Amdocs profit and revenue edge upwards

Eli Gelman
Eli Gelman

The business systems provider sees a continued rise in revenue and profit in the first fiscal quarter of 2017.

Israeli business systems provider Amdocs Ltd. (NYSE: DOX) today reported slight revenue and profit growth in its fourth fiscal quarter financial results and sees the trend continuing into the first fiscal quarter of 2017.

Revenue was a record $940.7 million, up 1.1% or $10.5 million from the preceding quarter and up 1.5% from the corresponding quarter. Revenue for the fourth fiscal quarter of 2016 includes a negative impact from foreign currency movements of $2 million relative to the third quarter of fiscal 2016.

GAAP net profit for the fourth quarter of fiscal 2016 was $95.7 million ($0.64 per share), up from $91.1 million ($0.59 per share) in the corresponding quarter. Non-GAAP net profit was $132.4 million $0.89 per share), up from $130.4 million ($0.84 per share, in the corresponding quarter.

Amdocs CEO and president Eli Gelman said, “Our fourth quarter performance was solid and culminated in a stronger second half along the lines we predicted a year ago. North America showed further signs of stabilization, while Europe and Rest of World delivered strong double-digit growth for the full year notwithstanding normal fluctuations in customer activity in Q4. Late in the quarter, we expanded our digital capabilities with the combined acquisitions of Pontis, Brite:Bill and Vindicia for roughly $260 million in cash. We also delivered on our plan to return 100% of free cash flow to shareholders in the second half of the fiscal year, consistent with our ongoing commitment to the disciplined and proactive allocation of cash."

He added, “During the fourth quarter we expanded our activities with several important customers. In Latin America, Telefónica selected the Amdocs Data Hub as the next logical step in the quad-play transformation project we are supporting at its Vivo operations in Brazil. The Amdocs solution extracts and analyzes large volumes of customer data from a wide range of operational platforms and will give Telefónica Brazil the business insights needed to react quickly to changing market dynamics. In the Philippines, Globe Telecom selected Amdocs Revenue Guard for automated, analytics-driven revenue assurance, a service that builds on the market-leading technology we secured through our acquisition of cVidya in January 2016.”

“We enter fiscal 2017 focused on building the engines to support our customers in strategic areas such as digital modernization, the enterprise segment, Pay TV and network function virtualization. With the visibility provided by our record 12-month backlog we are targeting full year non-GAAP earnings per share growth of 4.5% to 8.5% while monitoring various macro and industry specific risks, including the impact of consolidation activity in North America."

Amdocs expects revenue for the first quarter of fiscal 2017 will be $935-$975 million. Amdocs estimates GAAP diluted earnings per share for the first fiscal quarter of 2017 will be $0.59-$0.67. Diluted earnings per share on a non-GAAP basis for the first quarter of fiscal 2017 is expected to be $0.87-$0.93, excluding amortization of purchased intangible assets and other acquisition-related costs and $0.09-$0.10 per share of equity-based compensation expense, net of related tax effects.

The Board approved the next quarterly cash dividend payment of $0.195 per share and set December 30 2016 for determining the shareholders entitled to receive the dividend, which will be payable on January 13 2017. The Board also approved an increase in the company’s quarterly cash dividend payment to $0.22 per share, which is anticipated to be paid in April 2017, provided that the increase is approved by shareholders at the January 2017 annual general meeting of shareholders.

Published by Globes [online], Israel business news - www.globes-online.com - on November 9, 2016

© Copyright of Globes Publisher Itonut (1983) Ltd. 2016

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