Amdocs Limited Reports 79.1% Increase in Operating Income in First Quarter of Fiscal 1999; Revenue Grows 51.8% to a New High of $131.4 Million.ST. LOUIS--(BUSINESS WIRE)--Jan. 25, 1999--Amdocs 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 31, 1998, revenue increased by 51.8% to $131.4 million from $86.6 million in the first quarter last year. First quarter 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 79.1% to $30.2 million. Operating income was favorably impacted by the 72.5% growth in license revenue in the quarter. Net income increased 153.0% to $20.1 million, compared to $8.0 million in the first quarter last year. 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 increased to $0.10, compared to $0.06 in the first quarter of fiscal 1998. Avi Naor, Chief Executive Officer of Amdocs Management Limited, noted, "The customer care and billing systems market in telecom continues to be vibrant. There is strong demand across the board -- in wireline and wireless, in voice and data, and in retail and wholesale. This demand is reflected in our revenues from customer care and billing, which in the first quarter grew 93.2%." Naor added, "Demand is being generated both by new entrants and, even more so, by incumbent market leaders establishing new business units or replacing legacy systems. With new players entering their markets, these leading incumbents are demanding customized solutions that differentiate them from the competition. As reflected in some of our key wins this quarter, we have been utilizing our strengths in providing product-driven customized solutions, combined with proven upwards scalability, to foster our continued expansion in this key market segment. These same strengths are also creating opportunities for Amdocs in the wake of consolidation among telecom carriers." Naor continued, "In all our key markets, especially the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. and Europe, telecom companies are faced with new challenges -- convergence, provision of data services, customer retention, wholesale-retail separation, and the focus on corporate customers. These emerging developments are changing the way telecom companies do business and creating an excellent pipeline of demand for our products. As the result of our intensive and highly focused R&D efforts, we are consistently releasing new products such as churn management, the wholesale system, and customer hierarchy management, which are helping our customers achieve and maintain market supremacy." Naor also noted that, "By staying totally focused on information systems for the telecom industry, we are perfectly positioned to maintain our leadership position and to expand market share. Our results this quarter continue to reflect strong growth. With our long-term customer relationships, visibility is exceptionally high. We have every reason to be confident going forward." 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 3,200 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 as defined under the Securities Act of 1933, as amended. 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, 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. (Financial Tables Follow) Amdocs Limited Consolidated Statements of Operations (Unaudited) (US dollars, unless otherwise stated) (in thousands, except per share data) Three months ended December 31, ------------------------ 1998 1997 ----------- ----------- Revenue: License $ 15,040 $ 8,721 Service 116,385 77,837 ----------- ----------- 131,425 86,558 Operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. : Cost of license 1,323 3,212 Cost of service 75,915 50,133 Research and development 8,379 5,321 Selling, general, and administrative 15,647 11,047 ----------- ----------- 101,264 69,713 ----------- ----------- Operating income 30,161 16,845 Interest expense, net 1,315 2,323 Other expense (income), net 72 (1,325) ----------- ----------- 1,387 998 ----------- ----------- Income before income taxes 28,774 15,847 Income taxes 8,632 7,886 ----------- ----------- Net income $20,142 $7,961 ===== $ 0.10 $ 0.06 = =========== Weighted average number of shares - Diluted 198,905 127,292 =========== =========== Amdocs Limited Consolidated Balance Sheets consolidated balance sheet A balance sheet in which assets and liabilities of a parent company and its controlled subsidiaries are combined, thereby presenting balance sheet items for the parent and its subsidiaries as if they were a single firm. (US dollars, unless otherwise stated) (in thousands, except per share data) December 31, September 30, 1998 1998 ----------- ----------- (Unaudited) ASSETS Current Assets Current Assets Appearing on a company's balance sheet, it represents cash, accounts receivable, inventory, marketable securities, prepaid expenses, and other assets that can be converted to cash within one year. : Cash and cash equivalents $ 18,129 $ 25,389 Accounts receivable accounts receivable n. the amounts of money due or owed to a business or professional by customers or clients. Generally, accounts receivable refers to the total amount due and is considered in calculating the value of a business or the business' problems in paying , including unbilled of $14,030 and $10,331, respectively 109,063 79,723 Accounts receivable from related parties, including unbilled of $0 and $537, respectively 19,530 10,235 Deferred income taxes 16,026 14,534 Prepaid expenses Prepaid Expense An asset that arises on a balance sheet because of the payment of something in advance (prepayment). Services for the payment will be received in the near future. and other current assets Other Current Assets A balance sheet item that includes the value of non-cash assets due within one year. Notes: Examples are things like prepaid expenses and accounts receivable. 14,600 11,991 ----------- ----------- Total current assets 177,348 141,872 Equipment, vehicles and leasehold improvements, net 54,305 46,404 Deferred income taxes 7,224 7,773 Intellectual property rights 22,707 23,362 Other noncurrent assets 20,926 20,555 ----------- ----------- $282,510 $239,966 =========== =========== LIABILITIES AND SHAREHOLDERS' EQUITY Shareholders' Equity A firms' total assets minus its total liabilities. Equivalently, it is share capital plus retained earnings minus treasury shares. Shareholders' equity is the amount by which a company is financed through common and preferred shares. (DEFICIT) Current Liabilities Current Liabilities Usually appearing on a company's balance sheet, it represents the amount owed for interest, accounts payable, short-term loans, expenses incurred but unpaid, and other debts due within one year. : Accounts payable and accrued expenses $ 54,136 $ 47,599 Accrued personnel costs 32,454 29,948 Short-term financing arrangements 75,708 91,565 Unearned revenue Unearned Revenue When an individual or company receives money for a service or product that has yet to be fulfilled. Notes: For example, prepayment on a lease contract - the revenue is a liability until it has been earned. See also: Earned Income, Passive Income 52,121 29,241 Short-term portion of capital lease obligations 3,597 2,952 Forward exchange contracts 5,782 2,926 Income taxes payable and deferred income taxes 23,253 21,919 ----------- ----------- Total current liabilities 247,051 226,150 Long-term forward exchange contracts 2,094 2,222 Long-term portion of capital lease obligations 11,217 9,215 Other noncurrent liabilities 24,733 24,268 Shareholders' Equity (Deficit): Preferred Shares--Authorized 25,000 shares; (pound)0.01 par value; 0 shares issued and outstanding - - Ordinary Shares--Authorized 550,000 shares; (pound)0.01 par value; 196,800 issued and outstanding 3,149 3,149 Additional paid-in capital additional paid-in capital Stockholder contributions that are in excess of a stock's stated or par value. For example, if a firm issues stock with a par value of $1 per share but sells the stock to investors at $10 per share, the firm's financial statements 447,745 447,503 Unrealized loss Unrealized Loss A loss that results from holding onto an asset rather than cashing it in and officially taking the loss. Notes: Let's say you own a stock that is down 50%, but you haven't sold it to realize the loss yet. This is said to be an unrealized loss. on derivative instruments Derivative instruments Contracts such as options and futures whose price is derived from the price of an underlying financial asset. (3,626) (1,495) Unearned compensation (7,896) (8,947) Accumulated deficit (441,957) (462,099) ----------- ---------- Total shareholders' equity (deficit) (2,585) (21,889) ----------- ---------- $282,510 $239,966 =========== ========== |
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