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 month of May, 2016

Commission File Number 1-14840

 

 

AMDOCS LIMITED

 

 

Hirzel House, Smith Street,

St. Peter Port, Island of Guernsey, GY1 2NG

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

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82-             

 

 

 


On May 4, 2016, Amdocs Limited (“Amdocs”) issued a press release announcing financial results for the quarter ended March 31, 2016. 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
By:  

    /s/ Matthew E. Smith

  Matthew E. Smith
  Secretary and Authorized Signatory

Date: May 4, 2016


EXHIBIT INDEX

 

EXHIBIT NO.

  

DESCRIPTION

99.1    Amdocs Limited Press Release dated May 4, 2016.
EX-99.1

Exhibit 99.1

 

LOGO

Amdocs Limited Reports Quarterly Revenue of $926M, at the Midpoint of Guidance on a Constant Currency Basis

Reiterates FY16 Non-GAAP Diluted EPS Growth Outlook of 3.5%-7.5% YoY

Key highlights:

 

    Second fiscal quarter revenue of $926 million, within the $905-$945 million guidance range, including foreign currency movements that negatively affected revenue by approximately $1 million relative to the first quarter of fiscal 2016. Revenue was at the midpoint of Amdocs’ guidance, excluding foreign currency movements

 

    Second fiscal quarter diluted non-GAAP EPS of $0.92, above the $0.84-$0.90 guidance range (non-GAAP EPS excludes amortization of purchased intangible assets and other acquisition-related costs, and equity-based compensation expense, net of related tax effects). Foreign exchange gains, included under the interest and other income (expense), net line item, coupled with a lower non-GAAP effective tax rate positively impacted diluted non-GAAP EPS. Adjusting for these items, diluted non-GAAP EPS was within the guidance range for the second quarter

 

    Diluted GAAP EPS of $0.71 for the second fiscal quarter, at the high-end of the $0.63-$0.71 guidance range

 

    Second fiscal quarter non-GAAP operating income of $158 million; non-GAAP operating margin of 17.1%; GAAP operating income of $120 million

 

    Free cash flow of $91 million for the second fiscal quarter

 

    Repurchased $101 million of ordinary shares during the second fiscal quarter

 

    Twelve-month backlog of $3.10 billion at the end of the second fiscal quarter, up $10 million from the end of the first quarter of fiscal 2016

 

    The board of directors approved a $0.195 per share quarterly cash dividend to be paid on July 15, 2016


    Third quarter fiscal 2016 guidance: Expected revenue of approximately $910-$950 million. Expected diluted non-GAAP EPS of approximately $0.84-$0.90 (which excludes 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). Expected diluted GAAP EPS of approximately $0.63-$0.71

 

    Full year fiscal 2016 guidance: Expects fiscal 2016 non-GAAP diluted earnings per share growth towards the midpoint of the guidance range of 3.5-7.5% year-over-year, including the impact of share repurchase activity anticipated over the course of the fiscal year. Expects fiscal 2016 revenue growth, on a constant currency basis, slightly below the midpoint of the guidance range of 2.0-6.0% year-over-year, and reported revenue growth slightly below the midpoint of the guidance range of 0.5-4.5% year-over-year, including a negative impact from foreign currency movements of approximately 1.5% year-over-year

ST. LOUIS – May 4, 2016 – Amdocs Limited (NASDAQ: DOX) today reported that for its second fiscal quarter ended March 31, 2016, revenue was $925.9 million, up 0.5% or $4.4 million sequentially from the first fiscal quarter of 2016 and up 2.6% as compared to last year’s second fiscal quarter. Revenue for the second fiscal quarter of 2016 includes a negative impact from foreign currency movements of approximately $1 million relative to the first quarter of fiscal 2016. Net income on a non-GAAP basis was $140.2 million, or $0.92 per diluted share, compared to non-GAAP net income of $128.6 million, or $0.82 per diluted share, in the second quarter of fiscal 2015. Non-GAAP net income excludes amortization of purchased intangible assets and other acquisition-related costs and equity-based compensation expenses of $32.4 million, net of related tax effects, in the second quarter of fiscal 2016, and excludes such amortization and other acquisition-related costs, changes in fair value of certain acquisition-related liabilities and equity-based compensation expenses of $12.4 million, net of related tax effects, in the second quarter of fiscal 2015. The Company’s GAAP net income for the second quarter of fiscal 2016 was $107.7 million, or $0.71 per diluted share, compared to GAAP net income of $116.3 million, or $0.74 per diluted share, in the prior fiscal year’s second quarter.


“We are pleased to report solid results for the second fiscal quarter, which included revenue at the midpoint of our guidance on a constant currency basis, encouraging signs of stabilization in North America, and sustained growth in Europe. During the quarter, we launched Amdocs CES 10, a major new product stack release specifically designed to accelerate service providers’ transition from traditional to digital business models. At the same time, we delivered non-GAAP operating margins at the high-end of our long-term target range of 16.2% to 17.2%. This performance is in line with our guidance from the start of the fiscal year and reflects our focus on maintaining consistent execution as we deploy a record number of transformation projects worldwide,” said Eli Gelman, president and chief executive officer of Amdocs Management Limited.

Gelman continued, “Our managed services capabilities continue to gain acceptance with leading service providers in Europe and Rest of World. In March, Three Ireland announced a five-year managed services contract with Amdocs to support its IT digital transformation across all lines of business. Additionally, Amdocs has been selected to assume responsibility for Vodafone India’s postpaid billing systems under a five-year managed services model which we believe demonstrates our growing strategic relationship with the Vodafone group. Our service offerings are also resonating with former Comverse customers. For instance, Botswana Telecommunications has awarded Amdocs a five-year managed services contract for business support systems modernization, while Sky Italia has upgraded its billing system to the latest Amdocs Kenan release and assigned Amdocs end-to-end responsibility of the program with a multi-year maintenance contract.”

Gelman concluded, “Along the lines we discussed last quarter, our outlook includes a stronger contribution from AT&T in the second half of the year and continued business momentum with former Comverse customers. Nevertheless, our forecast reflects many moving parts and unknowns, including those resulting from consolidation activity among wireless and Pay TV operators. With these factors in mind, we expect to deliver revenue growth for the full fiscal year 2016 slightly below the midpoint of our guidance range of 2% to 6% on a constant currency basis. Additionally, we are on track to meet our full year target for non-GAAP earnings per share growth of 3.5% to 7.5% and our cash balance is healthy as a result of robust free cash flow generation and recent stock option exercises.


We therefore plan to increase the capital we return to shareholders to roughly 100% of free cash flow through the second half of fiscal 2016, which we believe we can do while retaining significant capacity to execute M&A as another vehicle to support our strategy .”

Financial Discussion of Second Fiscal Quarter Results

Free cash flow was $91 million for the second quarter of fiscal 2016, comprised of cash flow from operations of $118 million, less $27 million in net capital expenditures and other.

Twelve-month backlog, which includes anticipated revenue related to contracts, estimated revenue from managed services contracts, letters of intent, maintenance and estimated on-going support activities, was $3.10 billion at the end of the second quarter of fiscal 2016, up $10 million from the end of the prior quarter.

Financial Outlook

Amdocs expects that revenue for the third quarter of fiscal 2016 will be approximately $910-$950 million. Embedded within this guidance is a positive sequential impact of approximately $5 million from foreign currency fluctuations as compared to the second quarter of fiscal 2016. This outlook takes into consideration the company’s expectations regarding macro and industry specific risks and various uncertainties resulting from current and potential customer consolidation activity in North America. However, Amdocs notes that it cannot predict all possible outcomes.

Diluted earnings per share on a non-GAAP basis for the third quarter of fiscal 2016 is expected to be $0.84-$0.90, 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. Amdocs estimates GAAP diluted earnings per share for the third fiscal quarter of 2016 will be $0.63-$0.71.


Quarterly Cash Dividend Program

On May 4, 2016, the Board approved the Company’s next quarterly cash dividend payment of $0.195 per share and set June 30, 2016 as the record date for determining the shareholders entitled to receive the dividend, which will be payable on July 15, 2016.

Conference Call Details

Amdocs will host a conference call on May 4, 2016 at 5:00 p.m. Eastern Time to discuss the Company’s second quarter of fiscal 2016. To participate, please dial +1 (855) 870-4313, or +1 (330) 863-3318 outside the United States, approximately 15 minutes before the call and enter passcode 81097784. The call will also be carried live on the Internet via 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 revenue, non-GAAP research and development, non-GAAP selling, general and administrative, non-GAAP operating income, non-GAAP operating margin, non-GAAP interest and other expense, net, non-GAAP income taxes, non-GAAP effective tax rate, non-GAAP net income and non-GAAP diluted earnings per share growth. These non-GAAP measures exclude the following items:

 

    amortization of purchased intangible assets and other acquisition-related costs;

 

    changes in fair value of certain acquisition-related liabilities;

 

    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 revenue, non-GAAP research and development, non-GAAP selling, general and administrative, non-GAAP operating income, non-GAAP operating margin, non-GAAP interest and other expense, net, non-GAAP income taxes, non-GAAP effective tax rate, non-GAAP net income and non-GAAP diluted earnings per share growth 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 and other acquisition-related costs, changes in fair value of certain acquisition-related liabilities, 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 items in reviewing its results and those of its competitors, because the amounts of the items between companies can vary greatly depending on the assumptions used by an individual company in determining the amounts of the items.

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 revenue, research and development, selling, general and administrative, operating income, interest and other expense, net, 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 software solutions and services for the world’s largest communications, entertainment and media service providers. For more than 30 years, Amdocs solutions, which include BSS, OSS, network control, optimization and network functions virtualization, coupled with professional and managed services, have accelerated business value for its customers by simplifying business complexity, reducing costs and delivering a world-class customer experience.

The Amdocs portfolio enables service providers to capture the world of digital immediacy by operating across digital dimensions to engage customers with personalized, omni-channel experiences; creating a diversified business to capture new revenue streams; becoming data empowered to make business and operational decisions based on insight-based and predictive analytics; and achieving service agility to accelerate the fast rollout of new technologies and hybrid network services.

Amdocs and its 24,000 employees serve customers in over 90 countries. Listed on the NASDAQ Global Select Market, Amdocs had revenue of $3.6 billion in fiscal 2015.

Amdocs: Embrace Challenge, Experience Success.

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, Amdocs specifically disclaims any obligation to do so. These and other risks are discussed at greater length in Amdocs’ filings with the Securities and Exchange Commission, including in our Annual Report on Form 20-F for the fiscal year ended September 30, 2015 filed on December 10, 2015 and our Form 6-K furnished for the first quarter of fiscal 2016 on February 16, 2016.

Contact:

Matthew Smith

Head of Investor Relations

Amdocs

314-212-8328

E-mail: dox_info@amdocs.com


AMDOCS LIMITED

Consolidated Statements of Income

(in thousands, except per share data)

 

     Three months ended     Six months ended  
     March 31,     March 31,  
     2016      2015     2016     2015  

Revenue

   $ 925,935       $ 902,578      $ 1,847,440      $ 1,808,865   

Operating expenses:

         

Cost of revenue

     600,116         580,571        1,195,684        1,154,017   

Research and development

     63,711         62,805        126,198        126,446   

Selling, general and administrative

     114,474         107,186        234,022        220,766   

Amortization of purchased intangible assets and other

     27,487         14,016        51,854        28,115   
  

 

 

    

 

 

   

 

 

   

 

 

 
     805,788         764,578        1,607,758        1,529,344   
  

 

 

    

 

 

   

 

 

   

 

 

 

Operating income

     120,147         138,000        239,682        279,521   

Interest and other income (expense), net

     1,460         (1,669     (205     (125
  

 

 

    

 

 

   

 

 

   

 

 

 

Income before income taxes

     121,607         136,331        239,477        279,396   

Income taxes

     13,887         20,070        30,915        32,145   
  

 

 

    

 

 

   

 

 

   

 

 

 

Net income

   $ 107,720       $ 116,261      $ 208,562      $ 247,251   
  

 

 

    

 

 

   

 

 

   

 

 

 

Basic earnings per share

   $ 0.72       $ 0.75      $ 1.39      $ 1.59   
  

 

 

    

 

 

   

 

 

   

 

 

 

Diluted earnings per share

   $ 0.71       $ 0.74      $ 1.37      $ 1.57   
  

 

 

    

 

 

   

 

 

   

 

 

 

Basic weighted average number of shares outstanding

     149,924         155,106        150,279        155,506   
  

 

 

    

 

 

   

 

 

   

 

 

 

Diluted weighted average number of shares outstanding

     151,948         157,357        152,502        157,738   
  

 

 

    

 

 

   

 

 

   

 

 

 

Cash dividends declared per share

   $ 0.195       $ 0.170      $ 0.365      $ 0.325   
  

 

 

    

 

 

   

 

 

   

 

 

 


AMDOCS LIMITED

Selected Financial Metrics

(in thousands, except per share data)

 

     Three months ended      Six months ended  
     March 31,      March 31,  
     2016      2015      2016      2015  

Revenue

   $ 925,935       $ 902,578       $ 1,847,440       $ 1,808,865   

Non-GAAP operating income

     157,950         153,491         314,822         306,453   

Non-GAAP net income

     140,165         128,647         272,185         268,132   

Non-GAAP diluted earnings per share

   $ 0.92       $ 0.82       $ 1.78       $ 1.70   

Diluted weighted average number of shares outstanding

     151,948         157,357         152,502         157,738   


AMDOCS LIMITED

Reconciliation of Selected Financial Metrics from GAAP to Non-GAAP

(in thousands)

 

     Three months ended
March 31, 2016
 
            Reconciliation items        
     GAAP      Amortization of
purchased
intangible assets
and other
    Equity based
compensation
expense
    Tax effect     Non-GAAP  

Operating expenses:

           

Cost of revenue

   $ 600,116       $ —        $ (4,917   $ —        $ 595,199   

Research and development

     63,711         —          (1,018     —          62,693   

Selling, general and administrative

     114,474         —          (4,381     —          110,093   

Amortization of purchased intangible assets and other

     27,487         (27,487     —          —          —     
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Total operating expenses

     805,788         (27,487     (10,316     —          767,985   
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Operating income

     120,147         27,487        10,316        —          157,950   
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Income taxes

     13,887         —          —          5,358        19,245   
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Net income

   $ 107,720       $ 27,487      $ 10,316      $ (5,358   $ 140,165   
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

 

     Three months ended
March 31, 2015
 
            Reconciliation items        
     GAAP      Amortization of
purchased
intangible assets
and other
    Equity based
compensation
expense
    Changes in fair
value of certain
acquisition-
related liabilities
    Tax effect     Non-GAAP  

Operating expenses:

             

Cost of revenue

   $ 580,571       $ —        $ (3,737   $ 8,350      $ —        $ 585,184   

Research and development

     62,805         —          (817     —          —          61,988   

Selling, general and administrative

     107,186         —          (5,271     —          —          101,915   

Amortization of purchased intangible assets and other

     14,016         (14,016     —          —          —          —     
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total operating expenses

     764,578         (14,016     (9,825     8,350        —          749,087   
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating income

     138,000         14,016        9,825        (8,350     —          153,491   
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income taxes

     20,070         —          —          —          3,105        23,175   
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income

   $ 116,261       $ 14,016      $ 9,825      $ (8,350   $ (3,105   $ 128,647   
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 


AMDOCS LIMITED

Reconciliation of Selected Financial Metrics from GAAP to Non-GAAP

(in thousands)

 

     Six months ended
March 31, 2016
 
       Reconciliation items        
     GAAP      Amortization of
purchased
intangible assets
and other
    Equity based
compensation
expense
    Tax effect     Non-GAAP  

Operating expenses:

           

Cost of revenue

   $ 1,195,684       $ —        $ (9,041   $ —        $ 1,186,643   

Research and development

     126,198         —          (1,860     —          124,338   

Selling, general and administrative

     234,022         —          (12,385     —          221,637   

Amortization of purchased intangible assets and other

     51,854         (51,854     —          —          —     
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Total operating expenses

     1,607,758         (51,854     (23,286     —          1,532,618   
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Operating income

     239,682         51,854        23,286        —          314,822   
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Income taxes

     30,915         —          —          11,517        42,432   
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Net income

   $ 208,562       $ 51,854      $ 23,286      $ (11,517   $ 272,185   
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

 

     Six months ended
March 31, 2015
 
            Reconciliation items        
     GAAP      Amortization of
purchased
intangible
assets and other
    Equity based
compensation
expense
    Changes in fair
value of certain
acquisition-
related liabilities
    Tax effect     Non-GAAP  

Operating expenses:

        

Cost of revenue

   $ 1,154,017       $ —        $ (7,981   $ 24,906      $ —        $ 1,170,942   

Research and development

     126,446         —          (1,754     —          —          124,692   

Selling, general and administrative

     220,766         —          (13,988     —          —          206,778   

Amortization of purchased intangible assets and other

     28,115         (28,115     —          —          —          —     
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total operating expenses

     1,529,344         (28,115     (23,723     24,906        —          1,502,412   
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating income

     279,521         28,115        23,723        (24,906     —          306,453   
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Interest and other expense, net

     125         —          —          3,921        —          4,046   
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income taxes

     32,145         —          —          —          2,130        34,275   
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income

   $ 247,251       $ 28,115      $ 23,723      $ (28,827   $ (2,130   $ 268,132   
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 


AMDOCS LIMITED

Condensed Consolidated Balance Sheets

(in thousands)

 

     As of  
     March 31,
2016
     September 30,
2015
 

ASSETS

     

Current assets

     

Cash, cash equivalents and short-term interest-bearing investments

   $ 1,150,085       $ 1,354,012   

Accounts receivable, net, including unbilled of $92,812 and $80,197, respectively

     755,381         714,784   

Deferred income taxes

     —           150,733   

Prepaid expenses and other current assets

     202,144         158,633   
  

 

 

    

 

 

 

Total current assets

     2,107,610         2,378,162   

Equipment and leasehold improvements, net

     311,723         309,320   

Goodwill and other intangible assets, net

     2,269,272         2,301,610   

Other noncurrent assets

     402,922         335,560   
  

 

 

    

 

 

 

Total assets

   $ 5,091,527       $ 5,324,652   
  

 

 

    

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

     

Current liabilities

     

Accounts payable, accruals and other

   $ 936,417       $ 945,033   

Short-term financing arrangements

     —           220,000   

Deferred revenue

     205,786         198,470   
  

 

 

    

 

 

 

Total current liabilities

     1,142,203         1,363,503   

Other noncurrent liabilities

     474,341         554,307   

Shareholders’ equity

     3,474,983         3,406,842   
  

 

 

    

 

 

 

Total liabilities and shareholders’ equity

   $ 5,091,527       $ 5,324,652   
  

 

 

    

 

 

 

 

Due to the early adoption of Accounting Standard Update 2015-17, starting the first quarter of fiscal 2016, all deferred tax assets and liabilities are classified as noncurrent on the balance sheet. Prior balance sheets were not retrospectively adjusted.


AMDOCS LIMITED

Consolidated Statements of Cash Flows

(in thousands)

 

     Six months ended March 31,  
     2016     2015  

Cash Flow from Operating Activities:

    

Net income

   $ 208,562      $ 247,251   

Reconciliation of net income to net cash provided by operating activities:

    

Depreciation and amortization

     104,225        83,303   

Equity-based compensation expense

     23,286        23,723   

Deferred income taxes

     (7,614     (27,260

Excess tax benefit from equity-based compensation

     (5,248     (3,628

Loss from short-term interest-bearing investments

     445        283   

Net changes in operating assets and liabilities, net of amounts acquired:

    

Accounts receivable

     (23,061     (14,623

Prepaid expenses and other current assets

     (28,684     3,522   

Other noncurrent assets

     3,352        14,898   

Accounts payable, accrued expenses and accrued personnel

     27,784        8,428   

Deferred revenue

     (3,023     18,762   

Income taxes payable

     2,416        18,363   

Other noncurrent liabilities

     14,233        (29,388
  

 

 

   

 

 

 

Net cash provided by operating activities

     316,673        343,634   
  

 

 

   

 

 

 

Cash Flow from Investing Activities:

    

Payments for purchase of equipment and leasehold improvements, net

     (67,289     (59,334

Proceeds from sale of short-term interest-bearing investments

     191,648        123,073   

Purchase of short-term interest-bearing investments

     (199,988     (121,585

Net cash paid for acquisitions

     (24,993     (8,099

Other

     (20,602     509   
  

 

 

   

 

 

 

Net cash used in investing activities

     (121,224     (65,436
  

 

 

   

 

 

 

Cash Flow from Financing Activities:

    

Payments under financing arrangements

     (220,000     (210,000

Repurchase of shares

     (200,608     (212,195

Proceeds from employee stock options exercised

     59,060        58,116   

Payments of dividends

     (51,262     (48,377

Excess tax benefit from equity-based compensation

     5,248        3,628   

Other

     (4     (5
  

 

 

   

 

 

 

Net cash used in financing activities

     (407,566     (408,833
  

 

 

   

 

 

 

Net decrease in cash and cash equivalents

     (212,117     (130,635

Cash and cash equivalents at beginning of period

     1,035,573        1,103,269   
  

 

 

   

 

 

 

Cash and cash equivalents at end of period

   $ 823,456      $ 972,634   
  

 

 

   

 

 

 


AMDOCS LIMITED

Supplementary Information

(in millions)

 

     Three months ended  
     March 31,
2016
     December 31,
2015
     September 30,
2015
     June 30,
2015
     March 31,
2015
 

North America

   $ 586.4       $ 576.7       $ 626.6       $ 623.1       $ 646.7   

Europe

     139.2         128.9         115.3         102.3         97.6   

Rest of the World

     200.3         215.9         184.9         182.5         158.3   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total Revenue

   $ 925.9       $ 921.5       $ 926.8       $ 907.9       $ 902.6   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

     Three months ended  
     March 31,
2016
     December 31,
2015
     September 30,
2015
     June 30,
2015
     March 31,
2015
 

Managed Services Revenue

   $ 501.1       $ 487.6       $ 466.6       $ 460.6       $ 448.8   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

     Three months ended  
     March 31,
2016
     December 31,
2015
     September 30,
2015
     June 30,
2015
     March 31,
2015
 

Customer Experience Systems

   $ 902.3       $ 894.4       $ 899.4       $ 883.7       $ 877.1   

Directory

     23.6         27.1         27.4         24.2         25.5   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total Revenue

   $ 925.9       $ 921.5       $ 926.8       $ 907.9       $ 902.6   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

     As of  
     March 31,
2016
     December 31,
2015
     September 30,
2015
     June 30,
2015
     March 31,
2015
 

12-Month Backlog

   $ 3,100       $ 3,090       $ 3,080       $ 3,010       $ 3,000   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

# # #