"We're entering the second half of the fiscal year with proven ability to bring value to our customers, thanks to the strength of our unique business model," Amdocs Ltd. (Nasdaq: DOX) president and CEO Eli Gelman said upon the publication of his company's financial statements, following the end of yesterday's Wall Street trading.
Amdocs exceeded the analysts' forecasts in both revenue and profit in the second quarter of its fiscal 2017. The company's third quarter forecast is the same as that of the analysts.
Amdocs, which provides IT solutions and systems for communications companies, has a $9.1 billion market cap. Second quarter revenue totaled $966 million, 4.3% more than in the corresponding quarter last year and $5 million more than the analysts' forecasts.
GAAP net profit grew 4.5% to $113 million. Non-GAAP net profit, excluding various accounting expenses, totaled $139 million, $0.94 per share, the same as in the corresponding quarter last year and $0.01 higher than the analysts' forecast. As always, most of Amdocs's sales were to the North American market, in which the company's revenue grew 8.5% to $636 million. Revenue from Europe plunged 17.1% to $115 million, continuing a long-term trend in the company, while revenue from the rest of the world rose 7% to $214 million.
Amdocs's revenue was up 4% to $1.9 billion in the first half of the fiscal year, and its non-GAAP net profit was $273 million, the same as in the corresponding period in the preceding year.
The company's orders backlog for the coming year is $3.2 billion. Amdocs generated $275 million from current activities, and the company had $1.15 billion in cash at the end of the period.
"With visibility that provides us with an all-time high orders backlog for the next 12 months, we're on the way to achieving our financing targets for the entire fiscal year," Gelman said. "This includes generating $500 million in free cash flow, most of which we are planning to give to the shareholders during the 2017 fiscal year, while maintaining our ability to carry out mergers and acquisitions according to the emerging opportunities."
Several months ago, Amdocs acquired three digital companies (including Israeli company Pontis) for $260 million in cash. Amdocs is projecting $945-985 million in revenue in the third quarter, 1.6-5.9% more than in the corresponding quarter in the preceding year. The company is also projected a non-GAAP profit per share of $0.93-0.99, compared with $0.90 in the corresponding quarter of the preceding year. Amdocs is revising its revenue forecast for the year from 1.5-5.5% revenue growth to 3-5% growth, amounting to $3.8-3.9 billion. Its non-GAAP net profit per share is projected to increase by 4.5-8.5% to $3.73-3.87.
Published by Globes [online], Israel Business News - www.globes-online.com - on May 10, 2017
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