EX-99.1 2 d33361dex991.htm EX-99.1 EX-99.1

Exhibit 99.1

 

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Amdocs Limited Reports Record Quarterly Revenue of $927M

Expects Fiscal 2016 Revenue Growth of 2.0-6.0% YoY in Constant

Currency and 1.0-5.0% YoY as Reported

Quarterly Cash Dividend to be Raised From $0.17 to $0.195 Per Share,

Subject to Shareholder Approval at Annual Meeting, February 2016

Key highlights:

 

    Fourth fiscal quarter revenue of $927 million, within the $915-$955 million guidance range. Revenue was slightly above the midpoint of expectations, excluding foreign currency movements. Foreign currency movements negatively affected revenue by approximately $9 million relative to the third quarter of fiscal 2015

 

    Fourth fiscal quarter diluted non-GAAP EPS of $0.84, in line with the high-end of the $0.79-$0.85 guidance range, excluding amortization of purchased intangible assets and other acquisition-related costs, nonrecurring restructuring charges associated with the acquisition of the Comverse BSS assets, and equity-based compensation expense, net of related tax effects

 

    Fourth fiscal quarter non-GAAP operating income of $157 million; non-GAAP operating margin of 16.9%; GAAP operating income of $110 million

 

    Diluted GAAP EPS of $0.59 for the fourth fiscal quarter, in line with the high-end of the $0.49-$0.59 guidance range

 

    Strong free cash flow of $180 million for the fourth fiscal quarter

 

    Repurchased $182 million of ordinary shares during the fourth fiscal quarter

 

    Twelve-month backlog of $3.08 billion at the end of the fourth fiscal quarter, up $70 million from the end of the third quarter of fiscal 2015

 

    The board of directors approved a $0.17 per share quarterly cash dividend to be paid on January 15, 2016, and, subject to shareholders’ approval at the February 2016 annual general meeting of shareholders, an increase in the quarterly cash dividend to $0.195 per share, anticipated to be paid in April 2016


    First quarter fiscal 2016 guidance: Expected revenue of approximately $905-$945 million. Expected diluted non-GAAP EPS of approximately $0.82-$0.88, excluding amortization of purchased intangible assets and other acquisition-related costs, and approximately $0.09-$0.10 per share of equity-based compensation expense, net of related tax effects. Expected diluted GAAP EPS of approximately $0.59-$0.67

 

    Fiscal 2016 guidance: Expected revenue growth of 2.0-6.0% in constant currency and 1.0-5.0% as reported, including a negative impact from foreign currency movements of approximately 1%, and non-GAAP diluted earnings per share growth of roughly 3.5-7.5%, including the impact of anticipated share repurchase activity over the course of the fiscal year

ST. LOUIS – November 10, 2015 – Amdocs Limited (NASDAQ: DOX) today reported that for its fourth fiscal quarter ended September 30, 2015, revenue was $926.8 million, up 2.1% sequentially from the third fiscal quarter of 2015 and up 2.9% as compared to last year’s fourth fiscal quarter. Fourth fiscal quarter revenue includes a negative impact from foreign currency movements of approximately $9 million relative to the third quarter of fiscal 2015. Net income on a non-GAAP basis was $130.4 million, or $0.84 per diluted share, compared to non-GAAP net income of $124.3 million, or $0.78 per diluted share, in the fourth quarter of fiscal 2014. Non-GAAP net income excludes amortization of purchased intangible assets and other acquisition-related costs, nonrecurring restructuring charges associated with the acquisition of the Comverse BSS assets and equity-based compensation expenses of $39.2 million, net of related tax effects, in the fourth quarter of fiscal 2015 and excludes such amortization and other acquisition-related costs, changes in fair value of certain acquisition-related liabilities and equity-based compensation expenses of $23.8 million, net of related tax effects, in the fourth quarter of fiscal 2014. The Company’s GAAP net income for the fourth quarter of fiscal 2015 was $91.1 million, or $0.59 per diluted share, compared to GAAP net income of $100.5 million, or $0.63 per diluted share, in the prior fiscal year’s fourth quarter.

“We concluded fiscal 2015 with another solid quarter. Revenue was slightly above the mid-point of our expectations after adjusting for the negative impact of foreign currencies, and the quarter included another record contribution in our Rest-of-World markets where we


delivered growth of 27% for the full year. As we previously anticipated, uncertainty resulting from customer consolidation activity continued to impact our performance in North America but we remained focused on providing value to our customers while maintaining strict operational execution across the various dimensions of our business. Additionally, our free cash flow was robust and we delivered on our commitment to accelerate our share repurchase activity in the fourth fiscal quarter. Overall, we grew non-GAAP diluted earnings per share by 7% in fiscal 2015, which is consistent with the high-end of our guidance issued at the start of the year,” said Eli Gelman, president and chief executive officer of Amdocs Management Limited.

Gelman continued, “Our win rate was strong across all regions in fiscal 2015 and included several significant new awards in the fourth quarter. We are delighted to announce today that Vodafone UK has selected Amdocs for a major four-year managed BSS/OSS transformation project in support of its enterprise business. Additionally, KT Corporation in Korea has selected Amdocs under a multi-year services agreement for a strategic charging transformation project to consolidate and modernize charging operations across its quad-play lines of business, and Singtel has selected Amdocs for a digital transformation project targeted to deliver a new online care and commerce platform in its key markets of Singapore and Australia. Finally, in North America, we extended our existing managed services arrangement with Bell Canada for five years through 2022 and signed a new agreement with Rogers Communications to service multiple lines of business for three years through 2018.”

Gelman concluded, “Looking into fiscal 2016, we expect to deliver non-GAAP earnings per share growth of 3.5% to 7.5%. This outlook takes into consideration many macro and industry specific risks and unknowns, including uncertainties related to AT&T’s discretionary spending plans, although we cannot predict all possible outcomes. Additionally, we are pleased to announce that our Board has approved an increase in the quarterly cash dividend for the third consecutive year to a new rate of $0.195 per share. The decision reaffirms our commitment to enhance long-term shareholder value, and will represent an improvement of nearly 15% over the current dividend rate if approved by shareholders at the annual meeting in February 2016.”


Financial Discussion of Fourth Fiscal Quarter Results

Free cash flow was $180 million for the quarter, comprised of cash flow from operations of $207 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 $3.08 billion at the end of the fourth quarter of fiscal 2015, up $70 million sequentially.

Fiscal Year 2015 Results

For the fiscal year ended September 30, 2015, revenue increased by 2.2% to $3.6 billion. Fiscal 2015 net income on a non-GAAP basis was $529.7 million, or $3.38 per diluted share (excluding amortization of purchased intangible assets and other acquisition-related costs, nonrecurring restructuring charges associated with the acquisition of the Comverse BSS assets, changes in fair value of certain acquisition-related liabilities and equity-based compensation expenses of $83.5 million, net of related tax effects), compared to non-GAAP net income of $509.6 million, or $3.16 per diluted share, in fiscal 2014 (excluding amortization of purchased intangible assets and other acquisition-related costs, changes in fair value of certain acquisition-related liabilities and equity-based compensation expenses of $87.5 million, net of related tax effects). The Company’s GAAP net income in fiscal 2015 was $446.2 million, or $2.85 per diluted share, compared to GAAP net income of $422.1 million, or $2.62 per diluted share, in fiscal 2014.

Financial Outlook

Amdocs expects that revenue for the first quarter of fiscal 2016 will be approximately $905-$945 million. 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 first fiscal quarter is expected to be $0.82-$0.88, excluding amortization of purchased intangible assets and other acquisition-related costs, and approximately $0.09-$0.10 per share of equity-based compensation expense, net of related tax effects. Amdocs estimates GAAP diluted earnings per share for the first fiscal quarter will be $0.59-$0.67.

Quarterly Cash Dividend Program

On November 10, 2015, the Board approved the Company’s next quarterly cash dividend payment of $0.17 per share and set December 31, 2015 as the record date for determining the shareholders entitled to receive the dividend, which will be payable on January 15, 2016. The Board also approved an increase in the Company’s quarterly cash dividend payment to $0.195 per share, which is anticipated to be paid in April 2016, provided that the increase is approved by shareholders at the February 2016 annual general meeting of shareholders.

Conference Call Details

Amdocs will host a conference call on November 10, 2015 at 5:00 p.m. Eastern Time to discuss the Company’s fourth fiscal quarter and fiscal year-end results. To participate, please dial +1 (330) 863-3318, or +1 (855) 870-4313 outside the United States, approximately 15 minutes before the call and enter passcode 48248949. The call will also be carried live on the Internet via the Amdocs website, www.amdocs.com.

Non-GAAP Financial Measures

This release includes non-GAAP diluted earnings per share and other non-GAAP financial measures, including free cash flow, non-GAAP cost of revenue, non-GAAP research and development, non-GAAP selling, general and administrative, non-GAAP operating income, non-GAAP operating margin, non-GAAP interest and other expense, net, non-GAAP income taxes, non-GAAP net income and non-GAAP diluted earnings per share growth. These non-GAAP measures exclude the following items:

 

    amortization of purchased intangible assets and other acquisition-related costs;

 

    changes in fair value of certain acquisition-related liabilities;


    nonrecurring restructuring charges associated with the Comverse acquisition;

 

    equity-based compensation expense; and

 

    tax effects related to the above.

These non-GAAP financial measures are not in accordance with, or an alternative for, generally accepted accounting principles and may be different from non-GAAP financial measures used by other companies. In addition, these non-GAAP financial measures are not based on any comprehensive set of accounting rules or principles. Amdocs believes that non-GAAP financial measures have limitations in that they do not reflect all of the amounts associated with Amdocs’ results of operations as determined in accordance with GAAP and that these measures should only be used to evaluate Amdocs’ results of operations in conjunction with the corresponding GAAP measures.

Amdocs believes that the presentation of non-GAAP diluted earnings per share and other financial measures, including free cash flow, non-GAAP cost of revenue, non-GAAP research and development, non-GAAP selling, general and administrative, non-GAAP operating income, non-GAAP operating margin, non-GAAP interest and other expense, net, non-GAAP income taxes, non-GAAP net income and non-GAAP diluted earnings per share growth when shown in conjunction with the corresponding GAAP measures, provides useful information to investors and management regarding financial and business trends relating to its financial condition and results of operations, as well as the net amount of cash generated by its business operations after taking into account capital spending required to maintain or expand the business.

For its internal budgeting process and in monitoring the results of the business, Amdocs’ management uses financial statements that do not include amortization of purchased intangible assets and other acquisition-related costs, nonrecurring restructuring charges associated with the acquisition of the Comverse BSS assets, changes in fair value of certain acquisition-related liabilities, equity-based compensation expense and related tax effects. Amdocs’ management also uses the foregoing non-GAAP financial measures, in addition to the corresponding GAAP measures, in reviewing the financial results of


Amdocs. In addition, Amdocs believes that significant groups of investors exclude these items in reviewing its results and those of its competitors, because the amounts of the items between companies can vary greatly depending on the assumptions used by an individual company in determining the amounts of the items.

Amdocs further believes that, where the adjustments used in calculating non-GAAP diluted earnings per share are based on specific, identified amounts that impact different line items in the Consolidated Statements of Income (including cost of revenue, research and development, selling, general and administrative, operating income, interest and other expense, net, income taxes and net income), it is useful to investors to understand how these specific line items in the Consolidated Statements of Income are affected by these adjustments. Please refer to the Reconciliation of Selected Financial Metrics from GAAP to Non-GAAP tables below.

About Amdocs

Amdocs is the market-leader in customer experience software solutions and services for the world’s largest communications, entertainment and media service providers. Our portfolio powers The New World of Customer Experience™, where a wide array of innovative and personalized services are delivered seamlessly to end users, regardless of device or network.

For more than 30 years, Amdocs solutions, which include BSS, OSS, network control and optimization, coupled with our professional and managed services, have accelerated business value for our customers by streamlining complex operating environments, reducing costs and speeding time to market for new products and services.

Amdocs and our more than 24,000 employees serve customers in over 90 countries. Listed on the NASDAQ Global Select Market, Amdocs had revenue of $3.6 billion in fiscal 2015.

Amdocs: Embrace Challenge, Experience Success.

For more information, visit Amdocs at www.amdocs.com.


This press release includes information that constitutes forward-looking statements made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995, including statements about Amdocs’ growth and business results in future quarters. Although we believe the expectations reflected in such forward-looking statements are based upon reasonable assumptions, we can give no assurance that our expectations will be obtained or that any deviations will not be material. Such statements involve risks and uncertainties that may cause future results to differ from those anticipated. These risks include, but are not limited to, the effects of general economic conditions, Amdocs’ ability to grow in the business markets that it serves, Amdocs’ ability to successfully integrate acquired businesses, adverse effects of market competition, rapid technological shifts that may render the Company’s products and services obsolete, potential loss of a major customer, our ability to develop long-term relationships with our customers, and risks associated with operating businesses in the international market. Amdocs may elect to update these forward-looking statements at some point in the future; however, the Company specifically disclaims any obligation to do so. These and other risks are discussed at greater length in the Company’s filings with the Securities and Exchange Commission, including in our Annual Report on Form 20-F for the fiscal year ended September 30, 2014 filed on December 8, 2014 and our Forms 6-K furnished for the first quarter of fiscal 2015 on February 9, 2015, for the second quarter of fiscal 2015 on May 11, 2015 and for the third quarter of fiscal 2015 on August 10, 2015.

Contact:

Matthew Smith

Head of Investor Relations

Amdocs

314-212-8328

E-mail: dox_info@amdocs.com


AMDOCS LIMITED

Consolidated Statements of Income

(in thousands, except per share data)

 

     Three months ended
September 30,
     Fiscal year ended
September 30,
 
     2015      2014      2015      2014  

Revenue

   $ 926,776       $ 900,261       $ 3,643,538       $ 3,563,637   

Operating expenses:

           

Cost of revenue

     603,105         581,601         2,349,488         2,306,892   

Research and development

     65,900         67,604         254,944         257,896   

Selling, general and administrative

     111,191         110,056         440,085         445,134   

Amortization of purchased intangible assets and other

     23,880         14,893         70,073         58,067   

Restructuring charges

     13,000         —           13,000         —     
  

 

 

    

 

 

    

 

 

    

 

 

 
     817,076         774,154         3,127,590         3,067,989   
  

 

 

    

 

 

    

 

 

    

 

 

 

Operating income

     109,700         126,107         515,948         495,648   

Interest and other expense, net

     1,375         2,038         2,544         6,098   
  

 

 

    

 

 

    

 

 

    

 

 

 

Income before income taxes

     108,325         124,069         513,404         489,550   

Income taxes

     17,195         23,566         67,241         67,428   
  

 

 

    

 

 

    

 

 

    

 

 

 

Net income

   $ 91,130       $ 100,503       $ 446,163       $ 422,122   
  

 

 

    

 

 

    

 

 

    

 

 

 

Basic earnings per share

   $ 0.60       $ 0.64       $ 2.89       $ 2.65   
  

 

 

    

 

 

    

 

 

    

 

 

 

Diluted earnings per share

   $ 0.59       $ 0.63       $ 2.85       $ 2.62   
  

 

 

    

 

 

    

 

 

    

 

 

 

Basic weighted average number of shares outstanding

     152,601         157,346         154,423         159,012   
  

 

 

    

 

 

    

 

 

    

 

 

 

Diluted weighted average number of shares outstanding

     155,201         159,667         156,809         161,366   
  

 

 

    

 

 

    

 

 

    

 

 

 

Cash dividends declared per share

   $ 0.170       $ 0.155       $ 0.665       $ 0.595   
  

 

 

    

 

 

    

 

 

    

 

 

 


AMDOCS LIMITED

Selected Financial Metrics

(in thousands, except per share data)

 

     Three months ended
September 30,
     Fiscal year ended
September 30,
 
     2015      2014      2015      2014  

Revenue

   $ 926,776       $ 900,261       $ 3,643,538       $ 3,563,637   

Non-GAAP operating income

     156,917         151,558         618,675         598,293   

Non-GAAP net income

     130,353         124,269         529,700         509,602   

Non-GAAP diluted earnings per share

   $ 0.84       $ 0.78       $ 3.38       $ 3.16   

Diluted weighted average number of shares outstanding

     155,201         159,667         156,809         161,366   


AMDOCS LIMITED

Reconciliation of Selected Financial Metrics from GAAP to Non-GAAP

(in thousands)

 

     Three months ended
September 30, 2015
 
            Reconciliation items        
     GAAP      Amortization
of purchased
intangible
assets and
other
    Equity based
compensation
expense
    Restructuring
charges
    Tax
effect
    Non-GAAP  

Operating expenses:

             

Cost of revenue

   $ 603,105       $ —        $ (3,854   $ —        $ —        $ 599,251   

Research and development

     65,900         —          (830     —          —          65,070   

Selling, general and administrative

     111,191         —          (5,653     —          —          105,538   

Amortization of purchased intangible assets and other

     23,880         (23,880     —          —          —          —     

Restructuring charges

     13,000         —          —          (13,000     —          —     
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total operating expenses

     817,076         (23,880     (10,337     (13,000     —          769,859   
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating income

     109,700         23,880        10,337        13,000        —          156,917   
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income taxes

     17,195         —          —          —          7,994        25,189   
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income

   $ 91,130       $ 23,880      $ 10,337      $ 13,000      $ (7,994   $ 130,353   
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

     Three months ended
September 30, 2014
 
            Reconciliation items        
     GAAP      Amortization
of purchased
intangible
assets and
other
    Equity based
compensation
expense
    Changes in
fair value
of certain
acquisition-
related
liabilities
    Tax
effect
    Non-GAAP  

Operating expenses:

             

Cost of revenue

   $ 581,601       $ —        $ (4,276   $ —        $ —        $ 577,325   

Research and development

     67,604         —          (914     —          —          66,690   

Selling, general and administrative

     110,056         —          (5,368     —          —          104,688   

Amortization of purchased intangible assets and other

     14,893         (14,893     —          —          —          —     
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total operating expenses

     774,154         (14,893     (10,558     —          —          748,703   
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating income

     126,107         14,893        10,558        —          —          151,558   
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Interest and other expense, net

     2,038         —          —          (3,921     —          (1,883
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income taxes

     23,566         —          —          —          5,606        29,172   
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income

   $ 100,503       $ 14,893      $ 10,558      $ 3,921      $ (5,606   $ 124,269   
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 


AMDOCS LIMITED

Reconciliation of Selected Financial Metrics from GAAP to Non-GAAP

(in thousands)

 

     Fiscal year ended
September 30, 2015
 
            Reconciliation items        
     GAAP      Amortization of
purchased
intangible assets
and other
    Equity based
compensation
expense
    Restructuring
charges
    Changes in fair
value of certain
acquisition-
related liabilities
    Tax effect     Non-GAAP  

Operating expenses:

             

Cost of revenue

   $ 2,349,488       $ —        $ (15,621   $ —        $ 24,906      $ —        $ 2,358,773   

Research and development

     254,944         —          (3,400     —          —          —          251,544   

Selling, general and administrative

     440,085         —          (25,539     —          —          —          414,546   

Amortization of purchased intangible assets and other

     70,073         (70,073     —          —          —          —          —     

Restructuring charges

     13,000         —          —          (13,000     —          —          —     
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total operating expenses

     3,127,590         (70,073     (44,560     (13,000     24,906        —          3,024,863   
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating income

     515,948         70,073        44,560        13,000        (24,906     —          618,675   
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Interest and other expense, net

     2,544         —          —          —          3,921        —          6,465   
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income taxes

     67,241         —          —          —          —          15,269        82,510   
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income

   $ 446,163       $ 70,073      $ 44,560      $ 13,000      $ (28,827   $ (15,269   $ 529,700   
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

     Fiscal year ended
September 30, 2014
 
            Reconciliation items        
     GAAP      Amortization of
purchased
intangible
assets and other
    Equity based
compensation
expense
    Changes in fair
value of certain
acquisition-
related liabilities
    Tax effect     Non-GAAP  

Operating expenses:

           

Cost of revenue

   $ 2,306,892       $ —        $ (17,496   $ —        $ —        $ 2,289,396   

Research and development

     257,896         —          (3,599     —          —          254,297   

Selling, general and administrative

     445,134         —          (23,483     —          —          421,651   

Amortization of purchased intangible assets and other

     58,067         (58,067     —          —          —          —     
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total operating expenses

     3,067,989         (58,067     (44,578     —          —          2,965,344   
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating income

     495,648         58,067        44,578        —          —          598,293   
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Interest and other expense, net

     6,098         —          —          (3,921     —          2,177   
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income taxes

     67,428         —          —          —          19,086        86,514   
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income

   $ 422,122       $ 58,067      $ 44,578      $ 3,921      $ (19,086   $ 509,602   
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 


AMDOCS LIMITED

Condensed Consolidated Balance Sheets

(in thousands)

 

     As of  
     September 30,
2015
     September 30,
2014
 

ASSETS

     

Current assets

     

Cash, cash equivalents and short-term interest-bearing investments

   $ 1,354,012       $ 1,424,465   

Accounts receivable, net, including unbilled of $80,197 and $134,523, respectively

     714,784         715,837   

Deferred income taxes and taxes receivable

     193,207         148,346   

Prepaid expenses and other current assets

     116,159         135,326   
  

 

 

    

 

 

 

Total current assets

     2,378,162         2,423,974   

Equipment and leasehold improvements, net

     309,320         288,956   

Goodwill and other intangible assets, net

     2,301,610         2,106,452   

Other noncurrent assets

     335,560         365,895   
  

 

 

    

 

 

 

Total assets

   $ 5,324,652       $ 5,185,277   
  

 

 

    

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

     

Current liabilities

     

Accounts payable, accruals and other

   $ 871,555       $ 785,548   

Short-term financing arrangements

     220,000         210,000   

Deferred revenue

     198,470         156,743   

Deferred income taxes and taxes payable

     73,478         48,456   
  

 

 

    

 

 

 

Total current liabilities

     1,363,503         1,200,747   

Other noncurrent liabilities

     554,307         588,694   

Shareholders’ equity

     3,406,842         3,395,836   
  

 

 

    

 

 

 

Total liabilities and shareholders’ equity

   $ 5,324,652       $ 5,185,277   
  

 

 

    

 

 

 


AMDOCS LIMITED

Consolidated Statements of Cash Flows

(in thousands)

 

     Fiscal year ended September 30,  
     2015     2014  

Cash Flow from Operating Activities:

    

Net income

   $ 446,163      $ 422,122   

Reconciliation of net income to net cash provided by operating activities:

    

Depreciation and amortization

     174,795        162,772   

Equity-based compensation expense

     44,560        44,578   

Deferred income taxes

     (26,887     (6,510

Excess tax benefit from equity-based compensation

     (5,949     (3,925

Loss from short-term interest-bearing investments

     476        1,023   

Net changes in operating assets and liabilities, net of amounts acquired:

    

Accounts receivable

     39,829        5,540   

Prepaid expenses and other current assets

     22,690        (1,769

Other noncurrent assets

     7,406        7,434   

Accounts payable, accrued expenses and accrued personnel

     63,894        73,949   

Deferred revenue

     2,434        (1,967

Income taxes payable

     23,474        1,106   

Other noncurrent liabilities

     (20,263     4,905   
  

 

 

   

 

 

 

Net cash provided by operating activities

     772,622        709,258   
  

 

 

   

 

 

 

Cash Flow from Investing Activities:

    

Payments for purchase of equipment and leasehold improvements, net

     (120,503     (111,569

Proceeds from sale of short-term interest-bearing investments

     252,818        379,484   

Purchase of short-term interest-bearing investments

     (250,184     (389,800

Net cash paid for acquisitions

     (263,193     (180,540

Other

     1,408        3,872   
  

 

 

   

 

 

 

Net cash used in investing activities

     (379,654     (298,553
  

 

 

   

 

 

 

Cash Flow from Financing Activities:

    

Borrowings under financing arrangements

     220,000        210,000   

Payments under financing arrangements

     (210,000     (200,000

Repurchase of shares

     (454,020     (372,014

Proceeds from employee stock options exercised

     78,206        128,125   

Payments of dividends

     (100,790     (90,939

Excess tax benefit from equity-based compensation

     5,949        3,925   

Other

     (9     (725
  

 

 

   

 

 

 

Net cash used in financing activities

     (460,664     (321,628
  

 

 

   

 

 

 

Net (decrease) increase in cash and cash equivalents

     (67,696     89,077   

Cash and cash equivalents at beginning of period

     1,103,269        1,014,192   
  

 

 

   

 

 

 

Cash and cash equivalents at end of period

   $ 1,035,573      $ 1,103,269   
  

 

 

   

 

 

 


AMDOCS LIMITED

Supplementary Information

(in millions)

 

     Three months ended  
     September 30,
2015
     June 30,
2015
     March 31,
2015
     December 31,
2014
     September 30,
2014
 

North America

   $ 626.6       $ 623.1       $ 646.7       $ 659.1       $ 662.7   

Europe

     115.3         102.3         97.6         106.9         105.3   

Rest of World

     184.9         182.5         158.3         140.3         132.3   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total Revenue

   $ 926.8       $ 907.9       $ 902.6       $ 906.3       $ 900.3   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

     Three months ended  
     September 30,
2015
     June 30,
2015
     March 31,
2015
     December 31,
2014
     September 30,
2014
 

Managed Services Revenue

   $ 466.6       $ 460.6       $ 448.8       $ 467.1       $ 436.4   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
     Three months ended  
     September 30,
2015
     June 30,
2015
     March 31,
2015
     December 31,
2014
     September 30,
2014
 

Customer Experience Solutions

   $ 899.4       $ 883.7       $ 877.1       $ 882.4       $ 871.5   

Directory

     27.4         24.2         25.5         23.9         28.8   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total Revenue

   $ 926.8       $ 907.9       $ 902.6       $ 906.3       $ 900.3   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
     As of  
     September 30,
2015
     June 30,
2015
     March 31,
2015
     December 31,
2014
     September 30,
2014
 

12-Month Backlog

   $ 3,080       $ 3,010       $ 3,000       $ 3,030       $ 3,000   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

# # #