(openPR) Key highlights:
· Revenue of $450.2 million, in line with guidance
· Sequential revenue growth of 1.7%
· Proforma EPS increases 30.4% to $0.30, in line with guidance
· Diluted GAAP EPS of $0.28
· Fourth quarter fiscal 2004 guidance: Expected revenue of $452 million and proforma EPS of $0.30. Diluted GAAP EPS results expected to be $0.01-$0.02 less than proforma EPS.
St. Louis, MO – July 21, 2004 – Amdocs Limited (NYSE: DOX) today reported that for the third quarter ended June 30, 2004, revenue was $450.2 million, representing sequential growth of 1.7% and an increase of 19.4% from last year's third quarter. Excluding acquisition-related costs and related tax effects, net income was $63.5 million, or $0.30 per diluted share, and increased by $12.6 million, or 24.9%, when compared to net income excluding acquisition-related costs and related tax effects of $50.8 million, or $0.23 per diluted share, in the third quarter of fiscal 2003. The Company's GAAP net income was $59.9 million, or $0.28 per diluted share, compared to net income of $47.4 million, or $0.21 per diluted share, in the third quarter of fiscal 2003.
Dov Baharav, Chief Executive Officer of Amdocs Management Limited, said, "We are pleased to report solid results this quarter, which was highlighted by the continued strengthening of our relationships with some of our key Tier One customers. While the market has not grown at the rate expected, we continue to produce improved results, driven by our ability to expand market share.”
Baharav added, “There have been some very important developments for Amdocs with key customers. As we recently announced, Amdocs and Vodafone signed a long-term framework agreement positioning Amdocs as a strategic global billing solutions provider for Vodafone worldwide. At Bell Canada, we converted Bell Mobility to the Amdocs system and completed the project roadmap as planned.
“Amdocs should achieve very modest growth in the coming quarters,” Baharav continued. “Amdocs’ ability to offer solutions that enable communications service providers to move toward integrated customer management is becoming a compelling value proposition for our customers. By leveraging our competitive offering, we are confident that we can continue to gain market share. Looking further ahead, our market leadership, together with our expanding relationships with strategic customers, create a firm basis for accelerated quarterly growth in the future."
Sales Highlights
During the third quarter, our new business included eight new key wins, highlighted below.
· Amdocs had two system integration wins as part of its initiative to expand its services activities in this area. First, Vodafone Hungary has selected Amdocs as the system integrator to provide a turnkey billing project implementation based on the Amdocs Enabler billing product and including consulting, program management, product implementation and configuration, migration and conversion, testing, training and business processes integration services. In addition, we have been requested by one of our existing customers in North America to provide an expanded set of system integration services including program management and implementation support.
· For ASTRO ALL ASIA NETWORK plc’s MEASAT Broadcast Network Systems (Astro), a Malaysian satellite-based PayTV multimedia group, Amdocs will implement its next-generation consolidated Subscriber Management System including billing, customer relationship management (CRM) and order management solution. Using Amdocs Enabler and Amdocs ClarifyCRM will enable Astro to seamlessly link all customer-facing processes to build stronger, more profitable customer relationships and improve service delivery to its more than 1.5 million subscribers, while lowering costs.
· Two communications providers in Europe have selected Amdocs to implement the Amdocs Partner Relationship Management (PRM) product for managing relationships with content and interconnect partners. These wins are a continuation of our success in the PRM market, driven by the increased utilization of content and data services.
· At one of our major customers, Amdocs is implementing a billing consolidation solution. The project, which builds on our strong relationship with this customer, is an integrated customer management initiative, designed to reduce system costs, while enabling our customer to offer bundled service packages and an integrated view of its customers’ activities across multiple lines of business.
· Amdocs will be implementing the Amdocs Xacct mediation platform supporting voice mediation for a communications provider in Europe.
· For a major communications provider in Latin America, Amdocs will be upgrading the existing Amdocs ClarifyCRM platform to ClarifyCRM 12. ClarifyCRM 12 enables businesses to create a more intelligent contact center, helping companies deliver pertinent information at the right time to contact center agents.
Operating and Financial Highlights
During the third quarter:
· Amdocs has completed implementation of the final and largest component of Bell Canada's billing modernization project: the conversion of Bell Mobility's more than 4.7 million subscribers and 4,000 system users to the Amdocs billing solution. This was a massive undertaking, completed in a challenging environment of rapid growth, with Bell Mobility more than doubling its customer base since the project began. The project's completion will help Bell Canada simplify its billing operations across multiple lines of business. Amdocs is now working to complete the normalization of the system and will continue to provide Bell Canada with comprehensive managed services under the existing 10-year agreement.
· At mobilkom austria, the leading wireless service provider in Austria, Amdocs completed the successful deployment of Amdocs ClarifyCRM ClearSales. The integration of ClarifyCRM sales functionality with its Amdocs billing and CRM solution provides mobilkom austria with complete visibility across its entire sales process. This deployment builds on mobilkom austria’s long-term relationship with Amdocs and marks an important milestone in its move towards a true integrated customer management approach.
· On June 1, 2004, Amdocs announced that it repurchased substantially all of its outstanding 2% Convertible Notes due June 1, 2008. Payment of $395.1 million for the notes was made with available cash.
· Free cash flow, defined as cash flow from operations less net capital expenditures and payments on capital leases, was $59 million in the quarter.
Financial Outlook
Amdocs expects that revenue for the fourth quarter ending September 30, 2004, will be approximately $452 million. Proforma earnings per share for the quarter are expected to be $0.30, excluding acquisition-related costs and related tax effects. Diluted GAAP earnings per share for the quarter are expected to be between $0.01-$0.02 less than proforma EPS.
Amdocs will host a conference call on July 21, 2004 at 5 p.m. Eastern Daylight Time to discuss the Company's third quarter results. The call will be carried live on the Internet via www.vcall.com and the Amdocs website, www.amdocs.com.
