<PAGE> 1
Exhibit 99.1
99.1. PRESS RELEASE. AMDOCS LIMITED CONTINUES STRONG, CONSISTENT
GROWTH IN THIRD QUARTER
Revenue increases by 80.1% to $297.0 million and EPS excluding
acquisition-related charges, increases by 76.9% to $0.23
St. Louis, MO - July 18, 2000, Amdocs Limited (NYSE: DOX) today reported that
for the third quarter ended June 30, 2000, revenue reached $297.0 million, an
increase of 80.1% over last year's third quarter. Excluding acquisition-related
charges, net income increased 102% to $51.4 million, while diluted earnings per
share increased 76.9% to $0.23. The acquisition-related charges derive primarily
from the acquisition of Solect Technology Group Inc., which was completed in
April 2000. These charges include write-off of purchased in-process research and
development, amortization of goodwill and purchased intangible assets, other
costs and related tax effects. As a result of the acquisition-related charges,
the Company's as-reported results showed a net loss of $67.2 million, or a loss
of $0.31 per diluted share, compared to net income of $25.4 million or $0.13 per
diluted share in the third quarter of fiscal 1999.
Avi Naor, Chief Executive Officer of Amdocs Management Limited, noted, "Amdocs
continues to demonstrate strong growth and consistent performance with another
excellent quarter. As the world's leader in customer care and billing systems,
Amdocs is uniquely positioned to leverage the demand for advanced systems in the
communications and Internet industries."
Naor continued, "We are experiencing strong demand for our systems in all target
segments: wireline, wireless and IP. Our momentum in the market continues with
major new projects for total solutions.
For example, at CenturyTel we have been selected to provide an end-to-end
convergent customer care and billing system."
Naor added, "In the IP arena, we are rapidly expanding our market share. We are
working with innovators in all key emerging IP segments, such as VISPs (virtual
ISPs), ASPs, wireless IP and DSL providers. In the explosive wireless IP sector,
Amdocs is the established market leader with installations and projects in GPRS,
WAP, m-commerce and wireless portal environments. Our IP offerings support the
full range of business models in the IP market, including convergent voice-IP,
hybrid and standalone architectures."
Naor concluded, "Through our long-term, ongoing customer relationships, Amdocs
achieves both recurring revenue for ongoing support, as well as new
opportunities in existing customers. These are key factors in ensuring that we
maintain our sales momentum. Amdocs' visibility continues to be high. Through
the combination of Amdocs' business stability, together with emerging new
opportunities, we are very confident moving forward."
Amdocs is the world's leader in customer care and billing systems for
communications and Internet service providers. Amdocs has an unparalleled
success record in project delivery of its mission-critical products. With over
6,500 information systems professionals deployed worldwide, Amdocs supports a
global customer base. In April 2000, Amdocs completed the acquisition of Solect
Technology Group Inc., a leading provider of customer care and billing systems
for IP service providers. For more information visit our Web site at
www.amdocs.com.
THIS PRESS RELEASE MAY CONTAIN FORWARD LOOKING STATEMENTS AS DEFINED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED. 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 ADVERSE EFFECTS OF MARKET
COMPETITION, RAPID CHANGES IN TECHNOLOGY THAT MAY RENDER THE COMPANY'S PRODUCTS
AND SERVICES OBSOLETE, POTENTIAL LOSS OF A MAJOR CUSTOMER, 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.
CONTACT:
Thomas G. O'Brien
Treasurer and Director of Investor Relations
Amdocs Limited
314/212-8328
E-mail: [email protected]
- TABLES TO FOLLOW -
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<PAGE> 2
AMDOCS LIMITED
PRO FORMA CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
EXCLUDING PURCHASED IN-PROCESS RESEARCH AND DEVELOPMENT, ACQUISITION RELATED
COSTS, AMORTIZATION OF GOODWILL AND PURCHASED INTANGIBLE ASSETS AND RELATED
TAX EFFECTS
(IN THOUSANDS, EXCEPT PER SHARE DATA)
<TABLE>
<CAPTION>
THREE MONTHS ENDED NINE MONTHS ENDED
JUNE 30, JUNE 30,
--------------------------------- --------------------------------
2000 (1) 1999 2000 (2) 1999
--------------- -------------- ------------- ---------------
<S> <C> <C> <C> <C>
Revenue:
License $ 32,663 $ 19,639 $ 89,606 $ 51,987
Service 264,339 145,245 713,647 392,152
--------------- -------------- ------------- ---------------
297,002 164,884 803,253 444,139
Operating expenses:
Cost of license 1,715 1,367 4,346 4,060
Cost of service 167,686 94,456 462,425 254,651
Research and development 20,275 11,005 52,958 28,524
Selling, general and administrative 37,321 20,274 97,868 53,336
--------------- -------------- ------------- ---------------
226,997 127,102 617,597 340,571
--------------- -------------- ------------- ---------------
Operating income 70,005 37,782 185,656 103,568
Other income (expense), net 3,355 (1,467) 6,018 (5,420)
--------------- -------------- ------------- ---------------
Income before income taxes 73,360 36,315 191,674 98,148
Income taxes 22,008 10,894 57,502 29,444
--------------- -------------- ------------- ---------------
Net income $ 51,352 $ 25,421 $ 134,172 $ 68,704
=============== ============== ============= ===============
Diluted earnings per share $ 0.23 $ 0.13 $ 0.63 $ 0.34
=============== ============== ============= ===============
Diluted weighted average number of shares
outstanding 226,304 200,310 213,898 199,649
=============== ============== ============= ===============
</TABLE>
(1) Excludes $54,070 of amortization of goodwill and purchased intangible
assets, $50,554 write off of purchased in-process research and development,
$5,187 of acquisition related costs, and tax effects related to the above
of $8,700. Including the above items, loss before income taxes was $36,451
and diluted net loss per share was $0.31 for the three months ended June
30, 2000.
(2) Excludes $56,870 of amortization of goodwill and purchased intangible
assets, $70,430 write off of purchased in-process research and development,
$5,187 of acquisition related costs, and tax effects related to the above
of $8,700. Including the above items, income before income taxes was
$59,187 and diluted net loss per share was $0.03 for the nine months ended
June 30, 2000.
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<PAGE> 3
AMDOCS LIMITED
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(IN THOUSANDS, EXCEPT PER SHARE DATA)
<TABLE>
<CAPTION>
THREE MONTHS ENDED NINE MONTHS ENDED
JUNE 30, JUNE 30,
---------------------------------- ---------------------------------
2000 1999 2000 1999
--------------- --------------- --------------- -----------
<S> <C> <C> <C> <C>
Revenue:
License $ 32,663 $ 19,639 $ 89,606 $ 51,987
Service 264,339 145,245 713,647 392,152
--------------- --------------- --------------- ------------
297,002 164,884 803,253 444,139
Operating expenses:
Cost of license 1,715 1,367 4,346 4,060
Cost of service 167,686 94,456 462,425 254,651
Research and development 20,275 11,005 52,958 28,524
Selling, general and administrative 37,321 20,274 97,868 53,336
Amortization of goodwill and purchased intangible
assets 54,070 -- 56,870 --
In-process research and development and other costs 55,741 -- 75,617 --
--------------- --------------- --------------- ------------
336,808 127,102 750,084 340,571
--------------- --------------- --------------- ------------
Operating income (loss) (39,806) 37,782 53,169 103,568
Other income (expense), net 3,355 (1,467) 6,018 (5,420)
--------------- --------------- --------------- -------------
Income (loss) before income taxes (36,451) 36,315 59,187 98,148
Income taxes 30,708 10,894 66,202 29,444
--------------- --------------- --------------- -------------
Net income (loss) $ (67,159) $ 25,421 $ (7,015) $ 68,704
=============== =============== =============== =============
Basic earnings (loss) per share $ (0.31) $ 0.13 $ (0.03) $ 0.35
=============== =============== =============== =============
Diluted earnings (loss) per share $ (0.31) $ 0.13 $ (0.03) $ 0.34
=============== =============== =============== =============
Basic weighted average number of shares outstanding 219,962 197,322 208,706 196,976
=============== =============== =============== =============
Diluted weighted average number of shares outstanding 219,962(1) 200,310 208,706(1) 199,649
=============== =============== =============== =============
</TABLE>
(1) Due to net loss, contingently issuable shares are excluded from the
computation of diluted weighted average number of shares.
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<PAGE> 4
AMDOCS LIMITED
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(IN THOUSANDS)
<TABLE>
<CAPTION>
AS OF
------------------- -- -------------------
JUNE 30, SEPTEMBER 30,
2000 1999
------------------- -------------------
<S> <C> <C>
ASSETS
Current assets
Cash, cash equivalents and short term interest bearing
investments $ 310,852 $ 85,174
Accounts receivable, net 281,912 159,312
Deferred income taxes and taxes receivable 33,497 29,899
Prepaid expenses and other current assets 32,356 16,390
------------------- -------------------
Total current assets 658,617 290,775
Equipment, vehicles and leasehold improvements, net 106,003 83,997
Goodwill and other intangible assets, net 1,062,322 20,742
Other assets 49,815 34,497
------------------- -------------------
Total assets $ 1,876,757 $ 430,011
=================== ===================
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Accounts payable and accruals $ 181,999 $ 108,686
Short-term financing arrangements 5,813 8,103
Deferred revenue 126,719 104,688
Deferred income taxes and income taxes payable 79,438 33,412
------------------- -------------------
Total current liabilities 393,969 254,889
Noncurrent liabilities 76,570 51,385
Shareholders' equity 1,406,218 123,737
------------------- -------------------
Total liabilities and shareholders' equity $ 1,876,757 $ 430,011
=================== ===================
</TABLE>
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