Amdocs Limited Third Quarter Pro Forma Earnings Per Share Increased by 43.5% to $0.33; Revenue Increased by 36.0% to a Record $404.0 Million.Business Editors ST. LOUIS--(BUSINESS WIRE)--July 24, 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 ) today reported that for the third quarter ended June June: see month. 30, 2001, revenue reached $404.0 million, an increase of 36.0% over last year's third quarter. Excluding acquisition-related charges, net income increased 44.4% to $74.1 million, while earnings per share increased 43.5% to $0.33 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 $51.4 million, or $0.23 per diluted share, in the third 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, and in fiscal 2000 also included in-process research and development write-offs and other indirect acquisition costs, was $18.5 million, or $0.08 per diluted share, compared to a net loss of $67.2 million, or $0.31 per diluted share, in the third quarter of fiscal 2000. Avi Naor, Chief Executive Officer of Amdocs Management Limited, noted, "We had an excellent quarter. These results continue our consistent track record of strong business performance and stable growth. We continued to expand our penetration The successful unauthorized breach of a security perimeter. See penetration test. in both the wireline and mobile sectors for both voice and IP applications. We have great stability due to our business model, which emphasizes 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, as well as our extensive portfolio which includes CRM (Customer Relationship Management) An integrated information system that is used to plan, schedule and control the presales and postsales activities in an organization. , billing and order management; the variety of service alternatives we offer including licensed solutions 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. projects; and the geographic geographic /geo·graph·ic/ (je?o-graf´ik) in pathology, of or referring to a pattern that is well demarcated, resembling outlines on a map. geographic pertaining to geography. diversity spanning all major global markets." Naor continued, "We continue to be very confident moving forward. For Amdocs, the market for customer care and billing systems remains strong. With our broad product offering and complete service coverage, Amdocs is uniquely positioned to leverage its existing relationships with Tier 1 and Tier 2 carriers, the strongest players in the market. Carriers recognize that powerful customer care and billing capabilities are mission-critical for their operations, and enable them to be more competitive. This also holds for our existing customers, where we have significant ongoing support programs and additional system expansion and enhancement projects." Naor added, "Due to the slowdown For articles with similar titles, see Slow Down (disambiguation). A slowdown is an industrial action in which employees perform their duties but seek to reduce productivity or efficiency in their performance of these duties. in the global communications market, we have recently experienced a lengthening lengthening (lengkˑ·the·ning), n the use of various massage or muscle energy techniques to relax and stretch muscle and connective tissue. in our sales cycle, which means that it may take us longer to close deals for new business. Nonetheless, our future outlook is very positive. We continue to have a strong pipeline, and our visibility remains high. With our leading position among the top tier communications carriers, together with our long-term customer relationships, solutions-based business model and diverse product portfolio, our future business prospects remain strong in the current market." 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 8,450 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 July July: see month. 24 at 5 p.m. Eastern Daylight For other uses, see Daylight (disambiguation). Daylight or the light of day is the combination of all direct and indirect sunlight outdoors during the daytime (and perhaps twilight). Time to discuss the Company's third 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 May 10, 2001 and in our Form 20-F/A filed on April 3, 2001.
AMDOCS LIMITED
Pro forma Consolidated Statements of Operations (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 Nine months ended
June 30,(1) June 30,(2)
------------------------- -----------------------
2001 2000 2001 2000
------------------------- -----------------------
Revenue:
License $ 48,504 $ 32,663 $ 129,870 $ 89,606
Service 355,503 264,339 988,593 713,647
---------- ---------- ---------- ----------
404,007 297,002 1,118,463 803,253
Operating
expenses:
Cost of
license 1,772 1,715 4,725 4,346
Cost of
service 220,834 167,686 618,776 462,425
Research and
development 28,003 20,275 76,734 52,958
Selling, general
and
administrative 52,727 37,321 144,344 97,868
---------- ---------- ---------- ----------
303,336 226,997 844,579 617,597
---------- ---------- ---------- ----------
Operating
income 100,671 70,005 273,884 185,656
Interest income
and other, net 5,228 3,355 15,885 6,018
---------- ---------- ---------- ----------
Income before
income taxes 105,899 73,360 289,769 191,674
Income taxes 31,769 22,008 86,931 57,502
---------- ---------- ---------- ----------
Net income $ 74,130 $ 51,352 $ 202,838 $ 134,172
========== ========== ========== ==========
Diluted
earnings per
share $ 0.33 $ 0.23 $ 0.89 $ 0.63
========== ========== ========== ==========
Diluted weighted
average number
of shares
outstanding 226,942 226,304 226,961 213,898
========== ========== ========== ==========
(1) Excludes $55,807 and $54,070 of amortization of goodwill and
purchased intangible assets, $0 and $50,554 write-off of purchased
in-process research and development, $0 and $5,187 of
acquisition-related costs, and tax effects related to the above of
$(169) and $8,700 for the three months ended June 30, 2001 and
2000, respectively. Including the above items, income (loss)
before income taxes was $50,092 and $(36,451) and diluted earnings
(loss) per share were $0.08 and $(0.31) for the three months ended
June 30, 2001 and 2000, respectively.
(2) Excludes $164,131 and $56,870 of amortization of goodwill and
purchased intangible assets, $0 and $70,430 write-off of purchased
in-process research and development, $0 and $5,187 of
acquisition-related costs, and tax effects related to the above of
$(7,774) and $8,700 for the nine months ended June 30, 2001 and
2000, respectively. Including the above items, income before
income taxes was $125,638 and $59,187 and diluted earnings (loss)
per share were $0.20 and $ (0.03) for the nine months ended June
30, 2001 and 2000, respectively.
AMDOCS LIMITED
Consolidated Statements of Operations (Unaudited)
(in thousands, except per share data)
Three months ended Nine months ended
June 30, June 30,
------------------------ ----------------------
2001 2000 2001 2000
Revenue:
License $ 48,504 $ 32,663 $ 129,870 $ 89,606
Service 355,503 264,339 988,593 713,647
---------- ---------- ---------- ----------
404,007 297,002 1,118,463 803,253
Operating
expenses:
Cost of license 1,772 1,715 4,725 4,346
Cost of service 220,834 167,686 618,776 462,425
Research and
development 28,003 20,275 76,734 52,958
Selling, general
and
administrative 52,727 37,321 144,344 97,868
Amortization of
goodwill and
purchased
intangible
assets 55,807 54,070 164,131 56,870
In-process research
and development
and other
indirect
acquisition-related
costs -- 55,741 -- 75,617
---------- ---------- ---------- ----------
359,143 336,808 1,008,710 750,084
Operating income
(loss) 44,864 (39,806) 109,753 53,169
Interest income
and other, net 5,228 3,355 15,885 6,018
---------- ---------- ---------- ----------
Income (loss)
before income
taxes 50,092 (36,451) 125,638 59,187
Income taxes 31,600 30,708 79,157 66,202
---------- ---------- ---------- ----------
Net income (loss) $ 18,492 $ (67,159) $ 46,481 $ (7,015)
========== ========== ========== ==========
Basic earnings
(loss) per share $ 0.08 $ (0.31) $ 0.21 $ (0.03)
========== ========== ========== ==========
Diluted earnings
(loss) per share $ 0.08 $ (0.31) $ 0.20 $ (0.03)
========== ========== ========== ==========
Basic weighted
average number
of shares
outstanding 222,349 219,962 221,814 208,706
Diluted weighted ========== ========== ========== ==========
average number
of shares
outstanding 226,942 219,962(1) 226,961 208,706(1)
========== ========== ========== ==========
(1) Due to net loss, contingently issuable shares are excluded from
the computation of diluted weighted average number of shares.
AMDOCS LIMITED
Condensed Consolidated Balance Sheets
(in thousands)
As of
------------------------------------
June 30, September 30,
2001 2000
------------------------------------
(Unaudited)
ASSETS
Current assets:
Cash, cash equivalents
and short-term
interest-bearing
investments $ 1,044,180 $ 402,300
Accounts receivable,
including unbilled of
$22,598 and $4,203,
respectively 329,333 263,100
Deferred income taxes
and taxes receivable 34,021 35,179
Prepaid expenses and
other current assets 39,291 34,327
---------- ----------
Total current assets 1,446,825 734,906
Equipment, vehicles and
leasehold improvements, net 167,257 128,081
Goodwill and other intangible
assets, net 842,680 1,011,053
Other non-current assets 86,001 61,045
------------- --------------
Total assets $ 2,542,763 $ 1,935,085
============= ==============
LIABILITIES AND SHAREHOLDERS'
EQUITY
Current Liabilities:
Accounts payable and
accruals $ 227,912 $ 198,445
Short-term financing
arrangements 9,522 28,713
Deferred revenue 147,029 133,546
Deferred income taxes and
income taxes payable 67,278 55,197
------------- --------------
Total current liabilities 451,741 415,901
Convertible notes and other
non-current liabilities 597,869 88,412
Shareholders' equity 1,493,153 1,430,772
------------- --------------
Total liabilities and
shareholders' equity $ 2,542,763 $ 1,935,085
============= ==============
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