ST. LOUIS -- Amdocs Limited (NASDAQ:DOX) today reported that for its third fiscal quarter ended June 30, 2015, revenue was $907.9 million, up 0.6% sequentially from the second fiscal quarter of 2015 and up 0.6% as compared to last year's third fiscal quarter. Third fiscal quarter revenue includes a positive impact from foreign currency movements of approximately $1 million relative to the second quarter of fiscal 2015.
Net income on a non-GAAP basis was $131.2 million, or $0.84 per diluted share, compared to non-GAAP net income of $130.9 million, or $0.81 per diluted share, in the third quarter of fiscal 2014. Non-GAAP net income excludes amortization of purchased intangible assets and other acquisition-related costs and equity-based compensation expenses of $23.4 million, net of related tax effects, in the third quarter of fiscal 2015 and excludes such amortization and other acquisition-related costs and equity-based compensation expenses of $21.1 million, net of related tax effects, in the third quarter of fiscal 2014. The Company's GAAP net income for the third quarter of fiscal 2015 was $107.8 million, or $0.69 per diluted share, compared to GAAP net income of $109.8 million, or $0.68 per diluted share, in the prior fiscal year's third quarter.
"We are pleased with our solid results for the third fiscal quarter and the continued progress we have made executing on our various growth initiatives. During the quarter, we expanded our product suite with the launch of CES 9.3 and renewed several managed services agreements which broaden those customer relationships for the long-term. At the same time, we remained focused on our delivery and execution, such as the recently completed migration of FarEastTone's prepaid subscribers to an advanced Amdocs charging and billing system. Finally, the ramp-up of project awards with strategic customers contributed to another quarter of record revenue in our Rest of the World markets," said Eli Gelman, president and chief executive officer of Amdocs Management Limited.
Gelman continued, "Shortly after the close of the third quarter, we completed the acquisition of a substantial majority of Comverse's BSS assets for $273 million in cash. The integration process is now underway and we are committed to ensuring business continuity and support for all aspects of the customer relationships acquired from Comverse. Along these lines, a leading service provider in Latin America recently upgraded its business support system based on the Comverse Kenan technology we acquired to deliver new services, reduce costs and support its growing customer base. Moreover, we look forward to strengthening and expanding our relationship with Comverse BSS customers such as this by bringing world class services, capabilities and a much broader range of offerings for their long-term benefit."
Gelman concluded, "We enter our fourth fiscal quarter with a strong win rate for the year to date. Uncertainty persists as a result of consolidation activity in our key markets, but our competitive position remains strong and we expect to benefit once trends improve. Additionally, our consistent focus on operational and financial execution continues to manifest in strong free cash flow generation. Combined with our commitment to proactively allocate capital over the short and long-term, we believe that we can deliver diluted non-GAAP earnings per share growth towards the midpoint of our previously guided range of 4.5% to 7.5% for the full fiscal year 2015."
Financial Discussion of Third Fiscal Quarter Results
Free cash flow was $190 million for the quarter, comprised of cash flow from operations of $222 million less $32 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 $3.01 billion at the end of the third quarter of fiscal 2015, up $10 million sequentially.
Amdocs expects that revenue for the fourth quarter of fiscal 2015 will be approximately $915-$955 million, including the acquired Comverse BSS assets. This outlook takes into consideration our expectations regarding macro and industry specific risks and various uncertainties resulting from current and potential customer consolidation activity in North America. However, we remind you that we cannot predict all possible outcomes.
Diluted earnings per share on a non-GAAP basis for the fourth fiscal quarter is expected to be $0.79-$0.85, excluding amortization of purchased intangible assets and other acquisition-related costs, at least $0.09 per share of nonrecurring restructuring charges associated with the acquisition of the Comverse BSS assets, 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 fourth fiscal quarter will be $0.49-$0.59. The impact on diluted GAAP EPS of the acquisition of the Comverse BSS assets is subject to finalization of the purchase price allocation by Amdocs.
Amdocs Ltd. (NYSE: DOX)