-based compensation expense. Diluted GAAP EPS is expected to be approximately $0.39-$0.40. This guidance excludes any potential impact of the pending acquisition of Qpass o Updated fiscal 2006 guidance: Expected revenue of approximately $2.445-$2.465 billion and diluted EPS of $1.78-$1.80, excluding acquisition-related costs, net of related tax effects, and approximately $0.16-$0.18 per share of equity-based compensation expense. Diluted GAAP EPS is expected to be approximately $1.51-$1.55. This guidance excludes any potential impact of the pending acquisition of Qpass
ST. LOUIS, MO - APRIL 26, 2006 - Amdocs Limited (NYSE: DOX) today reported that for the second quarter ended March 31, 2006, revenue was $601.1 million, an increase of 23.1% from last year's second quarter. Excluding acquisition-related costs and equity-based compensation expense, net of related tax effects, of $13.7 million, net income was $95.5 million, or $0.44 per diluted share, compared to net income, excluding $1.7 million of acquisition-related costs net of related tax effects, of $76.0 million, or $0.35 per diluted share, in the second quarter of fiscal 2005. The Company's net income was $81.8 million, or $0.38 per diluted share, compared to net income of $74.3 million, or $0.34 per diluted share, in the second quarter of fiscal 2005. Free cash flow, defined as cash flow from operations less net capital expenditures and principal payments on capital leases, was $86.4 million in the quarter. "This was another very successful quarter for Amdocs," said Dov Baharav, Chief Executive Officer of Amdocs Management Limited. "Revenue grew 23%, helping to increase earnings at an even greater rate. This performance is the result of the 13,000 employees at Amdocs executing on our strategy of providing systems to support integrated customer management to the top tier service providers. "This was one of our best quarters ever for new business signings. Demand for Amdocs products and services continues to be driven by service providers' need to address competition, consolidation and convergence. Digital content will be an increasingly important revenue driver in the future as service providers continue to introduce new products and services, and we will expand our presence in this area with our acquisition of Qpass. We are the leading provider to our market and are confident that we will deliver strong results in fiscal 2006 and beyond," continued Baharav. During the second quarter, Amdocs new business included eleven new key wins. In addition to Sprint Nextel, these wins include a large project with a subsidiary of a current wireline customer as it adopts an integrated customer management strategy. In the directory area, Amdocs had several wins with projects involving sales force automation, digital advertising, and business process outsourcing. Amdocs was selected by Vimpelcom and its affiliates in
the Commonwealth of Independent States as they standardize on Amdocs technology to manage their wireless and wireline customers in an integrated fashion. FINANCIAL OUTLOOK Amdocs expects that revenue for the third quarter of fiscal 2006 ending June 30, 2006, will be approximately $622 million. Diluted earnings per share for the quarter are expected to be $0.46, excluding acquisition-related costs, net of related tax effects, and the impact of approximately $0.04-$0.05 per share of equity-based compensation expense. Diluted GAAP EPS is expected to be approximately $0.39-$0.40. This guidance excludes any potential impact of the pending acquisition of Qpass. Amdocs may incur a one-time charge in its third fiscal quarter to account for certain costs related to the Qpass acquisition. Updated fiscal 2006 guidance: Expected revenue of approximately $2.445-$2.465 billion and diluted EPS of $1.78-$1.80, excluding acquisition-related costs, net of related tax effects, and approximately $0.16-$0.18 per share of equity-based compensation expense. Diluted GAAP EPS is expected to be approximately $1.51-$1.55. This guidance excludes any potential impact of the pending acquisition of Qpass. Amdocs will host a conference call on April 26, 2006 at 5 p.m. Eastern Time to discuss the Company's second quarter results. The call will be carried live on the Internet via www.InvestorCalendar.com and the Amdocs website, www.amdocs.com. ABOUT AMDOCS Amdocs combines innovative software and services with deep business knowledge to accelerate implementation of integrated customer management by the world's leading service providers. By delivering a comprehensive portfolio of software and services that spans the customer lifecycle, Amdocs enables service companies to deliver an intentional customer experience(TM), which results in stronger, more profitable customer relationships. Service providers also benefit from a rapid return on investment, lower total cost of ownership and improved operational efficiencies. A global company with revenue of more than $2 billion in fiscal 2005, Amdocs has 13,000 employees and serves customers in more than 50 countries around the world. For more information, visit Amdocs at www.amdocs.com.
CAUTIONARY STATEMENTS Investors are cautioned that this press release contains certain information that is not prepared in accordance with GAAP. Investors should not construe these financial measures as being superior to GAAP. The Company's management uses this financial information in its internal analysis in order to exclude the effect of acquisitions and other significant items that may have a disproportionate effect in a particular period. Accordingly, management believes that isolating the effects of such items enables management and investors to consistently analyze the critical components and results of operations of the Company's business and to have a meaningful comparison to prior periods. 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, filed on December 28, 2005 and our quarterly 6-K furnished on February 15, 2006. 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 (UNAUDITED) (IN THOUSANDS, EXCEPT PER SHARE DATA) THREE MONTHS ENDED SIX MONTHS ENDED MARCH 31, MARCH 31, ---------------------- ---------------------- 2006(1) 2005 2006(2) 2005 -------- ---------- ---------- -------- Revenue: License $ 30,291 $ 27,344 $ 61,952 $ 47,710 Service 570,838 461,072 1,126,205 910,238 -------- ---------- ---------- -------- 601,129 488,416 1,188,157 957,948 Operating expenses: Cost of license 916 998 1,978 2,153 Cost of service 388,333 310,291 762,384 605,238 Research and development 41,823 33,263 84,937 66,174 Selling, general and administrative 73,799 54,592 152,349 109,552 Amortization of purchased intangible assets 7,469 2,079 15,041 5,797 -------- ---------- ---------- -------- 512,340 401,223 1,016,689 788,914 -------- ---------- ---------- -------- Operating income 88,789 87,193 171,468 169,034 Interest income and other, net 10,307 5,680 18,721 10,639 -------- ---------- ---------- -------- Income before income taxes 99,096 92,873 190,189 179,673 Income taxes 17,334 18,576 33,093 35,933 -------- ---------- ---------- -------- Net income $ 81,762 $ 74,297 $ 157,096 $143,740 ======== ========== ========== ======== Basic earnings per share $ 0.40 $ 0.37 $ 0.78 $ 0.71 ======== ========== ========== ======== Diluted earnings per share(3) $ 0.38 $ 0.34 $ 0.74 $ 0.67 ======== ========== ========== ======== Basic weighted average number of shares outstanding 202,515 202,168 201,509 201,933 ======== ========== ========== ======== Diluted weighted average number of shares outstanding 217,919 218,807 216,394 218,127 ======== ========== ========== ======== (1) The second quarter of fiscal 2006 includes equity-based compensation pre-tax expense of $9,940, which was classified as follows: $3,717 to Cost of service, $720 to Research and development and $5,503 to Selling, general and administrative. (2) The first half of fiscal 2006 includes equity-based compensation pre-tax expense of $21,000, which was classified as follows: $8,072 to Cost of service, $1,809 to Research and development and $11,119 to Selling, general and administrative. (3) To reflect the impact of assumed conversion of the convertible notes, $979 and $1,979, representing interest expense and amortization of issuance costs, were added back to net income for the three and six months ended March 31, 2006, respectively, and $983 and $1,967 were added back to net income for the three and six months ended March 31, 2005, respectively, for the purpose of computing diluted earnings per share.
AMDOCS LIMITED CONSOLIDATED STATEMENTS OF INCOME EXCLUDING AMORTIZATION OF PURCHASED INTANGIBLE ASSETS, EQUITY-BASED COMPENSATION EXPENSE AND RELATED TAX EFFECTS (IN THOUSANDS, EXCEPT PER SHARE DATA) THREE MONTHS ENDED SIX MONTHS ENDED MARCH 31, MARCH 31, ---------------------- ---------------------- 2006(1) 2005(1) 2006(2) 2005(2) -------- ---------- ---------- -------- Revenue: License $ 30,291 $ 27,344 $ 61,952 $ 47,710 Service 570,838 461,072 1,126,205 910,238 -------- ---------- ---------- -------- 601,129 488,416 1,188,157 957,948 Operating expenses: Cost of license 916 998 1,978 2,153 Cost of service 384,616 310,291 754,312 605,238 Research and development 41,103 33,263 83,128 66,174 Selling, general and administrative 68,296 54,592 141,230 109,552 -------- ---------- ---------- -------- 494,931 399,144 980,648 783,117 -------- ---------- ---------- -------- Operating income 106,198 89,272 207,509 174,831 Interest income and other, net 10,307 5,680 18,721 10,639 -------- ---------- ---------- -------- Income before income taxes 116,505 94,952 226,230 185,470 Income taxes 20,971 18,990 40,721 37,094 -------- ---------- ---------- -------- Net income $ 95,534 $ 75,962 $ 185,509 $148,376 ======== ========== ========== ======== Diluted earnings per share(3) $ 0.44 $ 0.35 $ 0.87 $ 0.69 ======== ========== ========== ======== Diluted weighted average number of shares outstanding 217,919 218,807 216,394 218,127 ======== ========== ========== ======== (1) Excludes $7,469 and $2,079 for amortization of purchased intangible assets, $9,940 and $0 for equity-based compensation expense and tax effects related to the above of $(3,637) and $(414) for the three months ended March 31, 2006 and 2005, respectively. Including the above items, income before income taxes was $99,096 and $92,873, and diluted earnings per share were $0.38 and $0.34 for the three months ended March 31, 2006 and 2005, respectively. (2) Excludes $15,041 and $5,797 for amortization of purchased intangible assets, $21,000 and $0 for equity-based compensation expense and tax effects related to the above of $(7,628) and $(1,161) for the six months ended March 31, 2006 and 2005, respectively. Including the above items, income before income taxes was $190,189 and $179,673, and diluted earnings per share were $0.74 and $0.67 for the six months ended March 31, 2006 and 2005, respectively. (3) To reflect the impact of assumed conversion of the convertible notes, $979 and $1,979, representing interest expense and amortization of issuance costs, were added back to net income for the three and six months ended March 31, 2006, respectively, and $983 and $1,967 were added back to net income for the three and six months ended March 31, 2005, respectively, for the purpose of computing diluted earnings per share.
AMDOCS LIMITED CONDENSED CONSOLIDATED BALANCE SHEETS (IN THOUSANDS) AS OF ----------------------------- MARCH 31, SEPTEMBER 2006 30, 2005 ------------- ----------- (Unaudited) (Audited) ASSETS Current assets Cash, cash equivalents and short-term interest-bearing investments $1,353,046 $1,145,563 Accounts receivable, net, including unbilled of $42,572 and $28,994, respectively 349,744 304,237 Deferred income taxes and taxes receivable 80,889 101,162 Prepaid expenses and other current assets 78,538 76,780 ---------- ---------- Total current assets 1,862,217 1,627,742 Equipment, vehicles and leasehold improvements, net 159,891 181,812 Goodwill and other intangible assets, net 1,111,752 1,129,258 Other noncurrent assets 288,231 263,656 ---------- ---------- Total assets $3,422,091 $3,202,468 ========== ========== LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities Accounts payable and accruals $ 418,217 $ 462,276 Short-term portion of capital lease obligations and other financing arrangements 1,976 8,480 Deferred revenue 245,689 216,770 Deferred income taxes and taxes payable 179,093 171,377 ---------- ---------- Total current liabilities 844,975 858,903 0.50% Convertible notes 450,000 450,000 Noncurrent liabilities and other 228,898 237,113 Shareholders' equity 1,898,218 1,656,452 ---------- ---------- Total liabilities and shareholders' equity $3,422,091 $3,202,468 ========== ==========