Light Reading

Amdocs Reports Record Revenues in Fiscal Q2

Light Reading
News Wire Feed
Light Reading
5/1/2014
50%
50%

ST. LOUIS --

Key highlights:

  • Second fiscal quarter revenue of $897 million, within the $880-$910 million guidance range. Foreign currency movements negatively affected revenue by approximately $2 million relative to the first quarter of fiscal 2014
  • The board of directors has authorized a share repurchase plan allowing the repurchase of up to $750 million of ordinary shares at the company's discretion; this plan has no expiration date and is in addition to the current authorization program, which, as of March 31, 2014, provided up to $167 million of remaining repurchase authority
  • Second fiscal quarter non-GAAP operating income of $151 million; non-GAAP operating margin of 16.8%; GAAP operating income of $124 million
  • Second fiscal quarter diluted non-GAAP EPS of $0.81, within the $0.75-$0.81 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 $0.68 for the second fiscal quarter, within the $0.61-$0.69 guidance range
  • Free cash flow of $106 million for the second fiscal quarter
  • Twelve-month backlog of $2.94 billion at the end of the second fiscal quarter, up $50 million from the end of the first quarter of fiscal 2014
  • Repurchased $85 million of ordinary shares during the second fiscal quarter
  • The board of directors approved a $0.155 per share quarterly cash dividend to be paid on July 18, 2014
  • Third quarter fiscal 2014 guidance: Expected revenue of approximately $885-$915 million. 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 March 31, 2014, revenue was $896.9 million, up 3.8% sequentially from the first fiscal quarter of 2014 and up 7.7% as compared to last year's second fiscal quarter. Net income on a non-GAAP basis was $131.9 million, or $0.81 per diluted share, compared to non-GAAP net income of $119.3 million, or $0.73 per diluted share, in the second 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 $21.5 million, net of related tax effects, in the second quarter of fiscal 2014 and excludes such amortization and other acquisition related costs and equity-based compensation expenses of $14.4 million, net of related tax effects, in the second quarter of fiscal 2013. The Company's GAAP net income for the second quarter of fiscal 2014 was $110.4 million, or $0.68 per diluted share, compared to GAAP net income of $104.9 million, or $0.64 per diluted share, in the prior fiscal year's second quarter.

    "We are pleased with our solid second fiscal quarter results, which reflect ongoing global demand for Amdocs products and services, contributions from recently acquired assets and consistent execution. We completed the acquisition of Celcite on January 1 and the post-merger integration with Actix is underway as part of a dedicated network software effort within Amdocs. Our network software offerings are well accepted, and we see encouraging signs of customer engagement and sales momentum which we view as an early validation of our strategy in this new domain. Additionally, the future of network software also looks interesting, as demonstrated by our recent inclusion in AT&T's Domain 2.0 supplier program to support its long-term vision of a User-Defined Network Cloud. We believe our inclusion in this program is recognition of the value we can bring on the cutting edge of network software, including network virtualization," said Eli Gelman, chief executive officer of Amdocs Management Limited.

    Gelman continued, "Today, we are pleased to announce that Sprint has extended its existing managed services deal with Amdocs for its billing and customer care systems. Additionally, the agreement has been expanded to include Sprint's selection of Amdocs CES 9.1 Convergent Charging to enable real-time charging capability. This new arrangement reinforces a long-standing strategic partnership with one of our largest customers and removes a key source of uncertainty that resulted from Softbank's investment in Sprint in 2013. With that said, our outlook still remains subject to much uncertainty, including with respect to the outcomes of other industry consolidation activity in North America which is ongoing in wireless and Pay TV markets."

    Gelman said, "In the emerging markets, we have been selected for the transformation of wireline business support systems (BSS) at Telefonica Argentina. This highly strategic customer win follows our successful transformation of Telefonica Argentina's wireless operations, and demonstrates the full breadth of support we expect to provide across multiple lines of business with our CES 9 market leading product set and integrated services."

    Gelman concluded, "As we embark on the second half of fiscal 2014, we are on-track to deliver full year revenue growth toward the mid-point of our previously guided range of 5% to 8%. As a reminder, this outlook reflects many moving parts, including with respect to macroeconomic and industry conditions. We believe we are executing well and we remain comfortable with our non-GAAP earnings per share growth outlook of 6% to 9% for the full year. Furthermore, we remain committed to returning cash to shareholders over the long term. Accordingly, our board has authorized an additional $750 million share repurchase plan. This is in addition to the $167 million that remained as of March 31, 2014 under the current authorization of $500 million and will be executed at the company's discretion going forward."

    Free cash flow was $106 million for the quarter, comprised of cash flow from operations of $131 million less $25 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 $2.94 billion at the end of the second quarter of fiscal 2014.

    Financial Outlook
    Amdocs expects that revenue for the third quarter of fiscal 2014 will be approximately $885-$915 million. Diluted earnings per share on a non-GAAP basis for the third 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 third fiscal quarter will be $0.61-$0.69.

    Amdocs Ltd. (NYSE: DOX)

    (0)  | 
    Comment  | 
    Print  | 
  • Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
    Flash Poll
    From The Founder
    Ericsson's Hyperscale Datacenter System (HDS) 8000, featuring Intel's Rack Scale Architecture, caused a stir when it was announced at MWC 2015. For more on this revolutionary product, join me on Thursday, April 30 at 12:00 p.m. EST for a Super Webinar event, A New Hardware Paradigm for the Telco Data Center.
    LRTV Documentaries
    Cox Eyes Cloud-Based Home Networks

    4|27|15   |   05:30   |   (0) comments


    Cox's Jeff Finkelstein explains how moving services to the cloud will let cable deliver services faster and eliminate constant hardware replacements.
    LRTV Documentaries
    CableLabs' Clarke Updates Cable Virtualization

    4|23|15   |   05:41   |   (1) comment


    Former BT exec now leading CableLabs' NFV and SDN efforts explains key role of open source and updates efforts to virtualize the home network.
    LRTV Interviews
    Ericsson's CTO Talks Transformation: Pt. II

    4|23|15   |   08:19   |   (1) comment


    In the second installment of an in-depth two-part interview, Ericsson's CTO Ulf Ewaldsson talks to Light Reading CEO and founder Steve Saunders about cultural change, network slicing and technology advances.
    LRTV Interviews
    Ericsson's CTO Talks Transformation: Pt. I

    4|23|15   |   09:27   |   (3) comments


    In the first installment of an in-depth two-part interview, Ericsson's CTO Ulf Ewaldsson talks to Light Reading CEO and founder Steve Saunders about the incredible transformation underway in the communications networking industry.
    LRTV Documentaries
    LTE Paves the Way for the 5G Revolution

    4|20|15   |   4:20   |   (0) comments


    Håkan Andersson, head of 5G product strategy of the Radio Business Unit at Ericsson, discusses the role of LTE, the US and other industry verticals in building a true 5G ecosystem.
    LRTV Documentaries
    The 3GPP's Road to 5G Standardization

    4|17|15   |   4:43   |   (0) comments


    Satoshi Nagata, chairman of the 3GPP's TSG-RAN group and a manager at NTT Docomo, explains the standardization process for 5G, as well as the biggest challenges and opportunities.
    LRTV Documentaries
    AlcaLu CTO Makes the Case for a New 5G Air Interface

    4|16|15   |   3:54   |   (0) comments


    Michael Peeters, CTO of wireless at Alcatel-Lucent, explains why 5G will require a new air interface to meet its diverse performance targets.
    LRTV Documentaries
    AlcaLu + Nokia: The New Uber-Vendor

    4|15|15   |   2:42   |   (4) comments


    Heavy Reading Senior Analyst Gabriel Brown discusses the technological and competitive opportunities and challenges if a merger between Alcatel-Lucent and Nokia comes to pass.
    LRTV Huawei Video Resource Center
    Huawei's Data Center Power Play

    4|15|15   |   6:22   |   (0) comments


    Huawei has developed industry-leading energy efficiency capabilities for its indoor and outdoor data center solutions, explains Dr. Fang Liangzhou, vice president of Huawei's Network Energy product Line.
    LRTV Huawei Video Resource Center
    Huawei’s Routers, Switches Get the Green Mark

    4|15|15   |   2:02   |   (0) comments


    TUV Rheinland's Frank Dudley explains how Huawei's routers and switches have been successfully tested by energy efficiency experts and have gained Green Mark Certification.
    LRTV Documentaries
    A Finn, a Frenchman & a Guy From New Jersey Walk Into a Merger...

    4|15|15   |   3:17   |   (0) comments


    Stop us if you've heard this one before... Light Reading CEO Founder & CEO Steve Saunders weighs in on the technical and cultural implications of a Nokia and Alcatel-Lucent merger.
    LRTV Huawei Video Resource Center
    Accounting for Better Solutions

    4|10|15   |   02:31   |   (1) comment


    Murad Yousuf, CTO at Saudi Arabia's Ministry of Finance (Dept. of Zakat & Income Tax), talks about the benefits of deploying router technology from Huawei.
    Upcoming Live Events
    May 6, 2015, Georgia World Congress, Atlanta, GA
    May 12, 2015, Grand Hyatt, Denver, CO
    May 13-14, 2015, The Westin Peachtree, Atlanta, GA
    June 8, 2015, Chicago, IL
    June 9-10, 2015, Chicago, IL
    June 9, 2015, Chicago, IL
    June 10, 2015, Chicago, IL
    September 29-30, 2015, The Westin Grand Müchen, Munich, Germany
    October 6, 2015, Westin Peachtree Plaza, Atlanta, GA
    November 11-12, 2015, The Westin Peachtree Plaza, Atlanta, GA
    All Upcoming Live Events
    Infographics
    In its latest survey covering network operators' plans and strategies for ICT transformation, Heavy Reading asked telecom operators worldwide to identify the most important goals and objectives for their ICT transformation initiatives. Heavy Reading also asked operators about the importance of a "digital first" strategy, which enables customers to complete an interaction across different digital channels, such as web and mobile self-service and social media.
    Hot Topics
    Comcast Formally Ends Its Bid for TWC
    Mari Silbey, Independent Technology Editor, 4/24/2015
    What if the Comcast Merger Fails?
    Mari Silbey, Independent Technology Editor, 4/20/2015
    Google's WiFi-First Mobile Service 'Fi' Is Here
    Dan Jones, Mobile Editor, 4/22/2015
    Comcast Reportedly Dropping $45B TWC Bid
    Sarah Thomas, Editorial Operations Director, 4/23/2015
    Adtran Is Developing White Box GPON Tech
    Ray Le Maistre, Editor-in-chief, 4/24/2015
    Like Us on Facebook
    Twitter Feed
    Webinar Archive
    BETWEEN THE CEOs - Executive Interviews
    Many leading communications companies can claim to have undergone significant periods of reinvention during their histories, but none have been through more major ...
    Data Center Interconnect, or DCI, is one of the hottest sectors in telecom currently. Since coming back to Light Reading last year, prodigal-son style, I've ...
    Cats with Phones
    Learning Curve Click Here
    Pierre could never remember how to use Excel.
    Latest Comment