) reported mixed financial results for the fourth quarter of
fiscal 2013. The company completed the acquisition of Actix on
Sep 2013 and decided to acquire Celcite Management Solutions for
approximately $129 million in cash. Celcite is a leading provider
of network management and self optimizing network solutions. The
deal is expected to close by the early second quarter of fiscal
Further, management has decided to raise its quarterly
dividend per share from 13 cents to 15.5 cents payable on Apr 17,
2014, subject to shareholders' approval.
Fourth-Quarter Results in Details
Quarterly net income, on a GAAP basis, was $89 million or 54
cents per share compared with $98 million or 60 cents per share
in the prior-year quarter. Fourth-quarter fiscal 2013 adjusted
earnings per share of 59 cents were exactly in line with the
Zacks Consensus Estimate. Quarterly total revenue came in at
$845.2 million, up 2.8% year over year, but narrowly missed the
Zacks Consensus Estimate of $847 million.
Amdocs posted gross margin of 35.4% in the reported quarter
compared with 35.6% in the year-ago quarter. Reported operating
income was approximately $122.9 million, up 8.3% year over year.
Quarterly operating margin was 14.5% compared with 13.8% in the
prior-year quarter. At the end of fiscal 2013, total order
backlog was $2,870 million against $2,790 million at the end of
the year-ago quarter. In the reported quarter, Amdocs repurchased
shares worth $97 million.
During fiscal 2013, Amdocs generated around $670.5 million in
cash from operations compared with $514.1 million in the
comparable prior-year period. Free cash flow in fiscal 2013 stood
at $563.8 million against $392 million in fiscal 2012. At the end
of fiscal 2013, Amdocs had approximately $1,326.4 million in cash
and marketable securities compared with $1,118.2 million at the
end of fiscal 2012. Short-term loan was $200 million, remaining
same year over year.
Segment Wise Results
Service revenues were $822.7 million, up 3.1% year over year.
License revenues were approximately $22.2 million, down 7.5% year
over year. Technologically, Customer Experience Systems revenues
were $809.3 million, up 3.3% from the year-earlier quarter while
Directory revenues were $35.9 million, down 8% year over year.
The company's core Managed Services revenues came in at $414
million, down 2.3% from the prior-year quarter.
Geographically, North America generated $608.9 million, up
6.8% year over year. Europe generated $101.9 million, down 9.9%
year over year, while the Rest of the World contributed the
remaining $134.4 million, down 3% year over year. Revenues from
the emerging markets came in at $113.8 million, up 13.9% year
Management expects revenues in the range of $845-$875 million
in the first quarter of fiscal 2014. Earnings per share, on a
GAAP basis, are expected between 58 cents and 66 cents. Moreover,
non-GAAP earnings per share, including 6-7 cents per share of
equity-based compensation expense, are projected in the range of
For fiscal 2014, total revenue is expected to grow 4%-6% year
over year. Non-GAAP earnings per share are expected to grow 6%-9%
year over year.
Other Stocks to Consider
Amdocs currently has a Zacks Rank #3 (Hold). Other stocks in
the same industry which are performing well include
CoStar Group Inc.
EPAM Systems Inc.
). All three stocks currently have a Zacks Rank #2 (Buy).
COSTAR GRP INC (CSGP): Free Stock Analysis
AMDOCS LTD (DOX): Free Stock Analysis Report
EPAM SYSTEMS (EPAM): Free Stock Analysis
INFOSYS LTD (INFY): Free Stock Analysis
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