Amdocs Limited Reports Fourth Quarter Revenue and Proforma EPS In Line With Guidance.Business Editors ST. LOUIS--(BUSINESS WIRE)--Nov. 6, 2002 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 ) Key Highlights: -- Revenue of $355.5 million, a decrease of 14.4% from prior year -- Proforma EPS of $0.19 -- Free cash flow of $82 million in quarter -- Cash balance increased to $1.048 billion at end of quarter -- Fiscal 2002 revenue increased 5.2% to $1.6 billion -- First quarter fiscal 2003 guidance: revenue of $333-$338 million and proforma EPS of $0.18-$0.20 Amdocs Limited (NYSE: DOX) today reported that for the fourth quarter ended September September: see month. 30, 2002, revenue was $355.5 million, a decrease of 14.4% from last year's fourth quarter. Excluding acquisition-related costs and other non-recurring items and related tax effects, net income decreased 47.9% to $40.7 million, or $0.19 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 $78.3 million, or $0.35 per diluted share, in the fourth quarter of fiscal 2001. The Company's as-reported results, which include acquisition-related charges for 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. and other non-recurring items related to gain from repurchase re·pur·chase tr.v. re·pur·chased, re·pur·chas·ing, re·pur·chas·es To buy (something) again. n. The act of buying something that one previously sold or owned. Noun 1. of convertible notes, a restructuring charge restructuring charge The expense of reorganizing a company's operations. A restructuring charge is an infrequent expense that generally results from asset writedowns or facility closings. related to cost reduction measures and related tax effects, showed a net loss of $9.0 million, or $0.04 per diluted share, compared to net income of $19.9 million, or $0.09 per diluted share, in the fourth quarter of fiscal 2001. Dov Baharav, Chief Executive Officer of Amdocs Management Limited, said, "The telecom market continued to weaken during the fourth quarter with service providers very hesitant hes·i·tant adj. Inclined or tending to hesitate. hes  i·tant·ly adv. to commit to new projects.
Despite these challenges, Amdocs achieved its financial and business
goals for the quarter through disciplined execution. We generated strong
cash flow from operations Cash flow from operationsA firm's net cash inflow resulting directly from its regular operations (disregarding extraordinary items such as the sale of fixed assets or transaction costs associated with issuing securities), calculated as the sum of net income plus noncash expenses , which contributed to an increased quarter-end cash balance. We also expanded our market presence with five new wins. We do not expect the market to improve in the next quarter. We believe in the market 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. and accordingly, continue to make significant investments in product development to ensure our growth when the market recovers." Under the leadership of its new management team, Amdocs implemented a new organizational structure  This article has no lead section.To comply with Wikipedia's lead section guidelines, one should be written. during the quarter. The Company's operations will be centered around two main groups, the Offering Group and the Delivery Group. The Offering Group is focusing on developing and marketing best-in-class See best-of-class. products that meet the current and future needs of its customers and enhances the Company's existing suite of leading products. The Delivery Group is leveraging all existing geographic-based, customer service groups and is focusing on enhancing the company's unparalleled track record of service delivery by being closer to the customer and their business processes. Sales Highlights During the fourth quarter, Amdocs won five new projects: -- End-to-end end-to-end a pattern of anastomosis in which severed ends are matched and united, in contrast with other patterns such as end-to-side or side-to-side. Usually applied to anastomosis of the intestine. billing system supporting regional operations for Cable & Wireless, one of the largest service providers in the world. -- Amdocs Mobile to support prepaid-postpaid convergence for excelcom, a leading mobile carrier in Indonesia Indonesia (ĭn'dənē`zhə), officially Republic of Indonesia, republic (2005 est. pop. 241,974,000), c.735,000 sq mi (1,903,650 sq km), SE Asia, in the Malay Archipelago. . -- Amdocs Enabler supporting convergent voice and data billing for Connex Con`nex´ v. t. 1. To connect. (MobiFon S.A.), a Vodafone Vodafone Group Plc is a mobile network operator headquartered in Newbury, Berkshire, England, UK. It is the largest mobile telecommunications network company in the world by turnover and has a market value of about £84.7 billion (July 2007). associate which is the largest cellular operator in Romania Romania (rōmān`ēə, –yə) or Rumania (r  –), republic (v), 91,699 sq mi (237,500 sq km), SE Europe. .
-- For an existing mobile customer - a major expansion of Amdocs data center and billing operations support services support services Psychology Non-health care-related ancillary services–eg, transportation, financial aid, support groups, homemaker services, respite services, and other services . -- Amdocs ClarifyCRM for a major mobile carrier. Amdocs also extended its 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. agreement with Sensis Sensis may mean:
Operating And Financial Highlights During the fourth quarter: -- TA Orange, a wireless carrier in Thailand Thailand (tī`lănd, –lənd), Thai Prathet Thai [land of the free], officially Kingdom of Thailand, constitutional monarchy (2005 est. pop. 65,444,000), 198,455 sq mi (514,000 sq km), Southeast Asia. , went live with Amdocs end-to-end billing system. -- Amdocs released version released version - release 11.0 of Amdocs ClarifyCRM, with new browser-based applications. -- Amdocs implemented its previously-announced cost-reduction program aimed at reducing expenses by approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $30 million each quarter, primarily in personnel and facilities-related savings, compared to expense levels in the third quarter. -- The Company used approximately $49 million to repurchase convertible notes with a face value of approximately $55 million. -- Free cash flow, defined as cash flow from operations less capital expenditures and payments on capital leases, was $82 million in the quarter. The Company also noted that for the fiscal year ended September 30, 2002, revenue grew by 5.2% to $1.61 billion. Excluding acquisition-related charges and other items, net income for fiscal 2002 decreased 11.4% to $249.0 million, while 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 decreased 9.7% to $1.12. The Company's as-reported results for fiscal 2002, which included acquisition-related charges and other items, showed a net loss of $5.1 million, or $0.02 per diluted share, compared to net income of $66.4 million, or $0.29 per diluted share, in fiscal 2001. Financial Outlook The Company expects that revenue for the first quarter ending December December: see month. 31, 2002, will be approximately $333-$338 million, with pro forma earnings pro forma earnings Income not necessarily calculated in accordance with generally accepted accounting principles. For example, a company might report pro forma earnings that exclude depreciation expense and nonrecurring expenses such as restructuring costs. per share for the quarter expected to be approximately $0.18-$0.20, excluding acquisition-related costs. Amdocs will host a conference call on November November: see month. 6, 2002 at 5 p.m. Eastern Standard Time to discuss the Company's fourth 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. About Amdocs Amdocs is the world's leading provider of billing and CRM (Customer Relationship Management) An integrated information system that is used to plan, schedule and control the presales and postsales activities in an organization. to 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. . With a 20-year track record of delivery excellence, our products empower empower verb To encourage or provide a person with the means or information to become involved in solving his/her own problems major communications operators around the globe. We enable rapid time-to-market for next generation voice, content, commerce and application services See ASP and Web services. , while enhancing subscriber subscriber, n the person, usually the employee, who represents the family unit in relation to the prepayment plan. Other family members are dependents. Also called certificate holders or enrollees. loyalty and lowering total cost of ownership. We offer our customers flexible modes of delivery -- products, solutions and outsourcing. 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. , 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 (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, 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 Annual Report on Form 20-F filed December 27, 2001 and our Form 6-K filed on August 15, 2002.
AMDOCS LIMITED
Pro forma Consolidated Statements of Operations (Unaudited)
Excluding Restructuring Charges, Purchased In-Process Research
and Development, Amortization of Goodwill and Purchased
Intangible Assets, Gain on Repurchase of Convertible Notes and
Related Tax Effects
(in thousands, except per share data)
Three months ended Twelve months ended
September 30, September 30,
2002 (1) 2001 (1) 2002 (2) 2001 (2)
--------- --------- --------- ---------
Revenue:
License $ 29,068 $ 41,560 $ 153,664 $ 171,430
Service 326,452 373,887 1,459,901 1,362,480
--------- --------- --------- ---------
355,520 415,447 1,613,565 1,533,910
Operating expenses:
Cost of license 1,452 926 5,054 5,651
Cost of service 216,829 228,814 928,283 847,591
Research and
development 31,801 29,073 124,082 105,807
Selling, general and
administrative 53,338 51,248 223,551 195,592
--------- --------- --------- ---------
303,420 310,061 1,280,970 1,154,641
--------- --------- --------- ---------
Operating income 52,100 105,386 332,595 379,269
Interest income and
other, net 4,496 6,400 13,286 22,286
--------- --------- --------- ---------
Income before income
taxes 56,596 111,786 345,881 401,555
Income taxes 15,847 33,536 96,847 120,467
--------- --------- --------- ---------
Net income $ 40,749 $ 78,250 $ 249,034 $ 281,088
========= ========= ========= =========
Diluted earnings
per share $ 0.19 $ 0.35 $ 1.12 $ 1.24
========= ========= ========= =========
Diluted weighted average
number of shares
outstanding 216,349 225,716 222,562 226,832
========= ========= ========= =========
(1) Excludes $56,566 and $55,857 of amortization of goodwill and
purchased intangible assets, $20,919 and $0 of restructuring
charge related to the cost reduction measures, $(6,012) and $0
gain related to the repurchase of convertible notes and tax
effects related to the above of $(21,738) and $2,488 for the
three months ended September 30, 2002 and 2001, respectively.
Including the above items, income (loss) before income taxes
was $(14,877) and $55,929 and diluted earnings (loss) per
share were $(0.04) and $0.09 for the three months ended
September 30, 2002 and 2001, respectively.
(2) Excludes $231,804 and $219,988 for amortization of goodwill
and purchased intangible assets, $34,230 and $0 of
restructuring charges related to the cost reduction measures
and the consolidation of data centers and the resulting
closure of our Stamford, Connecticut facility, $17,400 and $0
for write-off of purchased in-process research and development
related to the Clarify acquisition, $(6,012) and $0 gain
related to the repurchase of convertible notes and tax effects
related to the above of $(23,327) and $(5,286) for the twelve
months ended September 30, 2002 and 2001, respectively.
Including the above items, income before income taxes was
$68,459 and $181,567, and diluted earnings (loss) per share
were $(0.02) and $0.29 for the twelve months ended September
30, 2002 and 2001, respectively.
AMDOCS LIMITED
Consolidated Statements of Operations
(in thousands, except per share data)
Three months ended Twelve months ended
September 30, September 30,
---------------------------------------------
2002 2001 2002 2001
--------- --------- --------- ---------
(Unaudited)
Revenue:
License $ 29,068 $ 41,560 $ 153,664 $ 171,430
Service 326,452 373,887 1,459,901 1,362,480
--------- --------- --------- ---------
355,520 415,447 1,613,565 1,533,910
Operating expenses:
Cost of license 1,452 926 5,054 5,651
Cost of service 216,829 228,814 928,283 847,591
Research and
development 31,801 29,073 124,082 105,807
Selling, general and
administrative 53,338 51,248 223,551 195,592
Amortization of goodwill
and purchased
intangible assets 56,566 55,857 231,804 219,988
Restructuring charges
and in-process research
and development 20,919 - 51,630 -
--------- --------- --------- ---------
380,905 365,918 1,564,404 1,374,629
--------- --------- --------- ---------
Operating income (loss) (25,385) 49,529 49,161 159,281
Interest income and
other, net 10,508 6,400 19,298 22,286
--------- --------- --------- ---------
Income (loss) before
income taxes
(tax benefit) (14,877) 55,929 68,459 181,567
Income taxes
(tax benefit) (5,891) 36,024 73,520 115,181
--------- --------- --------- ---------
Net income (loss) $ (8,986) $ 19,905 $ (5,061) $ 66,386
========= ========= ========= =========
Basic earnings (loss)
per share $ (0.04) $ 0.09 $ (0.02) $ 0.30
========= ========= ========= =========
Diluted earnings (loss)
per share $ (0.04) $ 0.09 $ (0.02) $ 0.29
========= ========= ========= =========
Basic weighted average
number of shares
outstanding 215,559 222,560 220,361 222,002
========= ========= ========= =========
Diluted weighted average
number of shares
outstanding (1)215,559 225,716 (1)220,361 226,832
========= ========= ========= =========
(1) Due to net loss, anti-dilutive securities are excluded from
the computation of diluted weighted average number of shares.
AMDOCS LIMITED
Condensed Consolidated Balance Sheets
(in thousands)
As of
----------------------------
September 30, September 30,
2002 2001
------------ ------------
ASSETS
Current assets
Cash, cash equivalents and
short-term interest-bearing
investments $ 1,047,819 $ 1,110,067
Accounts receivable, net,
including unbilled of $24,144
and $23,272, respectively 312,732 384,851
Deferred income taxes and
taxes receivable 48,154 38,916
Prepaid expenses and
other current assets 72,196 38,045
----------- -----------
Total current assets 1,480,901 1,571,879
Equipment, vehicles and
leasehold improvements, net 160,902 173,695
Goodwill and other intangible
assets, net 750,530 788,187
Other noncurrent assets 147,761 90,675
----------- -----------
Total assets $ 2,540,094 $ 2,624,436
=========== ===========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
Accounts payable and accruals $ 279,071 $ 270,517
Short-term portion of capital
lease obligations 10,347 10,400
Deferred revenue 149,590 140,033
Deferred income taxes and
taxes payable 103,315 91,026
----------- -----------
Total current liabilities 542,323 511,976
Convertible notes and other
noncurrent liabilities 581,496 600,369
Shareholders' equity 1,416,275 1,512,091
----------- -----------
Total liabilities and
shareholders' equity $ 2,540,094 $ 2,624,436
=========== ===========
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