Business support systems company Amdocs Ltd. (NYSE: DOX) reported revenue of $801.4 million for the third fiscal quarter of 2011, up 1.6% from the preceding quarter, and up 6.4% from the corresponding quarter. Non-GAAP net profit was $113.3 million ($0.61 per share), compared with $119.4 million ($0.58 per share), in the corresponding quarter of 2010.
Revenue and profit were in line with analysts' expectations.
Amdocs also reported that free cash flow was $125 million for the third fiscal quarter, comprised of $150 million less $25 million in net capital and other expenditures in cash flow from operations.
Twelve-month backlog, including revenue related to contracts, estimated revenue from managed services contracts, letters of intent, maintenance and estimated on-going support activities, was $2.62 billion at the end of the third fiscal quarter of 2011.
In the third fiscal quarter, Amdocs signed an agreement to acquire Canadian service provider Bridgewater Systems Corporation for $214 million.
Amdocs CEO Eli Gelman said, "Our solid third fiscal quarter results reflect global demand for Amdocs solutions, on-going momentum in the emerging markets, and improving execution in Europe. In the emerging markets, activity levels among current and new customers remain high as service providers in Asia and Latin America increasingly require more sophisticated BSS and OSS systems to support a better customer experience. Additionally, in Europe we are beginning to see the results of our greater focus and management re-alignment in the region. We are also beginning to reap the benefits from our recent investment initiatives, which drove the modest sequential improvement in profitability during the third quarter."
Gelman added, “We continue to execute on our share repurchase plan, demonstrating our confidence in Amdocs’ future and our commitment to enhancing shareholder value. Since we resumed our buyback activity in April 2010, we have repurchased $821 million of our ordinary shares, or approximately 14% of our shares outstanding.”
In the fourth fiscal quarter, Amdocs expects revenue of $800-815 million and non-GAAP net profit of $0.58-0.64 per share.
Amdocs also announced that Bruce Anderson would be stepping down as chairman after 14 years although he would continue to serve as a director. Anderson is being replaced by Rob Minicucci, who currently sits on the board of directors.
Amdocs announced its results after the markets closed in the US yesterday. The company's share price was down 2.68% to $30.82 on the NYSE yesterday, giving a market cap of $5.72 billion.
Published by Globes, Israel business news - www.globes-online.com - on July 28, 2011
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