Amdocs Limited Reports Second Quarter Fiscal 2023 Results
Record Quarterly Revenue of
Reiterates Fiscal 2023 Revenue Growth Outlook while Tightening Expected Range to
Reiterates Fiscal 2023 Earnings per Share Growth Targets
Reiterates Fiscal 2023 Free Cash Flow(1) Outlook of
Second Quarter Fiscal 2023 Highlights
(All comparisons are against the prior year)
- Record revenue of
$1,223 million , up6.8% as reported and up8.2% in constant currency(2); revenue was above the midpoint of$1,200 -$1,240 million guidance range - Record revenue of
$829 million in North America, up7.4% , and record revenue of$172 million in Europe, up16.6% - Record managed services revenue of
$719 million , equivalent to approximately59% of total revenue - GAAP diluted EPS of
$1.23 , above the midpoint of$1.18 -$1.26 guidance range - Non-GAAP diluted EPS of
$1.47 , at the midpoint guidance range of$1.44 -$1.50 - GAAP operating income of
$182 million ; GAAP operating margin of14.9% , up 220 basis points sequentially, primarily due to restructuring charges, and up 60 basis points as compared to last year's second fiscal quarter - Non-GAAP operating income of
$218 million ; non-GAAP operating margin of17.8% , up 10 basis points sequentially and up 20 basis points as compared to last year's second fiscal quarter - Free cash flow of
$259 million , comprised of cash flow from operations of$294 million , less$35 million in net capital expenditures and other(1); reiterates full year fiscal 2023 free cash outlook of$700 million - Repurchased
$106 million of ordinary shares during the second fiscal quarter - Record twelve-month backlog of
$4.11 billion , up5.7% as compared to last year's second fiscal quarter - The Board of Directors of Amdocs approved a definitive agreement on May 10, 2023, to acquire the service assurance business of TEOCO for a consideration of approximately
$90 million in cash, subject to closing conditions
JERSEY CITY, NJ / ACCESSWIRE / May 10, 2023 / 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 March 31, 2023.
"I am pleased with our second fiscal quarter performance as we progressed our strategy to deliver the next-generation cloud-based products and software services that global communications service providers need to unlock the potential of 5G and broadband networks, data-driven intelligence, and improved consumer and B2B experience. Record revenue of
"Demonstrating strong execution, we maintained a high rate of project deployments in Q2, which included major milestone achievements with many of the world's largest service providers. Driven by ongoing efficiency gains, profitability improved on a sequential and year ago basis and free cash flow generation was very strong on the back of healthy cash collections from customers. In managed services, we renewed several customer agreements which included an extended multiyear partnership with Globe in the Philippines and an expanded cloud-related engagement with a major Western European operator," said Tamar Rapaport-Dagim, chief financial officer & chief operating officer of Amdocs Management Limited.
Sheffer concluded, "As said previously, Amdocs and our global customers are not immune to economic and industry cycles, and we continue to closely monitor the operating environment. As a key technology enabler, we believe Amdocs is positioned at the heart of a multi-year, technology-driven investment cycle centered around the major long-term trends of 5G, network automation, digital modernization, and cloud. Moreover, we believe Amdocs' role as a trusted partner is even more relevant during this period of rapidly shifting market dynamics as we work to help service providers improve consumer and B2B experience, accelerate cost reduction, and increase efficiency. Overall, considering our strong first half performance and the visibility provided by our unique business model, we expect to deliver constant currency(2) revenue growth within a tighter range of
Revenue
(All comparisons are against the prior year period)
| In millions | ||||||||
| Three months ended | ||||||||
| March 31, 2023 | ||||||||
| Actual | Guidance | |||||||
| Revenue | $ | 1,223 | $ | 1,200 - | ||||
Revenue Growth, as reported | ||||||||
Revenue Growth, constant currency (2) | ||||||||
- Revenue for the second fiscal quarter of 2023 was at the midpoint of Amdocs' guidance, even after adjusting for a positive impact from foreign currency movements of approximately
$3 million compared to our guidance assumptions - Revenue for the second fiscal quarter includes a positive impact from foreign currency movements of approximately
$7 million relative to the first quarter of fiscal 2023
Net Income and Earnings Per Share
| In thousands, expect per share data | ||||||||
| Three months ended | ||||||||
| March 31, | ||||||||
| 2023 | 2022 | |||||||
GAAP Measures | ||||||||
Net Income | $ | 150,309 | $ | 158,497 | ||||
Net Income attributable to Amdocs Limited | $ | 149,603 | $ | 158,497 | ||||
Diluted earnings per share | $ | 1.23 | $ | 1.28 | ||||
Non-GAAP Measures | ||||||||
Non-GAAP Net Income | $ | 179,298 | $ | 190,944 | ||||
Non-GAAP Net Income attributable to Amdocs Limited | $ | 178,592 | $ | 190,944 | ||||
Non-GAAP Diluted earnings per share | $ | 1.47 | $ | 1.54 | ||||
- 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 and other, net of related tax effects, in all the periods presented.
For further details of the reconciliation of selected financial metrics from GAAP to Non-GAAP, please refer to the tables below.
Capital Allocation: Returning Cash to Shareholders
- Quarterly Cash Dividend Program: On May 10, 2023, the Board approved the Company's next quarterly cash dividend payment of
$0.43 5 per share and set June 30, 2023 as the record date for determining the shareholders entitled to receive the dividend, which will be payable on July 28, 2023 - Share Repurchase Activity: Repurchased
$106 million of ordinary shares during the second quarter of fiscal 2023
Twelve-month Backlog
Twelve-month backlog was a record
Third Quarter Fiscal 2023 Outlook
| In millions, expect per share data | ||||
| Q3 - 2023 | ||||
Revenue | $ | 1,215- | ||
GAAP Diluted earnings per share | $ | 1.16- | ||
Non-GAAP Diluted earnings per share | $ | 1.45- | ||
- Third quarter revenue guidance assumes immaterial sequential impact from foreign currency fluctuations as compared to the second quarter of fiscal 2023
- Third quarter non-GAAP diluted EPS guidance excludes equity-based compensation expense of approximately
$0.15 -$0.17 per share, amortization of purchased intangible assets and other acquisition-related costs of approximately$0.08 per share, changes in certain acquisitions related liabilities measured at fair value, and other, net of related tax effects
Full Year Fiscal 2023 Outlook
| FY 2023 - Year-over -Year growth | ||||||||
| Current guidance | Previous guidance | |||||||
Revenue Growth, as reported | ||||||||
Revenue Growth, constant currency (2) | ||||||||
GAAP Diluted earnings per share | ||||||||
Non-GAAP Diluted earnings per share | ||||||||
| FY 2023, in millions | ||||||||
| Current guidance | Previous guidance | |||||||
| Free Cash Flow (1) | $ | 700 | $ | 700 | ||||
- Full year fiscal 2023 revenue guidance incorporates an expected unfavorable impact from foreign currency fluctuations of approximately
1% year-over-year, consistent with previous expectation - Non-GAAP diluted earnings per share growth excludes equity-based compensation expense of approximately
$0.58 -$0.63 per share, amortization of purchased intangible assets and other acquisition-related costs of approximately$0.35 per share, restructuring charges of approximately$0.15 per share, changes in certain acquisitions related liabilities measured at fair value, and other, net of related tax effects - Non-GAAP effective tax rate is anticipated to be within a range of
13.0% to17.0% for the full year fiscal 2023 - Free cash flow(1) is comprised of cash flow from operations, less net capital expenditures and other
The forward looking statements regarding our third fiscal quarter 2023 and full year fiscal 2023 guidance 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 certain geopolitical events, the current inflationary environment, global or regional events, such as the COVID-19 pandemic and the prevailing level of macro-economic, business and operational uncertainty, which have 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 May 10, 2023 at 5:00 p.m. Eastern Time to discuss the Company's second quarter of fiscal 2023 results.
To participate in the call, please register here to receive the dial-in numbers and unique access PIN. 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(2) 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, non-GAAP net income attributable to Amdocs Limited 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;
- restructuring 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, revenue on a constant currency(2) 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, non-GAAP net income attributable to Amdocs Limited 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, restructuring 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
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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 31,000 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
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 macro-economic conditions, prevailing level of macroeconomic, business and operational uncertainty, including as a result of geopolitical events or other global or regional events such as the COVID-19 pandemic, as well as the current inflationary environment, and the effects of these conditions on the company's clients' businesses and levels of business activity, 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, 2022 filed on December 13, 2022 and our Form 6-K furnished for the first quarter of fiscal 2023 on February 13, 2023.
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 March 31, | Six months ended March 31, | |||||||||||||||
| 2023 | 2022 | 2023 | 2022 | |||||||||||||
Revenue | $ | 1,223,304 | $ | 1,145,271 | $ | 2,409,024 | $ | 2,249,903 | ||||||||
Operating expenses: | ||||||||||||||||
Cost of revenue | 795,485 | 741,257 | 1,552,334 | 1,457,975 | ||||||||||||
Research and development | 89,274 | 87,064 | 185,000 | 169,009 | ||||||||||||
Selling, general and administrative | 143,328 | 134,982 | 286,550 | 263,058 | ||||||||||||
Amortization of purchased intangible assets and other | 12,940 | 18,317 | 28,253 | 36,064 | ||||||||||||
Restructuring charges | - | - | 24,536 | - | ||||||||||||
| 1,041,027 | 981,620 | 2,076,673 | 1,926,106 | |||||||||||||
Operating income | 182,277 | 163,651 | 332,351 | 323,797 | ||||||||||||
Interest and other expense, net | (2,938 | ) | (8,619 | ) | (7,901 | ) | (11,181 | ) | ||||||||
Gain from sale of a business | - | - | - | 10,000 | ||||||||||||
Income before income taxes | 179,339 | 155,032 | 324,450 | 322,616 | ||||||||||||
Income tax expense (benefit) | 29,030 | (3,465 | ) | 44,269 | 30,517 | |||||||||||
Net income | $ | 150,309 | $ | 158,497 | $ | 280,181 | $ | 292,099 | ||||||||
Net income attributable to noncontrolling interests | 706 | - | 911 | - | ||||||||||||
Net income attributable to Amdocs Limited | $ | 149,603 | $ | 158,497 | $ | 279,270 | $ | 292,099 | ||||||||
Basic earnings per share attributable to Amdocs Limited | $ | 1.24 | $ | 1.29 | $ | 2.32 | $ | 2.36 | ||||||||
Diluted earnings per share attributable to Amdocs Limited | $ | 1.23 | $ | 1.28 | $ | 2.30 | $ | 2.34 | ||||||||
Cash dividends declared per ordinary share | $ | 0.435 | $ | 0.395 | $ | 0.830 | $ | 0.755 | ||||||||
Basic weighted average number of shares outstanding | 120,516 | 122,977 | 120,585 | 123,748 | ||||||||||||
Diluted weighted average number of shares outstanding | 121,359 | 123,821 | 121,430 | 124,571 | ||||||||||||
AMDOCS LIMITED
Selected Financial Metrics
(In thousands, except per share data)
| Three months ended March 31, | Six months ended March 31, | |||||||||||||||
| 2023 | 2022 | 2023 | 2022 | |||||||||||||
Revenue | $ | 1,223,304 | $ | 1,145,271 | $ | 2,409,024 | $ | 2,249,903 | ||||||||
Non-GAAP operating income | 217,737 | 201,625 | 427,275 | 395,232 | ||||||||||||
Non-GAAP net income | 179,298 | 190,944 | 355,840 | 341,079 | ||||||||||||
Non-GAAP net income attributable to Amdocs Limited | 178,592 | 190,944 | 354,929 | 341,079 | ||||||||||||
Non-GAAP diluted earnings per share | $ | 1.47 | $ | 1.54 | $ | 2.92 | $ | 2.74 | ||||||||
Diluted weighted average number of shares outstanding | 121,359 | 123,821 | 121,430 | 124,571 | ||||||||||||
Free Cash Flows
(In thousands)
| Three months ended March 31, | Six months ended March 31, | |||||||||||||||
| 2023 | 2022 | 2023 | 2022 | |||||||||||||
Net Cash Provided by Operating Activities | $ | 294,476 | $ | 168,856 | $ | 377,702 | $ | 372,974 | ||||||||
Purchases of property and equipment, net (a) | (35,119 | ) | (47,271 | ) | (68,822 | ) | (104,496 | ) | ||||||||
Free Cash Flow | $ | 259,357 | $ | 121,585 | $ | 308,880 | $ | 268,478 | ||||||||
Normalized Free Cash Flow (b) for the three and six months ended March 31, 2022:
(a) The amounts under "Purchase of property and equipment, net" include proceeds from sale of property and equipment of
(b) Since Q12023, the Normalized Free Cash Flow is no longer applicable.
AMDOCS LIMITED
Reconciliation of Selected Financial Metrics from GAAP to Non-GAAP
(In thousands)
| Three Months Ended March 31, 2023 | ||||||||||||||||||||||||
| 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 | $ | 795,485 | $ | - | $ | (10,061 | ) | $ | (1,159 | ) | $ | - | $ | 784,265 | ||||||||||
Research and development | 89,274 | (1,703 | ) | 87,571 | ||||||||||||||||||||
Selling, general and administrative | 143,328 | (9,597 | ) | 133,731 | ||||||||||||||||||||
Amortization of purchased intangible assets and other | 12,940 | (12,940 | ) | - | ||||||||||||||||||||
Total operating expenses | 1,041,027 | (12,940 | ) | (21,361 | ) | (1,159 | ) | - | 1,005,567 | |||||||||||||||
Operating income | 182,277 | 12,940 | 21,361 | 1,159 | - | 217,737 | ||||||||||||||||||
Interest and other expense, net | (2,938 | ) | (2,938 | ) | ||||||||||||||||||||
Income taxes | 29,030 | 6,471 | 35,501 | |||||||||||||||||||||
Net income | 150,309 | 12,940 | 21,361 | 1,159 | (6,471 | ) | 179,298 | |||||||||||||||||
Net income attributable to noncontrolling interests | 706 | 706 | ||||||||||||||||||||||
Net income attributable to Amdocs Limited | $ | 149,603 | $ | 12,940 | $ | 21,361 | $ | 1,159 | $ | (6,471 | ) | $ | 178,592 | |||||||||||
| Three Months Ended March 31, 2022 | ||||||||||||||||||||||||||||
| 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 | Non-GAAP | ||||||||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||||||
Cost of revenue | $ | 741,257 | $ | - | $ | (8,070 | ) | $ | (1,820 | ) | $ | - | $ | - | $ | 731,367 | ||||||||||||
Research and development | 87,064 | (1,375 | ) | 85,689 | ||||||||||||||||||||||||
Selling, general and administrative | 134,982 | (8,392 | ) | 126,590 | ||||||||||||||||||||||||
Amortization of purchased intangible assets and other | 18,317 | (18,317 | ) | - | ||||||||||||||||||||||||
Total operating expenses | 981,620 | (18,317 | ) | (17,837 | ) | (1,820 | ) | - | - | 943,646 | ||||||||||||||||||
Operating income | 163,651 | 18,317 | 17,837 | 1,820 | - | - | 201,625 | |||||||||||||||||||||
Interest and other expense, net | (8,619 | ) | 1,100 | (7,519 | ) | |||||||||||||||||||||||
Income tax (benefit) expense | (3,465 | ) | 6,627 | 3,162 | ||||||||||||||||||||||||
Net income | $ | 158,497 | $ | 18,317 | $ | 17,837 | $ | 1,820 | $ | 1,100 | $ | (6,627 | ) | $ | 190,944 | |||||||||||||
AMDOCS LIMITED
Reconciliation of Selected Financial Metrics from GAAP to Non-GAAP
(In thousands)
| Six Months Ended March 31, 2023 | ||||||||||||||||||||||||||||
| GAAP | Amortization of purchased intangible assets and other | Equity based compensation expense | Changes in certain acquisitions related liabilities measured at fair value | Restructuring charges | Tax effect | Non-GAAP | ||||||||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||||||
Cost of revenue | $ | 1,552,334 | $ | - | $ | (18,716 | ) | $ | (1,284 | ) | $ | - | $ | - | $ | 1,532,334 | ||||||||||||
Research and development | 185,000 | (3,187 | ) | 181,813 | ||||||||||||||||||||||||
Selling, general and administrative | 286,550 | (18,948 | ) | 267,602 | ||||||||||||||||||||||||
Amortization of purchased intangible assets and other | 28,253 | (28,253 | ) | - | ||||||||||||||||||||||||
Restructuring charges | 24,536 | (24,536 | ) | - | ||||||||||||||||||||||||
Total operating expenses | 2,076,673 | (28,253 | ) | (40,851 | ) | (1,284 | ) | (24,536 | ) | - | 1,981,749 | |||||||||||||||||
Operating income | 332,351 | 28,253 | 40,851 | 1,284 | 24,536 | - | 427,275 | |||||||||||||||||||||
Interest and other expense, net | (7,901 | ) | (7,901 | ) | ||||||||||||||||||||||||
Income taxes | 44,269 | 19,265 | 63,534 | |||||||||||||||||||||||||
Net income | 280,181 | 28,253 | 40,851 | 1,284 | 24,536 | (19,265 | ) | 355,840 | ||||||||||||||||||||
Net income attributable to noncontrolling interests | 911 | 911 | ||||||||||||||||||||||||||
Net income attributable to Amdocs Limited | $ | 279,270 | $ | 28,253 | $ | 40,851 | $ | 1,284 | $ | 24,536 | $ | (19,265 | ) | $ | 354,929 | |||||||||||||
| Six Months Ended March 31, 2022 | ||||||||||||||||||||||||||||||||
| 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 | $ | 1,457,975 | $ | - | $ | (15,217 | ) | $ | (793 | ) | $ | - | $ | - | $ | - | $ | 1,441,965 | ||||||||||||||
Research and development | 169,009 | (2,598 | ) | 166,411 | ||||||||||||||||||||||||||||
Selling, general and administrative | 263,058 | (16,763 | ) | 246,295 | ||||||||||||||||||||||||||||
Amortization of purchased intangible assets and other | 36,064 | (36,064 | ) | - | ||||||||||||||||||||||||||||
Total operating expenses | 1,926,106 | (36,064 | ) | (34,578 | ) | (793 | ) | - | - | - | 1,854,671 | |||||||||||||||||||||
Operating income | 323,797 | 36,064 | 34,578 | 793 | - | - | - | 395,232 | ||||||||||||||||||||||||
Interest and other expense, net | (11,181 | ) | (2,505 | ) | (13,686 | ) | ||||||||||||||||||||||||||
Gain from sale of a business | 10,000 | $ | (10,000 | ) | - | |||||||||||||||||||||||||||
Income tax (benefit) expense | 30,517 | 9,950 | 40,467 | |||||||||||||||||||||||||||||
Net income | $ | 292,099 | $ | 36,064 | $ | 34,578 | $ | 793 | $ | (10,000 | ) | $ | (2,505 | ) | $ | (9,950 | ) | 341,079 | ||||||||||||||
AMDOCS LIMITED
Condensed Consolidated Balance Sheets
(In thousands)
| As of | ||||||||
| March 31, 2023 | September 30, 2022 | |||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 623,404 | $ | 573,377 | ||||
Short-term interest-bearing investments | 238,163 | 244,603 | ||||||
Accounts receivable, net, including unbilled of | 991,486 | 946,777 | ||||||
Prepaid expenses and other current assets | 251,883 | 238,390 | ||||||
Total current assets | 2,104,936 | 2,003,147 | ||||||
Property and equipment, net | 797,023 | 794,287 | ||||||
Lease assets | 157,587 | 176,884 | ||||||
Goodwill and other intangible assets, net | 2,798,295 | 2,841,137 | ||||||
Other noncurrent assets | 606,329 | 574,938 | ||||||
Total assets | $ | 6,464,170 | $ | 6,390,393 | ||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||
Current liabilities | ||||||||
Accounts payable, accruals and other | $ | 934,907 | $ | 955,658 | ||||
Lease liabilities | 38,319 | 43,336 | ||||||
Deferred revenue | 351,671 | 253,686 | ||||||
Total current liabilities | 1,324,897 | 1,252,680 | ||||||
Lease liabilities | 120,170 | 138,378 | ||||||
Long-term debt, net of unamortized debt issuance costs | 645,404 | 645,117 | ||||||
Other noncurrent liabilities | 744,138 | 793,940 | ||||||
Total Amdocs Limited Shareholders' equity | 3,586,141 | 3,517,769 | ||||||
Noncontrolling interests | 43,420 | 42,509 | ||||||
Total equity | 3,629,561 | 3,560,278 | ||||||
Total liabilities and equity | $ | 6,464,170 | $ | 6,390,393 | ||||
AMDOCS LIMITED
Consolidated Statements of Cash Flows
(In thousands)
| Six months ended March 31, | ||||||||
| 2023 | 2022 | |||||||
Cash Flow from Operating Activities: | ||||||||
Net income | $ | 280,181 | $ | 292,099 | ||||
Reconciliation of net income to net cash provided by operating activities: | ||||||||
Depreciation, amortization and impairment | 103,086 | 101,071 | ||||||
Amortization of debt issuance cost | 287 | 279 | ||||||
Equity-based compensation expense | 40,851 | 34,578 | ||||||
Gain from sale of a business | - | (10,000 | ) | |||||
Deferred income taxes | (27,357 | ) | (35,879 | ) | ||||
Loss from short-term interest-bearing investments | 1,625 | 1,333 | ||||||
Net changes in operating assets and liabilities, net of amounts acquired: | ||||||||
Accounts receivable, net | (53,485 | ) | (140,863 | ) | ||||
Prepaid expenses and other current assets | (20,416 | ) | 3,848 | |||||
Other noncurrent assets | (245 | ) | 3,042 | |||||
Lease assets and liabilities, net | (3,928 | ) | (67 | ) | ||||
Accounts payable, accrued expenses and accrued personnel | (38,602 | ) | (22,006 | ) | ||||
Deferred revenue | 81,959 | 102,997 | ||||||
Income taxes payable, net | (11,245 | ) | 27,378 | |||||
Other noncurrent liabilities | 24,991 | 15,164 | ||||||
Net cash provided by operating activities | 377,702 | 372,974 | ||||||
Cash Flow from Investing Activities: | ||||||||
Purchase of property and equipment, net (a) | (68,822 | ) | (104,496 | ) | ||||
Proceeds from sale of short-term interest-bearing investments | 10,360 | 13,142 | ||||||
Purchase of short-term interest-bearing investments | - | (34,275 | ) | |||||
Net cash paid for business acquisitions | - | (24,497 | ) | |||||
Net cash received from sale of a business | - | 10,000 | ||||||
Other | (2,593 | ) | (2,958 | ) | ||||
Net cash used in investing activities | (61,055 | ) | (143,084 | ) | ||||
Cash Flow from Financing Activities: | ||||||||
Repurchase of shares | (205,637 | ) | (300,929 | ) | ||||
Proceeds from employee stock option exercises | 34,840 | 50,550 | ||||||
Payments of dividends | (95,370 | ) | (89,366 | ) | ||||
Payment of contingent consideration from a business acquisition | (453 | ) | (6,153 | ) | ||||
Net cash used in financing activities | (266,620 | ) | (345,898 | ) | ||||
Net increase (decrease) in cash and cash equivalents | 50,027 | (116,008 | ) | |||||
Cash and cash equivalents at beginning of period | 573,377 | 709,064 | ||||||
Cash and cash equivalents at end of period | $ | 623,404 | $ | 593,056 | ||||
AMDOCS LIMITED
Supplementary Information
(In millions)
| Three months ended | ||||||||||||||||||||
| March 31, | December 31, | September 30, | June 30, | March 31, | ||||||||||||||||
| 2023 | 2022 | 2022 | 2022 | 2022 | ||||||||||||||||
North America | $ | 829.0 | $ | 812.7 | $ | 794.4 | $ | 788.0 | $ | 772.2 | ||||||||||
Europe | 171.7 | 168.7 | 146.4 | 146.1 | 147.2 | |||||||||||||||
Rest of the World | 222.6 | 204.3 | 225.7 | 226.2 | 225.9 | |||||||||||||||
Total Revenue | $ | 1,223.3 | $ | 1,185.7 | $ | 1,166.5 | $ | 1,160.3 | $ | 1,145.3 | ||||||||||
| Three months ended | ||||||||||||||||||||
| March 31, | December 31, | September 30, | June 30, | March 31, | ||||||||||||||||
| 2023 | 2022 | 2022 | 2022 | 2022 | ||||||||||||||||
| Managed Services Revenue | $ | 718.9 | $ | 699.8 | $ | 714.6 | $ | 717.9 | $ | 663.4 | ||||||||||
| as of | ||||||||||||||||||||
| March 31, | December 31, | September 30, | June 30, | March 31, | ||||||||||||||||
| 2023 | 2022 | 2022 | 2022 | 2022 | ||||||||||||||||
| 12-Month Backlog | $ | 4,110 | $ | 4,090 | $ | 3,970 | $ | 3,950 | $ | 3,890 | ||||||||||
SOURCE: Amdocs Management Limited
View source version on accesswire.com:
https://www.accesswire.com/753944/Amdocs-Limited-Reports-Second-Quarter-Fiscal-2023-Results
