Business systems provider Amdocs Ltd. (NYSE: DOX) has reported record revenue of $906 million for the first US fiscal quarter of 2015, up 0.7% from the preceding quarter and up 4.9% from the corresponding quarter. This figure was within the $895-$925 million guidance range, which took into account a negative impact of about $6 million, from foreign currency fluctuations. These fluctuations had negatively affected revenue by about $10 million relative to the fourth quarter of fiscal 2014. Excluding the fluctuations, revenue performance was roughly in line with the midpoint of expectations.
Non-GAAP net profit was $139.5 million ($0.88 per share) up from $122.6 million ($0.76 per share) in the corresponding quarter of fiscal 2014. GAAP net profit for the first quarter of fiscal 2015 was $131 million ($0.83 per share), up from $101.4 million ($0.63 per share), in the corresponding quarter.
Amdocs CEO Eli Gelman said, "Our recent sales momentum has been strong with our market position enabling us to secure significant new awards with some of the world’s largest carriers. As we previously announced, Singtel has selected Amdocs for major business transformation projects in its key markets of Singapore and Australia. Additionally, we are today delighted to announce a new award at Vivo, Telefónica’s brand in Brazil and the group’s largest in Latin America. This influential win includes a quad-play BSS transformation project with a five-year maintenance and support services contract and will enable Vivo to provide a seamless, multi-channel experience. Moreover, this deal follows transformation projects already awarded at Telefónica affiliates in Argentina, Chile and Peru and is further evidence of our expanding relationship with this highly strategic customer”
He added, “In North America, we continued to help our customers respond to rapidly changing competitive dynamics in wireless and Pay TV markets. Along these lines, we are today pleased to announce that U.S. Cellular has entered into a five-year managed services contract with Amdocs to manage the operations of a range of its business and operational support systems. This significant new agreement expands and strengthens our relationship with this long-standing customer. Moreover, the arrangement follows the recent delivery of a highly complex transformation project for U.S. Cellular and is evidence of the ongoing value proposition we expect to provide to this carrier as we enable their strategic goal of delivering a superior customer experience.”
During the first fiscal quarter, Amdocs repurchased $102 million of ordinary shares. The company's 12-month backlog of $3.03 billion at the end of the first fiscal quarter, was up $30 million from the end of the fourth quarter of fiscal 2014
The company reiterated its full year fiscal 2015 revenue guidance, which sees growth within the previous range of 2.5% to 5.5% year-over-year on a constant currency basis relative to the guidance provided last quarter. Amdocs expects fiscal 2015 reported revenue growth of 1.5% to 4.5% year-over-year reflecting a negative impact from foreign currency movements of roughly 1% relative to the guidance provided last quarter
Gelman concluded, “With the visibility provided by our backlog and the pipeline of opportunity ahead of us we are encouraged by our start to fiscal 2015. As a reminder, our outlook reflects many moving parts, including with respect to macroeconomic and industry specific trends. We are focused on delivering consistent execution and operating efficiency, and we remain committed to returning cash to shareholders while retaining the capacity to execute on our long-term growth initiatives. Taking all these factors into consideration, we continue to expect diluted non-GAAP earnings per share growth of 4.5%-7.5% for the full fiscal year.”
Published by Globes [online], Israel business news - www.globes-online.com - on January 28, 2015
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