& cplSiteName &

Amdocs Reports Fiscal Q1

Light Reading
News Wire Feed
Light Reading
1/29/2014
50%
50%

ST. LOUIS -- Key highlights:

  • Closed the previously announced acquisition of Celcite on January 1, 2014, for $141 million in cash

  • First fiscal quarter revenue of $864 million, within the $845-$875 million guidance range. Foreign currency movements positively affected revenue by approximately $2 million relative to the fourth quarter of fiscal 2013

  • First fiscal quarter non-GAAP operating income of $145 million; non-GAAP operating margin of 16.8%; GAAP operating income of $121 million

  • First fiscal quarter diluted non-GAAP EPS of $0.76, within the $0.72-$0.78 guidance range, excluding amortization of purchased intangible assets and other acquisition related costs and equity-based compensation expense, net of related tax effects

  • Diluted GAAP EPS of $0.63 for the first fiscal quarter, within the $0.58-$0.66 guidance range

  • Free cash flow of $160 million for the first fiscal quarter

  • Twelve-month backlog of $2.89 billion at the end of the first fiscal quarter, up $20 million from the end of the fourth quarter of fiscal 2013

  • Repurchased $84 million of ordinary shares during the first fiscal quarter

  • The board of directors approved a $0.155 per share quarterly cash dividend to be paid on April 17, 2014, subject to shareholder approval

  • Second quarter fiscal 2014 guidance: Expected revenue of approximately $880-$910 million which includes full quarter contributions from recently closed acquisitions. Expected diluted non-GAAP EPS of approximately $0.75-$0.81, excluding amortization of purchased intangible assets and other acquisition-related costs and approximately $0.05-$0.06 per share of equity-based compensation expense, net of related tax effects. Expected diluted GAAP EPS of approximately $0.61-$0.69

    Amdocs Limited (DOX) today reported that for its fiscal quarter ended December 31, 2013, revenue was $864.0 million, up 2.2% sequentially from the fourth fiscal quarter of 2013 and up 4.6% as compared to last year's first fiscal quarter. Net income on a non-GAAP basis was $122.6 million, or $0.76 per diluted share, compared to non-GAAP net income of $119.4 million, or $0.73 per diluted share, in the first quarter of fiscal 2013. Non-GAAP net income excludes amortization of purchased intangible assets and other acquisition related costs and equity-based compensation expenses of $21.1 million, net of related tax effects, in the first quarter of fiscal 2014 and excludes such amortization and other acquisition related costs and equity-based compensation expenses of $20.4 million, net of related tax effects, in the first quarter of fiscal 2013. The Company's GAAP net income for the first quarter of fiscal 2014 was $101.4 million, or $0.63 per diluted share, compared to GAAP net income of $99.0 million, or $0.61 per diluted share, in the prior fiscal year's first quarter.

    "We made a solid start to fiscal 2014, with total revenue, profitability and earnings per share consistent with our expectations. North America was strong as we supported our key customers, including AT&T, in their strategic initiatives as competition amongst carriers becomes increasingly fierce. In Europe, recent wins contributed to year-over-year growth in the region for the first time in five quarters. Finally, in the emerging markets, our first quarter results reflect normal fluctuations of delivery milestones on transformation projects; however, the long-term secular drivers remain favorable and we are strategically well placed to execute against the rich pipeline of opportunity we see ahead of us," said Eli Gelman, chief executive officer of Amdocs Management Limited.

    Gelman continued, "During the first fiscal quarter, we extended our relationships with customers in Europe, including Telekom Austria for the implementation of a billing modernization project based on Amdocs Turbo Charging. Additionally, our customers continued to recognize the benefits of our managed services model to deliver innovative offerings to their customers in a more cost effective way. Along these lines, we strengthened our partnership with one of Asia Pacific's leading Pay TV providers by signing a five-year, long-term service engagement. In Europe, we were selected by UK Mobile operator, EE, to deploy our MVNE solution under a managed service contract. We also on-boarded another affiliate of Vodafone Group to the global managed services agreement we signed in fiscal 2013."

    Gelman said, "We are also encouraged by our strategic initiatives in radio network optimization. We completed the acquisition of Celcite on January 1, 2014 and the post-merger integration of Actix is underway. Both of these acquired companies secured new customer wins during the first quarter, and we anticipate additional success over the longer term as we realize the benefits and synergies of our integrated network software business under Amdocs."

    Gelman concluded, "We are closely monitoring the many uncertainties in the global business environment, including those resulting from announced and potential consolidation activity amongst North American operators. We currently expect to deliver full year total revenue growth of 5% to 8% in fiscal 2014. This is slightly ahead of our previous outlook as we factor in the timing of M&A deal closings and the performance of recently acquired assets. These include Actix, Celcite and a small IT services provider in Latin America that we acquired late in the first fiscal quarter. Our free cash flow generation remains robust and we remain confident in our ability to return cash to shareholders. Taking all these factors into consideration, we continue to expect non-GAAP earnings per share growth of 6-9% in fiscal 2014."

    Financial Discussion of First Fiscal Quarter Results

    Free cash flow was $160 million for the quarter, comprised of cash flow from operations of $187 million less $27 million in net capital expenditures and other.

    Twelve-month backlog, which includes anticipated revenue related to contracts, estimated revenue from managed services contracts, letters of intent, maintenance and estimated on-going support activities, was $2.89 billion at the end of the first quarter of fiscal 2014.

    Financial Outlook

    Amdocs expects that revenue for the second quarter of fiscal 2014 will be approximately $880-$910 million. Diluted earnings per share on a non-GAAP basis for the second fiscal quarter are expected to be $0.75-$0.81, excluding amortization of purchased intangible assets and other acquisition-related costs and approximately $0.05-$0.06 per share of equity-based compensation expense, net of related tax effects. Amdocs estimates GAAP diluted earnings per share for the second fiscal quarter will be $0.61-$0.69.

    Quarterly Cash Dividend Program

    On January 29, 2014, the Board approved the Company's next quarterly cash dividend payment of $0.155 and set March 31, 2014, as the record date for determining the shareholders entitled to receive the dividend, which is payable on April 17, 2014. The increased dividend is subject to shareholder approval at the Company's Annual General Meeting on January 30, 2014.

    Amdocs Ltd. (NYSE: DOX)

    (0)  | 
    Comment  | 
    Print  | 
  • Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
    From The Founder
    The independent evaluation of Nokia's key virtual network functions (VNFs) was a defining moment for the Finnish giant.
    Flash Poll
    Live Streaming Video
    Charting the CSP's Future
    Six different communications service providers join to debate their visions of the future CSP, following a landmark presentation from AT&T on its massive virtualization efforts and a look back on where the telecom industry has been and where it's going from two industry veterans.
    Between the CEOs
    CEO Chat: Cisco's Yvette Kanouff

    6|28|16   |     |   (0) comments


    In Silicon Valley, Steve Saunders sits down with Cisco's Yvette Kanouff for an exclusive in-depth interview.
    LRTV Interviews
    Comcast: Prepping Next-Gen Video Services

    6|28|16   |     |   (0) comments


    In this LRTV interview, Comcast's Elad Nafshi outlines where MSO stands with cloud DVR, OTT video, college and gigabit services.
    LRTV Custom TV
    Energy 2020: Creating Unique Standards for Cable's Unique Networks

    6|28|16   |   09:30   |   (0) comments


    Cable's unique network requirements require a specific set of standards for operators to increase power efficiency, according to Dan Cooper, vice president of critical infrastructure for Charter Communications and chair of the SCTE/ISBE Standards Program's Energy Management Subcommittee, and Ian Oliver, managing director of the Trenchant Group and a member of the ...
    LRTV Custom TV
    Masergy: 'Now Is the Time for NFV'

    6|28|16   |     |   (0) comments


    Hear Ray Watson, VP of Global Technology at Masergy, talk about the advantages that enterprises can leverage using Network Function Virtualization (NFV), and how Masergy takes a unique approach to solving customers' problems. For more information on Masergy, please visit www.masergy.com.
    LRTV Custom TV
    Masergy Leads the Charge With NFV Capabilities

    6|28|16   |     |   (0) comments


    Hear Tim Naramore, CTO at Masergy, talk about how focusing on solving specific customer challenges, providing self-service automation tools and being laser focused on the customer experience has enabled Masergy to be a leader in the NFV space. For more information on Masergy, please visit www.masergy.com.
    LRTV Custom TV
    Private Company of the Year - Affirmed Networks

    6|27|16   |     |   (0) comments


    At BCE 2016, Steve Saunders speaks to Hassan Ahmed about Affirmed's success.
    LRTV Custom TV
    Energy 2020: Growing Services, Not Consumption

    6|24|16   |   07:18   |   (0) comments


    Management of power requirements needs to be a key consideration as cable operators deploy new services, says Dan Cooper, vice president of critical infrastructure for Charter Communications and chair of the SCTE/ISBE Standards Program's Energy Management Subcommittee. In this video, Cooper discusses the importance of cable operators and technology partners ...
    LRTV Huawei Video Resource Center
    Huawei & TDC First to Launch DOCSIS 3.1 Trial in Europe

    6|24|16   |     |   (0) comments


    To meet the rising demands for high-speed broadband and to tackle fierce competition for 1.5 million household, TDC wanted to upgrade its network to use the latest technology. Using Huawei's DOCSIS 3.1 solution, TDC is now able to offer gigabit speeds to its customers.
    LRTV Documentaries
    OPNFV Summit: Key Takeaways

    6|22|16   |   03:28   |   (0) comments


    MANO shortfalls, an increasingly bloated open source ecosystem and the cultural challenges for network operators were among the key takeaways from the OPNFV Summit in Berlin.
    LRTV Huawei Video Resource Center
    Bringing Ultra Broadband to the South Pacific

    6|22|16   |   7:55   |   (0) comments


    At Singapore's UBBS 2016 summit, Light Reading speaks to Lim Chee Siong, Huawei's CMO in the South Pacific Region.
    LRTV Custom TV
    Juniper's NFV Platform

    6|22|16   |     |   (0) comments


    A telco cloud is a key enabler for service providers to deliver virtualized services to their customers. Juniper has a differentiated approach with an open and comprehensive NFV platform to build the cloud of the future for multiple use cases.
    Women in Comms Introduction Videos
    Infinera: The Glass Ceiling's Been Broken

    6|22|16   |   4:34   |   (0) comments


    Shannon Williams, an engineer by trade and now the director of sales for Infinera's major accounts, draws confidence from being a female in a male-dominated industry and hopes other women will too as industry dynamics swing in our favor.
    Upcoming Live Events
    September 13-14, 2016, The Curtis Hotel, Denver, CO
    November 3, 2016, The Montcalm Marble Arch, London
    November 30, 2016, The Westin Times Square, New York City
    December 6-8, 2016,
    May 16-17, 2017, Austin Convention Center, Austin, TX
    All Upcoming Live Events
    Infographics
    A new survey conducted by Heavy Reading and TM Forum shows that CSPs around the world see the move to digital operations as a necessary part of their overall virtualization strategies.
    Hot Topics
    'Brexit' Vote Hits BT, Vodafone
    Iain Morris, News Editor, 6/24/2016
    AT&T Settles on LTE for Cellular IoT
    Dan Jones, Mobile Editor, 6/22/2016
    Qualcomm Readies Lower-Band 5G Testbed
    Dan Jones, Mobile Editor, 6/27/2016
    Sigfox Said to Face Customer Backlash
    Iain Morris, News Editor, 6/27/2016
    Google Fiber Buys Webpass in Wireless Play
    Iain Morris, News Editor, 6/23/2016
    Like Us on Facebook
    Twitter Feed
    BETWEEN THE CEOs - Executive Interviews
    In Silicon Valley, Steve Saunders sits down with Cisco's Yvette Kanouff for an exclusive in-depth interview.
    At the BCE 2016 show in Austin, ECI Telecom CEO Darryl Edwards tells Light Reading founder and CEO about the Elastic Network concept and the company's NFV and cybersecurity developments.
    Animals with Phones
    Live Digital Audio

    Our world has evolved through innovation from the Industrial Revolution of the 1740s to the information age, and it is now entering the Fourth Industrial Revolution, driven by technology. Technology is driving a paradigm shift in the way digital solutions deliver a connected world, changing the way we live, communicate and provide solutions. It can have a powerful impact on how we tackle some of the world’s most pressing problems. In this radio show, Caroline Dowling, President of Communications Infrastructure & Enterprise Computing at Flex, will join Women in Comms Director Sarah Thomas to discuss the impact technology has on society and how it can be a game-changer across the globe; improving lives and creating a smarter world. Dowling, a Cork, Ireland, native and graduate of Harvard Business School's Advanced Management Program, will also discuss her experience managing an international team focused on innovation in an age of high-speed change.