EX-99.1 2 d300756dex991.htm EX-99.1 EX-99.1

Exhibit 99.1

 

LOGO         

 

 

Amdocs Limited Reports First Quarter Fiscal 2022 Results

Record Quarterly Revenue of $1.1 Billion, up 10.6% YoY(2)(3)

Strong Sales Momentum & Record 12-Month Backlog of $3.8 Billion, up 9.7% YoY

Tracking at Higher End of Fiscal 2022 Outlook Range for Expected Revenue and Diluted

Earnings Per Share Growth

Provides Outlook for Annual Revenue Growth of 6.0%-10.0% YoY(2)(3) for Three Years

Fiscal 2022-2024

First Quarter Fiscal 2022 Highlights

(All comparisons are against the prior year)

 

  •  

Record revenue of $1,105 million, up 10.6% on a pro forma(2) basis in constant currency(3) and up 1.7% as reported, including record revenue of $745 million in North America

 

  •  

GAAP diluted EPS of $1.07, above the $0.91-$0.99 guidance range, primarily due to a gain of $0.06 per share from final contingent performance-based consideration received in relation to last year’s divesture of OpenMarket

 

  •  

Non-GAAP diluted EPS of $1.20, at the higher end of the $1.15-$1.21 guidance range

 

  •  

GAAP operating income of $160 million; GAAP operating margin of 14.5%

 

  •  

Non-GAAP operating income of $194 million; non-GAAP operating margin of 17.5%, up 20 basis points while accelerating R&D investments

 

  •  

Free cash flow of $147 million, reflecting healthy cash collections, and comprised of cash flow from operations of $204 million, less $57 million in net capital expenditures and other(1)

 

  •  

Normalized free cash flow of $186 million(1)

 

(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 fiscal year 2021

(3)

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

(4)

Adjusted GAAP excludes the gain from the sale of OpenMarket, which was divested on December 31, 2020, from the current and comparable fiscal years

  •  

Repurchased $171 million of ordinary shares during the first fiscal quarter, up $31 million sequentially

 

  •  

Record twelve-month backlog of $3.83 billion, up approximately $140 million sequentially and up 9.7% as compared to last year’s first fiscal quarter

JERSEY CITY, NJ – February 1, 2022 – Amdocs Limited (NASDAQ: DOX), a leading provider of software and services to communications and media companies, today reported operating results for the three months ended December 31, 2021.

“We have made a great start to fiscal year 2022. Record revenue was up 10.6% on a pro forma(2) constant currency(3) basis from a year ago, driven by our best-ever quarter in North America. Our strategy to deliver market-leading innovation designed to meet the industry’s need for digital modernization, 5G monetization, journey to the cloud and network automation is continuously gaining traction. Strong first quarter sales momentum included notable awards with long-standing customers and several new logos which altogether translated to record twelve-month backlog of $3.83 billion, up 9.7% from a year ago. Additionally, we are pleased to announce the acquisition of DevOpsGroup, a boutique UK-based cloud company which complements the high-end expertise of Amdocs’ Sourced Group by bringing specialist engineering, consultancy and training services for enterprises implementing cloud and DevOps” said Shuky Sheffer, president and chief executive officer of Amdocs Management Limited.

“Amdocs is well-known for exceptional project delivery and we demonstrated this in Q1 with another record number of deployment milestones achieved for our customers. Quarterly invoicing levels and cash collections were healthy, which supported a robust level of free cash flow generation. Demonstrating our confidence in the future success of Amdocs, we also accelerated our buyback activity on a sequential basis in Q1,” said Tamar Rapaport-Dagim, chief financial officer & chief operating officer of Amdocs Management Limited.

Sheffer concluded, “Encouraged by our strong momentum, we believe revenue growth is tracking at the higher-end of our 6.0% to 10.0% guidance range for the full year fiscal 2022 on a pro forma(2), constant currency(3) basis, while delivering healthy operating profitability and strong cash flow generation. Furthermore, we are also projecting annual revenue growth of 6.0% to 10% constant currency(3) in fiscal years 2023 and 2024. Our confidence in this long-term outlook is founded on our market leading position and the durability of Amdocs’ unique business model. Moreover, we have growing visibility to a large and expanding pipeline of opportunities that we are strategically well positioned to monetize by bringing cutting edge technology and impeccable execution to address our customers’ needs.”

Revenue

(All comparisons are against the prior year period)

 

     In Millions  
     Three months ended  
     December 31, 2021  
     Actual     Previous
Guidance		  

Revenue

    $ 1,105     $ 1,080- $1,120  

Revenue growth, as reported(a)

     1.7 %   

Pro forma(2) revenue growth, constant currency(3)

     10.6 %   

 

  •  

Revenue for the first fiscal quarter of 2022 was above the midpoint of Amdocs’ guidance, despite an unfavorable impact from foreign currency movements of approximately $2 million compared to our guidance assumptions

 

  •  

Revenue for the first fiscal quarter of 2022 includes an unfavorable impact from foreign currency movements of approximately $4 million relative to the fourth quarter of fiscal 2021

Net Income and Earnings Per Share

 

     In thousands, except per share
data		  
     Three months ended  
     December 31,  
     2021(a)      2020  

GAAP Measures

      

Net income

    $ 133,602      $ 299,632  

Diluted earnings per share

    $ 1.07      $ 2.28  

Non-GAAP Measures

      

Net income

    $ 150,135      $ 152,972  

Diluted earnings per share

    $ 1.20      $ 1.16  

 

  •  

Non-GAAP net income excludes amortization of purchased intangible assets and other acquisition-related costs, changes in certain acquisition related liabilities measured at fair value, equity-based compensation expenses, gain from divestiture of OpenMarket and other, net of related tax effects, in all the periods presented

 

  •  

In the first quarter of 2022 and 2021, the GAAP net income includes a gain from divestiture of OpenMarket, net of related tax effects, at the amount of $0.06 and $1.42 per share, respectively, which is excluded from the Non-GAAP net income

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

Capital Allocation: M&A Investments & Returning Cash to Shareholders

 

  •  

M&A Activity: As previously announced, on October 1, 2021, Amdocs completed the acquisition of Roam Digital, a digital consultancy agency in Southeast Asia Pacific, for a net consideration of $28 million in cash; on November 15, 2021, Amdocs completed the acquisition of DevOps Group, a cloud consultancy agency in Europe, for a net consideration of $26 million

 

  •  

Quarterly Cash Dividend Program: On February 1, 2022, the Board approved the Company’s next quarterly cash dividend payment at the new increased rate of $0.395 per share, as approved at the January 2022 annual general meeting of shareholders and set March 31, 2022 as the record date for determining the shareholders entitled to receive the dividend, which will be payable on April 29, 2022

  •  

Share Repurchase Activity: Repurchased $171 million of ordinary shares during the first quarter of fiscal 2022

Twelve-month Backlog

Twelve-month backlog was a record $3.83 billion at the end of the first quarter of fiscal 2022, up approximately 9.7% as compared to last year’s first fiscal quarter. Twelve-month backlog includes anticipated revenue related to contracts, estimated revenue from managed services contracts, letters of intent, maintenance and estimated on-going support activities.

Second Quarter Fiscal 2022 Outlook

 

     In millions, except per share data  
     Q2 2022  

Revenue

      $1,110-$1,150  

GAAP diluted EPS

      $0.96-$1.04  

Non-GAAP diluted EPS

      $1.22-$1.28  

 

  •  

Second quarter revenue guidance assumes approximately $2 million sequential unfavorable impact from foreign currency fluctuations as compared to the first quarter of fiscal 2022

 

  •  

Second quarter non-GAAP diluted EPS guidance excludes amortization of purchased intangible assets and other acquisition-related costs, changes in certain acquisitions related liabilities measured at fair value, and approximately $0.11-$0.13 per share of equity-based compensation expense, net of related tax effects

Full Year Fiscal 2022 Outlook

 

     FY 2022, year-over-year growth
     Current Guidance    Previous Guidance

Revenue growth, as reported

    3.4%-7.4%    3.7%-7.7%

Pro forma(2) revenue growth, constant currency(3)

   6.0%-10.0%    6.0%-10.0%

GAAP diluted EPS growth

    (23.0)%-(17.5)%    (23.0)%-(17.5)%

Adjusted GAAP diluted EPS growth(4)

   6.0%-13.0%    6.0%-13.0%

Non-GAAP diluted EPS growth

    6.3%-10.3%    6.3%-10.3%

Pro forma(2) non-GAAP diluted EPS growth

    8.0%-12.0%    8.0%-12.0%
     FY 2022, in millions
     Current Guidance    Previous Guidance

Free cash flow(1)

   ~$500    ~$500

Normalized free cash flow(1)

   ~$650    ~$650

 

  •  

Full year fiscal 2022 revenue guidance incorporates an expected unfavorable impact from foreign currency fluctuations of approximately 0.6% year-over-year as compared with an unfavorable impact of about 0.3% year-over-year previously

 

  •  

Non-GAAP diluted earnings per share growth, and pro forma(2) non-GAAP diluted earnings per share growth, excludes amortization of purchased intangible assets and other acquisition-related costs, changes in certain acquisitions related liabilities measured at fair value, approximately $0.46-$0.52 per share of equity-based compensation expense, gain from divestiture of OpenMarket and other, net of related tax effects. Adjusted GAAP diluted earnings per share growth, excludes gain from divestiture of OpenMarket, net of related tax effects

 

  •  

Free cash flow(1) is comprised of cash flow from operations, less net capital expenditures and other

 

  •  

Normalized free cash flow excludes expected capital expenditure of $131 million related to the new campus development in Israel, and other items

Three Year Fiscal 2022-2024 Outlook

 

  •  

In addition to our full year fiscal 2022 revenue guidance, we project revenue growth of 6.0% to 10% year-over-year on a constant currency(3) basis in each of fiscal years 2023 and 2024

  •  

Projecting revenue growth on an as reported basis in each of fiscal years 2023 and 2024 is not possible without unreasonable efforts given the uncertain impact of foreign exchange rates which cannot be reasonably predicted at this time

Our second fiscal quarter 2022 and full year fiscal 2022, 2023 and 2024 forward looking projections take 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, including its novel strains, 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.

Conference Call and Earnings Webcast Presentation Details

Amdocs will host a conference call and earnings webcast presentation on February 1, 2022 at 5:00 p.m. Eastern Time to discuss the Company’s first quarter of fiscal 2022 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 1787597. The conference call and webcast will also be carried live on the Internet and may be accessed via the Amdocs website at https://investors.amdocs.com. Presentation slides will be available shortly before the webcast.

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 helps those who build the future to make it amazing. With our market-leading portfolio of software products and services, we unlock our customers’ innovative potential, empowering them to provide next-generation communication and media experiences for both the individual end user and large enterprise customers. Our 29,000 employees around the globe are here to accelerate service providers’ migration to the cloud, enable them to differentiate in the 5G era, and digitalize and automate their operations. Listed on the NASDAQ Global Select Market, Amdocs had revenue of $4.3 billion in fiscal 2021.

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 and years. 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, 2021 filed on December 9, 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  
     December 31,  
     2021(a)     2020  

Revenue

    $ 1,104,632     $ 1,086,343  

Operating expenses:

     

Cost of revenue

      716,718       728,716  

Research and development

      81,945       75,669  

Selling, general and administrative

      128,076       121,888  

Amortization of purchased intangible assets and other

      17,747       19,870  
  

 

 

    

 

 

  
     944,486       946,143  
  

 

 

    

 

 

  

Operating income

      160,146       140,200  

Interest and other expense, net

      (2,562 )      (6,490 ) 

Gain from sale of a business

      10,000       226,410  
  

 

 

    

 

 

  

Income before income taxes

      167,584       360,120  

Income taxes

      33,982       60,488  
  

 

 

    

 

 

  

Net income

    $ 133,602     $ 299,632  
  

 

 

    

 

 

  

Basic earnings per share

    $ 1.07     $ 2.29  
  

 

 

    

 

 

  

Diluted earnings per share

    $ 1.07     $ 2.28  
  

 

 

    

 

 

  

Basic weighted average number of shares outstanding

      124,502       131,125  
  

 

 

    

 

 

  

Diluted weighted average number of shares outstanding

      125,304       131,582  
  

 

 

    

 

 

  

Cash dividends declared per share

    $ 0.36     $ 0.3275  
  

 

 

    

 

 

  

AMDOCS LIMITED

Selected Financial Metrics

(In thousands, except per share data)

 

     Three months ended  
     December 31,  
     2021(a)      2020  

Revenue

    $ 1,104,632      $ 1,086,343  

Non-GAAP operating income

      193,607        187,981  

Non-GAAP net income

      150,135        152,972  

Non-GAAP diluted earnings per share

    $ 1.20      $ 1.16  

Diluted weighted average number of shares outstanding

      125,304        131,582  

Free Cash Flows and Normalized Free Cash Flow

(In thousands)

 

     Three months ended  
     December 31,  
     2021     2020  

Net Cash Provided by Operating Activities(a)

    $ 204,118     $ 416,485  

Purchase of property and equipment, net(b)

      (57,225 )      (50,065 ) 
  

 

 

    

 

 

  

Free Cash Flow

      146,893       366,420  

Net capital expenditures related to the new campus development

      29,307       18,334  

Payment of acquisition related liability

      9,479       —    
  

 

 

    

 

 

  

Normalized Free Cash Flow

    $ 185,679     $ 384,754  
  

 

 

    

 

 

  

 

(a)

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

(b)

The amounts under “Purchase of property and equipment, net”, include proceeds from sale of property and equipment of $269 and $53 for the three months ended 31 December 2021 and 2020, respectively.

AMDOCS LIMITED

Reconciliation of Selected Financial Metrics from GAAP to Non-GAAP

(In thousands)

 

     Three months ended December 31, 2021(a)  
           Reconciliation items         
     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		      Non-GAAP  

Operating expenses:

                  

Cost of revenue

    $ 716,718     $ —       $ (7,147 )    $ 1,027     $ —       $ —       $ —        $  710,598  

Research and development

      81,945       —         (1,223 )      —         —         —         —          80,722  

Selling, general and administrative

      128,076       —         (8,371 )      —         —         —         —          119,705  

Amortization of purchased intangible assets and other

      17,747       (17,747 )      —         —         —         —         —          —    
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

  

Total operating expenses

      944,486       (17,747 )      (16,741 )      1,027       —         —         —          911,025  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

  

Operating income

      160,146       17,747       16,741       (1,027 )      —         —         —          193,607  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

  

Interest and other expense, net

      (2,562 )      —         —         —         —         (3,605 )      —          (6,167 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

  

Gain from sale of a business

      10,000       —         —         —         (10,000 )      —         —          —    
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

  

Income taxes

      33,982       —         —         —         —         —         3,323        37,305  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

  

Net income

    $ 133,602     $ 17,747     $ 16,741     $ (1,027 )    $  (10,000)     $  (3,605)     $  (3,323)      $ 150,135  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

  

 

     Three months ended December 31, 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		     Gain from
sale of a
business		     Other      Tax
effect		     Non-GAAP  

Operating expenses:

                  

Cost of revenue

    $ 728,716     $ —       $ (4,941 )    $ (15,334 )    $ —       $ —        $ —       $  708,441  

Research and development

      75,669       —         (832 )      —         —         —          —         74,837  

Selling, general and administrative

      121,888       —         (6,804 )      —         —         —          —         115,084  

Amortization of purchased intangible assets and other

      19,870       (19,870 )      —         —         —         —          —         —    
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

    

 

 

  

Total operating expenses

      946,143       (19,870 )      (12,577 )      (15,334 )      —         —          —         898,362  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

    

 

 

  

Operating income

      140,200       19,870       12,577       15,334       —         —          —         187,981  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

    

 

 

  

Interest and other expense, net

      (6,490 )      —         —         —         —         1,199        —         (5,291 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

    

 

 

  

Gain from sale of a business

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

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

    

 

 

  

Income taxes

      60,488       —         —         —         —         —          (30,770 )      29,718  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

    

 

 

  

Net income

    $ 299,632     $ 19,870     $ 12,577     $ 15,334     $  (226,410)     $  1,199      $ 30,770     $ 152,972  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

    

 

 

  

AMDOCS LIMITED

Condensed Consolidated Balance Sheets

(In thousands)

 

     As of  
     December 31,
2021		      September 30,
2021		  

ASSETS

      

Current assets

      

Cash and cash equivalents

    $ 586,490      $ 709,064  

Short-term interest-bearing investments

      282,347        256,527  

Accounts receivable, net, including unbilled of $146,994 and $162,278, respectively

      953,970        866,819  

Prepaid expenses and other current assets

      255,984        235,089  
  

 

 

     

 

 

  

Total current assets

      2,078,791        2,067,499  

Property and equipment, net

      708,834        698,768  

Lease assets

      228,960        233,162  

Goodwill and other intangible assets, net

      2,925,988        2,881,676  

Other noncurrent assets

      612,904        630,669  
  

 

 

     

 

 

  

Total assets

    $ 6,555,477      $ 6,511,774  
  

 

 

     

 

 

  

LIABILITIES AND SHAREHOLDERS’ EQUITY

      

Current liabilities

      

Accounts payable, accruals and other

    $ 994,981      $ 1,007,777  

Lease liabilities

      59,333        58,714  

Deferred revenue

      334,687        237,374  
  

 

 

     

 

 

  

Total current liabilities

      1,389,001        1,303,865  

Lease liabilities

      175,093        177,906  

Long-term debt, net of unamortized debt issuance costs

      644,694        644,553  

Other noncurrent liabilities

      769,883        750,266  

Total Amdocs Limited Shareholders’ equity

      3,534,297        3,592,675  

Noncontrolling interests

      42,509        42,509  
  

 

 

     

 

 

  

Total equity

      3,576,806        3,635,184  
  

 

 

     

 

 

  

Total liabilities and equity

    $ 6,555,477      $ 6,511,774  
  

 

 

     

 

 

  

AMDOCS LIMITED

Consolidated Statements of Cash Flows

(In thousands)

 

     Three months ended
December 31,		  
     2021     2020  

Cash Flow from Operating Activities:

     

Net income(a)

    $ 133,602     $ 299,632  

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

     

Depreciation and amortization

      50,876       51,706  

Amortization of debt issuance costs

      141       137  

Equity-based compensation expense

      16,741       12,577  

Gain from sale of a business

      (10,000 )      (226,410 ) 

Deferred income taxes

      4,143       (25,892 ) 

Loss (Gain) from short-term interest-bearing investments

      647       (369 ) 

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

     

Accounts receivable, net

      (84,458 )      (140,817 ) 

Prepaid expenses and other current assets

      (15,696 )      911  

Other noncurrent assets

      (11,835 )      (13,984 ) 

Lease assets and liabilities, net

      2,030       11,225  

Accounts payable, accrued expenses and accrued personnel

      (3,053 )      155,891  

Deferred revenue

      86,049       219,057  

Income taxes payable, net

      16,802       61,318  

Other noncurrent liabilities

      18,129       11,503  
  

 

 

    

 

 

  

Net cash provided by operating activities

      204,118       416,485  
  

 

 

    

 

 

  

Cash Flow from Investing Activities:

     

Purchase of property and equipment, net(b)

      (57,225 )      (50,065 ) 

Proceeds from sale of short-term interest-bearing investments

      5,242       1,291  

Purchase of short-term interest-bearing investments

      (34,275 )      (176,234 ) 

Net cash paid for business and intangible assets acquisitions

      (23,885 )      (9,897 ) 

Net cash received from sale of a business

      —         290,789  

Other

      (548 )      1,407  
  

 

 

    

 

 

  

Net cash (used in) provided by investing activities

      (110,691 )      57,291  
  

 

 

    

 

 

  

Cash Flow from Financing Activities:

     

Repurchase of shares

      (170,904 )      (90,022 ) 

Proceeds from employee stock options exercises

      6,012       12,711  

Payments of dividends

      (44,956 )      (43,084 ) 

Payment of contingent consideration from a business acquisition

      (6,153 )      —    
  

 

 

    

 

 

  

Net cash used in financing activities

      (216,001 )      (120,395 ) 
  

 

 

    

 

 

  

Net (decrease) increase in cash and cash equivalents

      (122,574 )      353,381  

Cash and cash equivalents at beginning of period

      709,064       983,188  
  

 

 

    

 

 

  

Cash and cash equivalents at end of period

    $ 586,490     $ 1,336,569  
  

 

 

    

 

 

  

AMDOCS LIMITED

Supplementary Information

(In millions)

 

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

North America

    $ 745.5      $ 722.8      $ 686.1      $ 679.1      $ 703.4  

Europe

      142.5        146.8        155.7        148.8        171.6  

Rest of the World

      216.6        217.7        224.5        220.8        211.3  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total Revenue

    $  1,104.6      $  1,087.3      $  1,066.3      $  1,048.7      $  1,086.3  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

 

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

Managed Services Revenue

    $ 659.7      $ 637.5      $ 650.5      $ 634.6      $  623.7  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

 

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

12-Month Backlog

    $ 3,830      $ 3,690      $ 3,590      $ 3,540      $ 3,490  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

 

(c)

Excludes OpenMarket, which we divested on December 31, 2020

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