Amdocs(US:DOX)2022-02-13 16:00Financial Performance - Total revenue for the quarter ended December 31, 2021, was $1,104,632, an increase from $1,086,343 in the same quarter of 2020, representing a growth of approximately 1.2%[10] - Operating income for the quarter was $160,146, compared to $140,200 in the prior year, reflecting an increase of about 14.3%[10] - Net income for the quarter was $133,602, down from $299,632 in the same quarter of 2020, indicating a decrease of approximately 55.4%[12] - Basic earnings per share for the quarter were $1.07, compared to $2.29 in the same quarter of the previous year, a decline of about 53%[10] - Revenue for the three months ended December 31, 2021, increased by $18.3 million, or 1.7%, to $1,104.6 million compared to $1,086.3 million for the same period in 2020[123] - Net income decreased by $166.0 million, or 55.4%, to $133.6 million in Q4 2021, primarily due to a significant decrease in gain from the sale of a business[136] - Diluted earnings per share fell by $1.21, or 53.1%, to $1.07 in Q4 2021, largely attributed to the prior year's gain from the sale of a business[137] Cash Flow and Capital Expenditures - Total cash provided by operating activities was $204,118 thousand, down from $416,485 thousand in the prior year, reflecting a decrease of 51.0%[22] - Cash and cash equivalents at the end of the period were $586,490 thousand, down from $1,336,569 thousand, indicating a decrease of 56.1%[22] - Free cash flow for the three months ended December 31, 2021, was $146.9 million, calculated as net cash provided by operating activities of $204.1 million minus $57.2 million in capital expenditures[139] - The company incurred $57.2 million in capital expenditures during the three months ended December 31, 2021, primarily for investments in operating facilities and development centers[147] - The company expects to incur approximately $131 million in capital expenditures related to the construction of a new campus in Israel during fiscal year 2022, with a total estimated investment of up to $350 million over five years[148] Dividends and Share Repurchases - Cash dividends declared per ordinary share increased to $0.36 from $0.3275 in the same quarter of 2020, representing an increase of approximately 9.5%[10] - The company declared a dividend of $0.36 per ordinary share on November 2, 2021, totaling $44,410, compared to $0.3275 per share totaling $42,850 declared on November 10, 2020[98] - The company repurchased shares totaling $170,904 thousand during the quarter, compared to $90,022 thousand in the same quarter of the previous year, marking an increase of 89.5%[22] - During the three months ended December 31, 2021, the company repurchased approximately 2.3 million ordinary shares at an average price of $73.85 per share, with remaining authority to repurchase up to $827.6 million under the May 2021 plan[149] Assets and Liabilities - Total assets as of December 31, 2021, were $6,555,477, up from $6,511,774 as of September 30, 2021, reflecting a growth of about 0.7%[8] - Total liabilities increased to $2,978,671 from $2,876,590, marking an increase of approximately 3.5%[8] - The company’s total equity as of December 31, 2021, was $3,576,806 thousand, compared to $3,868,505 thousand as of December 31, 2020, reflecting a decrease of 7.5%[18] Research and Development - Research and development expenses for the quarter were $81,945, up from $75,669 in the same quarter of 2020, representing an increase of approximately 8.4%[10] - Research and development expenses increased by $6.3 million, or 8.3%, to $81.9 million in Q4 2021, representing 7.4% of revenue, up from 7.0% in Q4 2020[128] Revenue Streams - Revenue from managed services arrangements accounted for approximately $659.7 million in Q4 2021, up from $623.7 million in Q4 2020, reflecting a significant growth in recurring revenue streams[117] - North America revenue for the three months ended December 31, 2021, was $745,493, compared to $703,434 in the same period of 2020, showing a growth of 6.0%[42] - Managed services arrangements revenue for the three months ended December 31, 2021, was $659,688, up from $623,655 in the same period of 2020, indicating an increase of 5.8%[41] Taxation - The provision for income taxes for the three months ended December 31, 2021, was $33,982, compared to $60,488 for the same period in 2020[79] - The effective income tax rate for the three months ended December 31, 2021, was 20.3%, an increase from 16.8% in the same period of 2020[81] Other Financial Metrics - The company reported a gain from the sale of a business amounting to $10,000 during the quarter[10] - The company reported a loss from the sale of a business amounting to $10,000 thousand, contrasting with a gain of $226,410 thousand in the previous year[22] - The company recognized revenue of $147,539 during the three months ended December 31, 2021, from deferred revenue as of September 30, 2021, compared to $89,192 for the same period in 2020, reflecting a growth of 65.2%[38] - The aggregate amount of transaction price allocated to remaining performance obligations was approximately $6.6 billion, with the majority expected to be recognized as revenue over the next three years[39] Legal and Regulatory Matters - The company is involved in various legal claims and proceedings, but believes that the results will not have a material adverse effect on its financial position[102] - The company is evaluating the impact of the new accounting standard effective October 1, 2023, related to business combinations and contract assets and liabilities[31] Market and Economic Conditions - The company continues to monitor the impact of COVID-19 on its operations and is adapting its business strategies accordingly[114] - Approximately 70% to 80% of the company's revenue and 50% to 60% of operating expenses were in U.S. dollars or linked to the U.S. dollar during the three months ended December 31, 2021[154]