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    Amdocs Limited Reports Third Quarter Fiscal 2022 Results

    8/3/22 4:11:26 PM ET
    $DOX
    EDP Services
    Technology
    Get the next $DOX alert in real time by email

    Record Quarterly Revenue of $1.16 Billion, up 8.8% YoY as Reported and up 10.8% YoY in Constant Currency(3)

    Strong Sales Momentum & Record 12-Month Backlog of $3.95 Billion, up 10% YoY

    Fiscal 2022 Revenue Growth Outlook Consistent with Midpoint of 6.2%-7.2% YoY Guidance Range, as Reported

    On-Track for Fiscal 2022 Revenue Growth of Roughly 10% YoY in Constant Currency(2)(3)

    Third Quarter Fiscal 2022 Highlights

    (All comparisons are against the prior year)

    • Tracking in line with the midpoint of fiscal 2022 adjusted GAAP diluted EPS growth(4) outlook of 11.0%-13.5%
    • On-track for fiscal 2022 pro forma(2) non-GAAP diluted EPS growth of roughly 12%, consistent with midpoint of guidance range of 11.2%-12.5%
    • Record revenue of $1,160 million, up 8.8% as reported and up 10.8% in constant currency(3); revenue was at the midpoint of $1,140-$1,180 million guidance range, despite unfavorable foreign currency movements of roughly $7 million compared to our guidance assumptions
    • Record revenue of $788 million in North America, up 14.9%
    • Record managed services revenue of $718 million, equivalent to approximately 62% of total revenue
    • GAAP diluted EPS of $1.04, toward the high end of $0.97-$1.05 guidance range
    • Non-GAAP diluted EPS of $1.27, above the midpoint of $1.23-$1.29 guidance range
    • GAAP operating income of $169 million; GAAP operating margin of 14.6%
    • Non-GAAP operating income of $204million;non-GAAP operating margin of 17.6%, unchanged sequentially and as compared to last year's third fiscal quarter while accelerating R&D investments
    • Free cash flow of $126 million, comprised of cash flow from operations of $167 million, less $41 million in net capital expenditures and other(1)
    • Normalized free cash flow of $144 million(1)
    • Repurchased $100 million of ordinary shares during the third fiscal quarter
    • Record twelve-month backlog of $3.95 billion, up approximately $60 million sequentially and up 10% compared to last year's third fiscal quarter

    JERSEY CITY, N.J., Aug. 03, 2022 (GLOBE NEWSWIRE) -- 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 June 30, 2022.

    "Our solid third quarter operating performance reflects strong demand for Amdocs' products and services across our core strategic growth pillars of 5G monetization, cloud adoption, digital modernization, and network automation. Record revenue of $1.16 billion was up 8.8%, or 10.8% from a year ago after adjusting for foreign currency(3) headwinds. In addition to strong execution, our sales momentum was again robust this quarter. Among the notable wins, we secured a multi-year deal to accelerate Vodafone Germany's digital transformation, and we ended Q3 with record 12-month backlog of $3.95 billion, up 10% from a year ago. To expand our SaaS-based cloud network and service assurance offering, we also announced the planned acquisition of MYCOM OSI, a strategic growth move that builds on our other recent successful acquisitions in the network and cloud space," said Shuky Sheffer, president and chief executive officer of Amdocs Management Limited.

    "We have delivered consistent profitability as we balanced accelerated R&D investments, foreign currency headwinds and a competitive labor market with disciplined project deployment and continued focus on operational excellence. Additionally, we delivered another record quarter in managed services, for which customer renewal rates have historically averaged nearly 100% over time. A prime example is a recent five-year managed services extension with AT&T's Cricket Wireless, where we have expanded our relationship to leverage our latest cloud-native technologies, including incident management and next-generation digital catalog", said Tamar Rapaport-Dagim, chief financial officer & chief operating officer of Amdocs Management Limited.

    Sheffer concluded, "While we are closely monitoring the uncertain global macroeconomic environment, we are confident in our unique business model that includes mission critical products and services, highly recurring revenue streams and long-term customer engagements. More than ever, we believe Amdocs is positioned as a highly relevant and trusted partner to our customers, who require market-leading innovation to enable revenue growth, cost reduction and efficiency improvement in the 5G and cloud era. We remain on-track to deliver accelerated revenue growth of roughly 10% on a pro forma(2), constant currency(3) basis for the full year fiscal 2022, our visibility to which is supported by our record 12-month backlog and the rich pipeline of opportunity ahead."

    Revenue

    (All comparisons are against the prior year period)

     

    In Millions

     

    Three months ended

     

    June 30, 2022

     

    Actual

    Previous

    Guidance

    Revenue

    $

    1,160

     

    $1,140-$1,180

    Revenue growth, as reported

     

    8.8

    %

     

    Revenue growth, constant currency(3)

     

    10.8

    %

     
         
    • Revenue for the third fiscal quarter of 2022 was at the midpoint of Amdocs' guidance, despite unfavorable foreign currency movements of roughly $7 million compared to our guidance assumptions and relative to the second quarter of fiscal 2022



    Net Income and Earnings Per Share

      

    In thousands, except per share data

      

    Three months ended

      

    June 30,

       

    2022

      

    2021

    GAAP Measures

        
         

    Net income

     

    $

            128,466

     

    $

            146,150

         

    Diluted earnings per share

     

    $

            1.04

     

    $

            1.14

         

    Non-GAAP Measures

        
         

    Net income

     

    $

    156,520

      

    173,283

    Diluted earnings per share

     

    $

                     1.27

     

    $

                      1.35

           
    • 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 August3, 2022, the Board approved the Company's next quarterly cash dividend payment of $0.395 per share and set September30, 2022 as the record date for determining the shareholders entitled to receive the dividend, which will be payable on October28, 2022
    • Share Repurchase Activity: Repurchased $100 million of ordinary shares during the third quarter of fiscal 2022

    Twelve-month Backlog

    Twelve-month backlog was a record $3.95 billion at the end of the third quarter of fiscal 2022, up approximately 10% as compared to last year's third 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.



    Fourth Quarter Fiscal 2022 Outlook

     

    In millions, except per share data

     

    Q4 2022

    Revenue

    $1,145-$1,185

    GAAP diluted EPS

    $0.98-$1.06

    Non-GAAP diluted EPS

    $1.26-$1.32

    • Fourth quarter revenue guidance assumes approximately $4 million sequential unfavorable impact from foreign currency fluctuations as compared to the third quarter of fiscal 2022
    • Fourth 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 $0.12-$0.14per share of equity-based compensation expense and other, net of related tax effects



    Full Year Fiscal 2022 Outlook

     

    FY 2022, year-over-year growth

     

    Current Guidance

    Previous Guidance

    Revenue growth, as reported

    6.2%-7.2%

    5.2%-7.2%

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

    9.6%-10.6%

    8.0%-10.0%

       
       

    GAAP diluted EPS growth

    (18.0) %-(16.5)%

    (20.5) %-(17.0)%

    Adjusted GAAP diluted EPS growth(4)

    11.0%-13.5%

    7.5%-12.5%

    Non-GAAP diluted EPS growth

    9.6%-10.9%

    7.3%-10.3%

    Pro forma(2) non-GAAP diluted EPS growth

    11.2%-12.5%

    9.0%-12.0%

       
     

    FY 2022, in millions

     

    Current Guidance

    Previous Guidance

    Free cash flow(1)

    ~$520

    ~$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 1.2% year-over-year as compared with an unfavorable impact of about 0.8% 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 $0.45-$0.47 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(4) growth, excludes gain from divestiture of OpenMarket, net of related tax effects
    • Non-GAAP effective tax rate is anticipated to be within a range of 13.0% to 17.0% for the full year fiscal 2022
    • 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 $110 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% 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 and acquisition activity which cannot be reasonably predicted at this time

    Our fourth 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 prevailing level of macroeconomic, business and operational uncertainty and the COVID-19 pandemic, 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 August 3, 2022 at 5:00 p.m. Eastern Time to discuss the Company's third quarter of fiscal 2022 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(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 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 $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 and our Form 6-K furnished for the first quarter of fiscal 2022 on February 14, 2022 and for the second quarter of fiscal 2022 on May 24, 2022.

    Contact:

    Matthew Smith

    Head of Investor Relations

    Amdocs

    314-212-8328

    E-mail: [email protected]



    AMDOCS LIMITED

    Consolidated Statements of Income

    (In thousands, except per share data)

      

    Three months ended

     

    Nine months ended

      

    June 30,

     

    June 30,

       

    2022

       

    2021

      

    2022

      

    2021(a)

             

    Revenue

     

    $

            1,160,290

      

    $

            1,066,254

     

    $

            3,410,193

      

    $

    3,201,331

     
             

    Operating expenses:

            

    Cost of revenue

      

            748,214

       

            689,370

      

    2,206,189

       

             2,103,601

     

    Research and development

      

    89,479

       

            80,794

      

    258,488

       

     231,617

     

    Selling, general and administrative

      

    136,110

       

            122,401

      

    399,168

       

    361,240

     

    Amortization of purchased intangible assets and other

      

            17,173

       

            18,770

      

    53,237

       

    60,510

     
       

            990,976

       

            911,335

      

            2,917,082

       

    2,756,968

     

    Operating income

      

            169,314

       

            154,919

      

            493,111

       

    444,363

     
             

    Interest and other (expense) income, net

      

            (7,811

    )

      

            334

      

            (18,992

    )

      

    (9,698

    )

    Gain from sale of a business

      

            -

       

            -

      

            10,000

       

    226,410

     

    Income before income taxes

      

            161,503

       

            155,253

      

            484,119

       

    661,075

     
             

    Income taxes

      

            33,037

       

            9,103

      

            63,554

       

            96,226

     

    Net income

     

    $

            128,466

      

    $

            146,150

     

    $

            420,565

      

    $

            564,849

     

    Basic earnings per share

     

    $

            1.05

      

    $

            1.15

     

    $

            3.41

      

    $

            4.37

     

    Diluted earnings per share

     

    $

            1.04

      

    $

            1.14

     

    $

            3.39

      

    $

            4.34

     

    Basic weighted average number of shares outstanding

      

            122,319

       

            127,172

      

            123,271

       

            129,362

     

    Diluted weighted average number of shares outstanding

      

            123,153

       

            128,050

      

            124,098

       

            130,115

     

    Cash dividends declared per share

     

    $

            0.395

      

    $

            0.36

     

    $

    1.15

      

    $

            1.0475

     



    AMDOCS LIMITED

    Selected Financial Metrics

    (In thousands, except per share data)

      

    Three months ended

     

    Nine months ended

      

    June 30,

     

    June 30,

       

    2022

      

    2021

      

    2022

     

    2021(a)

             

    Revenue

     

    $

           1,160,290

     

    $

    1,066,254

     

    $

    3,410,193

     

    $

    3,201,331

             

    Non-GAAP operating income

      

    204,325

      

    187,606

      

    599,557

      

    560,470

             

    Non-GAAP net income

      

        156,520

      

            173,283

      

    497,599

      

    474,350

             

    Non-GAAP diluted earnings per share

     

    $

    1.27

     

    $

        1.35

     

    $

    4.01

     

    $

    3.65

             

    Diluted weighted average number of shares outstanding

      

    123,153

      

    128,050

      

    124,098

      

    130,115



    Free Cash Flows and Normalized Free Cash Flow

    (In thousands)

      

    Three months ended

     

    Nine months ended

      

    June 30,

     

    June 30,

       

    2022

       

    2021

       

    2022

      

    2021(a)

             

    Net Cash Provided by Operating Activities

     

    $

            166,826

      

    $

            189,873

      

    $

            539,800

      

    $

            726,094

     



     





      





      





      





     

    Purchases of property and equipment, net (c)

     



    (40,904)

      



    (50,255)

      



    (145,400)

      



    (149,565)

     
             

    Free Cash Flow

      

    125,922

       

    139,618

       

    394,400

       

    576,529

     
             

    Tax payment on sale of business(b)

      

    -

       

    13,597

       

    3,193

       

    38,787

     
             

    Payments of acquisition related liabilities

      

    -

       

    -

       

    14,350

       

    13,234

     
             

    Net capital expenditures related to the new campus development

      

    18,260

       

    25,324

       

    77,676

       

    67,879

     
             

    Normalized Free Cash Flow

     

    $

         144,182

      

    $

         178,539

      

    $

       489,619

      

    $

       696,429

     

    (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 divestiture 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 $521 and $233 for the nine months ended June 30, 2022 and 2021, respectively.



    AMDOCS LIMITED

    Reconciliation of Selected Financial Metrics from GAAP to Non-GAAP

    (In thousands)

     

    Three months ended

    June 30, 2022

         

    Reconciliation items









     

    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

    $

    748,214

     

    $

     -

     

    $

    (8,523

    )

    $

    284

     

    $

    -

     

    $

     -

     

    $

                  739,975

     

    Research and development

     

    89,479

       

    (1,495

    )

        

    87,984

     

    Selling, general and administrative

     

    136,110

       

    (8,104

    )

        

    128,006

     

    Amortization of purchased intangible assets and other

     

    17,173

      

    (17,173

    )

         

    -

     

    Total operating expenses

     

    990,976

      

     (17,173

    )

     

    (18,122

    )

     

     284

       

     -

      

    955,965

     
            

    Operating income

     

    169,314

      

    17,173

      

    18,122

      

    (284

    )

       

    204,325

     
            

    Interest and other expense, net

     

    (7,811

    )

        

    500

       

    (7,311

    )

            

    Income taxes

     

    33,037

          

    7,457

      

    40,494

     
        

         

       

    Net income

    $

    128,466

     

    $

    17,173

     

    $

    18,122

     

    $

    (284

    )

    $

    500

     

    $

    (7,457

    )

    $

    156,520

     
            
     

     



    Three months ended


    June 30, 2021

         

    Reconciliation items









     

    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

    $

             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

     
            



    AMDOCS LIMITED

    Reconciliation of Selected Financial Metrics from GAAP to Non-GAAP

    (In thousands)

     

    Nine months ended

    June 30, 2022

     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

    $

    2,206,189

     

    $

                     -

     

    $

    (23,740

    )

    $

    (509

    )

    $

                     -

     

    $

                     -

     

    $

                     -

     

    $

    2,181,940

     

    Research and development

     

    258,488

       

    (4,093

    )

         

    254,395

     

    Selling, general and administrative

     

    399,168

       

    (24,867

    )

         

    374,301

     

    Amortization of purchased intangible assets and other

     

    53,237

      

    (53,237

    )

          

    -

     

    Total operating expenses

     

    2,917,082

      

    (53,237

    )

     

    (52,700

    )

     

    (509

    )

     

    -

       

    -

      

    2,810,636

     
             

    Operating income

     

    493,111

      

    53,237

      

    52,700

      

    509

      

    -

        

    599,557

     
             

    Interest and other expense, net

     

    (18,992

    )

         

    (2,005

    )

      

    (20,997

    )

             

    Gain from sale of a business

     

    10,000

         

    (10,000

    )

       

    -

     
             

    Income taxes

     

    63,554

           

    17,407

      

    80,961

     
             

    Net income

    $

    420,565

     

    $

    53,237

     

    $

    52,700

     

    $

    509



    $

    (10,000

    )

    $

    (2,005

    )

    $

    (17,407

    )

    $

    497,599

     
             
     



    Nine months ended

    June 30, 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

    $

        2,103,601

     

    $

                    -

     

    $

     (16,543

    )

    $

    (15,654

    )

    $

             -

     

    $

    -

     

    $

    -

     

    $

             2,071,404

     

    Research and development

     

    231,617

      

    -

      

    (2,876

    )

     

    -

      

    -

      

    -

      

    -

      

    228,741

     

    Selling, general and 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

     
             



    AMDOCS LIMITED


    Condensed Consolidated Balance Sheets

    (In thousands)

     

    As of

      

    June 30,

    2022

     

    September 30,

    2021



          

    ASSETS

         
          

    Current assets

         

    Cash and cash equivalents

      $

    597,761

      $

    709,064

     

    Short-term interest-bearing investments

      

    252,512



     

    256,527



    Accounts receivable, net, including unbilled of $137,411 and $162,278, respectively

      

    1,039,983



     

    866,819



    Prepaid expenses and other current assets

      

    226,027



     

    235,089



    Total current assets

      

    2,116,283



     

    2,067,499



          

    Property and equipment, net

      

    747,782



     

    698,768



    Lease assets

      

    207,885



     

    233,162



    Goodwill and other intangible assets, net

      

    2,866,914



     

    2,881,676



    Other noncurrent assets

      

    563,188



     

    630,669



    Total assets

     $ 

    6,502,052

      $

    6,511,774

     
          

    LIABILITIES AND SHAREHOLDERS' EQUITY

         
          

    Current liabilities

         

    Accounts payable, accruals and other

     

    $

       990,255



     $

    1,007,777

     

    Lease liabilities

      

    49,255



     

    58,714



    Deferred revenue

      

    294,809



     

    237,374



    Total current liabilities

      

    1,334,319



     

    1,303,865



    Lease liabilities

      

    165,669



     

    177,906



    Long-term debt, net of unamortized debt issuance costs

      

    644,974



     

    644,553



    Other noncurrent liabilities

      

    783,877



     

    750,266



    Total Amdocs Limited Shareholders' equity

      

    3,530,704



     

    3,592,675



    Noncontrolling interests

      

    42,509



     

    42,509



    Total equity

      

    3,573,213



     

    3,635,184



    Total liabilities and equity

     $

    6,502,052

      $

    6,511,774

     



    AMDOCS LIMITED

    Consolidated Statements of Cash Flows

    (In thousands)

      

    Nine months ended

    June 30,

       

    2022

      

    2021(a)

         

    Cash Flow from Operating Activities:

        

    Net income

     

    $

            420,565

      

    $

            564,849

     

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

        

    Depreciation, amortization and impairment

      

    174,712

       

    157,024

     

    Amortization of debt issuance costs

      

    421

       

    409

     

    Equity-based compensation expense

      

    52,700

       

    39,943

     

    Gain from sale of a business

      

    (10,000

    )

      

    (226,410

    )

    Deferred income taxes

      

    (20,442

    )

      

    (64,882

    )

    Loss from short-term interest-bearing investments

      

    2,028

       

    1,006

     

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

            

    Accounts receivable, net

      

    (157,557

    )

      

    (121,653

    )

    Prepaid expenses and other current assets

      

    3,534

       

    (434

    )

    Other noncurrent assets

      

    27,918

       

    (19,387

    )

    Lease assets and liabilities, net

      

    3,603

       

    6,724

     

    Accounts payable, accrued expenses and accrued personnel

      

    (63,804

    )

      

    110,982

     

    Deferred revenue

      

    28,465

       

    205,915

     

    Income taxes payable, net

      

    19,903

       

    44,711

     

    Other noncurrent liabilities

      

    57,754

       

    27,297

     

    Net cash provided by operating activities

      

    539,800

       

    726,094

     
             

    Cash Flow from Investing Activities:

            

    Purchase of property and equipment, net (c)

      

    (145,400

    )

      

    (149,565

    )

    Proceeds from sale of short-term interest-bearing investments

      

    20,043

       

    14,333

     

    Purchase of short-term interest-bearing investments

      

    (34,275

    )

      

    (208,626

    )

    Net cash paid for business and intangible assets acquisitions

      

    (24,430

    )

      

    (111,932

    )

    Net cash received from sale of a business

      

    10,000

       

    288,990

     

    Other

      

    (5,030

    )

      

    (332

    )

    Net cash used in investing activities

      

    (179,092

    )

      

    (167,132

    )

         

    Cash Flow from Financing Activities:

        

    Payments under financing arrangements

      

    -

       

    (100,000

    )

    Repurchase of shares

      

    (400,922

    )

      

    (539,969

    )

    Proceeds from employee stock options exercises

      

    72,957

       

    84,474

     

    Payments of dividends

      

    (137,893

    )

      

    (131,892

    )

    Payment of contingent consideration from a business acquisition

      

    (6,153

    )

      

    (1,462

    )

    Net cash used in financing activities

      

    (472,011

    )

      

    (688,849

    )

         

    Net decrease in cash and cash equivalents

      

    (111,303

    )

      

    (129,887

    )

    Cash and cash equivalents at beginning of period

      

    709,064

       

    983,188

     

    Cash and cash equivalents at end of period

     

    $

             597,761

      

    $

             853,301

     



    AMDOCS LIMITED

    Supplementary Information

    (In millions)



               
      Three months ended
             June 30,         March 31,  December 31,

     September 30,        June 30,
     2022 20222021 2021 2021
     North America $        788.0 $        772.2 $        745.5 $        722.8 $        686.1
     Europe  146.1  147.2  142.5  146.8  155.7
     Rest of the World  226.2  225.9  216.6  217.7  224.5
     Total Revenue $        1,160.3 $        1,145.3 $        1,104.6 $        1,087.3 $        1,066.3
               
               
               
      Three months ended
            June 30,        March 31,  December 31, September 30,        June 30,
     2022 20222021 2021 2021
    Managed Services Revenue $        717.9 $        663.4 $        659.7 $        637.5 $        650.5
               
               
               
      As of
             June 30,        March 31,  December 31,

       September 30,        June 30,
     2022 20222021 2021 2021
      12-Month Backlog $        3,950 $        3,890 $        3,830 $        3,690 $        3,590

    (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; fiscal 2022 GAAP diluted EPS growth outlook is (18.0)%-(16.5)% on a non-adjusted basis



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