Amdocs Limited has reported that for fiscal quarter ended March 31, 2015, the company?s revenue stood at $902.6 million, down 0.4 per cent sequentially from the first fiscal quarter of 2015 and up 0.6 per cent as compared to last year’s second fiscal quarter. Second fiscal quarter revenue includes a negative impact from foreign currency movements of approximately $16 million relative to the first quarter of fiscal 2015. Net income on a non-GAAP basis stood at $128.6 million, or $0.82 per diluted share, compared to non-GAAP net income of $131.9 million, or $0.81 per diluted share, in the second quarter of fiscal 2014. Non-GAAP net income excludes amortization of purchased intangible assets and other acquisition-related costs, changes in fair value of certain acquisition-related liabilities and equity-based compensation expenses of $12.4 million, net of related tax effects, in the second quarter of fiscal 2015 and excludes such amortization and other acquisition-related costs and equity-based compensation expenses of $21.5 million, net of related tax effects, in the second quarter of fiscal 2014. The Company’s GAAP net income for the second quarter of fiscal 2015 was $116.3 million, or $0.74 per diluted share, compared to GAAP net income of $110.4 million, or $0.68 per diluted share, in the prior fiscal year’s second quarter.
“We are pleased with our second fiscal quarter results, which included revenue in line with the mid-point of our expectations after adjusting for the negative impact of foreign currencies. We remained focused on delivering value to our customers, including in North America where market dynamics continue to change rapidly. In Europe, we strengthened relationships with some of our long-standing customers. EE, the UK’s largest mobile operator, has extended its managed services contract with Amdocs to develop and maintain its BSS platform. We also expanded our business within additional buying centers of existing customers. These include TeliaSonera where our mobile network optimization solutions have been selected to improve customer experience and network performance across Sweden, Norway, Finland, Estonia and Lithuania,” said Eli Gelman, president and chief executive officer of Amdocs Management Limited.
Gelman continued, “Our Rest-of-World markets delivered record revenue in the second quarter as we made progress on a number of highly complex transformation projects. Amdocs has just completed the deployment of an integrated Amdocs BSS platform to provide billing business services for Vodafone India’s enterprise customers. This is part of a larger BSS transformation program in which Vodafone India is also migrating all postpaid customers onto a consolidated Amdocs billing platform. At the same time, our sales momentum continued at new customers in these regions and included a BSS project award at Kcell, an affiliate of TeliaSonera and Kazakhstan’s largest mobile operator.”
Gelman said, “The strategic use of M&A remains an important vehicle for executing on our long-term objectives. Along these lines, today we signed a definitive agreement to acquire a substantial majority of the business support system assets of Comverse for approximately $272 million in cash. The acquisition geographically complements Amdocs’ market focus by expanding and diversifying Amdocs’ global customer base, particularly in Asia Pacific, Latin America and Europe, and including Europe’s cable and satellite market. As we move forward, the strength of our company and unique business model will enable Amdocs to bring additional value, innovation and a broader range of offerings as we leverage our joint professional industry expertise for the benefit of our customers.”
Gelman concluded, “We returned more than 100% of free cash flow to shareholders in the second fiscal quarter, and with the stability of our business model and consistent operating execution, we remain committed to our balanced capital allocation framework over the long-term. Taking all factors into consideration, we are on-track to deliver diluted non-GAAP earnings per share growth of 4.5 per cent to 7.5 per cent for the full fiscal year 2015, and, with our dividend yield, maximize the total return we expect to provide to shareholders.”
