& 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
    Light Reading’s Upskill U is a FREE, interactive, online educational resource that delivers must-have education on themes that relate to the overall business transformation taking place in the communications industry.
    NEXT COURSE
    Wednesday, September 14, 1:00PM EDT
    What Is Agile?
    Kent J. McDonald, Product Owner, Agile Alliance
    UPCOMING COURSE SCHEDULE
    Friday, September 16, 1:00PM EDT
    How to Implement Agile
    Alan Bateman, Director, Agile Transformation
    Wednesday, September 21, 1:00PM EDT
    What Is DevOps?
    Colin Kincaid, CTO, Service Provider, Cisco
    Friday, September 23, 1:00PM EDT
    How to Implement DevOps
    ,
    in association with:
    From The Founder
    Light Reading today starts a new voyage as part of a larger Enterprise.
    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: UXP Systems' Gemini Waghmare

    8|26|16   |     |   (0) comments


    Light Reading CEO Steve Saunders and UXP Systems CEO Gemini Waghmare discuss the strategic importance of digital identity for operators in the midst of transformation.
    LRTV Custom TV
    F5 Virtual Network Function Integrations With Partner Orchestration Platform

    8|24|16   |   6:38   |   (0) comments


    F5's Kishore Patnam, product manager for F5's service provider solutions, discusses why service providers are moving towards virtualization and how his clients are utilizing F5's solutions.
    Between the CEOs
    CEO Chat: Intel's Alexis Black Bjorlin

    8|17|16   |   06:23   |   (0) comments


    Join us for an in-depth interview between Steve Saunders of Light Reading and Alexis Black Bjorlin of Intel as they discuss the release of the company's Silicon Photonics platform, its performance, long-term prospects, customer expectations and much more.
    Telecom Innovators Video Showcase
    Accelerating Telecom Digital Transformation With Nominum DNS

    8|1|16   |   12:04   |   (0) comments


    Light Reading's Steve Saunders gets an update from Nominum CEO Gary Messiana on how his company is helping carriers on the digital transformation journey.
    LRTV Custom TV
    Reinventing Operations for a Virtual, Software-Defined World

    7|28|16   |   5:23   |   (0) comments


    Heavy Reading Senior Analyst Jim Hodges speaks with Accenture's Larry Socher and Matt Anderson about what service providers must do to transform their business to get the benefits of SDN and NFV including: leveraging DevOps, introducing real-time OSS and implementing analytics.
    Women in Comms Introduction Videos
    Fujitsu Sales Leader Shares Lessons Learned

    7|27|16   |   5:12   |   (1) comment


    As Fujitsu's only female sales leader, Annie Bogue knows the importance of asking for what you want, being flexible (she's been relocated five times), keeping a meticulous calendar, 'leaning in,' working harder than everyone else around you, being aware and more.
    Telecom Innovators Video Showcase
    VeEX Test & Measurement Solutions

    7|25|16   |   08:57   |   (0) comments


    Cyrille Morelle, president and CEO of VeEX Inc., talks test and measurement with Light Reading's Steve Saunders at BCE 2016. This includes innovative products such as VeSion Cloud-Based platform for network monitoring; MTTplus Modular Test platform for Access, Business, Carrier Ethernet, Transport and Core services; and OPX-BOX+ for Fiber Optics.
    LRTV Custom TV
    VeEX: Live From BCE 2016

    7|25|16   |   03:20   |   (0) comments


    VeEX's Senior Director of Business Development, Perry Romano, explains how VeEX provides tools to help install, maintain, monitor and manage network infrastructure efficiently and effectively. The portfolio of products on display include the RXT-6000, MTTplus and TX300s.
    LRTV Custom TV
    Real-Time Telemetry & Analytics for Intelligent SDN Orchestration

    7|25|16   |   03:09   |   (0) comments


    Packet Design CEO Scott Sherwood discusses how real-time network telemetry and analytics are enabling a new breed of SDN orchestration applications.
    From the Founder
    The Russo Report: Driving Disruption

    7|25|16   |   07:44   |   (2) comments


    In the first episode of a four-part series, Light Reading Founder and CEO Steve Saunders and Calix President and CEO Carl Russo drive around town discussing the disruptive mega-changes in the communications industry and where hope lies for service providers to meet the escalating demands of the cloud.
    LRTV Custom TV
    NetScout: Maximizing Enterprise Cloud for Digital Transformation

    7|20|16   |   04:53   |   (0) comments


    Light Reading Editor Mitch Wagner talks to NetScout CMO Jim McNiel about maximizing the benefits of enterprise cloud and digital transformation while minimizing potential pitfalls with a proper monitoring and instrumentation strategy.
    Women in Comms Introduction Videos
    Ciena's VP Offers a Career Crash Course

    7|20|16   |   4:14   |   (2) comments


    How did Ciena's Vice President of Sales, Angela Finn, carve out her career path? Simple, she tells WiC. She stayed true to her company, customers and principles. She shares her advice for women on how to be authentic and credible, as well as for companies that want to make a real change to their culture and practices.
    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 1, 2016, The Westin Times Square, New York, NY
    December 6-8, 2016, The Westin Excelsior, Rome
    May 16-17, 2017, Austin Convention Center, Austin, TX
    All Upcoming Live Events
    Infographics
    Hot Topics
    Google Fiber Can't Be Called a Failure
    Carol Wilson, Editor-at-large, 8/26/2016
    FirstNet: A Billion-Dollar Boondoggle?
    Dan Jones, Mobile Editor, 8/26/2016
    WiCipedia: Should Men Be Included? & Olympians Face Discrimination
    Eryn Leavens, Special Features & Copy Editor, 8/26/2016
    How the Padres Hit an IoT Home Run
    Mitch Wagner, West Coast Bureau Chief, Light Reading, 8/25/2016
    Google Fiber Downsizing Not Confirmed
    Mari Silbey, Senior Editor, Cable/Video, 8/25/2016
    Like Us on Facebook
    Twitter Feed
    BETWEEN THE CEOs - Executive Interviews
    Light Reading CEO Steve Saunders and UXP Systems CEO Gemini Waghmare discuss the strategic importance of digital identity for operators in the midst of transformation.
    Join us for an in-depth interview between Steve Saunders of Light Reading and Alexis Black Bjorlin of Intel as they discuss the release of the company's Silicon Photonics platform, its performance, long-term prospects, customer expectations and much more.
    Animals with Phones
    Live Digital Audio

    Bridging the tech skills gap is a major challenge for service providers and suppliers alike today – and the challenge is two-fold when it comes to increasing the number of women in the comms space. Level 3 Communications has made it a priority to overcome both challenges by implementing several unique programs focused on building the right candidates from within – in addition to filling the funnel by supporting STEM and other education programs. During this radio show, you’ll learn about these programs from Mary Beth McGrath, SVP of Global Talent Management at Level 3, and the best ways to bridge your own skills gap so that you are motivated and equipped for change. Plus you’ll have the chance to ask Mary Beth your questions live on the air.