Amdocs Limited Reports Increase in Fourth Quarter Pro Forma EPS of 40.0% to $0.35.Business Editors ST. LOUIS--(BUSINESS WIRE)--Nov. 6, 2001 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 ): Fourth Quarter Revenue Increases 31.9% to $415.4 Million Annual Revenue Tops $1.5 Billion Board of Directors Authorizes Stock Repurchase Stock repurchase A firm's repurchase of outstanding shares of its common stock. Amdocs Limited (NYSE: DOX) today reported that for the fourth quarter ended September September: see month. 30, 2001, revenue reached $415.4 million, an increase of 31.9% over last year's fourth quarter. Excluding acquisition-related charges, net income increased 39.8% to $78.3 million, while earnings per share increased 40.0% to $0.35 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 $56.0 million, or $0.25 per diluted share, in the fourth quarter of fiscal 2000. The Company's as-reported net income, which includes 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 related tax effects, was $19.9 million, or $0.09 per diluted share, compared to a net income of $13.0 million, or $0.06 per diluted share, in the fourth quarter of fiscal 2000. Avi Naor, Chief Executive Officer of Amdocs Management Limited, noted, "We achieved strong revenue and operating results this quarter. Our ability to achieve stability and growth in the current business environment is based on our 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 with the market leaders, which generate a solid, constantly expanding flow of 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. revenues. Our extensive portfolio of products and services, together with our global presence, adds stability by allowing us to adjust to shifting needs and opportunities within the evolving communications market. Moreover, in the current environment, Amdocs' reliability and stability have become decisive criteria criteria (krītēr´ē  ),n. in vendor selection. These factors are fueling continued growth through new sales in both the wireline and mobile sectors." Naor continued, "We are focusing efforts on further strengthening our leadership position in the market. These initiatives encompass products, expanded customer base and operations. Through our strong R&D program, together with the pending acquisition of Clarify (company) Clarify - A software vendor, specialising in Customer Relationship Management software. Nortel Networks sold Clarify to Amdocs in 2002. http://amdocsclarify.com/. , a leading CRM (Customer Relationship Management) An integrated information system that is used to plan, schedule and control the presales and postsales activities in an organization. vendor, we are expanding our market coverage and enhancing our product line. This is helping us drive the expansion of our customer base. We believe these initiatives can significantly strengthen our leadership of the communications CRM and billing market and will facilitate continued growth moving forward." The Company also announced a stock buyback Stock buyback A corporation's purchase of its own outstanding stock, usually in order to raise the company's earnings per share. stock buyback See buyback. program. Earlier today, Amdocs' Board of Directors authorized au·thor·ize tr.v. au·thor·ized, au·thor·iz·ing, au·thor·iz·es 1. To grant authority or power to. 2. To give permission for; sanction: the 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 up to 11 million shares, or approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 5% of the Company's outstanding common stock, on the open market, at times and prices considered appropriate by the Company. The Company intends to fund the repurchase with available funds. Mr. Naor stated that the repurchase reflects management's confidence in the Company's future. Naor said, "The underlying fundamentals of our business are excellent. CRM and billing systems are mission-critical for our customers as they seek, for example, to improve customer retention, enhance productivity and support advanced data services. Even in today's environment, we are experiencing strong demand for our offerings. As the vendor of choice for the world's leading communications providers, we have a full, diverse pipeline and high visibility. While we are encountering longer sales cycles, the fundamentals of our business are compelling - we are the foremost vendor in an outstanding market. Looking forward, we are very confident regarding our future business prospects." The Company also noted that for the fiscal year ended September 30, 2001, revenue grew by 37.2% to a record $1.53 billion. Excluding acquisition-related charges of amortization of goodwill and purchased intangible assets and related tax effects, and in fiscal 2000 also in-process research and development and other indirect acquisition costs, net income for fiscal 2001 increased 47.8% to $281.1 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 increased 40.9% to $1.24. 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 8,600 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 November November: see month. 6 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. 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, 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 6-K filed on August 9, 2001 and in our Form 20-F/A filed on April 3, 2001.
AMDOCS LIMITED
Pro forma Consolidated Statements of Income (Unaudited)
Excluding Purchased In-Process Research and Development, Acquisition
Related Costs, Amortization of Goodwill and Purchased Intangible
Assets and Related Tax Effects
(in thousands, except per share data)
Three months ended Twelve months ended
September 30, September 30,
-------------------- ---------------------
2001 (1) 2000 (1) 2001 (2) 2000 (2)
---------- --------- ---------- ----------
Revenue:
License $ 41,560 $ 35,216 $ 171,430 $ 124,822
Service 373,887 279,851 1,362,480 993,498
---------- --------- ---------- ----------
415,447 315,067 1,533,910 1,118,320
Operating expenses:
Cost of license 926 1,278 5,651 5,624
Cost of service 228,814 177,475 847,591 639,900
Research and development 29,073 21,894 105,807 74,852
Selling, general and
administrative 51,248 39,136 195,592 137,004
---------- --------- ---------- ----------
310,061 239,783 1,154,641 857,380
---------- --------- ---------- ----------
Operating income 105,386 75,284 379,269 260,940
Interest income and
other, net 6,400 4,716 22,286 10,734
---------- --------- ---------- ----------
Income before income taxes 111,786 80,000 401,555 271,674
Income taxes 33,536 24,026 120,467 81,528
---------- --------- ---------- ----------
Net income $ 78,250 $ 55,974 $ 281,088 $ 190,146
========== ========= ========== ==========
Diluted earnings per share $ 0.35 $ 0.25 $ 1.24 $ 0.88
========== ========= ========== ==========
Diluted weighted average
number of shares outstanding 225,716 227,227 226,832 216,935
========== ========= ========== ==========
(1) Excludes $55,857 and $54,329 of amortization of goodwill and
purchased intangible assets, and tax effects related to the
above of $(2,488) and $11,348 for the three months ended
September 30, 2001 and 2000, respectively. Including the above
items, income before income taxes was $55,929 and $25,671 and
diluted earnings per share were $0.09 and $0.06 for the three
months ended September 30, 2001 and 2000, respectively.
(2) Excludes $219,988 and $111,199 of amortization of goodwill and
purchased intangible assets, $0 and $70,319 write-off of
purchased in-process research and development, $0 and $5,298
of acquisition-related costs, and tax effects related to the
above of $5,286 and $2,648 for the twelve months ended
September 30, 2001 and 2000, respectively. Including the above
items, income before income taxes was $181,567 and $84,858 and
diluted earnings per share were $0.29 and $0.03 for the twelve
months ended September 30, 2001 and 2000, respectively
AMDOCS LIMITED
Consolidated Statements of Income
(in thousands, except per share data)
Three months ended Twelve months ended
September 30, September 30,
-------------------- ---------------------
2001 2000 2001 2000
---------- --------- ---------- ----------
(Unaudited)
Revenue:
License $ 41,560 $ 35,216 $ 171,430 $ 124,822
Service 373,887 279,851 1,362,480 993,498
---------- --------- ---------- ----------
415,447 315,067 1,533,910 1,118,320
Operating expenses:
Cost of license 926 1,278 5,651 5,624
Cost of service 228,814 177,475 847,591 639,900
Research and development 29,073 21,894 105,807 74,852
Selling, general and
administrative 51,248 39,136 195,592 137,004
Amortization of goodwill
and purchased intangible 55,857 54,329 219,988 111,199
assets
In-process research and
development and other
indirect acquisition-
related costs - - - 75,617
---------- --------- ---------- ----------
365,918 294,112 1,374,629 1,044,196
---------- --------- ---------- ----------
Operating income 49,529 20,955 159,281 74,124
Interest income and
other, net 6,400 4,716 22,286 10,734
---------- --------- ---------- ----------
Income before income taxes 55,929 25,671 181,567 84,858
Income taxes 36,024 12,678 115,181 78,880
---------- --------- ---------- ----------
Net income $ 19,905 $ 12,993 $ 66,386 $ 5,978
========== ========= ========== ==========
Basic earnings per share $ 0.09 $ 0.06 $ 0.30 $ 0.03
========== ========= ========== ==========
Diluted earnings per share $ 0.09 $ 0.06 $ 0.29 $ 0.03
========== ========= ========== ==========
Basic weighted average
number of shares outstanding 222,560 221,105 222,002 212,005
========== ========= ========== ==========
Diluted weighted average
number of shares outstanding 225,716 227,227 226,832 216,935
========== ========= ========== ==========
AMDOCS LIMITED
Condensed Consolidated Balance Sheets
(in thousands)
As of
-----------------------------
September 30, September 30,
2001 2000
------------ ------------
ASSETS
Current assets
Cash, cash equivalents and
short-term interest-bearing
investments $ 1,110,067 $ 402,300
Accounts receivable, including
unbilled of $23,272 and
$4,203, respectively 384,851 263,100
Deferred income taxes and
taxes receivable 38,916 35,179
Prepaid expenses and other
current assets 38,045 34,327
------------ ------------
Total current assets 1,571,879 734,906
Equipment, vehicles and leasehold
improvements, net 173,695 128,081
Goodwill and other intangible
assets, net 788,187 1,011,053
Other noncurrent assets 90,675 61,045
------------ ------------
Total assets $ 2,624,436 $ 1,935,085
============ ============
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Accounts payable and accruals $ 270,517 $ 198,445
Short-term financing arrangements 10,400 28,713
Deferred revenue 140,033 133,546
Deferred income taxes and income
taxes payable 91,026 55,197
------------ ------------
Total current liabilities 511,976 415,901
Convertible notes and other
noncurrent liabilities 600,369 88,412
Shareholders' equity 1,512,091 1,430,772
------------ ------------
Total liabilities and
shareholders' equity $ 2,624,436 $ 1,935,085
============ ============
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