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Amdocs Reports Q3

Third quarter revenue increased 14 percent to $712 million; GAAP net income was $88.2 million, or $0.40 per share

July 19, 2007

3 Min Read

ST. LOUIS -- Amdocs Limited (NYSE: DOX - News) today reported that for the quarter ended June 30, 2007, revenue was $712.1 million, an increase of 13.7% from last year's third quarter. Net income on a non-GAAP basis was $120.6 million, or $0.54 per diluted share (excluding acquisition-related costs, which include amortization of purchased intangible assets and excluding equity-based compensation expense, net of related tax effects, of $32.4 million), compared to non-GAAP net income of $106.2 million, or $0.49 per diluted share, in the third quarter of fiscal 2006 (excluding acquisition-related costs, which include amortization of purchased intangible assets and the write-off of in-process research and development and excluding equity-based compensation expense, net of related tax effects, of $20.6 million). The Company's GAAP net income was $88.2 million, or $0.40 per diluted share, compared to GAAP net income of $85.6 million, or $0.39 per diluted share, in the third quarter of fiscal 2006. Free cash flow for the quarter was $87.1 million, comprised of cash flow from operations of $126.5 million less $39.4 million in net capital expenditures and other.

"One of Amdocs' key differentiators is that our customers - the leading service providers in the world - view us as a strategic partner, and that translates into long-term relationships and continued new business opportunities with those customers. In fact, while we enjoyed new wins, much of the growth in revenue and earnings this quarter was driven by existing business," said Dov Baharav, chief executive officer of Amdocs Management Limited. "As service providers continue to transform themselves, Amdocs remains the partner of choice to deliver complex projects. During the quarter we met a number of key delivery milestones for our customers, which will lead to expanded business opportunities in the future."

Baharav continued, "Amdocs is the only company to comprehensively address service providers' needs for customer experience systems innovation, offering the market-defining software portfolio combined with services that extend from strategy to execution. We combine relentless innovation with an unmatched foundation of business process best practices. We enjoy a unique competitive advantage steeped in industry expertise and unmatched experience working with the market leaders. We have sound reason to be excited about the opportunities for Amdocs and the growth of our company in the years to come."

Amdocs new business included a variety of wins across geographies and lines of business. These wins include a transformation project to extend into OSS for a customer that is currently using Amdocs BSS systems. In the broadband cable and satellite market, the Company continued to convert subscribers onto an Amdocs system. The Company had other wins supporting next generation projects around the world and wins in the emerging markets.

Financial Outlook

Amdocs expects that revenue for the fourth quarter of fiscal 2007 will be approximately $725-$735 million. Diluted earnings per share on a non-GAAP basis for the fourth quarter are expected to be $0.52-$0.54, excluding acquisition-related costs and approximately $0.05-$0.06 per share of equity- based compensation expense, net of related tax effects. Diluted GAAP EPS is expected to be approximately $0.40-$0.43.

Amdocs Ltd. (NYSE: DOX)

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