Amdocs (DOX) Tops Q4 EPS by 2c, Q1 Guidance Comes in Light

Amdocs Limited Reports Record Quarterly Revenue of $927M

November 10, 2015 4:01 PM EST

Expects Fiscal 2016 Revenue Growth of 2.0-6.0% YoY in Constant Currency and 1.0-5.0% YoY as Reported

Quarterly Cash Dividend to be Raised From $0.17 to $0.195 Per Share, Subject to Shareholder Approval at Annual Meeting, February 2016

Key highlights:

Fourth fiscal quarter revenue of $927 million, within the $915-$955 million guidance range. Revenue was slightly above the midpoint of expectations, excluding foreign currency movements. Foreign currency movements negatively affected revenue by approximately $9 million relative to the third quarter of fiscal 2015 Fourth fiscal quarter diluted non-GAAP EPS of $0.84, in line with the high-end of the $0.79-$0.85 guidance range, excluding amortization of purchased intangible assets and other acquisition-related costs, nonrecurring restructuring charges associated with the acquisition of the Comverse BSS assets, and equity-based compensation expense, net of related tax effects Fourth fiscal quarter non-GAAP operating income of $157 million; non-GAAP operating margin of 16.9%; GAAP operating income of $110 million Diluted GAAP EPS of $0.59 for the fourth fiscal quarter, in line with the high-end of the $0.49-$0.59 guidance range Strong free cash flow of $180 million for the fourth fiscal quarter Repurchased $182 million of ordinary shares during the fourth fiscal quarter Twelve-month backlog of $3.08 billion at the end of the fourth fiscal quarter, up $70 million from the end of the third quarter of fiscal 2015 The board of directors approved a $0.17 per share quarterly cash dividend to be paid on January 15, 2016, and, subject to shareholders' approval at the February 2016 annual general meeting of shareholders, an increase in the quarterly cash dividend to $0.195 per share, anticipated to be paid in April 2016 First quarter fiscal 2016 guidance: Expected revenue of approximately $905-$945 million. Expected diluted non-GAAP EPS of approximately $0.82-$0.88, excluding amortization of purchased intangible assets and other acquisition-related costs, and approximately $0.09-$0.10 per share of equity-based compensation expense, net of related tax effects. Expected diluted GAAP EPS of approximately $0.59-$0.67 Fiscal 2016 guidance: Expected revenue growth of 2.0-6.0% in constant currency and 1.0-5.0% as reported, including a negative impact from foreign currency movements of approximately 1%, and non-GAAP diluted earnings per share growth of roughly 3.5-7.5%, including the impact of anticipated share repurchase activity over the course of the fiscal year

ST. LOUIS, Nov. 10, 2015 (GLOBE NEWSWIRE) -- Amdocs Limited (NASDAQ: DOX) today reported that for its fourth fiscal quarter ended September 30, 2015, revenue was $926.8 million, up 2.1% sequentially from the third fiscal quarter of 2015 and up 2.9% as compared to last year's fourth fiscal quarter. Fourth fiscal quarter revenue includes a negative impact from foreign currency movements of approximately $9 million relative to the third quarter of fiscal 2015. Net income on a non-GAAP basis was $130.4 million, or $0.84 per diluted share, compared to non-GAAP net income of $124.3 million, or $0.78 per diluted share, in the fourth quarter of fiscal 2014. Non-GAAP net income excludes amortization of purchased intangible assets and other acquisition-related costs, nonrecurring restructuring charges associated with the acquisition of the Comverse BSS assets and equity-based compensation expenses of $39.2 million, net of related tax effects, in the fourth quarter of fiscal 2015 and excludes such amortization and other acquisition-related costs, changes in fair value of certain acquisition-related liabilities and equity-based compensation expenses of $23.8 million, net of related tax effects, in the fourth quarter of fiscal 2014. The Company's GAAP net income for the fourth quarter of fiscal 2015 was $91.1 million, or $0.59 per diluted share, compared to GAAP net income of $100.5 million, or $0.63 per diluted share, in the prior fiscal year's fourth quarter.

"We concluded fiscal 2015 with another solid quarter. Revenue was slightly above the mid-point of our expectations after adjusting for the negative impact of foreign currencies, and the quarter included another record contribution in our Rest-of-World markets where we delivered growth of 27% for the full year. As we previously anticipated, uncertainty resulting from customer consolidation activity continued to impact our performance in North America but we remained focused on providing value to our customers while maintaining strict operational execution across the various dimensions of our business. Additionally, our free cash flow was robust and we delivered on our commitment to accelerate our share repurchase activity in the fourth fiscal quarter. Overall, we grew non-GAAP diluted earnings per share by 7% in fiscal 2015, which is consistent with the high-end of our guidance issued at the start of the year," said Eli Gelman, president and chief executive officer of Amdocs Management Limited.

Gelman continued, "Our win rate was strong across all regions in fiscal 2015 and included several significant new awards in the fourth quarter. We are delighted to announce today that Vodafone UK has selected Amdocs for a major four-year managed BSS/OSS transformation project in support of its enterprise business. Additionally, KT Corporation in Korea has selected Amdocs under a multi-year services agreement for a strategic charging transformation... More