Amdocs Ltd. (NYSE: DOX) reported lower profit on higher revenue in its results for the fiscal quarter ended June 30, 2014. Revenue was $902.5 million, up 0.6% from the preceding quarter and up 7.3% from the corresponding quarter. However, Amdocs beat the analysts' expectations on profit with earnings per share of $0.81, above the predictions of $0.79 per share.
Non-GAAP net profit was $130.9 million ($0.81 per share), down from $134.4 million ($0.83 per share), in the corresponding quarter. Non-GAAP net profit excludes amortization of purchased intangible assets and other acquisition related costs and equity-based compensation expenses. The company's GAAP net profit for the third quarter of fiscal 2014 was $109.8 million ($0.68 per share) down from $119.6 million ($0.73 per share) in the corresponding quarter. Amdocs CEO Eli Gelman said, ""We are pleased with our third fiscal quarter performance, which reflects healthy customer activity in North America, and sequentially stable revenue in Europe."
He added, "We delivered record revenue in the emerging markets, reflecting the progression of highly complex transformation projects towards production. We are continuously improving our strategic position with some of the leading carriers in Latin America and South East Asia, as demonstrated by Telefónica’s recent selection of Amdocs for new quad-play transformation projects in Peru and Chile. Finally, we continue to see encouraging levels of customer engagement in the area of network software, and the post-merger integration of Actix and Celcite within Amdocs is progressing in line with our original expectations."
Gelman said, "Bell Canada has selected Amdocs Convergent Charging, powered by our Turbo Charging technology, as its next generation charging solution. This arrangement is enabling support for Bell's converging lines of business and reinforces a long-standing strategic partnership with one of our largest customers.”
“In Europe, we made further progress at Vodafone Group where we added another two affiliates to be supported under the global managed services agreement we signed in fiscal 2013. These include Vodafone’s fixed line operations in the UK and the Vodafone Group Enterprise M2M line of operations. We are now supporting seven Vodafone affiliates under this agreement, which we see as evidence of the value that Amdocs’ managed services can deliver in Europe as operators seek greater simplicity and improved quality in their IT operations.”
Free cash flow was $173 million for the quarter, comprised of cash flow from operations of $199 million, less $26 million in net capital and other expenditures. 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 $2.97 billion at the end of the third quarter of fiscal 2014.
Amdocs expects that revenue for the fourth quarter of fiscal 2014 will be $890-$920 million. Diluted earnings per share on a non-GAAP basis for the fourth fiscal quarter is expected to be $0.75-$0.81, excluding amortization of purchased intangible assets and other acquisition-related costs and $0.05-$0.06 per share of equity-based compensation expense, net of related tax effects. Amdocs estimates GAAP diluted earnings per share for the fourth fiscal quarter will be $0.61-$0.69.
The Board approved next quarterly cash dividend payment of $0.155 per share and set September 30, 2014 as the record date for determining the shareholders entitled to receive the dividend, which is payable on October 17, 2014.
Published by Globes [online], Israel business news - www.globes-online.com - on July 30, 2014
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