Back to top

Analyst Blog

Amdocs Ltd. (DOX - Analyst Report) reported mixed financial results for the third quarter of fiscal 2013. Management stated that AT&T Inc. (T - Analyst Report), its major client, significantly contributed to its performance. Additionally, other key North American clients, including United States Cellular Corp. (USM - Analyst Report) and Comcast Corp. (CMCSA - Analyst Report) have also played their parts. Amdocs currently has a Zacks Rank #3 (Hold).  

Third-Quarter Results in Details

Quarterly net income, on a GAAP basis, was $119.6 million or 73 cents per share compared with $98.8 million or 59 cents per share in the prior-year quarter. Third-quarter fiscal 2013 adjusted earnings per share of 77 cents were significantly above the Zacks Consensus Estimate of 68 cents. Quarterly total revenue came in at $841.3 million, up 4% year over year, but fell below the Zacks Consensus Estimate of $847 million.  

Amdocs posted gross margin of 35% in the reported quarter compared with 35.7% in the year-ago quarter. Reported operating income was approximately $123.2 million, up 11.9% year over year. Quarterly operating margin was 14.6% compared with 13.6% in the prior-year quarter. At the end of the third quarter of fiscal 2013, total order backlog was $2,830 million compared with $2,760 million at the end of the year-ago quarter. In the reported quarter, Amdocs repurchased shares worth $58 million.

During the first nine months of fiscal 2013, Amdocs generated around $438.8 million in cash from operations compared with $362 million in the comparable prior-year period. Free cash flow in the first nine months of fiscal 2013 stood at $358.7 million compared with $282.8 million in the comparable period a year ago.

At the end of the third quarter of fiscal 2013, Amdocs had approximately $1,090.7 million in cash and marketable securities compared with $1,118.2 million at the end of fiscal 2012. The company had no outstanding debt.

Segment Wise Results

Service revenues were $822.7 million, up 6.2% year over year. License revenues were approximately $18.6 million, down 46% year over year. Technologically, Customer Experience Systems revenues were $803.2 million, up 4.8% year over year while Directory revenues were $38.1 million, down 10.6% year over year. The company’s core Managed Services revenues came in at $417.1 million, down 2.3% year over year.

Geographically, North America generated $619.2 million, up 10.8% year over year. Europe generated $98 million, down 8% year over year, while the Rest of the World contributed the remaining $124.1 million, down 13.6% year over year. Revenues from the emerging markets came in at $101.3 million, down 0.4% year over year.

Financial Outlook

Management expects fourth quarter fiscal 2013 revenues in the range of $830 million–$860 million. Earnings per share, on a GAAP basis, are expected between 50 cents and 58 cents. Moreover, non-GAAP earnings per share, including 4 cents–5 cents per share of equity-based compensation expense, are projected in the range of 60 cents–66 cents. 

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
UTD THERAPE… UTHR 117.83 +28.51%
TRIQUINT SE… TQNT 20.67 +6.52%
RF MICRO DE… RFMD 12.47 +6.04%
VASCO DATA… VDSI 14.77 +4.68%
BANCO DO BR… BDORY 15.53 +3.95%