EX-99.1 2 d173146dex991.htm EX-99.1 EX-99.1

Exhibit 99.1

 

LOGO

Amdocs Limited Reports Third Quarter Fiscal 2021 Results

Quarterly Revenue of $1.07 Billion, Above Midpoint of Guidance

Record 12-Month Backlog of $3.59 Billion on a Pro Forma(2) Basis, up

10.8% YoY

On-Track for Revenue Growth Acceleration in Fiscal 2021

Raises Outlook for Earnings per Share Growth in Fiscal 2021

Third Quarter Fiscal 2021 Highlights

 

   

Revenue of $1,066 million, above the midpoint of the $1,040-$1,080 million guidance range including a positive impact from foreign currency movements of approximately $5 million compared to our guidance assumptions

 

   

Record managed services revenue of $651 million, equivalent to approximately 61% of total revenue

 

   

GAAP diluted EPS of $1.14, above the $0.91-$0.99 guidance range, primarily due to a lower GAAP effective tax rate than anticipated in quarterly guidance

 

   

Non-GAAP diluted EPS of $1.35, above the $1.14-$1.20 guidance range, primarily due to a lower non-GAAP effective tax rate than anticipated in quarterly guidance

 

   

GAAP operating income of $155 million; GAAP operating margin of 14.5%

 

   

Non-GAAP operating income of $188 million; non-GAAP operating margin of 17.6%

 

   

Quarterly free cash flow of $140 million, comprised of cash flow from operations of $190 million, less $50 million in net capital expenditures and other(1)

 

   

Normalized free cash flow of $179 million(1)

 

   

Twelve-month backlog of $3.59 billion up approximately $50 million sequentially; on a pro forma(2) basis, record twelve-month backlog, up 10.8% as compared to last year’s third fiscal quarter

 

   

The board of directors approved a quarterly cash dividend of $0.36 per share to be paid on October 29, 2021

 

  (1)

Please refer to the Selected Financial Metrics tables below (figures may not sum because of rounding).

  (2)

Pro forma growth rate excludes the financial impact of OpenMarket (which was divested on December 31, 2020) from the current fiscal year and comparable fiscal year

  (3)

Revenue on a constant currency basis assumes that the exchange rates in the current period were unchanged from the prior period


ST. LOUIS – August 4, 2021 – Amdocs Limited (NASDAQ: DOX) today reported operating results for the three months ended June 30, 2021.

“Our strong third quarter performance reflects the strategic initiatives we have executed this year to accelerate Amdocs’ long-term growth. Revenue was up 9.4% from a year ago on a pro forma(2) constant currency(3) basis and was led by a growing scope of activities as our customers accelerate multi-year investments focused around 5G modernization and the cloud. At the operating level, profitability remained above the high-end of our target range as we balanced operational excellence with accelerated R&D investments, and we generated robust free cash flow of which we returned a majority to shareholders through share repurchases and our quarterly dividend program,” said Shuky Sheffer, president and chief executive officer of Amdocs Management Limited.

Sheffer continued, “During Q3, we strengthened our European footprint as our customers’ progressed digital modernization initiatives to support improved customer experience, better operating efficiency and multiplay convergence strategies. We entered into a multi-year managed transformation agreement with Three UK, a subsidiary of CK Hutchison Holdings, that expands the two companies’ collaboration in the business-to-business domain to the consumer sector to provide subscribers with next-generation digital experiences and 5G services. Additionally, Vodafone Group selected Amdocs to provide next-generation inventory and OSS capabilities to support mobile, fixed and cable offerings in Germany, Romania, and Czech Republic, and we expanded our agreement with Vodafone Spain to modernize its CRM systems in readiness for 5G and the cloud era.”

Sheffer concluded, “We enter the fourth fiscal quarter with record 12-month backlog on a pro forma (2) basis, up 10.8% from a year ago. Additionally, we expect to sustain strong sales momentum by monetizing our market-leading offerings which we believe are well-aligned with our customer’s needs for digital modernization, 5G, cloud migration, and next-generation OSS platforms. Overall, we are raising our outlook for earnings per share growth in fiscal 2021 and we remain on track to deliver full year revenue growth acceleration on a proforma basis.”


Revenue

Revenue for the third fiscal quarter ended June 30, 2021 was $1,066 million, which was up $17 million as reported from the second fiscal quarter of 2021. Revenue was up 3.9% as reported and up 1.9% in constant currency(3) as compared to last year’s third fiscal quarter. On a pro forma basis in constant currency(3), revenue was up 9.4% compared to last year. Revenue for the third fiscal quarter of 2021 includes a positive impact from foreign currency movements of approximately $3 million relative to the second quarter of fiscal 2021. Revenue was above the midpoint of Amdocs’ guidance, and included positive impact from foreign currency movements of approximately $5 million compared to our guidance assumptions. Revenue for the third fiscal quarter of 2021 includes record managed services revenue of $651 million, up 7.6% as compared to last year’s third fiscal quarter and equivalent to approximately 61% of total revenue.

Net Income and Earnings Per Share

The Company’s GAAP net income for the third quarter of fiscal 2021 was $146.2 million, or $1.14 per diluted share, compared to GAAP net income of $120.4 million, or $0.90 per diluted share, in the prior fiscal year’s third quarter. Net income on a non-GAAP basis was $173.3 million, or $1.35 per diluted share, compared to non-GAAP net income of $143.2 million, or $1.07 per diluted share, in the third quarter of fiscal 2020. Non-GAAP net income excludes amortization of purchased intangible assets and other acquisition-related costs, changes in certain acquisitions related liabilities measured at fair value, equity-based compensation expenses, and other, net of related tax effects, in the third quarter of fiscal 2021 as well as in the third quarter of fiscal 2020.

For further details of reconciliation of selected financial metrics from GAAP to Non-GAAP, please refer to the tables below.


Returning Cash to Shareholders

 

   

Quarterly Cash Dividend Program: On August 4, 2021, the Board approved the Company’s next quarterly cash dividend payment of $0.36 per share and set September 30, 2021 as the record date for determining the shareholders entitled to receive the dividend, which will be payable on October 29, 2021

 

   

Share Repurchase Activity: Repurchased $90 million of ordinary shares during the third quarter of fiscal 2021

Twelve-month Backlog

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 $3.59 billion at the end of the third quarter of fiscal 2021. On a pro forma(2) basis, twelve-month backlog was up approximately 10.8% as compared to last year’s third fiscal quarter.

Fourth Quarter Fiscal 2021 Outlook

 

   

Revenue of approximately $1,065-$1,105 million, assuming approximately $1 million sequential negative impact from foreign currency fluctuations as compared to the third quarter of fiscal 2021

 

   

GAAP diluted EPS of approximately $0.91-$0.99

 

   

Non-GAAP diluted EPS of approximately $1.13-$1.19, excluding amortization of purchased intangible assets and other acquisition-related costs, changes in certain acquisitions related liabilities measured at fair value, and approximately $0.08-$0.10 per share of equity-based compensation expense, net of related tax effects

Full Year Fiscal 2021 Outlook

 

   

Full year fiscal 2021 revenue guidance reflects the divestiture of OpenMarket as of December 31, 2020 and incorporates an expected positive impact from foreign currency fluctuations of approximately 1.0% year-over-year, consistent with the previous outlook

 

   

Expects revenue growth of 2.3%-3.3% year-over-year on a reported basis as compared with 1.0%-4.0% year-over-year previously


   

Expects pro forma(2) revenue growth of 6.3%-7.3% year-over-year on a constant currency(3) basis as compared with 5.0%-8.0% year-over-year on a constant currency(3) basis previously

 

   

Expects revenue growth of 1.3%-2.3% year-over-year on a constant currency(3) basis as compared with 0.0%-3.0% year-over-year previously

 

   

Expects GAAP diluted earnings per share growth of roughly 42.0%-44.0% year-over-year, including gain, net of tax, from divestiture of OpenMarket, as compared with 39.0%-44.0% year-over-year previously

 

   

Expects non-GAAP diluted earnings per share growth of roughly 7.6%-9.0% year-over-year as compared with 6.0%-9.0% year-over-year previously, excluding amortization of purchased intangible assets and other acquisition-related costs, changes in certain acquisitions related liabilities measured at fair value, approximately $0.35-$0.37 per share of equity-based compensation expense, and gain from divestiture of OpenMarket, net of related tax effects

 

   

Expects pro forma(2) non-GAAP diluted earnings per share growth of roughly 9.1%-10.5% year-over-year as compared with 7.5%-10.5% year-over-year previously, excluding amortization of purchased intangible assets and other acquisition-related costs, changes in certain acquisitions related liabilities measured at fair value, approximately $0.35-$0.37 per share of equity-based compensation expense, and gain from divestiture of OpenMarket, net of related tax effects

 

   

Expects free cash flow of approximately $650 million, comprised of cash flow from operations, less net capital expenditures and other, as compared with $620 million previously

 

   

Reiterates expected normalized free cash flow of approximately $820 million; normalized free cash flow excludes expected capital expenditure of $110 million related to the new campus development in Israel, $40 million of capital gains tax in relation to the divestiture of OpenMarket, and other items

Our fourth fiscal quarter 2021 and full year fiscal 2021 outlook takes into consideration the Company’s current expectations regarding macro and industry specific risks and various uncertainties and certain assumptions that we will discuss on our earnings conference call.


However, we note that market dynamics continue to shift rapidly and we cannot predict all possible outcomes, including those resulting from the COVID-19 pandemic, which has created, and continues to create, a significant amount of uncertainty, or from current and potential customer consolidation or their other strategic corporate activities.

Appointment of Board Member

Amdocs is pleased to announce the appointment of Sarah Ruth Davis to the company’s board of directors, effective August 2, 2021, and subject to re-election at Amdocs’ next annual general meeting on Friday, January 28, 2022. For more information, please visit the Investor Relations section of Amdocs’ website at https://investors.amdocs.com/board-directors

Conference Call Details

Amdocs will host a conference call on August 4, 2021 at 5:00 p.m. Eastern Time to discuss the Company’s third quarter of fiscal 2021 results. To participate, please dial +1 (844) 513-7152, or +1 (508) 637-5600 outside the United States, approximately 15 minutes before the call and enter passcode 3478186. 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 and normalized free cash flow, revenue on a constant currency(3) basis, 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 expenses, net, non-GAAP income taxes, non-GAAP effective tax rate, non-GAAP net income and non-GAAP diluted earnings per share growth. These other non-GAAP measures exclude the following items:     

 

   

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

 

   

changes in certain acquisition-related liabilities measured at fair value;

 

   

non-recurring and unusual charges or benefits (such as a gain from divestiture of OpenMarket);


   

equity-based compensation expense;

 

   

other; and

 

   

tax effects related to the above

Free cash flow equals cash generated by operating activities less net capital expenditures and other. Normalized free cash flow, a measure of our operating performance, is further adjusted to exclude net capital expenditures related to the new campus development, payments for non-recurring and unusual charges (such as capital gains tax in relation to the divestiture of OpenMarket), and payments of acquisition related liabilities. 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 and normalized 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 expenses, net, non-GAAP income taxes, non-GAAP effective tax rate, 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, changes in certain acquisition-related liabilities measured at fair value, non-recurring and unusual charges or benefits, equity-based compensation expense, other 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 expenses, 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.

Supporting Resources

 

   

Keep up with Amdocs news by visiting the Company’s website

 

   

Subscribe to Amdocs’ RSS Feed and follow us on Twitter, Facebook, LinkedIn and YouTube

About Amdocs

Amdocs’ purpose is to enrich lives and progress society, using creativity and technology to build a better connected world. Amdocs and its 27,000 employees partner with the leading players in the communications and media industry, enabling next-generation experiences in 85 countries. Our cloud-native, open and dynamic portfolio of digital solutions, platforms and services brings greater choice, faster time to market and flexibility, to better meet the evolving needs of our customers as they drive growth, transform and take their business to the cloud. Listed on the NASDAQ Global Select Market, Amdocs had revenue of $4.2 billion in fiscal 2020.


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, the duration and severity of the COVID-19 pandemic, and its impact on the global economy, 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, Amdocs specifically disclaims any obligation to do so. These and other risks are discussed at greater length in Amdocs’ filings with the Securities and Exchange Commission, including in our Annual Report on Form 20-F for the fiscal year ended September 30, 2020 filed on December 14, 2020 and our Form 6-K furnished for the first quarter of fiscal 2021 on February 16, 2021 and for the second quarter of fiscal 2021 on May 24, 2021.

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     Nine months ended  
     June 30,     June 30,  
     2021(a)      2020     2021(a)     2020  

Revenue

   $ 1,066,254      $ 1,026,201     $  3,201,331     $ 3,116,091  

Operating expenses:

         

Cost of revenue

     689,370        681,725       2,103,601       2,052,007  

Research and development

     80,794        70,093       231,617       206,199  

Selling, general and administrative

     122,401        109,612       361,240       352,187  

Amortization of purchased intangible assets and other

     18,770        17,240       60,510       57,878  
  

 

 

    

 

 

   

 

 

   

 

 

 
     911,335        878,670       2,756,968       2,668,271  
  

 

 

    

 

 

   

 

 

   

 

 

 

Operating income

     154,919        147,531       444,363       447,820  

Interest and other income (expense), net

     334        (2,417     (9,698     (5,059

Gain from sale of a business

     —          —         226,410       —    
  

 

 

    

 

 

   

 

 

   

 

 

 

Income before income taxes

     155,253        145,114       661,075       442,761  

Income taxes

     9,103        24,707       96,226       79,384  
  

 

 

    

 

 

   

 

 

   

 

 

 

Net income

   $ 146,150      $ 120,407     $ 564,849     $ 363,377  
  

 

 

    

 

 

   

 

 

   

 

 

 

Basic earnings per share

   $ 1.15      $ 0.90     $ 4.37     $ 2.71  
  

 

 

    

 

 

   

 

 

   

 

 

 

Diluted earnings per share

   $ 1.14      $ 0.90     $ 4.34     $ 2.70  
  

 

 

    

 

 

   

 

 

   

 

 

 

Basic weighted average number of shares outstanding

     127,172        133,150       129,362       134,013  
  

 

 

    

 

 

   

 

 

   

 

 

 

Diluted weighted average number of shares outstanding

     128,050        133,593       130,115       134,758  
  

 

 

    

 

 

   

 

 

   

 

 

 

Cash dividends declared per share

   $ 0.36      $ 0.3275     $ 1.0475     $ 0.94  
  

 

 

    

 

 

   

 

 

   

 

 

 


AMDOCS LIMITED

Selected Financial Metrics

(In thousands, except per share data)

 

     Three months ended      Nine months ended  
     June 30,      June 30,  
     2021(a)      2020      2021(a)      2020  

Revenue

   $ 1,066,254      $ 1,026,201      $ 3,201,331      $ 3,116,091  

Non-GAAP operating income

     187,606        175,476        560,470        533,940  

Non-GAAP net income

     173,283        143,198        474,350        433,042  

Non-GAAP diluted earnings per share

   $ 1.35      $ 1.07      $ 3.65      $ 3.21  

Diluted weighted average number of shares outstanding

     128,050        133,593        130,115        134,758  

Free Cash Flows and Normalized Free Cash Flow

(In thousands)

 

     Three months ended     Nine months ended  
     June 30,     June 30,  
     2021     2020     2021     2020  

Net Cash Provided by Operating Activities(a)

   $ 189,873     $ 186,680     $ 726,094     $ 453,456  

Purchases of property and equipment, net (c)

     (50,255     (41,250     (149,565     (145,955
  

 

 

   

 

 

   

 

 

   

 

 

 

Free Cash Flow

     139,618       145,430       576,529       307,501  

Tax payment on sale of business(b)

     13,597       —         38,787       —    

Payments of acquisition related liabilities

     —         7,667       13,234       9,417  

Payments for previously expensed restructuring charges

     —         284       —         1,929  

Net capital expenditures related to the new campus development

     25,324       15,460       67,879       46,752  
  

 

 

   

 

 

   

 

 

   

 

 

 

Normalized Free Cash Flow

   $  178,539     $  168,841     $ 696,429     $ 365,599  
  

 

 

   

 

 

   

 

 

   

 

 

 

 

(a)

Since January 1, 2021, OpenMarket results are not included in the Consolidated Statements of Income given its divestiture.

(b)

Tax payment related to capital gain from divesture of OpenMarket, which was completed on December 31, 2020.

(c)

The amounts under “Purchase of property and equipment, net” include proceeds from sale of property and equipment of $233 and $133 for the nine months ended June 30, 2021 and 2020, respectively.


AMDOCS LIMITED

Reconciliation of Selected Financial Metrics from GAAP to Non-GAAP

(In thousands)

 

     Three months ended
June 30, 2021(a)
 
     GAAP      Reconciliation items     Non-GAAP  
     Amortization
of purchased
intangible
assets and
other
    Equity based
compensation
expense
    Changes in
certain
acquisitions
related liabilities
measured at fair
value
    Other     Tax
effect
 

Operating expenses:

               

Cost of revenue

   $ 689,370      $ —       $ (6,020   $ 74     $ —       $ —       $ 683,424  

Research and development

     80,794        —         (1,032     —         —         —         79,762  

Selling, general and administrative

     122,401        —         (6,939     —         —         —         115,462  

Amortization of purchased intangible assets and other

     18,770        (18,770     —         —         —         —         —    
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total operating expenses

     911,335        (18,770     (13,991     74       —         —         878,648  
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating income

     154,919        18,770       13,991       (74     —         —         187,606  
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Interest and other income (expense), net

     334        —         —         —         (1,510     —         (1,176
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income taxes

     9,103        —         —         —         —         4,044       13,147  
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income

   $ 146,150      $ 18,770     $ 13,991     $ (74   $ (1,510   $ (4,044   $ 173,283  
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

     Three months ended
June 30, 2020
 
     GAAP      Reconciliation items     Non-GAAP  
     Amortization of
purchased
intangible
assets and
other
    Equity based
compensation
expense
    Changes in certain
acquisitions related
liabilities measured at
fair value
    Tax
effect
 

Operating expenses:

             

Cost of revenue

   $ 681,725      $ —       $ (4,985   $ 356     $ —       $  677,096  

Research and development

     70,093        —         (711     —         —         69,382  

Selling, general and administrative

     109,612        —         (5,365     —         —         104,247  

Amortization of purchased intangible assets and other

     17,240        (17,240     —         —         —         —    
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total operating expenses

     878,670        (17,240     (11,061     356       —         850,725  
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating income

     147,531        17,240       11,061       (356     —         175,476  
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income taxes

     24,707        —         —         —         5,154       29,861  
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income

   $ 120,407      $ 17,240     $ 11,061     $ (356   $ (5,154   $ 143,198  
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 


AMDOCS LIMITED

Reconciliation of Selected Financial Metrics from GAAP to Non-GAAP

(In thousands)

 

     Nine months ended
June 30, 2021(a)
 
     GAAP     Reconciliation items     Non-GAAP  
    Amortization
of purchased
intangible
assets and
other
    Equity based
compensation
expense
    Changes in
certain
acquisitions

related liabilities
measured at fair
value
    Gain from
sale of a
business
    Other     Tax
effect
 

Operating expenses:

                

Cost of revenue

   $ 2,103,601     $ —       $ (16,543   $ (15,654   $ —       $ —       $ —       $ 2,071,404  

Research and development

     231,617       —         (2,876     —         —         —         —         228,741  

Selling, generaland administrative

     361,240       —         (20,524     —         —         —         —         340,716  

Amortization of purchased intangible assets and other

     60,510       (60,510     —         —         —         —         —         —    
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total operating expenses

     2,756,968       (60,510     (39,943     (15,654     —         —         —         2,640,861  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating income

     444,363       60,510       39,943       15,654       —         —         —         560,470  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Interest and other income (expense), net

     (9,698     —         —         —         —         (686     —         (10,384
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Gain from sale of a business

     226,410       —         —         —         (226,410     —         —         —    
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income taxes

     96,226       —         —         —         —         —         (20,490     75,736  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income

   $ 564,849     $ 60,510     $ 39,943     $ 15,654     $ (226,410   $ (686   $ 20,490     $ 474,350  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

     Nine months ended
June 30, 2020
 
            Reconciliation items        
     GAAP      Amortization of
purchased

intangible
assets and
other
    Equity based
compensation
expense
    Changes in certain
acquisitions related
liabilities measured at

fair value
    Tax
effect
    Non-GAAP  

Operating expenses:

             

Cost of revenue

   $ 2,052,007      $ —       $ (15,024   $ 4,328     $ —       $ 2,041,311  

Research and development

     206,199        —         (2,237     —         —         203,962  

Selling, general and administrative

     352,187        —         (15,309     —         —         336,878  

Amortization of purchased intangible assets and other

     57,878        (57,878     —         —         —         —    
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total operating expenses

     2,668,271        (57,878     (32,570     4,328       —         2,582,151  
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating income

     447,820        57,878       32,570       (4,328     —         533,940  
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income taxes

     79,384        —         —         —         16,455       95,839  
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income

   $ 363,377      $ 57,878     $ 32,570     $ (4,328   $ (16,455   $ 433,042  
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 


AMDOCS LIMITED

Condensed Consolidated Balance Sheets

(In thousands)

 

     As of  
     June 30,
2021
     September 30,
2020
 

ASSETS

     

Current assets

     

Cash and cash equivalents

   $ 853,301      $ 983,188  

Short-term interest-bearing investments

     193,353        752  

Accounts receivable, net, including unbilled of $177,166 and $175,548, respectively

     925,118        861,033  

Prepaid expenses and other current assets

     213,387        229,604  
  

 

 

    

 

 

 

Total current assets

     2,185,159        2,074,577  

Property and equipment, net

     654,111        607,951  

Lease assets

     253,322        295,494  

Goodwill and other intangible assets, net

     2,898,365        2,874,979  

Other noncurrent assets

     576,544        488,620  
  

 

 

    

 

 

 

Total assets

   $ 6,567,501      $ 6,341,621  
  

 

 

    

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

     

Current liabilities

     

Accounts payable, accruals and other

   $ 996,785      $ 930,259  

Short-term financing arrangement

     —          100,000  

Lease liabilities

     58,031        59,100  

Deferred revenue

     220,389        126,841  
  

 

 

    

 

 

 

Total current liabilities

     1,275,205        1,216,200  

Lease liabilities

     195,844        230,076  

Long-term debt, net of unamortized debt issuance costs

     644,414        644,023  

Other noncurrent liabilities

     778,290        586,167  

Total Amdocs Limited Shareholders’ equity

     3,631,239        3,622,646  

Noncontrolling interests

     42,509        42,509  
  

 

 

    

 

 

 

Total equity

     3,673,748        3,665,155  
  

 

 

    

 

 

 

Total liabilities and equity

   $ 6,567,501      $ 6,341,621  
  

 

 

    

 

 

 


AMDOCS LIMITED

Consolidated Statements of Cash Flows

(In thousands)

 

     Nine months ended
June 30,
 
     2021     2020  

Cash Flow from Operating Activities:

    

Net income(a)

   $ 564,849     $ 363,377  

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

    

Depreciation and amortization

     157,024       144,715  

Amortization of debt issuance costs

     409       9  

Equity-based compensation expense

     39,943       32,570  

Gain from sale of a business

     (226,410     —    

Deferred income taxes

     (64,882     43,916  

Loss from short-term interest-bearing investments

     1,006       —    

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

    

Accounts receivable, net

     (121,653     18,522  

Prepaid expenses and other current assets

     (434     (12,603

Other noncurrent assets

     (19,387     (14,110

Lease assets and liabilities, net

     6,724       (9,869

Accounts payable, accrued expenses and accrued personnel

     110,982       (98,670

Deferred revenue

     205,915       917  

Income taxes payable, net

     44,711       (13,752

Other noncurrent liabilities

     27,297       (1,566
  

 

 

   

 

 

 

Net cash provided by operating activities

     726,094       453,456  
  

 

 

   

 

 

 

Cash Flow from Investing Activities:

    

Purchase of property and equipment, net (c)

     (149,565     (145,955

Proceeds from sale of short-term interest-bearing investments

     14,333       —    

Purchase of short-term interest-bearing investments

     (208,626     —    

Net cash paid for business and intangible assets acquisitions

     (111,932     (29,258

Net cash received from sale of a business

     288,990       —    

Other

     (332     (5,290
  

 

 

   

 

 

 

Net cash used in investing activities

     (167,132     (180,503
  

 

 

   

 

 

 

Cash Flow from Financing Activities:

    

Borrowings under financing arrangements

     —         450,000  

Payments under financing arrangements

     (100,000     (350,000

Proceeds from issuance of debt, net

     —         645,685  

Repurchase of shares

     (539,969     (270,062

Proceeds from employee stock options exercises

     84,474       95,979  

Payments of dividends

     (131,892     (120,493

Payment of contingent consideration from a business acquisition

     (1,462     (1,411

Other

     —         (240
  

 

 

   

 

 

 

Net cash (used in) provided by financing activities

     (688,849     449,458  
  

 

 

   

 

 

 

Net (decrease) increase in cash and cash equivalents

     (129,887     722,411  

Cash and cash equivalents at beginning of period

     983,188       471,632  
  

 

 

   

 

 

 

Cash and cash equivalents at end of period

   $ 853,301     $ 1,194,043  
  

 

 

   

 

 

 


AMDOCS LIMITED

Supplementary Information

(In millions)

 

     Three months ended  
     June 30,
2021(a)
     March 31,
2021(a)
     December 31,
2020
     September 30,
2020
     June 30,
2020
 

North America

   $ 686.1      $ 679.1      $ 703.4      $ 681.6      $ 685.9  

Europe

     155.7        148.8        171.6        165.3        145.4  

Rest of the World

     224.5        220.8        211.3        206.0        194.9  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total Revenue

   $  1,066.3      $  1,048.7      $  1,086.3      $  1,052.9      $  1,026.2  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

     Three months ended  
     June 30,
2021
     March 31,
2021
     December 31,
2020
     September 30,
2020
     June 30,
2020
 

Managed Services Revenue

   $ 650.5      $ 634.6      $  623.7      $  610.5      $  604.5  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

     As of  
     June 30,
2021(d)
     March 31,
2021(d)
     December 31,
2020(d)
     September 30,
2020
     June 30,
2020
 

12-Month Backlog

   $ 3,590      $ 3,540      $ 3,490      $ 3,620      $  3,480  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

(d)

Excludes OpenMarket

# # #