Amdocs Ltd. (NYSE: DOX) CEO Eli Gelman said the company will pay a dividend after the billing and business support systems company reported revenue and profit growth and higher earnings per share for the second fiscal quarter of 2012. He said, "Further demonstrating our confidence in Amdocs' future and our commitment to enhancing shareholder value, our board of directors has authorized the initiation of a quarterly cash dividend of $0.13 per ordinary share."
If the program is approved by shareholders, Amdocs expects that the first quarterly dividend would be paid in the first quarter of fiscal 2013.
The company also revised its 2012 fiscal guidance. Amdocs said, "At least 12-14% non-GAAP EPS growth expected in fiscal 2012, raised from previous expectation of 11-13%. Expected revenue growth of 3-4% on a constant currency basis, lowered from previous expectation of 5-6% due to changes in the outlook at AT&T. Expected reported revenue growth of 2.5-3.5% including the effects of foreign currency fluctuations, revised from previous expectation of 4-5%."
In the second fiscal quarter of 2012, Amdocs reported that revenue was $808.9 million, up 0.2% from the preceding fiscal quarter of 2012 and up 2.5% on the corresponding quarter of 2011. Non-GAAP profit was $114.7 million ($0.67 per share) up from $110.3 million ($0.58 per share) in the corresponding quarter of 2011. Results were within the guidance range.
Gelman said, "Our second fiscal quarter performance reflects ongoing deal momentum in the emerging markets and healthy business activity in Europe, partially offset by a slow recovery of spending at AT&T. In the emerging markets, our presence continues to strengthen as we win influential transformation programs in both Southeast Asia and Latin America."
He added, "We are also seeing our emerging markets customers become increasingly interested in a full managed services business model. In Europe, we continue to gain traction across our portfolio. Our performance in most accounts in North America was consistent with expectations, including the revised contract terms with Bell Canada that became effective at the beginning of the second fiscal quarter. On the other hand, our outlook at AT&T has deteriorated as the customer continues to re-focus its IT priorities, and we now anticipate weakness to persist for the remainder of the fiscal year."
At the end of the second quarter Amdocs had a free cash flow of $53 million and a 12-month backlog of $2.725 billion, up $35 million from the end of the first fiscal quarter of 2012.
Amdocs share price closed at $32.18 on Nasdaq yesterday, giving a market cap of $5.51 billion.
Published by Globes, Israel business news - www.globes-online.com - on May 2, 2012
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