Light Reading
SPIT vendor posts fiscal Q2 revenues of $897M.

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
    Flash Poll
    From The Founder
    It's clear to me that the communications industry is divided into two types of people, and only one is living in the real world.
    LRTV Custom TV
    Using Service Quality to Drive WiFi Monetization

    10|22|14   |   6:51   |   (0) comments


    Live from the SCTE conference: Heavy Reading's Alan Breznick explores the forces shaping the WiFi opportunity in an interview with CableLabs' Justin Colwell and Amdocs' Ken Roulier.
    LRTV Custom TV
    Distributed Access Architectures – 2

    10|21|14   |   8:51:00 AM   |   (0) comments


    ARRIS CTO Network Solutions Tom Cloonan discusses why many if not most MSOs will continue with integrated CCAP, while addressing why some are also looking at two futuristic, distributed access architectures: Remote PHY and Remote CCAP.
    LRTV Custom TV
    Distributed Access Architectures – 1

    10|21|14   |   9:01   |   (0) comments


    SCTE Sr. Director of Engineering Dean Stoneback discusses the pros and cons of distributed access architecture (DAA) and its various forms, which range from basic Remote PHY to full CMTS functionality in the node.
    LRTV Custom TV
    The WiFi Road to Riches – 2

    10|21|14   |   3:58   |   (0) comments


    ARRIS Senior Solution Architect Eli Baruch talks about how MSOs can enable public and community WiFi through 1) outdoor access points, 2) businesses seeking to offer WiFi to customers, and 3) residential WiFi gateway extensions.
    LRTV Custom TV
    The WiFi Road to Riches – 1

    10|21|14   |   10:15   |   (0) comments


    SCTE Director of Advanced Technologies Steve Harris discusses WiFi deployments, drivers, challenges and advances, including 802.11ac, carrier-grade WiFi, community WiFi, Hotspot 2.0, Passpoint, WiFi-First and voice-over-WiFi.
    LRTV Custom TV
    Advantech Accelerates 100G Traffic Handling

    10|17|14   |   7:56   |   (0) comments


    Paul Stevens from Advantech explains why handling 100GbE needs a whole new platform design approach and how Advantech is addressing the needs of equipment providers and carriers to give them the flexibility and performance they will need for SDN and NFV deployment.
    LRTV Huawei Video Resource Center
    Holland's Imtech Traffic & Infra Discusses Huawei's ICT Solution and Services

    10|16|14   |   4:49   |   (0) comments


    Dimitry Theebe is from the business unit at Imtech Traffic & Infra which delivers communications solutions for transportations. His partnershp with Huawei began about a years ago. In this video, Theebe speaks more about this partnership and what he hopes to accomplish with Huawei.
    LRTV Huawei Video Resource Center
    Huawei's Comprehensive Storage Solutions Vital for SVR

    10|16|14   |   6:16   |   (0) comments


    SVR Information Technology provides cloud services for academic and special sectors. With Huawei's support, SVR and Yildiz Technical University has established Turkey's largest and most advanced High Performance Computing system. CSO Ismail Cem Aslan talks about what he hopes Huawei's OceanStor storage system will bring for him.
    LRTV Huawei Video Resource Center
    Mexico's Servitron's Impression of Huawei at CCW 2014

    10|16|14   |   6:35   |   (0) comments


    Servitron is a network operator in Mexico that has been in the trunking industry for the past 20 years. Its COO, Ing. Ragnar Trillo O., explains at Critical Communications World 2014 that his company has been interested in the long-term evolution of LTE technology and its adoption for TETRA.
    LRTV Huawei Video Resource Center
    Building a Better Dubai

    10|16|14   |   2:06   |   (0) comments


    Abdulla Ahmed Al Falasi is the director of commercial affairs, a telecommunications coordinator for the government of Dubai. Their areas of service span across multiple industries, including police, safety, shopping malls and more. In this video, Abdulla talks about his department's work with Huawei.
    LRTV Huawei Video Resource Center
    Huawei Lights Up Malaysia Partner Maju Nusa

    10|16|14   |   1:59   |   (0) comments


    Malaysia's Maju Nusa is an enterprise partner to Huawei in networking, route switches and telco equipment. At this year's Critical Communications World in Singapore, CTO Pushpender Singh talks about what Huawei's eLTE solutions mean to his company and for Malaysia.
    LRTV Custom TV
    Evolving From HFC to FTTH Networks

    10|15|14   |   2:19   |   (0) comments


    Cisco's Todd McCrum delves into the future of cable's HFC plant, examining how DOCSIS 3.1 and advanced video compression will extend its life and how the IP video transition will usher in GPON and EPON over FTTH.
    Upcoming Live Events
    October 29, 2014, New York City
    November 6, 2014, Santa Clara
    November 11, 2014, Atlanta, GA
    December 2, 2014, New York City
    December 3, 2014, New York City
    December 9-10, 2014, Reykjavik, Iceland
    February 10, 2015, Atlanta, GA
    June 9-10, 2015, Chicago, IL
    Infographics
    WhoIsHostingThis.com presents six of the world's most extreme WiFi hotspots, enabling the most epic selfies you can imagine.
    Hot Topics
    Analysts Warn of Major NFV Gaps
    Carol Wilson, Editor-at-large, 10/22/2014
    Is Health the Killer App for the IoT?
    Jason Meyers, Senior Editor, Gigabit Cities/IoT, 10/22/2014
    Drones Hover Over the IoT Sector
    Jason Meyers, Senior Editor, Gigabit Cities/IoT, 10/23/2014
    The Human Gain of the Smart Home
    Robin Mersh, 10/20/2014
    Zayo Zooms Out of the IPO Gate
    Dan O'Shea, Managing Editor, 10/17/2014
    Like Us on Facebook
    Twitter Feed