Amdocs Limited First Quarter Pro Forma EPS Grows 33.3%, Reaching $0.36.Business & Technology Editors ST. LOUIS--(BUSINESS WIRE)--Jan. 22, 2002 First Quarter Revenue Increases 23.5% to $422.6 million Amdocs AMDOCS American Directories Operations & Computerized Systems (corporate care & billing software company) Limited (NYSE NYSE See: New York Stock Exchange : DOX DOX Design of Experiments DOX Direct Operational Exchange ) today reported that for the first quarter ended December December: see month. 31, 2001, revenue reached $422.6 million, an increase of 23.5% over last year's first quarter. Excluding acquisition-related costs and a nonrecurring charge Nonrecurring Charge An expense occurring only once on a company's financial statement. Notes: An extraordinary item is an example of a nonrecurring charge. Also known as "nonrecurring item". in the current quarter, net income increased 32.1% to $80.7 million, while earnings per share increased 33.3% to $0.36 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share, compared to net income of $61.1 million, or $0.27 per diluted share, in the first quarter of fiscal 2001. The Company's as-reported net income, which includes acquisition-related charges for write-off Write-Off A reduction in the value of an asset or earnings by the amount of an expense or loss. Companies are able to write off certain expenses that are required to run the business, or have been incurred in the operation of the business and detract from retained revenues. of in-process research and development, amortization of goodwill and purchased intangible assets Intangible Asset An asset that is not physical in nature. Notes: Examples are things like copyrights, patents, intellectual property, and goodwill. These are the opposite of tangible assets. , a nonrecurring charge in the current quarter and related tax effects, was $4.3 million, or $0.02 per diluted share, compared to a net income of $12.6 million, or $0.06 per diluted share, in the first quarter of fiscal 2001. Avi Naor, Chief Executive Officer of Amdocs Management Limited, noted, "We had excellent new business wins this quarter which confirm that we are the undisputed leader in our market. We continued to show growth and achieved our business and financial objectives. We had very good sales results globally, in both the wireline and mobile sectors, and for both CRM (Customer Relationship Management) An integrated information system that is used to plan, schedule and control the presales and postsales activities in an organization. and billing systems." Naor continued, "This was a significant quarter for both new business wins and major implementations. We had major wins across lines of business and geographies including such Tier One customers as Telefonica de Espana with 16 million subscribers, where we're we're Contraction of we are. we're we are providing convergent voice and data services including ADSL See DSL. ADSL - Asymmetric Digital Subscriber Line . We had successful implementations for such major customers as BT with 21 million customers in the United Kingdom, Nextel (Nextel Communications, Inc., Reston, VA, www.nextel.com) A wireless communications carrier founded in New Jersey in 1987 as Fleet Call, a two-way radio service. Throughout the late 1980s and 1990s, the company acquired a large number of SMR (Specialized Mobile Radio) operators and turned with 8 million subscribers and Bell Nexxia, which is part of our overall modernization modernization Transformation of a society from a rural and agrarian condition to a secular, urban, and industrial one. It is closely linked with industrialization. As societies modernize, the individual becomes increasingly important, gradually replacing the family, at Bell Canada Bell Canada Enterprises (TSX: BCE, NYSE: BCE), legally BCE Inc., is a major Canadian telecommunications company. Through its subsidiaries including Bell Canada, Bell Aliant, Northwestel, Télébec, and NorthernTel, it is the incumbent local exchange carrier for . Amdocs is the only company whose business offering combines market-leading products and twenty years TWENTY YEARS. The lapse of twenty years raises a presumption of certain facts, and after such a time, the party against whom the presumption has been raised, will be required to prove a negative to establish his rights. 2. of experience in successful solution implementations." "During the first quarter, we further strengthened our leadership of the CRM and billing market for communications," Naor added. "We completed our acquisition of Clarify, which establishes Amdocs as the world's number one provider of CRM to communications service providers A Communications Service Provider or CSP is a company that transports information electronically. The term encompasses public and private companies in the wireline, wireless, Internet, cable, satellite, and managed services businesses. . This acquisition is already creating momentum, with some important CRM sales to major operators during the quarter. We further expanded our global CRM capabilities in the quarter through our relationships with NEC (NEC Corporation, Tokyo, www.nec.com, www.necus.com) An electronics conglomerate known in the U.S. for its monitors. In Japan, it had the lion's share of the PC market until the late 1990s (see PC 98). NEC was founded in Tokyo in 1899 as Nippon Electric Company, Ltd. to serve the CRM market in Japan. Our new Amdocs Enabler product for next generation services, announced in October October: see month. , has also generated strong sales momentum with new and existing customers. These customers have cited Enabler's market-leading technology and scalability as the key factors in their decision. Pre-integrated and production ready, Enabler employs open API's and is designed for quick, cost-effective cost-effective, n the minimal expenditure of dollars, time, and other elements necessary to achieve the health care result deemed necessary and appropriate. deployment." Naor concluded, "Despite the overall economic climate, demand for Amdocs solutions is strong. We believe that our financial stability, broad portfolio and unparalleled reliability are key factors for leading operators, especially in the current environment, as they choose long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. partners for their mission-critical system needs. The scale and focus of our R&D program also assure customers that Amdocs systems will put them in front, and keep them in front. As a result of this demand, we have a strong diverse pipeline. With our high visibility and proven business model, based on the solutions approach, long-term customer relationships and recurring re·cur intr.v. re·curred, re·cur·ring, re·curs 1. To happen, come up, or show up again or repeatedly. 2. To return to one's attention or memory. 3. To return in thought or discourse. revenue flows, we are very confident regarding our business prospects in the coming quarters." As-reported operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. for the first quarter included a one-time charge of $17.4 million for write-off of in-process research and development related to the acquisition of Clarify, which closed during the quarter. Following a successful implementation for Nextel Communications Nextel Communications, styled NEXTEL, (Former NASDAQ: NXTL) which is now known as the Sprint Nextel Corporation was a telecommunications firm based in the United States. Known for providing a nation-wide mobile communications system. , and as part of a plan to achieve increased operational efficiency and reduce costs, Amdocs consolidated its Stamford, Connecticut Stamford is a city in Fairfield County, Connecticut, United States. According to 2006 Census Bureau estimates, the population of the city is 119,261, making it the fourth largest city in the state. data center into its Champaign, Illinois “Champaign” redirects here. For topics with similar names, see Champagne. Champaign is a city in Champaign County, Illinois, in the United States. As reported in the 2000 U.S. Census, the city was home to 67,518 people. facility and recorded a nonrecurring charge of $13.3 million largely for facilities and severance The act of dividing, or the state of being divided. The term severance has unique meanings in different branches of the law. Courts use the term in both civil and criminal litigation in two ways: first, when dividing a lawsuit into two or more parts, and second, when charges. Amdocs is the world's leading provider of CRM, billing and order management systems for the communications industry communications industry, broadly defined, the business of conveying information. Although communication by means of symbols and gestures dates to the beginning of human history, the term generally refers to mass communications. . Amdocs has an unparalleled success record in project delivery of its mission-critical products. With human resources The fancy word for "people." The human resources department within an organization, years ago known as the "personnel department," manages the administrative aspects of the employees. of over 9,050 information systems professionals, Amdocs supports a global customer base. For more information visit our Web site at www.amdocs.com. Amdocs will host a conference call on January 22 at 5 p.m. Eastern Standard Time to discuss the Company's first quarter results. The call will be carried live on the Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the via www.vcall.com and the Amdocs website, www.amdocs.com. This press release may contain forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. as defined under the Securities Act of 1933, as amended a·mend v. a·mend·ed, a·mend·ing, a·mends v.tr. 1. To change for the better; improve: amended the earlier proposal so as to make it more comprehensive. 2. , 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 OBSOLETE. This term is applied to those laws which have lost their efficacy, without being repealed, 2. A positive statute, unrepealed, can never be repealed by non-user alone. 4 Yeates, Rep. 181; Id. 215; 1 Browne's Rep. Appx. 28; 13 Serg. & Rawle, 447. , 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 Form 20-F filed on December 27, 2001.
AMDOCS LIMITED
Pro forma Consolidated Statements of Income (Unaudited)
Excluding Purchased In-Process Research and Development,
Amortization of Goodwill and Purchased Intangible Assets,
Nonrecurring Charge and Related Tax Effects
(in thousands, except per share data)
Three months ended
December 31,
---------------------------------
2001 (1) 2000 (1)
-------------- ---------------
Revenue:
License $ 42,290 $ 38,076
Service 380,351 304,091
-------------- ---------------
422,641 342,167
Operating expenses:
Cost of license 980 1,658
Cost of service 230,603 191,788
Research and development 28,557 23,579
Selling, general and
administrative 53,779 43,450
-------------- ---------------
313,919 260,475
-------------- ---------------
Operating income 108,722 81,692
Interest income and other, net 3,327 5,562
-------------- ---------------
Income before income taxes 112,049 87,254
Income taxes 31,374 26,176
-------------- ---------------
Net income $ 80,675 $ 61,078
============== ===============
Diluted earnings per share $ 0.36 $ 0.27
============== ===============
Diluted weighted average
number of shares
outstanding 225,090 226,361
============== ===============
(1) Excludes $56,782 and $54,160 for amortization of goodwill and
purchased intangible assets, $17,400 and $0 for write-off of
purchased in-process research and development related to the
Clarify acquisition, $13,311 and $0 of a nonrecurring charge
related to the consolidation of data centers and the resulting
closure of our Stamford, Connecticut facility, and tax effects
related to the above of $(11,152) and $(5,658) for the three
months ended December 31, 2001 and 2000, respectively. Including
the above items, income before income taxes was $24,556 and
$33,094, and diluted earnings per share were $0.02 and $0.06 for
the three months ended December 31, 2001 and 2000, respectively.
AMDOCS LIMITED
Consolidated Statements of Income (Unaudited)
(in thousands, except per share data)
Three months ended
December 31,
--------------------------------
2001 2000
-------------- --------------
Revenue:
License $ 42,290 $ 38,076
Service 380,351 304,091
-------------- --------------
422,641 342,167
Operating expenses:
Cost of license 980 1,658
Cost of service 230,603 191,788
Research and development 28,557 23,579
Selling, general and administrative 53,779 43,450
Amortization of goodwill and
purchased intangible assets 56,782 54,160
In-process research and development
and nonrecurring charge 30,711 -
-------------- --------------
401,412 314,635
-------------- --------------
Operating income 21,229 27,532
Interest income and other, net 3,327 5,562
-------------- --------------
Income before income taxes 24,556 33,094
Income taxes 20,222 20,518
-------------- --------------
Net income $ 4,334 $ 12,576
============== ==============
Basic earnings per share $ 0.02 $ 0.06
============== ==============
Diluted earnings per share $ 0.02 $ 0.06
============== ==============
Basic weighted average number
of shares outstanding 222,696 221,217
============== ==============
Diluted weighted average number
of shares outstanding 225,090 226,361
============== ==============
AMDOCS LIMITED
Condensed Consolidated Balance Sheets
(in thousands)
As of
--------------------------------
December 31, September 30,
2001 2001
------------- -------------
(Unaudited)
ASSETS
Current assets
Cash, cash equivalents and
short-term interest-bearing
investments $ 979,464 $ 1,110,067
Accounts receivable, including
unbilled of $22,911 and $23,272,
respectively 423,458 384,851
Deferred income taxes and
taxes receivable 41,503 38,916
Prepaid expenses and other
current assets 51,546 38,045
------------- -------------
Total current assets 1,495,971 1,571,879
Equipment, vehicles and leasehold
improvements, net 173,847 173,695
Goodwill and other intangible
assets, net 938,363 788,187
Other noncurrent assets 112,180 90,675
------------- -------------
Total assets $ 2,720,361 $ 2,624,436
============= =============
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Accounts payable and accruals $ 335,243 $ 270,517
Short-term portion of capital
lease obligations 10,180 10,400
Deferred revenue 148,572 140,033
Deferred income taxes and income
taxes payable 99,662 91,026
------------- -------------
Total current liabilities 593,657 511,976
Convertible notes and other
noncurrent liabilities 606,837 600,369
Shareholders' equity 1,519,867 1,512,091
------------- -------------
Total liabilities and
shareholders' equity $ 2,720,361 $ 2,624,436
============= =============
|
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion