Amdocs Limited First Quarter Revenue Grows 79.2%, Reaching $235.5 Million.Business Editors ST. LOUIS, Mo.--(BUSINESS WIRE)--Jan. 25, 2000 - Earnings Before One-Time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. Charge Grow 84.5% to $37.2 Million, or $0.18 Per Share - 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, 1999, revenue reached $235.5 million, an increase of 79.2%. 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. increased 74.8% to $52.7 million, excluding a one-time, non-cash charge Non-Cash Charge A charge off, made by a company against earnings, that does not require an initial outlay of cash. Notes: Non-cash charges are typically against the depreciation, amortization, and depletion accounts on a company's balance sheet. of $19.9 million 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 R& from the acquisition of International Telecommunication telecommunication Communication between parties at a distance from one another. Modern telecommunication systems—capable of transmitting telephone, fax, data, radio, or television signals—can transmit large volumes of information over long distances. Data Systems Inc. (ITDS ITDS International Trade Data System ITDS IBM Tivoli Directory Server ITDS Improved Technical Data System ) in November November: see month. 1999. Net income increased 84.5%, reaching $37.2 million, or $0.18 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, excluding the one-time charge. As-reported net income for the quarter was $17.3 million, or $0.08 per diluted share, compared to $20.1 million or $0.10 per diluted share in the same quarter last year. Avi Naor, Chief Executive Officer of Amdocs Management Limited, noted, &uot;This quarter's results and our continued growth reflect Amdocs' leading position in a very strong customer care and billing market. Moreover, with our strengths in convergent systems, high-end high-end adj. Informal 1. Appealing to sophisticated and discerning customers: a high-end department store; high-end video equipment. 2. scalability How much a system can be expanded. See scalable. scalability - How well a solution to some problem will work when the size of the problem increases. For example, a central server of some kind with ten clients may perform adequately but with a thousand clients it , and end-to-end solutions (jargon) end-to-end solution - (E2ES) A term that suggests that the supplier of an application program or system will provide all the hardware and/or software components and resouces to meet the customer's requirement and no other supplier need be involved. Compare: turn-key solution. and outsourcing (1) Contracting with outside consultants, software houses or service bureaus to perform systems analysis, programming and datacenter operations. Contrast with insourcing. See netsourcing, ASP, SSP and facilities management. , together with market-leading R& investment, we are well-positioned to leverage the growth in the customer care and billing sector.&uot; Naor continued, &uot;Demand is strong, both in the wireline and wireless voice markets, as well as the IP and data services market. In the IP arena, we are providing a two-pronged offering. We are targeting our flagship Ensemble The word ensemble can refer to
Naor added, &uot;We are involved in a surge of activity in the IP sector. Many of our existing wireless customers are already using or implementing our convergent Ensemble platform for market trials and introductions of mobile commerce, WAP (1) (Wireless Access Point) See access point. (2) (Wireless Application Protocol) A standard for providing cellular phones, pagers and other handheld devices with secure access to e-mail and text-based Web pages. and GPRS (General Packet Radio Service) The first high-speed digital data service provided by cellular carriers that used the GSM technology. GPRS added a packet-switched channel to GSM, which uses dedicated, circuit-switched channels for voice conversations. services. We are also working with major wireline providers to support broadband broadband Term describing the radiation from a source that produces a broad, continuous spectrum of frequencies (contrasted with a laser, which produces a single frequency or very narrow range of frequencies). and IP services, integrated with their voice operations. For telecom carriers expanding into IP services, voice-IP convergence is crucial as they seek to leverage product bundling Product bundling is a marketing strategy that involves offering several products for sale as one combined product. This strategy is very common in the software business (for example: bundle a word processor, a spreadsheet, and a database into a single office suite), and in the fast and unified customer service. At the organizational level, we have established an IP division to focus our efforts in this market, and we are investing $25 million in fiscal 2000 in R& for IP systems. With the scope of our R& investment, together with our depth of resources, knowhow and solutions base, we are extremely well placed to become the leading provider of business systems to the IP services market.&uot; Naor concluded, &uot;The results of our first quarter for fiscal 2000 demonstrate the business stability and growth momentum we have achieved over recent years. Based on 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. customer relationships, visibility is exceptionally high. Furthermore, with the acquisition of ITDS and their strong outsourcing capabilities, we are well-positioned to reinforce business stability and visibility through large-scale, multi-year outsourcing projects. We are very confident that our positive momentum can be maintained.&uot; Amdocs is a leading provider of customer care, billing and order management systems for communications and internet services. 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 5,600 information systems professionals, Amdocs has an installed base of successful projects with more than 75 major service providers throughout the world. For more information visit our Web site at www.amdocs.com This press release may contain forward looking statements 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. . 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 adverse effects of market competition, rapid changes in technology 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, 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.
AMDOCS LIMITED
CONSOLIDATED BALANCE SHEETS
(in thousands, except per share data)
As of
----------------------------------
December 31, 1999 September 30, 1999
-------------- ----------------
(Unaudited)
ASSETS
Current Assets:
Cash and cash equivalents $ 165,819 $ 85,174
Short-term interest-bearing
investments 20,384 -
Accounts receivable, including
unbilled of $8,296 and $3,415, less
allowances of $5,024 and $0,
respectively 179,926 145,184
Accounts receivable from related
parties, including unbilled of $0
and $828, respectively 15,706 14,128
Deferred income taxes and
taxes receivable 32,488 29,899
Prepaid expenses and other
current assets 39,856 16,390
-------------- ---------------
Total current assets 454,179 290,775
Equipment, vehicles and leasehold
improvements, net 94,012 83,997
Deferred income taxes 13,615 5,605
Goodwill and other intangible
assets, net 110,132 20,742
Other noncurrent assets 29,151 28,892
--------------- --------------
Total assets $ 701,089 $ 430,011
=============== ==============
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Accounts payable and
accrued expenses $ 82,604 $ 68,594
Accrued personnel costs 56,825 40,092
Short-term financing
arrangements 11,696 2,381
Deferred revenue 105,060 104,688
Short-term portion of
capital lease obligations 6,037 5,722
Deferred income taxes and
taxes payable 46,251 33,412
----------- ------------
Total current liabilities 308,473 254,889
Long-term portion of capital
lease obligations 16,708 17,148
Other noncurrent liabilities 41,945 34,237
----------- ------------
Total liabilities 367,126 306,274
----------- ------------
Shareholders' equity:
Preferred Shares -
Authorized 25,000 shares;
0.01 pounds par value;
0 issued and outstanding - -
Ordinary Shares - Authorized
550,000 shares; 0.01 pounds
par value; 205,251 and 198,000
outstanding, respectively 3,284 3,181
Additional paid-in capital 674,886 489,099
Accumulated other comprehensive
income (loss) 4,599 (1,157)
Unearned compensation (2,531) (3,830)
Accumulated deficit (346,275) (363,556)
-------------- ---------------
Total shareholders' equity 333,963 123,737
-------------- ---------------
Total liabilities and
shareholders' equity $ 701,089 $ 430,011
============== ===============
AMDOCS LIMITED
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(in thousands, except per share data)
Three months ended
December 31,
1999 1998
-------------------------------
Revenue:
License $ 26,502 $ 15,040
Service 209,004 116,385
--------------- ---------------
235,506 131,425
--------------- ---------------
Operating expenses:
Cost of license 1,173 1,323
Cost of service 139,034 75,915
Research and development 14,970 8,379
Selling, general and administrative 27,593 15,647
In-process research and development
expenses 19,876 -
-------------- ---------------
202,646 101,264
-------------- ---------------
Operating income 32,860 30,161
Other income (expense), net 345 (1,387)
-------------- ---------------
Income before income taxes 33,205 28,774
Income taxes 15,924 8,632
-------------- ---------------
Net income $ 17,281 $ 20,142
============== ===============
Basic earnings per share $ 0.09 $ 0.10
============== ===============
Diluted earnings per share $ 0.08 $ 0.10
============== ===============
Effect of one-time, non-cash charge on
diluted earnings per share (a)
Diluted earnings per share before
one-time charge $ 0.18 $ 0.10
One time charge 0.10 -
-------------- ---------------
Diluted earnings per share $ 0.08 $ 0.10
============== ===============
(a) Amdocs incurred a one-time, non-cash charge related to the write-off of acquired in-process R& of $19.9 million or $0.10 per share, resulting from the acquisition of ITDS in November 1999. |
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