Israeli business systems and software provider Amdocs Ltd. (NYSE: DOX) has reported strong results for its final fiscal quarter of 2019, an extension and expansion of its collaboration with AT&T, and sees continued revenue growth in 2020.
Revenue for the fourth fiscal quarter ended September was a record $1.030 billion, up 3.6% in constant currency as compared to last year’s corresponding quarter. Revenue for the fiscal year ended September 30, 2019, was $4.1 billion, up 2.8% from the last fiscal year and within Amdocs’ guidance range for growth of 2.4% to 3.4% year-over-year as reported.
Amdocs' GAAP net profit for the fourth quarter of fiscal 2019 was $122 million ($0.90 per share) up from $44.3 million ($0.31 per share, in last fiscal year’s corresponding quarter. Non-GAAP net profit was $147.1 million ($1.08 per share) up from $140.2 million ($0.99 per share) in the fourth quarter of fiscal 2018.
GAAP net profit in fiscal 2019 was $479.4 million ($3.47 per share) up from $354.4 million ($2.47 per share) in fiscal 2018. Fiscal 2019 non-GAAP net profit was $595.1 million, or $4.31 per diluted share, compared to non-GAAP net income of $579.6 million ($4.03 per share) in fiscal 2018.
Amdocs president and CEO Shuky Sheffer said, "Q4 revenue was in line with the midpoint of our guidance on a constant currency basis and was driven by stable trends in North America, solid year-over-year growth in Rest of World and our best quarter in more than a decade in Europe. Profitability was stable and cash collections were healthy as we met key milestones relating to our customer project activity. As such, we exceeded our fiscal 2019 target for normalized free cash flow of $600 million and delivered full year non-GAAP earnings per share growth of 6.9%, which is consistent with the high end of the original guidance range of 3% to 7% that we provided last November."
He added, "Today, we are excited to announce a multi-year agreement that extends our collaboration with AT&T to modernize and upgrade AT&T’s digital business support systems, as 5G and the cloud will lead to new business and consumer applications. In addition to customer experience and digital enablement programs, our alliance with AT&T will be expanded to include activities in strategic areas such as data analytics and security. We are very proud of our deep relationship spanning many decades with AT&T and we look forward to strengthening this relationship as the communications and media industry continues to innovate at an unprecedented pace."
Amdocs sees revenue of $1.015-$1.055 billion in the first fiscal quarter of 2020 and earnings per share of $0.79-$0.87. In full fiscal year 2020, Amdocs sees revenue growth of 1.5%-5.5% year-over-year, GAAP diluted earnings per share growth of roughly 5.0%-12.0% year-over-year, and non-GAAP diluted earnings per share growth of roughly 3.0%-7.0% year-over-year.
Published by Globes, Israel business news - en.globes.co.il - on November 13, 2019
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