Billing and CRM company Amdocs (NYSE: DOX) has reported 32% growth in non-GAAP earnings and 23.5% growth in revenue for its third fiscal quarter, which ended on June 30.
Quarterly revenue was $626.4 million, while net profit on a non-GAAP basis was $106.2 million, or $0.49 per diluted share, compared with non-GAAP profit of $78.8 million, or $0.37 per diluted share, in the third quarter of fiscal 2005.
The consensus analysts' estimate was revenue of $623.27 million and earnings per share of only $0.46.
On a GAAP basis, the company's net profit was $85.6 million, or $0.39 per diluted share, compared with 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.
In its guidance, Amdocs said it expected fourth quarter revenue of approximately $657 million and diluted non-GAAP earnings per share 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. Amdocs said its guidance excluded any potential impact of the pending acquisition of British operations support systems Cramer Systems Group Ltd. Announced yesterday. Amdocs is paying approximately $375 million in cash for Cramer.
For fiscal year 2007, Amdocs expects revenue of approximately $2.880 - $2.980 billion and diluted non-GAAP earnings per share 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 earnings per share after the purchase price accounting for the acquisition is completed.
"We are pleased to again report record revenues and increasing profitability," said Amdocs CEO Dov Baharav. "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."
Amdocs shares closed at $33.45 in New York yesterday, giving the company a market cap of $6.77 billion.
Published by Globes [online], Israel business news - www.globes.co.il - on July 20, 2006
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