Digital Platforms and Services

Amdocs releases second-quarter results for fiscal 2023

Via Amdocs

May 11, 2023

  • Record Quarterly Revenue of $1.22bn, Above Midpoint of Guidance and up 6.8% YoY as Reported and 8.2% YoY in Constant Currency(2)
  • Reiterates Fiscal 2023 Revenue Growth Outlook while Tightening Expected Range to 6%-8% as Reported and 7%-9% Constant Currency(2)
  • Reiterates Fiscal 2023 Earnings per Share Growth Targets
  • Reiterates Fiscal 2023 Free Cash Flow(1) Outlook of $700m

Second Quarter Fiscal 2023 Highlights

(All comparisons are against the prior year)

  • Record revenue of $1,223 million, up 6.8% as reported and up 8.2% 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, up 7.4%, and record revenue of $172 million in Europe, up 16.6%
  • Record managed services revenue of $719 million, equivalent to approximately 59% 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 of 14.9%, 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 of 17.8%, 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, up 5.7% 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 $1.22 billion was up 8.2% from a year ago in constant currency(2), driven by our best-ever quarters in North America and Europe, and we saw continued sales momentum with many cloud-related wins in the quarter. New deals included key awards with T-Mobile in the US, two new logos in Eastern Europe, and a significant cloud-migration engagement with PLDT in the Philippines. On the strategic front, we expanded our Microsoft partnership to bring a new AI-powered Customer Engagement Platform, and we sharpened our focus on the growth potential of B2B with the launch of CES23, our most advanced Customer Experience Suite yet. Additionally, we signed a definitive agreement to acquire the service assurance business of TEOCO to enhance the execution of our network automation strategy," said Shuky Sheffer, president and chief executive officer of Amdocs Management Limited.

"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 7% to 9% in fiscal 2023, while maintaining improved profitability and robust earnings to cash conversion for the full year."

Revenue

(All comparisons are against the prior year period)

 

  In millions  

 

  Three months ended  

 

  March 31, 2023  

 

  Actual     Guidance  
             
Revenue   $ 1,223     $ 1,200 - $1,240  

Revenue Growth, as reported

    6.8%          

Revenue Growth, constant currency (2)

    8.2%          
  • 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 $0.435 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 $4.11 billion at the end of the second quarter of fiscal 2023, up approximately 5.7% as compared to last year's second 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.

Third Quarter Fiscal 2023 Outlook

 

  In millions, expect per share data  

 

    Q3 - 2023  

Revenue

  $ 1,215-$1,255  

GAAP Diluted earnings per share

  $ 1.16-$1.26  

Non-GAAP Diluted earnings per share

  $ 1.45-$1.51  
  • 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

  6.0%-8.0%     5.0%-9.0%  

Revenue Growth, constant currency (2)

  7.0%-9.0%     6.0%-10.0%  

GAAP Diluted earnings per share

  3.0%-10.0%     3.0%-10.0%  

Non-GAAP Diluted earnings per share

  9.0%-13.0%     9.0%-13.0%  

 

               
    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% to 17.0% 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

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 $4.58 billion in fiscal 2022.

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: $159,758 and $345,437, respectively, excluding net capital expenditures related to the new campus development of $30,109 and $59,416, respectively, payment for acquisition related liability of $4,871 and $14,350, respectively, and tax payment on sale of business of $3,193.


(a) The amounts under "Purchase of property and equipment, net" include proceeds from sale of property and equipment of $255 and $555 for the six months ended March 31, 2023 and 2022, respectively.
(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 $166,866 and $157,165, respectively

    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

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