Amdocs Limited Reports 54% Increase in Fourth Quarter Operating Income.ST. LOUIS--(BUSINESS WIRE)--Nov. 11, 1998-- Annual Revenue Exceeds $400 Million for the First Time 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 results for the fourth quarter and year ended September September: see month. 30, 1998. For the quarter, revenue increased by 32.6% to $116.7 million while 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. grew 53.8%. Net income reached $11.6 million, or $0.06 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. Avi Naor, Chief Executive Officer of Amdocs Management Limited, noted, "While impressive, these quarterly results are indicative of how Amdocs has performed over its 17 year history. We have consistently implemented our strategy of providing the best products and solutions for new and existing telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications. customers in both new and existing markets. As indicated by our top and bottom line growth this quarter, we have a strategy that works, making us the choice of telecom leaders. These leaders rely on Amdocs because we supply full solutions combining products, implementation and support services support services Psychology Non-health care-related ancillary services–eg, transportation, financial aid, support groups, homemaker services, respite services, and other services , and have the highest commitment to maintaining such working methods over time." Naor continued, "1998 was a terrific year for Amdocs. In addition to our initial public offering this summer, we made significant headway head·way n. 1. Forward movement or the rate of forward movement, especially of a ship. 2. Progress toward a goal. 3. The clear vertical space beneath a ceiling or archway; clearance. 4. in penetrating penetrating breaching the tissues of the body. new markets and adding new customers. These include leading telecommunications providers, expanding companies that have outgrown legacy systems and emerging carriers with high growth potential. These new clients further enrich an already top-notch group of companies with which we have a history of maintaining productive 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. relationships." "Annual revenue exceeded a milestone “Milemarker” redirects here. For the American indie rock band, see Milemarker (band). A milestone or kilometre sign is one of a series of numbered markers placed along a road at regular intervals, typically at the side of the road or in a median. $400 million for the first time, reflecting a high demand for top-of-the-line customer care and billing systems," Naor noted. "Telecommunications remains an explosive growth market globally and demand for Amdocs systems from our market-leading customers remains high." "Amdocs also continues to benefit from industry consolidation. As telecommunications companies See telecom company. increase in size, they need our systems with unlimited 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 rich functionality to support expanding customer populations and provide a strategic edge in highly competitive markets," Naor added. Naor concluded, "Due to favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. market conditions, leading products, excellent customer relationships and a track record of reliability, our forward visibility and confidence remain high as we enter the first quarter of fiscal 1999." The company noted that during the fourth quarter of its fiscal year, it experienced strong revenue contribution from its customer care and billing business, which grew 49.5%. Operating income increased 53.8% to $26.1 million compared to operating income before nonrecurring charges 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". of $17.0 million in the fourth quarter of 1997. Net income for the three months increased to $11.6 million and was favorably fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. impacted by a reduction in quarterly interest expense due to the repayment Repayment The act of paying back a debt. Notes: Everyone has to repay their debts eventually. See also: Debt, Defeasance, Loan of long-term debt Long-Term Debt Loans and financial obligations lasting over one year. Notes: For example debts obligations such as bonds and notes which have maturities greater than one year would be considered long-term debt. from proceeds of the company's initial public offering. Diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of for the quarter ended September 30, 1998, were $0.06 based on 198,361,000 weighted average shares outstanding. For the year ended September 30, 1998, revenue grew by 39.2% to a record $403.8 million compared to $290.1 million reported for the prior year. Fiscal 1998 revenue reflected a 65.0% increase in license revenue. Operating income for fiscal 1998 increased 55.7% to $84.9 million from $54.5 million before nonrecurring charges in 1997. As a percentage of sales, annual operating margins Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: increased to 21.0% from 18.8% in fiscal 1997. Net income for the year reached $30.1 million compared to $5.9 million for the prior year. Diluted earnings per share for fiscal 1998 were $0.19 compared to diluted earnings per share inclusive of inclusive of prep. Taking into consideration or account; including. nonrecurring charges of $0.05 in fiscal 1997. Amdocs is a leading provider of product-driven customer care and billing solutions to premier telecommunications companies worldwide. 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 2,900 information systems professionals dedicated to the telecommunications industry, Amdocs has an installed base of successful projects with more than 60 major telecommunications companies throughout the world. For more information visit our Web site at 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. . 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 (1) To make visible; to draw. The term comes from the graphics world where a rendering is an artist's drawing of what a new structure would look like. In computer-aided design (CAD), a rendering is a particular view of a 3D model that has been converted into a realistic image. 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 quarterly filings on Form 6-K and annual filing on Form 20-F with the Securities and Exchange Commission. -0-
AMDOCS LIMITED
CONSOLIDATED BALANCE SHEETS
(in thousands)
September 30,
------------------
1998 1997
------- -------
ASSETS
Current Assets:
Cash and cash equivalents $25,389 $53,732
Accounts receivable, including unbilled of
$10,331 in 1998 and $2,031 in 1997 79,723 48,565
Accounts receivable from related parties,
including unbilled of $537 in 1998 and
$0 in 1997 10,235 15,393
Deferred income taxes 14,534 12,532
Prepaid expenses and other current assets 11,991 6,161
------- -------
Total current assets 141,872 136,383
Equipment, vehicles and leasehold
improvements, net 46,404 28,287
Deferred income taxes 7,773 4,587
Intellectual property rights 23,362 25,982
Other noncurrent assets 20,555 25,343
======= =======
$239,966 $220,582
======= =======
LIABILITIES AND SHAREHOLDERS' EQUITY (DEFICIT)
Current Liabilities:
Accounts payable and accrued expenses $47,599 $30,543
Accrued personnel costs 29,948 23,098
Short-term financing arrangements 91,565 1,998
Unearned revenue 29,241 17,440
Notes payable to related parties -- 3,268
Short-term portion of capital lease obligations 2,952 1,954
Forward exchange contracts 2,926 --
Income taxes payable and deferred income taxes 21,919 20,151
------- -------
Total current liabilities 226,150 98,452
Long-term forward exchange contracts 2,222 --
Long-term portion of capital lease
obligations 9,215 7,370
Other noncurrent liabilities 24,268 20,507
Shareholders' equity (deficit):
Preferred Shares - 0 shares issued and
outstanding -- --
Ordinary Shares - 196,800 and 124,708 issued
and outstanding, respectively 3,149 1,996
Additional paid-in capital 447,503 105,779
Unrealized loss on derivative instruments (1,495) --
Unearned compensation (8,947) --
Accumulated deficit (462,099) (13,522)
------- -------
Total Shareholders' equity (deficit) (21,889) 94,253
======= =======
$239,966 $220,582
======= =======
AMDOCS LIMITED
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
Three months ended Year ended
September 30, September 30,
------------------ ------------------
1998 1997 1998 1997
-------- -------- -------- --------
(unaudited)
Revenue:
License $ 13,150 $ 10,427 $ 42,891 $ 25,995
Service 103,554 77,560 360,876 264,107
-------- -------- -------- --------
116,704 87,987 403,767 290,102
Operating expenses:
Cost of license 2,211 (169) 10,732 3,711
Cost of service 66,092 51,575 231,360 173,704
Research and development 7,485 5,208 25,612 17,386
Selling, general and 14,812 14,396 51,168 40,769
administrative
Nonrecurring charges -- 27,563 -- 27,563
-------- -------- -------- --------
90,600 98,573 318,872 263,133
-------- -------- -------- --------
Operating income (loss) 26,104 (10,586) 84,895 26,969
Other expense, net 2,354 3,116 24,126 3,266
-------- -------- -------- --------
Income (loss) before income
taxes 23,750 (13,702) 60,769 23,703
Income tax expense 11,875 4,605 30,385 17,827
-------- -------- -------- --------
Net income (loss) before
cumulative effect 11,875 (18,307) 30,384 5,876
Cumulative effect of changes in
accounting principle, net
of $277 tax 277 -- 277 --
-------- -------- -------- --------
Net income (loss) $ 11,598 $(18,307) $30,107 $5,876
======== ======== ======== ========
Basic earnings (loss) per share
Income (loss) before
cumulative effect $ 0.06 $ (0.17) $ 0.19 $ 0.05
Cumulative effect of a change
in accounting principle
(less than $0.01) -- -- -- --
-------- -------- -------- --------
Net income (loss) $ 0.06 $ (0.17) $ 0.19 $ 0.05
======== ======== ======== ========
Diluted earnings (loss) per
share
Income (loss) before
cumulative effect $ 0.06 $ (0.17) $ 0.19 $ 0.05
Cumulative effect of a
change in accounting
principle (less than $0.01) -- -- -- --
-------- -------- -------- --------
Net income (loss) $ 0.06 $ (0.17) $ 0.19 $ 0.05
======== ======== ======= =======
Weighted average diluted
shares outstanding 198,361 112,143 159,442 110,915
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