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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13A-16 OR 15D-16 UNDER
THE SECURITIES EXCHANGE ACT OF 1934
For the month of November 2005
Commission File Number 1-14840
AMDOCS LIMITED
Suite 5, Tower Hill House Le Bordage
St. Peter Port, Island of Guernsey, GY1 3QT Channel Islands
Amdocs, Inc.
1390 Timberlake Manor Parkway, Chesterfield, Missouri 63017
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports
under cover of Form 20-F or Form 40-F.
FORM 20-F X FORM 40-F
Indicate by check mark whether the registrant by furnishing the information
contained in this Form is also thereby furnishing the information to the
Commission pursuant to rule 12g3-2(b) under the Securities Exchange Act of 1934.
YES [ ] NO [X]
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On November 9, 2005, Amdocs Limited ("Amdocs") issued a press release
announcing financial results for the quarter ended September 30, 2005. A copy of
the press release is furnished as Exhibit 99.1 to this Report of Foreign Private
Issuer on Form 6-K.
The information in this Form 6-K (including Exhibit 99.1) shall not be
deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934
(the "Exchange Act") or otherwise subject to the liabilities of that section,
nor shall it be deemed incorporated by reference in any filing under the
Securities Act of 1933 or the Exchange Act.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
AMDOCS LIMITED
/s/ Thomas G. O'Brien
-------------------------
Thomas G. O'Brien
Treasurer and Secretary
Authorized U.S. Representative
Date: November 10, 2005
EXHIBIT INDEX
EXHIBIT NO. DESCRIPTION
99.1 Amdocs Limited Press Release dated November 9, 2005.
PRESS RELEASE AMDOCS
AMDOCS LIMITED REPORTS RECORD REVENUE OF $573.3 MILLION FOR FOURTH
QUARTER OF FISCAL 2005
AMDOCS CROSSES A THRESHOLD, WITH REVENUE FOR FISCAL 2005 EXCEEDING $2 BILLION
Key highlights:
- Fourth quarter revenue grew 26.7% to $573.3 million
- 30.0% increase in fourth quarter diluted EPS, excluding
acquisition-related costs and restructuring charges, net of related tax
effects, to $0.39; Diluted GAAP EPS of $0.32
- Improved Amdocs strategic position in the cable broadband and satellite
industry with the acquisition of DST Innovis and in China with the
purchase of Longshine Information Technology Company
- Free cash flow of $104.7 million for the quarter
- Fiscal year 2005 revenue of $2.039 billion, an increase of 14.9% over
2004. Diluted EPS excluding acquisition-related costs and restructuring
charges, net of related tax effects, increased by 27.2% to $1.45; Diluted
GAAP EPS was $1.35
- First quarter fiscal 2006 guidance: Expected revenue of approximately $585
million and diluted EPS of $0.40, excluding acquisition-related costs, net
of related tax effects, and approximately $0.04-$0.05 per share of
employee equity-based compensation expense. Diluted GAAP EPS is expected
to be approximately $0.33-$0.34
- Fiscal 2006 guidance: Expected revenue of approximately $2.40-$2.47
billion and diluted EPS of $1.65-$1.70, excluding acquisition-related
costs, net of related tax effects, and approximately $0.16-$0.20 per share
of employee equity-based compensation expense. Diluted GAAP EPS is
expected to be approximately $1.37-$1.44
ST. LOUIS, MO - NOVEMBER 9, 2005 - Amdocs Limited (NYSE: DOX) today reported
that for the fourth quarter ended September 30, 2005, revenue was $573.3
million, representing sequential growth of 13.0% and an increase of 26.7% from
last year's fourth quarter. Excluding acquisition-related costs, which includes
amortization of purchased intangible assets, in-process research and development
write-off and other acquisition related costs, and excluding restructuring
charges, net of related tax effects, of $16.1 million, net income was $83.9
million, or $0.39 per diluted share, compared to net income, excluding $3.5
million of acquisition-related costs net of related tax effects, of $65.1
million, or $0.30 per diluted share, in the fourth quarter of fiscal 2004. The
Company's net income was $67.8 million, or $0.32 per diluted share, compared to
net income of $61.6 million, or $0.29 per diluted share, in the fourth quarter
of fiscal 2004. Free cash flow, defined as cash flow from operations less net
capital expenditures and principal payments on capital leases, was $104.7
million in the quarter.
"This was a very good quarter for Amdocs, as we achieved excellent financial
results and strengthened our strategic position," said Dov Baharav, Chief
Executive Officer of Amdocs Management Limited. "This quarter was marked by
industry developments that underscore the need for service providers to move
toward integrated customer management (ICM) and a demand for solutions to help
accomplish this. These developments are accelerating -- as we anticipated -- and
include continued consolidation to fewer, larger players. We are also seeing
service providers move aggressively to build an IP environment in order to
launch new content and IP services, such as "quadruple play" bundles of wireline
and wireless voice, video and data. In addition, the telecommunications,
broadband cable and satellite industries are rapidly converging."
"We are the leading provider of systems to the telecom market, and through our
acquisition of DST Innovis to broadband cable and satellite companies as well,
just as these companies begin to transform themselves. Amdocs' strengths include
our ability to handle complex projects and to support leading service providers
with large customer bases and high-volume transactions, combined with products
and services that are designed to enable ICM. This positions Amdocs to benefit
from the market transformation and to enjoy growth in 2006 and beyond," Baharav
continued.
The sales activity during the fourth quarter included expanding the relationship
with a major European wireline carrier to provide significant additional
services over the next several years, as this carrier moves to ICM. The Company
is in the initial stages of installing a converged pre-paid and post-paid
billing system for an existing wireless customer in the Americas. Amdocs also
won a major project to provide software and services to enable a leading
wireless carrier to manage its customer base on a nationwide basis.
In July, Amdocs completed the acquisition of all of the common stock of DST
Innovis, Inc. and DST Interactive, Inc. (collectively, DST Innovis),
wholly-owned subsidiaries of DST Systems, Inc., for approximately $238 million
in cash. The acquisition propelled Amdocs into a leadership position in the
broadband cable and satellite industry. As a result, some of the largest
companies in this industry, including DIRECTV, Comcast and Cablevision, are now
Amdocs customers, with about 37 million subscribers worldwide.
Amdocs also solidified its entry into the fast-growing China market. The Company
completed the acquisition of Longshine Information Technology Company Ltd., a
privately-held, leading vendor of customer care and billing software in China,
for approximately $30 million in cash with the possibility of additional cash
consideration to be paid later based on the achievement of certain performance
metrics. Longshine counts three of China's four largest communications service
providers among its customers and is present in more than 15 provinces across
China.
During the fourth quarter, Amdocs recorded charges totaling $4.5 million for the
write-off of in-process R&D and other acquisition-related costs. In conjunction
with these acquisitions, Amdocs implemented a series of measures designed to
align its operational structure to its growth, which resulted in a restructuring
charge of $8.1 million in the fourth quarter, primarily related to severance
costs.
The Company also noted that for the fiscal year ended September 30, 2005,
revenue increased by 14.9% to $2.039 billion. Excluding acquisition-related
costs and restructuring charges, net of tax effects, of $22.4 million in fiscal
2005 and acquisition-related costs, net of related tax effects, of $14.0 million
in fiscal 2004, net income for fiscal 2005 increased by 25.0% to $311.0 million,
while diluted earnings per share increased by 27.2% to $1.45. The Company's
results for fiscal 2005 showed GAAP net income of $288.6 million, or $1.35 per
diluted share, compared to GAAP net income of $234.9 million, or $1.08 per
diluted share, in fiscal 2004.
FINANCIAL OUTLOOK
Amdocs expects that revenue for the first quarter of fiscal 2006 ending December
31, 2005, will be approximately $585 million. Diluted earnings per share for the
quarter are expected to be $0.40, excluding acquisition-related costs, net of
related tax effects, and the impact of approximately $0.04-$0.05 per share of
employee equity-based compensation expenses. Diluted GAAP EPS is expected to be
approximately $0.33-$0.34.
Fiscal 2006 guidance: Expected revenue of approximately $2.40-$2.47 billion and
diluted EPS of $1.65-$1.70, excluding acquisition-related costs, net of related
tax effects, and approximately $0.16-$0.20 per share of employee equity-based
compensation expense. Diluted GAAP EPS is expected to be approximately
$1.37-$1.44.
Amdocs will host a conference call on November 9, 2005 at 5 p.m. Eastern Time to
discuss the Company's fourth quarter results. The call will be carried live on
the Internet via www.vcall.com and the Amdocs website, www.amdocs.com.
ABOUT AMDOCS
Amdocs combines innovative software and services with deep business knowledge to
accelerate implementation of integrated customer management by the world's
leading service providers. By delivering a comprehensive portfolio of software
and services that spans the customer lifecycle, Amdocs enables service companies
to deliver an intentional customer experienceTM, which results in stronger, more
profitable customer relationships. Service providers also benefit from a rapid
return on investment, lower total cost of ownership and improved operational
efficiencies. A global company with the revenue of $2.039 billion in fiscal
2005, Amdocs employs about 12,000 IT professionals and serves customers in more
than 50 countries around the world. For more information, visit Amdocs at
www.amdocs.com.
CAUTIONARY STATEMENTS
Investors are cautioned that this press release contains certain information
that is not prepared in accordance with GAAP. Investors should not construe
these financial measures as being superior to GAAP. The Company's management
uses this financial information in its internal analysis in order to exclude the
effect of acquisitions and other significant events that may have a
disproportionate effect in a particular period. Accordingly, management believes
that isolating the effects of such events enables management and investors to
consistently analyze the critical components and results of operations of the
Company's business and to have a meaningful comparison to prior periods.
This press release includes information that constitutes forward-looking
statements made pursuant to the safe harbor provision of the Private Securities
Litigation Reform Act of 1995, including statements about Amdocs' growth and
business results in future quarters. Although we believe the expectations
reflected in such forward-looking statements are based upon reasonable
assumptions, we can give no assurance that our expectations will be obtained or
that any deviations will not be material. Such statements involve risks and
uncertainties that may cause future results to differ from those anticipated.
These risks include, but are not limited to, the effects of general economic
conditions, Amdocs ability to grow in the mobile, wireline, broadband cable and
satellite and IP business markets, Amdocs ability to successfully integrate
acquired businesses, adverse effects of market competition, rapid technological
shifts that may render the Company's products and services obsolete, potential
loss of a major customer, our ability to develop long-term relationships with
our customers, and risks associated with operating businesses in the
international market. These and other risks are discussed at greater length in
the Company's filings with the Securities and Exchange Commission, including in
our Annual Report on Form 20-F, filed on December 30, 2004 and our Form 6-K
furnished on February 14, 2005, May 16 and August 15, 2005.
CONTACT:
Thomas G. O'Brien
Treasurer and Vice President of Investor Relations
Amdocs Limited
314-212-8328
E-mail: dox_info@amdocs.com
AMDOCS LIMITED
CONSOLIDATED STATEMENTS OF INCOME
(IN THOUSANDS, EXCEPT PER SHARE DATA)
THREE MONTHS ENDED TWELVE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
------------------------------------ ----------------------------------
2005 2004 2005 2004
---------------- ---------------- --------------- ---------------
Revenue:
License $ 25,135 $ 24,560 $ 100,044 $ 76,586
Service 548,183 427,895 1,938,577 1,697,146
---------------- ---------------- --------------- ---------------
573,318 452,455 2,038,621 1,773,732
Operating expenses:
Cost of license 805 1,215 4,083 5,022
Cost of service 362,085 284,340 1,291,572 1,117,810
Research and development 46,890 34,160 144,457 126,407
Selling, general and
administrative 66,066 51,306 232,066 210,384
Amortization of purchased
intangible assets 7,481 4,486 15,356 17,909
Restructuring charges,
in-process research and
development and other
acquisition related costs 12,595 -- 12,595 --
---------------- ---------------- --------------- ---------------
495,922 375,507 1,700,129 1,477,532
---------------- ---------------- --------------- ---------------
Operating income 77,396 76,948 338,492 296,200
Interest income and other, net 7,359 2,004 22,303 4,903
---------------- ---------------- --------------- ---------------
Income before income taxes 84,755 78,952 360,795 301,103
Income taxes 16,956 17,370 72,159 66,243
---------------- ---------------- --------------- ---------------
Net income $ 67,799 $ 61,582 $ 288,636 $ 234,860
================ ================ =============== ===============
Basic earnings per share $ 0.34 $ 0.30 $ 1.44 $ 1.13
================ ================ =============== ===============
Diluted earnings per share(2) $ 0.32 $ 0.29 $ 1.35 $ 1.08
================ ================ =============== ===============
Basic weighted average number of 199,749 203,713 201,023 208,726
shares outstanding
================ ================ =============== ===============
Diluted weighted average number 215,822 218,664 217,162 220,285
of shares outstanding (1)
================ ================ =============== ===============
(1) Diluted weighted average number of shares outstanding for the three months
and twelve months ended September 30, 2004 were restated, due to the
adoption of EITF 04-8, "The Effect of Contingently Convertible Instruments
on Diluted Earnings per Share", which requires that prior period earnings
per share computations be restated to conform to the new rule . The
restatement reduced diluted earnings per share by $0.01 and $0.02 per
share for the three and twelve months ended September 30, 2004,
respectively.
(2) To reflect the impact of assumed conversion of the convertible notes, $984
and $3,939, representing interest expense and amortization of issuance
costs, were added back to net income for the three and twelve months ended
September 30, 2005, respectively, and $995 and $2,296 were added back to
net income for the three and twelve months ended September 30, 2004,
respectively, for the purpose of computing diluted earnings per share.
AMDOCS LIMITED
CONSOLIDATED STATEMENTS OF INCOME
EXCLUDING AMORTIZATION OF PURCHASED INTANGIBLE ASSETS, RESTRUCTURING CHARGES,
IN-PROCESS RESEARCH AND DEVELOPMENT, OTHER ACQUISITION RELATED COSTS
AND RELATED TAX EFFECTS
(IN THOUSANDS, EXCEPT PER SHARE DATA)
THREE MONTHS ENDED TWELVE MONTHS ENDED,
SEPTEMBER 30, SEPTEMBER 30,
----------------------------------- ----------------------------------
2005(1) 2004(1) 2005(2) 2004(2)
---------------- --------------- --------------- ----------------
Revenue:
License $ 25,135 $ 24,560 $ 100,044 $ 76,586
Service 548,183 427,895 1,938,577 1,697,146
---------------- --------------- --------------- ----------------
573,318 452,455 2,038,621 1,773,732
Operating expenses:
Cost of license 805 1,215 4,083 5,022
Cost of service 362,085 284,340 1,291,572 1,117,810
Research and development 46,890 34,160 144,457 126,407
Selling, general and
administrative 66,066 51,306 232,066 210,384
---------------- --------------- --------------- ----------------
475,846 371,021 1,672,178 1,459,623
---------------- --------------- --------------- ----------------
Operating income 97,472 81,434 366,443 314,109
Interest income and other, net 7,359 2,004 22,303 4,903
---------------- --------------- --------------- ----------------
Income before income taxes 104,831 83,438 388,746 319,012
Income taxes 20,966 18,356 77,749 70,183
---------------- --------------- --------------- ----------------
Net income $ 83,865 $ 65,082 $ 310,997 $ 248,829
================ =============== =============== ================
Diluted earnings per share (4) $ 0.39 $ 0.30 $ 1.45 $ 1.14
================ =============== =============== ================
Diluted weighted average number
of shares outstanding (3) 215,822 218,664 217,162 220,285
================ =============== =============== ================
(1) Excludes $7,481 and $4,486 for amortization of purchased intangible
assets, $8,135 and $0 for restructuring charges, $2,760 and $0 for
write-off of purchased in-process research and development, $1,700 and $0
for other acquisition-related costs and tax effects related to the above
of $(4,010) and $(986) for the three months ended September 30, 2005 and
2004, respectively. Including the above items, income before income taxes
was $84,755 and $78,952, and diluted earnings per share were $0.32 and
$0.29 for the three months ended September 30, 2005 and 2004,
respectively.
(2) Excludes $15,356 and $17,909 for amortization of purchased intangible
assets, $8,135 and $0 for restructuring charges, $2,760 and $0 for
write-off of purchased in-process research and development, $1,700 and $0
for other acquisition-related costs and tax effects related to the above
of $(5,590) and $(3,940) for the twelve months ended September 30, 2005
and 2004, respectively. Including the above items, income before income
taxes was $360,795 and $301,103, and diluted earnings per share were $1.35
and $1.08 for the twelve months ended September 30, 2005 and 2004,
respectively.
(3) Diluted weighted average number of shares outstanding for the three months
and twelve months ended September 30, 2004 were restated, due to the
adoption of EITF 04-8, "The Effect of Contingently Convertible Instruments
on Diluted Earnings per Share", which requires that prior period earnings
per share computations be restated to conform to the new rule . The
restatement reduced diluted earnings per share by $0.01 and $0.02 per
share for the three months and twelve months ended September 30, 2004,
respectively.
(4) To reflect the impact of assumed conversion of the convertible notes, $984
and $3,939, representing interest expense and amortization of issuance
costs, were added back to net income for the three and twelve months ended
September 30, 2005, respectively, and $995 and $2,296 were added back to
net income for the three and twelve months ended September 30, 2004,
respectively, for the purpose of computing diluted earnings per share.
AMDOCS LIMITED
CONDENSED CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS)
AS OF
----------------- --- -----------------
SEPTEMBER 30, SEPTEMBER 30,
2005 2004
----------------- -----------------
ASSETS
Current assets
$ $
Cash, cash equivalents and short-term interest-bearing investments 1,145,563 1,190,699
Accounts receivable, net, including unbilled of $28,994 and
$24,696, respectively 304,237 254,779
Deferred income taxes and taxes receivable 101,162 62,284
Prepaid expenses and other current assets 76,780 80,229
----------------- -----------------
Total current assets 1,627,742 1,587,991
Equipment, vehicles and leasehold improvements, net 181,812 181,121
Goodwill and other intangible assets, net 1,129,258 854,386
Other noncurrent assets 263,656 240,386
----------------- -----------------
Total assets $ 3,202,468 $ 2,863,884
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LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
$ $
Accounts payable and accruals 462,276 366,363
Short-term portion of capital lease obligations and other financing
arrangements 8,480 21,310
Deferred revenue 216,770 223,122
Deferred income taxes and taxes payable 171,377 163,648
----------------- -----------------
Total current liabilities 858,903 774,443
0.50% Convertible notes 450,000 450,000
Noncurrent liabilities and other 237,113 195,251
Shareholders' equity 1,656,452 1,444,190
----------------- -----------------
Total liabilities and shareholders' equity $ 3,202,468 $ 2,863,884
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