In the third quarter (the quarter ended at the end of June), revenues amounted to $ 1.03 billion, unchanged from the corresponding quarter. Since the beginning of the year, the company’s revenues have reached $ 3.1 billion, a growth of 2%.
According to GAAP, net income for the quarter was $ 120 million, down from about $ 131 million in the same quarter last year. Since the beginning of the year, net profit has increased by 1.7% to $ 363 million. Excluding various accounting items, non-GAAP net income for the quarter reached $ 143 million, a decrease of 12.2% compared to the corresponding quarter, and from the beginning of the year the profit amounted to $ 433 million, a decrease of 3.3%. Free cash flow for the quarter totaled $ 145 million and at the end of the quarter, after issuing $ 650 million in bonds and 2.54% interest, Amdocs had close to $ 1.2 billion in cash. During the quarter, Amdocs acquired its own shares for $ 60 million, and after The end of the quarter announced the acquisition of Openet from Ireland for $ 180 million, and the company will distribute a dividend of about 33 cents per share this coming September.
The fourth quarter is expected to end with revenue of $ 1.015-1.055 billion, similar to analysts ‘forecasts, and with non-GAAP net income of $ 1.16-1.22 per share, higher than analysts’ forecasts. Thus, the fiscal year 2020 will end with a modest growth of 1.1% -2.1% in revenue, while previously the forecast range was for a decrease of 0.5% to a growth of 2.5%; And with a 1.6% -3% increase in non-GAAP net earnings per share.
Amdocs is traded on the Nasdaq for $ 8.3 billion. It was recently reported that the company was laying off hundreds of employees due to the crisis.
Shuki Sheffer, President and CEO of Amdocs, said: “The third quarter of the fiscal year was the first full quarter in which we operated under the global conditions created by the COVID-19 epidemic, and given that I am proud of the company’s performance.”
“As part of our strategy to accelerate the pace of the communications industry’s lead to the cloud, we recently announced an agreement to acquire Openet. We believe Openet represents the right acquisition at the right time in the industry and look forward to welcoming Amdocs its professional and innovative team, with completion completed later in the fourth quarter.” .
Sheffer added that “Our backlog for the next 12 months increased at the end of the third quarter compared to the previous quarter as well as compared to the third quarter of the previous year. This increase supports a stronger revenue forecast for the fourth quarter than previously forecast. We are on track to generate a normalized $ 500 million free cash flow in fiscal year 2020, slightly better than the original forecast we provided earlier this year. “Furthermore, we see an attractive accumulation of future opportunities that we believe can support long-term future growth.”