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leisure properties for sale overseas
News and Information Article
32% Growth in Diluted Non-GAAP Earnings Per Share to $0.49; Diluted GAAP
Earnings Per Share of $0.39
Key highlights:
- Third quarter revenue grew 23% to $626 million
- 32% increase in third quarter diluted non-GAAP EPS, excluding
acquisition-related costs and equity-based compensation expense, net of
related tax effects, to $0.49; Exceeds guidance of $0.46
- Diluted GAAP EPS of $0.39
- Free cash flow of $94 million for the quarter
- Qpass acquisition positions Amdocs as the leader in the emerging digital
content market
- After the quarter, Amdocs announced that it signed an agreement to
acquire Cramer Systems Group Ltd., a leading provider of operations support
systems (OSS) software and solutions, for approximately $375 million in
cash, net of cash on hand
- Fourth quarter fiscal 2006 guidance: Expected revenue of approximately
$657 million and diluted non-GAAP EPS of $0.49, excluding acquisition-
related costs and approximately $0.04-$0.05 per share of equity-based
compensation expense, net of related tax effects. Diluted GAAP EPS is
expected to be approximately $0.41-$0.42. This guidance excludes any
potential impact of the pending acquisition of Cramer
- Preliminary fiscal 2007 guidance: Expected revenue of approximately
$2.880 - $2.980 billion and diluted non-GAAP EPS of $2.06 - $2.16, which
exclude acquisition-related costs and approximately $0.19-$0.22 per share
of equity-based compensation expense, net of related tax effects. This
guidance includes the expected impact of the pending acquisition of Cramer.
Amdocs expects to provide guidance for 2007 diluted GAAP EPS after the
purchase price accounting for the acquisition is completed
ST. LOUIS, July 19 /-FirstCall/ -- Amdocs Limited (NYSE: DOX)
today reported that for the quarter ended June 30, 2006, revenue was $626.4
million, an increase of 23.5% from last years third quarter. Excluding
acquisition-related costs, which include amortization of purchased
intangible assets and the write-off of in-process research and development
and excluding equity-based compensation expense, net of related tax
effects, of $20.6 million, net income on a non-GAAP basis was $106.2
million, or $0.49 per diluted share, compared to non-GAAP net income,
excluding $1.7 million of acquisition-related costs net of related tax
effects, of $78.8 million, or $0.37 per diluted share, in the third quarter
of fiscal 2005. The Companys net income was $85.6 million, or $0.39 per
diluted share, compared to net income of $77.1 million, or $0.36 per
diluted share, in the third quarter of fiscal 2005. Free cash flow, defined
as cash flow from operations less net capital expenditures and principal
payments on capital leases, was $94 million in the quarter.
"We are pleased to again report record revenues and increasing
profitability," said Dov Baharav, chief executive officer of Amdocs
Management Limited. "We see demand in the market, which continues to be
driven by service providers need to address competition, consolidation and
convergence. We have strengthened our presence in the digital content area
with our acquisition of Qpass and we are expanding our OSS activities with
our pending acquisition of Cramer. Amdocs is positioned as the only vendor
that can provide an end-to-end solution, from business support systems --
or BSS -- to OSS for the leading services providers. This will put us in
the leading position to benefit from the growth opportunities as service
providers transform their organizations in order to offer new products and
services. We are confident that our success in 2006 will continue as we
look towards fiscal 2007."
During the third quarter, Amdocs new business included 11 key wins,
across geographies and lines of business. Amdocs expanded its relationship
with Rogers Communications, which will install Amdocs CRM across its cable,
wireless and telecom lines of business as part of a rollout of an
integrated customer management strategy. In Australia, Telstra has selected
Amdocs as one of the key vendors for an OSS transformational program. In
the United States, Amdocs was awarded several projects related to assisting
customers in their consolidation and integration of acquisitions. In
broadband cable and satellite, a customer has signed a contract extension.
Several other customers, including some new logos, have chosen Amdocs for
CRM, Amdocs Partner Management and mediation projects.
Financial Outlook
Amdocs expects that revenue for the fourth quarter of fiscal 2006 will
be approximately $657 million. Diluted earnings per share on a non-GAAP
basis for the fourth quarter are expected to be $0.49, excluding
acquisition-related costs and the impact of approximately $0.04-$0.05 per
share of equity-based compensation expense, net of related tax effects.
Diluted GAAP EPS is expected to be approximately $0.41-$0.42. This guidance
excludes any potential impact of the pending acquisition of Cramer. Amdocs
expects that it may incur a one-time charge in its fourth fiscal quarter to
account for certain costs related to the Cramer acquisition.
Preliminary fiscal 2007 guidance: Expected revenue of approximately
$2.880-$2.980 billion and diluted non-GAAP EPS of $2.06-$2.16, which
excludes acquisition-related costs and approximately $0.19-$0.22 per share
of equity- based compensation expense, net of related tax effects. This
guidance includes the expected impact of the pending acquisition of Cramer.
Amdocs expects to provide guidance for diluted GAAP EPS after the purchase
price accounting for the acquisition is completed.
Amdocs will host a conference call on July 19, 2006 at 5 p.m. Eastern
Time to discuss the Companys third quarter results. The call will be
carried live on the Internet via http://www.InvestorCalendar.com and the
Amdocs website, http://www.amdocs.com.
Non-GAAP Financial Measures
This release includes non-GAAP diluted earnings per share and other
non- GAAP line items from the Non-GAAP Consolidated Statements of Income,
including non-GAAP cost of service, non-GAAP research and development,
non-GAAP selling, general and administrative, non-GAAP operating income,
non-GAAP income before income taxes, non-GAAP income taxes and non-GAAP net
income. These non-GAAP measures exclude the following items:
-- amortization of purchased intangible assets;
-- In-process research and development write-off;
-- 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 and the Non-GAAP Consolidated
Statements of Income 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 non-GAAP line items from the Non-GAAP Consolidated
Statements of Income, including non-GAAP cost of service, non-GAAP research
and development, non-GAAP selling, general and administrative, non-GAAP
operating income, non-GAAP income before income taxes, non-GAAP income
taxes and non- GAAP net income, 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.
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, in-process research and
development write-off, 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 non-cash expenses in reviewing its
results and those of its competitors, because the amounts of the expenses
between companies can vary greatly depending on the assumptions used by an
individual company in determining the amounts of the expenses.
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 service, research and development, selling,
general and administrative, operating income, income before income taxes,
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.
About Amdocs
Amdocs combines innovative software and services with deep business
knowledge to accelerate implementation of integrated customer management by
the worlds leading service providers. By delivering a comprehensive
portfolio of software and services that spans the customer lifecycle,
Amdocs enables service companies to deliver an intentional customer
experience(TM), which results in stronger, more profitable customer
relationships. Service providers also benefit from a rapid return on
investment, lower total cost of ownership and improved operational
efficiencies. A global company with revenue of more than $2 billion in
fiscal 2005, Amdocs has over 14,000 employees and serves customers in more
than 50 countries around the world. For more information, visit Amdocs at
http://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 Companys 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 Companys filings
with the Securities and Exchange Commission, including in our Annual Report
on Form 20-F, filed on December 28, 2005 and our quarterly 6-K furnished on
February 15 and May 15, 2006.
Contact:
Thomas G. OBrien
Treasurer and Vice President of Investor Relations
Amdocs Limited
314-212-8328
E-mail: dox_info@amdocs.com
AMDOCS LIMITED
Consolidated Statements of Income (Unaudited)
(in thousands, except per share data)
Three months ended Nine months ended
June 30, June 30,
2006(1) 2005 2006(2) 2005
Revenue:
License $23,220 $27,199 $85,172 $74,909
Service 603,228 480,156 1,729,433 1,390,394
626,448 507,355 1,814,605 1,465,303
Operating expenses:
Cost of license 995 1,125 2,973 3,278
Cost of service 402,626 324,249 1,165,010 929,487
Research and
development 46,455 31,393 131,392 97,567
Selling, general and
administrative 74,940 56,448 227,289 166,000
Amortization of purchased
intangible assets 8,547 2,078 23,588 7,875
In-process research
and development 8,415 - 8,415 -
541,978 415,293 1,558,667 1,204,207
Operating income 84,470 92,062 255,938 261,096
Interest income and
other, net 14,938 4,305 33,659 14,944
Income before income
taxes 99,408 96,367 289,597 276,040
Income taxes 13,823 19,270 46,916 55,203
Net income $85,585 $77,097 $242,681 $220,837
Basic earnings per share $0.42 $0.38 $1.20 $1.10
Diluted earnings per
share(3) $0.39 $0.36 $1.13 $1.03
Basic weighted average
number of shares
outstanding 204,404 200,494 202,474 201,453
Diluted weighted
average number
of shares outstanding 220,109 216,570 217,633 217,608
(1) The three months ended June 30, 2006 include equity-based compensation
pre-tax expense of $10,948, which was classified as follows: $4,165 to
Cost of service, $1,232 to Research and development and $5,551 to
Selling, general and administrative.
(2) The nine months ended June 30, 2006 include equity-based
compensation pre-tax expense of $31,948, which was classified as
follows: $12,237 to Cost of service, $3,041 to Research and
development and $16,670 to Selling, general and administrative.
(3) To reflect the impact of assumed conversion of the convertible notes,
$985 and $2,964, representing interest expense and amortization of
issuance costs, were added back to net income for the three and nine
months ended June 30, 2006, respectively, and $988 and $2,955 were
added back to net income for the three and nine months ended
June 30, 2005, respectively, for the purpose of computing diluted
earnings per share.
AMDOCS LIMITED
Selected Financial Metrics
(in thousands, except per share data)
Three months ended Nine months ended
June 30, June 30,
2006 2005 2006 2005
Revenue $626,448 $507,355 $1,814,605 $1,465,303
Non-GAAP
operating income 112,380 94,140 319,889 268,971
Non-GAAP net income 106,169 78,756 291,678 227,132
Non-GAAP diluted
earnings per share $0.49 $0.37 $1.35 $1.06
Diluted weighted
average number
of shares outstanding 220,109 216,570 217,633 217,608
AMDOCS LIMITED
Reconciliation of Selected Financial Metrics from GAAP to Non-GAAP
(in thousands)
Three months ended
June 30, 2006
Reconciliation items
Amortization
of In-process Equity
purchased research based
intangible and compensation Tax Non-
GAAP assets development expense effect GAAP
Operating
expenses:
Cost of license $995 $- $- $- $- $995
Cost of
service 402,626 - - (4,165) - 398,461
Research and
development 46,455 - - (1,232) - 45,223
Selling, general
and
administrative 74,940 - - (5,551) - 69,389
Amortization
of purchased
intangible
assets 8,547 (8,547) - - - -
In-process
research and
development 8,415 - (8,415) - - -
Total operating
expenses 541,978 (8,547) (8,415) (10,948) - 514,068
Operating
income 84,470 8,547 8,415 10,948 - 112,380
Income taxes 13,823 - - - 7,326 21,149
Net income $85,585 $8,547 $8,415 $10,948 $(7,326) $106,169
AMDOCS LIMITED
Reconciliation of Selected Financial Metrics from GAAP to Non-GAAP (CONTD)
(in thousands)
Three months ended
June 30, 2005
Reconciliation items
Amortization of
purchased Tax Non-
intangible effect GAAP
GAAP assets
Operating expenses:
Cost of license $1,125 $- $- $1,125
Cost of service 324,249 - - 324,249
Research and
development 31,393 - - 31,393
Selling, general
and administrative 56,448 - - 56,448
Amortization of
purchased intangible
assets 2,078 (2,078) - -
In-process research
and development - - - -
Total operating
expenses 415,293 (2,078) - 413,215
Operating income 92,062 2,078 - 94,140
Income taxes 19,270 - 419 19,689
Net income $77,097 $2,078 $(419) $78,756
AMDOCS LIMITED
Reconciliation of Selected Financial Metrics from GAAP to Non-GAAP
(in thousands)
Nine months ended
June 30, 2006
Reconciliation items
Amortization
of In-process Equity
purchased research based
intangible and compensation Tax Non-
GAAP assets development expense effect GAAP
Operating expenses:
Cost of
license $2,973 $- $- $- $- $2,973
Cost of
service 1,165,010 - - (12,237) - 1,152,773
Research
and
development 131,392 - - (3,041) - 128,351
Selling,
general and
admini-
strative 227,289 - - (16,670) - 210,619
Amortization
of
purchased
intangible
assets 23,588 (23,588) - - - -
In-process
research and
development 8,415 - (8,415) - - -
Total
operating
expenses 1,558,667 (23,588) (8,415) (31,948) - 1,494,716
Operating
income 255,938 23,588 8,415 31,948 - 319,889
Income taxes 46,916 - - - 14,954 61,870
Net income $242,681 $23,588 $8,415 $31,948 $(14,954) $291,678
AMDOCS LIMITED
Reconciliation of Selected Financial Metrics from GAAP to Non-GAAP (CONTD)
(in thousands)
Nine months ended
June 30, 2005
Reconciliation items
Amortization of
purchased Tax effect
GAAP intangible Non-GAAP
assets
Operating expenses:
Cost of license $3,278 $- $- $3,278
Cost of service 929,487 - - 929,487
Research and
development 97,567 - - 97,567
Selling, general
and administrative 166,000 - - 166,000
Amortization of
purchased
intangible assets 7,875 (7,875) - -
In-process
research and
development - - - -
Total operating
expenses 1,204,207 (7,875) - 1,196,332
Operating income 261,096 7,875 - 268,971
Income taxes 55,203 - 1,580 56,783
Net income $220,837 $7,875 $(1,580) $227,132
AMDOCS LIMITED
Condensed Consolidated Balance Sheets
(in thousands)
As of
June 30, September 30,
2006 2005
(Unaudited) (Audited)
ASSETS
Current assets
Cash, cash equivalents and short-term
interest-bearing investments 1,207,552 1,145,563
Accounts receivable, net, including unbilled
of $43,925 and $28,994, respectively 414,154 304,237
Deferred income taxes and taxes receivable 77,653 101,162
Prepaid expenses and other current assets 81,793 76,780
Total current assets 1,781,152 1,627,742
Equipment, vehicles and leasehold
improvements, net 184,878 181,812
Goodwill and other intangible assets, net 1,411,561 1,129,258
Other noncurrent assets 318,740 263,656
Total assets 3,696,331 3,202,468
LIABILITIES AND SHAREHOLDERS EQUITY
Current liabilities
Accounts payable and accruals 512,636 462,276
Short-term portion of capital lease
obligations and other financing arrangements 1,938 8,480
Deferred revenue 243,381 216,770
Deferred income taxes and taxes payable 175,210 171,377
Total current liabilities 933,165 858,903
0.50% Convertible notes 450,000 450,000
Noncurrent liabilities and other 282,279 237,113
Shareholders equity 2,030,887 1,656,452
Total liabilities and shareholders equity 3,696,331 3,202,468
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