Amdocs Ltd. ( DOX ) reported second
quarter of fiscal 2013 financial results. The company has
stabilized its business with its major client
AT&T Inc. ( T ), limiting a major
concern for its business fluctuations. Additionally, in the
reported quarter, Amdocs achieved key production milestones in the
modernization of United States Cellular Corp. ( USM ) and expanded its
managed services contract with Comcast Corp. ( CMCSA ). Amdocs
currently has a Zacks Rank #4 (Sell).
Second Quarter Results in Details
Quarterly net income, on a GAAP basis, was $104.9 million or 64
cents per share compared with $101.9 million or 60 cents per share
in the prior-year quarter. Second-quarter of fiscal 2013 adjusted
earnings per share of 68 cents beat the Zacks Consensus Estimate of
66 cents. Second-quarter total revenue came in at $832.9 million,
up 3% year over year, but slightly below the Zacks Consensus
Estimate of $836 million.
Amdocs posted gross margin of 35.3% in the reported quarter
compared with 35.9% in the year-ago quarter. Reported operating
income was approximately $122.9 million, up 11.8% year over year.
Quarterly operating margin was 14.8% compared with 13.6% in the
prior-year quarter. At the end of the second quarter of fiscal
2013, total order backlog was $2,810 million compared with $2,725
million at the end of the year-ago quarter. In the reported
quarter, Amdocs repurchased shares worth $109 million.
During the first half of fiscal 2013, Amdocs generated around
$265.5 million in cash from operations compared with $224.5 million
in the prior-year period. Free cash flow (cash flow from operations
less capital expenditure) in the first half of fiscal 2013 stood at
$207.2 million compared with $174.3 million in the prior-year
At the end of the second quarter of fiscal 2013, Amdocs had
approximately $978.2 million in cash and marketable securities and
no outstanding debt on its balance sheet compared with $1,118.2
million of cash and marketable securities and no outstanding debt
at the end of fiscal 2012.
Segment Wise Results
Service revenues were $811 million, up 3.6% year over year.
License revenues were approximately $21.9 million, down 16.5% year
over year. Technologically, Customer Experience Systems revenues
were $789.3 million, up 4% year over year while Directory revenues
were $43.6 million, down 12.8% year over year. The company's core
Managed Services revenues came in at $439.8 million, up 6.1% year
Geographically, North America generated $601.3 million, up 6.8%
year over year, Europe generated $99.3 million, down 11.2% year
over year; while the Rest of the World contributed the remaining
$132.3 million, down 1.2% year over year. Revenues from the
emerging markets came in at $98.1 million, showing an annualized
growth of 9.7%.
Management expects the revenues of the third quarter of fiscal
2013 to be in the range of $825-$855 million. Earnings per share,
on a GAAP basis, are expected to be between 60 cents and 68 cents.
Moreover, non-GAAP earnings per share, including 5-6 cents per
share of equity-based compensation expense, are projected in the
range of 70-76 cents. COMCAST CORP A (CMCSA): Free Stock Analysis
ReportAMDOCS LTD (DOX): Free Stock Analysis ReportAT&T INC (T): Free Stock Analysis ReportUS CELLULAR (USM): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment