Amdocs reports record revenue, beats analysts

Eli Gelman
Eli Gelman

The acquisition of Comverse BSS assets will boost results in the fourth fiscal quarter.

Business systems provider Amdocs Ltd. (NYSE: DOX) today reported record third fiscal quarter revenue of $907.9 million, up 0.6% from the preceding fiscal quarter of 2015 and up 0.6% on the corresponding quarter of 2014. Revenue was within the guidance range and beat the Wall Street analysts expectations.

Non-GAAP net profit was $131.2 million ($0.84 per share), slightly up from $130.9 million (or $0.81 per share) in the corresponding quarter of 2014. The company's GAAP net profit for the third quarter of fiscal 2015 was $107.8 million ($0.69 per share) up from $109.8 million ($0.68 per share) in the corresponding quarter.

Amdocs president and CEO Eli Gelman said, "During the quarter, we expanded our product suite with the launch of CES 9.3 and renewed several managed services agreements which broaden those customer relationships for the long-term. At the same time, we remained focused on our delivery and execution, such as the recently completed migration of FarEastTone's prepaid subscribers to an advanced Amdocs charging and billing system. Finally, the ramp-up of project awards with strategic customers contributed to another quarter of record revenue in our rest of the world markets."

He added, "Shortly after the close of the third quarter, we completed the acquisition of a substantial majority of Comverse's BSS assets for $273 million in cash. The integration process is now underway and we are committed to ensuring business continuity and support for all aspects of the customer relationships acquired from Comverse."

Free cash flow was $190 million for the quarter, comprised of cash flow from operations of $222 million less $32 million in net capital expenditures and other. Twelve-month backlog, which includes anticipated revenue related to contracts, estimated revenue from managed services contracts, letters of intent, maintenance and estimated on-going support activities, was $3.01 billion at the end of the third quarter of fiscal 2015, up $10 million sequentially.

Amdocs expects that revenue for the fourth quarter of fiscal 2015 will be $915-$955 million, including the acquired Comverse BSS assets. Diluted earnings per share on a non-GAAP basis for the fourth fiscal quarter is expected to be $0.79-$0.85.

Published by Globes [online], Israel business news - www.globes-online.com - on July 30, 2015

© Copyright of Globes Publisher Itonut (1983) Ltd. 2015

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