-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, KkmoNokpYo0HYIyaoSBQXabtU9zFz1j9iky+FY/Nw61XljvTOzznR4qqS1QRJFie ee9gYaDo6wxWaS0PYLyFAg== 0000950123-06-009169.txt : 20060720 0000950123-06-009169.hdr.sgml : 20060720 20060720085105 ACCESSION NUMBER: 0000950123-06-009169 CONFORMED SUBMISSION TYPE: 6-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20060720 FILED AS OF DATE: 20060720 DATE AS OF CHANGE: 20060720 FILER: COMPANY DATA: COMPANY CONFORMED NAME: AMDOCS LTD CENTRAL INDEX KEY: 0001062579 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-COMPUTER PROGRAMMING SERVICES [7371] IRS NUMBER: 000000000 STATE OF INCORPORATION: X0 FISCAL YEAR END: 0930 FILING VALUES: FORM TYPE: 6-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-14840 FILM NUMBER: 06970546 BUSINESS ADDRESS: STREET 1: SUITE 5, TOWER HILL HOUSE LE BORDAGE STREET 2: ST PETER PORT CITY: ISLAND OF GUERNSEY STATE: X0 ZIP: GY1 3QT BUSINESS PHONE: 011-44-1481-728444 MAIL ADDRESS: STREET 1: SUITE 5, TOWER HILL HOUSE LE BORDAGE STREET 2: ST PETER PORT CITY: ISLAND OF GUERNSEY STATE: X0 ZIP: GY1 3QT 6-K 1 y23323ae6vk.txt FORM 6-K UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 6-K REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13A-16 OR 15D-16 UNDER THE SECURITIES EXCHANGE ACT OF 1934 For the month of July 2006 Commission File Number 1-14840 AMDOCS LIMITED Suite 5, Tower Hill House Le Bordage St. Peter Port, Island of Guernsey, GY1 3QT Channel Islands Amdocs, Inc. 1390 Timberlake Manor Parkway, Chesterfield, Missouri 63017 (Address of principal executive offices) Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F. FORM 20-F X FORM 40-F ----- ----- Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ----- Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ----- Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to rule 12g3-2(b) under the Securities Exchange Act of 1934. YES NO X ----- ----- On July 19, 2006, Amdocs Limited ("Amdocs") issued a press release announcing financial results for the quarter ended June 30, 2006. A copy of the press release is furnished as Exhibit 99.1 to this Report of Foreign Private Issuer on Form 6-K. The information in this Form 6-K (including Exhibit 99.1) shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934 (the "Exchange Act") or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933 or the Exchange Act. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. AMDOCS LIMITED /s/ Thomas G. O'Brien ---------------------------------------- Thomas G. O'Brien Treasurer and Secretary Authorized U.S. Representative Date: July 20, 2006 EXHIBIT INDEX
EXHIBIT NO. DESCRIPTION - ----------- ----------- 99.1 Amdocs Limited Press Release dated July 19, 2006.
EX-99.1 2 y23323aexv99w1.txt PRESS RELEASE Exhibit 99.1 AMDOCS LIMITED REPORTS 23% GROWTH IN REVENUE TO A RECORD $626 MILLION FOR THE THIRD QUARTER OF FISCAL 2006 32% GROWTH IN DILUTED NON-GAAP EARNINGS PER SHARE TO $0.49; DILUTED GAAP EARNINGS PER SHARE OF $0.39 Key highlights: - Third quarter revenue grew 23% to $626 million - 32% increase in third quarter diluted non-GAAP EPS, excluding acquisition-related costs and equity-based compensation expense, net of related tax effects, to $0.49; Exceeds guidance of $0.46 - Diluted GAAP EPS of $0.39 - Free cash flow of $94 million for the quarter - Qpass acquisition positions Amdocs as the leader in the emerging digital content market - After the quarter, Amdocs announced that it signed an agreement to acquire Cramer Systems Group Ltd., a leading provider of operations support systems (OSS) software and solutions, for approximately $375 million in cash, net of cash on hand - Fourth quarter fiscal 2006 guidance: Expected revenue of approximately $657 million and diluted non-GAAP EPS of $0.49, excluding acquisition-related costs and approximately $0.04-$0.05 per share of equity-based compensation expense, net of related tax effects. Diluted GAAP EPS is expected to be approximately $0.41-$0.42. This guidance excludes any potential impact of the pending acquisition of Cramer - Preliminary fiscal 2007 guidance: Expected revenue of approximately $2.880 - $2.980 billion and diluted non-GAAP EPS of $2.06 - $2.16, which exclude acquisition-related costs and approximately $0.19-$0.22 per share of equity-based compensation expense, net of related tax effects. This guidance includes the expected impact of the pending acquisition of Cramer. Amdocs expects to provide guidance for 2007 diluted GAAP EPS after the purchase price accounting for the acquisition is completed ST. LOUIS, MO - JULY 19, 2006 - Amdocs Limited (NYSE: DOX) today reported that for the quarter ended June 30, 2006, revenue was $626.4 million, an increase of 23.5% from last year's third quarter. Excluding acquisition-related costs, which include amortization of purchased intangible assets and the write-off of in-process research and development and excluding equity-based compensation expense, net of related tax effects, of $20.6 million, net income on a non-GAAP basis was $106.2 million, or $0.49 per diluted share, compared to non-GAAP net income, excluding $1.7 million of acquisition-related costs net of related tax effects, of $78.8 million, or $0.37 per diluted share, in the third quarter of fiscal 2005. The Company's net income was $85.6 million, or $0.39 per diluted share, compared to net income of $77.1 million, or $0.36 per diluted share, in the third quarter of fiscal 2005. Free cash flow, defined as cash flow from operations less net capital expenditures and principal payments on capital leases, was $94 million in the quarter. "We are pleased to again report record revenues and increasing profitability," said Dov Baharav, chief executive officer of Amdocs Management Limited. "We see demand in the market, which continues to be driven by service providers' need to address competition, consolidation and convergence. We have strengthened our presence in the digital content area with our acquisition of Qpass and we are expanding our OSS activities with our pending acquisition of Cramer. Amdocs is positioned as the only vendor that can provide an end-to-end solution, from business support systems -- or BSS -- to OSS, for the leading services providers. This will put us in the leading position to benefit from the growth opportunities as service providers transform their organizations in order to offer new products and services. We are confident that our success in 2006 will continue as we look towards fiscal 2007." During the third quarter, Amdocs new business included 11 key wins, across geographies and lines of business. Amdocs expanded its relationship with Rogers Communications, which will install Amdocs CRM across its cable, wireless and telecom lines of business as part of a rollout of an integrated customer management strategy. In Australia, Telstra has selected Amdocs as one of the key vendors for an OSS transformational program. In the United States, Amdocs was awarded several projects related to assisting customers in their consolidation and integration of acquisitions. In broadband cable and satellite, a customer has signed a contract extension. Several other customers, including some new logos, have chosen Amdocs for CRM, Amdocs Partner Management and mediation projects. FINANCIAL OUTLOOK Amdocs expects that revenue for the fourth quarter of fiscal 2006 will be approximately $657 million. Diluted earnings per share on a non-GAAP basis for the fourth quarter are expected to be $0.49, excluding acquisition-related costs and the impact of approximately $0.04-$0.05 per share of equity-based compensation expense, net of related tax effects. Diluted GAAP EPS is expected to be approximately $0.41-$0.42. This guidance excludes any potential impact of the pending acquisition of Cramer. Amdocs expects that it may incur a one-time charge in its fourth fiscal quarter to account for certain costs related to the Cramer acquisition. Preliminary fiscal 2007 guidance: Expected revenue of approximately $2.880-$2.980 billion and diluted non-GAAP EPS of $2.06-$2.16, which excludes acquisition-related costs and approximately $0.19-$0.22 per share of equity-based compensation expense, net of related tax effects. This guidance includes the expected impact of the pending acquisition of Cramer. Amdocs expects to provide guidance for diluted GAAP EPS after the purchase price accounting for the acquisition is completed. Amdocs will host a conference call on July 19, 2006 at 5 p.m. Eastern Time to discuss the Company's third quarter results. The call will be carried live on the Internet via www.InvestorCalendar.com and the Amdocs website, www.amdocs.com. NON-GAAP FINANCIAL MEASURES This release includes non-GAAP diluted earnings per share and other non-GAAP line items from the Non-GAAP Consolidated Statements of Income, including non-GAAP cost of service, non-GAAP research and development, non-GAAP selling, general and administrative, non-GAAP operating income, non-GAAP income before income taxes, non-GAAP income taxes and non-GAAP net income. These non-GAAP measures exclude the following items: - amortization of purchased intangible assets; - In-process research and development write-off; - equity-based compensation expense; and - tax effects related to the above. These non-GAAP financial measures are not in accordance with, or an alternative for, generally accepted accounting principles and may be different from non-GAAP financial measures used by other companies. In addition, these non-GAAP financial measures and the Non-GAAP Consolidated Statements of Income are not based on any comprehensive set of accounting rules or principles. Amdocs believes that non-GAAP financial measures have limitations in that they do not reflect all of the amounts associated with Amdocs' results of operations as determined in accordance with GAAP and that these measures should only be used to evaluate Amdocs' results of operations in conjunction with the corresponding GAAP measures. Amdocs believes that the presentation of non-GAAP diluted earnings per share and other non-GAAP line items from the Non-GAAP Consolidated Statements of Income, including non-GAAP cost of service, non-GAAP research and development, non-GAAP selling, general and administrative, non-GAAP operating income, non-GAAP income before income taxes, non-GAAP income taxes and non-GAAP net income, when shown in conjunction with the corresponding GAAP measures, provides useful information to investors and management regarding financial and business trends relating to its financial condition and results of operations. For its internal budgeting process and in monitoring the results of the business, Amdocs' management uses financial statements that do not include amortization of purchased intangible assets, in-process research and development write-off, equity-based compensation expense, and related tax effects. Amdocs' management also uses the foregoing non-GAAP financial measures, in addition to the corresponding GAAP measures, in reviewing the financial results of Amdocs. In addition, Amdocs believes that significant groups of investors exclude these non-cash expenses in reviewing its results and those of its competitors, because the amounts of the expenses between companies can vary greatly depending on the assumptions used by an individual company in determining the amounts of the expenses. Amdocs further believes that, where the adjustments used in calculating non-GAAP diluted earnings per share are based on specific, identified amounts that impact different line items in the Consolidated Statements of Income (including cost of service, research and development, selling, general and administrative, operating income, income before income taxes, income taxes and net income), it is useful to investors to understand how these specific line items in the Consolidated Statements of Income are affected by these adjustments. ABOUT AMDOCS Amdocs combines innovative software and services with deep business knowledge to accelerate implementation of integrated customer management by the world's leading service providers. By delivering a comprehensive portfolio of software and services that spans the customer lifecycle, Amdocs enables service companies to deliver an intentional customer experience(TM), which results in stronger, more profitable customer relationships. Service providers also benefit from a rapid return on investment, lower total cost of ownership and improved operational efficiencies. A global company with revenue of more than $2 billion in fiscal 2005, Amdocs has over 14,000 employees and serves customers in more than 50 countries around the world. For more information, visit Amdocs at www.amdocs.com. This press release includes information that constitutes forward-looking statements made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995, including statements about Amdocs growth and business results in future quarters. Although we believe the expectations reflected in such forward-looking statements are based upon reasonable assumptions, we can give no assurance that our expectations will be obtained or that any deviations will not be material. Such statements involve risks and uncertainties that may cause future results to differ from those anticipated. These risks include, but are not limited to, the effects of general economic conditions, Amdocs ability to grow in the business markets that it serves, Amdocs ability to successfully integrate acquired businesses, adverse effects of market competition, rapid technological shifts that may render the 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, the Company specifically disclaims any obligation to do so. These and other risks are discussed at greater length in the Company's filings with the Securities and Exchange Commission, including in our Annual Report on Form 20-F, filed on December 28, 2005 and our quarterly 6-K furnished on February 15 and May 15, 2006. CONTACT: Thomas G. O'Brien Treasurer and Vice President of Investor Relations Amdocs Limited 314-212-8328 E-mail: dox_info@amdocs.com AMDOCS LIMITED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) (IN THOUSANDS, EXCEPT PER SHARE DATA)
THREE MONTHS ENDED NINE MONTHS ENDED JUNE 30, JUNE 30, ------------------- ----------------------- 2006(1) 2005 2006(2) 2005 -------- -------- ---------- ---------- Revenue: License $ 23,220 $ 27,199 $ 85,172 $ 74,909 Service 603,228 480,156 1,729,433 1,390,394 -------- -------- ---------- ---------- 626,448 507,355 1,814,605 1,465,303 Operating expenses: Cost of license 995 1,125 2,973 3,278 Cost of service 402,626 324,249 1,165,010 929,487 Research and development 46,455 31,393 131,392 97,567 Selling, general and administrative 74,940 56,448 227,289 166,000 Amortization of purchased intangible assets 8,547 2,078 23,588 7,875 In-process research and development 8,415 -- 8,415 -- -------- -------- ---------- ---------- 541,978 415,293 1,558,667 1,204,207 -------- -------- ---------- ---------- Operating income 84,470 92,062 255,938 261,096 Interest income and other, net 14,938 4,305 33,659 14,944 -------- -------- ---------- ---------- Income before income taxes 99,408 96,367 289,597 276,040 Income taxes 13,823 19,270 46,916 55,203 -------- -------- ---------- ---------- Net income $ 85,585 $ 77,097 $ 242,681 $ 220,837 ======== ======== ========== ========== Basic earnings per share $ 0.42 $ 0.38 $ 1.20 $ 1.10 ======== ======== ========== ========== Diluted earnings per share(3) $ 0.39 $ 0.36 $ 1.13 $ 1.03 ======== ======== ========== ========== Basic weighted average number of shares outstanding 204,404 200,494 202,474 201,453 ======== ======== ========== ========== Diluted weighted average number of shares outstanding 220,109 216,570 217,633 217,608 ======== ======== ========== ==========
(1) The three months ended June 30, 2006 include equity-based compensation pre-tax expense of $10,948, which was classified as follows: $4,165 to Cost of service, $1,232 to Research and development and $5,551 to Selling, general and administrative. (2) The nine months ended June 30, 2006 include equity-based compensation pre-tax expense of $31,948, which was classified as follows: $12,237 to Cost of service, $3,041 to Research and development and $16,670 to Selling, general and administrative. (3) To reflect the impact of assumed conversion of the convertible notes, $985 and $2,964, representing interest expense and amortization of issuance costs, were added back to net income for the three and nine months ended June 30, 2006, respectively, and $988 and $2,955 were added back to net income for the three and nine months ended June 30, 2005, respectively, for the purpose of computing diluted earnings per share. AMDOCS LIMITED SELECTED FINANCIAL METRICS (IN THOUSANDS, EXCEPT PER SHARE DATA)
THREE MONTHS ENDED NINE MONTHS ENDED JUNE 30, JUNE 30, ------------------- ----------------------- 2006 2005 2006 2005 -------- -------- ---------- ---------- Revenue $626,448 $507,355 $1,814,605 $1,465,303 Non-GAAP operating income 112,380 94,140 319,889 268,971 Non-GAAP net income 106,169 78,756 291,678 227,132 Non-GAAP diluted earnings per share $ 0.49 $ 0.37 $ 1.35 $ 1.06 Diluted weighted average number of shares outstanding 220,109 216,570 217,633 217,608
AMDOCS LIMITED RECONCILIATION OF SELECTED FINANCIAL METRICS FROM GAAP TO NON-GAAP (IN THOUSANDS)
THREE MONTHS ENDED JUNE 30, 2006 ----------------------------------------------------------------------------- RECONCILIATION ITEMS ------------------------------------------------------- AMORTIZATION OF PURCHASED IN-PROCESS EQUITY BASED INTANGIBLE RESEARCH AND COMPENSATION GAAP ASSETS DEVELOPMENT EXPENSE TAX EFFECT NON-GAAP -------- ------------ ------------ ------------ ---------- -------- Operating expenses: Cost of license $ 995 $ -- $ -- $ -- $ -- $ 995 Cost of service 402,626 -- -- (4,165) -- 398,461 Research and development 46,455 -- -- (1,232) -- 45,223 Selling, general and administrative 74,940 -- -- (5,551) -- 69,389 Amortization of purchased intangible assets 8,547 (8,547) -- -- -- -- In-process research and development 8,415 -- (8,415) -- -- -- -------- ------- ------- -------- ------- -------- Total operating expenses 541,978 (8,547) (8,415) (10,948) -- 514,068 -------- ------- ------- -------- ------- -------- Operating income 84,470 8,547 8,415 10,948 -- 112,380 -------- ------- ------- -------- ------- -------- Income taxes 13,823 -- -- -- 7,326 21,149 -------- ------- ------- -------- ------- -------- Net income $ 85,585 $ 8,547 $ 8,415 $ 10,948 $(7,326) $106,169 -------- ------- ------- -------- ------- --------
AMDOCS LIMITED RECONCILIATION OF SELECTED FINANCIAL METRICS FROM GAAP TO NON-GAAP (CONT'D) (IN THOUSANDS)
THREE MONTHS ENDED JUNE 30, 2005 ----------------------------------------------- RECONCILIATION ITEMS ------------------------- AMORTIZATION OF PURCHASED INTANGIBLE GAAP ASSETS TAX EFFECT NON-GAAP -------- ------------ ---------- -------- Operating expenses: Cost of license $ 1,125 $ -- $ -- $ 1,125 Cost of service 324,249 -- -- 324,249 Research and development 31,393 -- -- 31,393 Selling, general and administrative 56,448 -- -- 56,448 Amortization of purchased intangible assets 2,078 (2,078) -- -- In-process research and development -- -- -- -- -------- ------- ----- -------- Total operating expenses 415,293 (2,078) -- 413,215 -------- ------- ----- -------- Operating income 92,062 2,078 -- 94,140 -------- ------- ----- -------- Income taxes 19,270 -- 419 19,689 -------- ------- ----- -------- Net income $ 77,097 $ 2,078 $(419) $ 78,756 -------- ------- ----- --------
AMDOCS LIMITED RECONCILIATION OF SELECTED FINANCIAL METRICS FROM GAAP TO NON-GAAP (IN THOUSANDS)
NINE MONTHS ENDED JUNE 30, 2006 --------------------------------------------------------------------------------- RECONCILIATION ITEMS ------------------------------------------------------- AMORTIZATION OF PURCHASED IN-PROCESS EQUITY BASED INTANGIBLE RESEARCH AND COMPENSATION GAAP ASSETS DEVELOPMENT EXPENSE TAX EFFECT NON-GAAP ---------- ------------ ------------ ------------ ---------- ---------- Operating expenses: Cost of license $ 2,973 $ -- $ -- $ -- $ -- $ 2,973 Cost of service 1,165,010 -- -- (12,237) -- 1,152,773 Research and development 131,392 -- -- (3,041) -- 128,351 Selling, general and administrative 227,289 -- -- (16,670) -- 210,619 Amortization of purchased intangible assets 23,588 (23,588) -- -- -- -- In-process research and development 8,415 -- (8,415) -- -- -- ---------- --------- ------- -------- -------- ---------- Total operating expenses 1,558,667 (23,588) (8,415) (31,948) -- 1,494,716 ---------- --------- ------- -------- -------- ---------- Operating income 255,938 23,588 8,415 31,948 -- 319,889 ---------- --------- ------- -------- -------- ---------- Income taxes 46,916 -- -- -- 14,954 61,870 ---------- --------- ------- -------- -------- ---------- Net income $ 242,681 $ 23,588 $ 8,415 $ 31,948 $(14,954) $ 291,678 ---------- --------- ------- -------- -------- ----------
AMDOCS LIMITED RECONCILIATION OF SELECTED FINANCIAL METRICS FROM GAAP TO NON-GAAP (CONT'D) (IN THOUSANDS)
NINE MONTHS ENDED JUNE 30, 2005 --------------------------------------------------- RECONCILIATION ITEMS ------------------------- AMORTIZATION OF PURCHASED INTANGIBLE GAAP ASSETS TAX EFFECT NON-GAAP ---------- ------------ ---------- ---------- Operating expenses: Cost of license $ 3,278 $ -- $ -- $ 3,278 Cost of service 929,487 -- -- 929,487 Research and development 97,567 -- -- 97,567 Selling, general and administrative 166,000 -- -- 166,000 Amortization of purchased intangible assets 7,875 (7,875) -- -- In-process research and development -- -- -- -- ---------- ------- ------- ---------- Total operating expenses 1,204,207 (7,875) -- 1,196,332 ---------- ------- ------- ---------- Operating income 261,096 7,875 -- 268,971 ---------- ------- ------- ---------- Income taxes 55,203 -- 1,580 56,783 ---------- ------- ------- ---------- Net income $ 220,837 $ 7,875 $(1,580) $ 227,132 ---------- ------- ------- ----------
AMDOCS LIMITED CONDENSED CONSOLIDATED BALANCE SHEETS (IN THOUSANDS)
AS OF ------------------------ JUNE 30, SEPTEMBER 2006 30, 2005 ----------- ---------- (Unaudited) (Audited) ASSETS Current assets Cash, cash equivalents and short-term interest-bearing investments $1,207,552 $1,145,563 Accounts receivable, net, including unbilled of $43,925 and $28,994, respectively 414,154 304,237 Deferred income taxes and taxes receivable 77,653 101,162 Prepaid expenses and other current assets 81,793 76,780 ---------- ---------- Total current assets 1,781,152 1,627,742 Equipment, vehicles and leasehold improvements, net 184,878 181,812 Goodwill and other intangible assets, net 1,411,561 1,129,258 Other noncurrent assets 318,740 263,656 ---------- ---------- Total assets $3,696,331 $3,202,468 ========== ========== LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities Accounts payable and accruals $ 512,636 $ 462,276 Short-term portion of capital lease obligations and other financing arrangements 1,938 8,480 Deferred revenue 243,381 216,770 Deferred income taxes and taxes payable 175,210 171,377 ---------- ---------- Total current liabilities 933,165 858,903 0.50% Convertible notes 450,000 450,000 Noncurrent liabilities and other 282,279 237,113 Shareholders' equity 2,030,887 1,656,452 ---------- ---------- Total liabilities and shareholders' equity $3,696,331 $3,202,468 ========== ==========
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