Amdocs Ltd 6-K, filed Feb 20, 2024

Amdocs Ltd (DOX)

6-K 2024-02-20 For: 2023-12-31

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Added on April 07, 2026

About this 6-K

Amdocs Ltd filed this 6-K on February 20, 2024.

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PART I FINANCIAL INFORMATION	3
Item 1. Financial Statements	3
Unaudited Consolidated Financial Statements
Consolidated Balance Sheets	3
Consolidated Statements of Income	4
Consolidated Statements of Comprehensive Income	5
Consolidated Statements of Changes in Equity	6
Consolidated Statements of Cash Flows	7
Notes to Unaudited Consolidated Financial Statements	8
Item 2. Operating and Financial Review and Prospects	20
PART II OTHER INFORMATION	27
Item 1. Changes in Securities, Use of Proceeds and Issuer Purchases of Equity Securities	27
Item 2. Reports on Form 6-K	27
SIGNATURES	27


	As of
	December 31, 2023			September 30, 2023
	(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	382,885		$	520,080
Short-term interest-bearing investments		218,043			222,451
Accounts receivable, net		1,029,294			944,477
Prepaid expenses and other current assets		215,914			224,622
Total current assets		1,846,136			1,911,630
Property and equipment, net		776,629			790,923
Lease assets		163,181			160,938
Goodwill		2,836,030			2,749,041
Intangible assets, net		204,562			181,539
Other noncurrent assets		645,128			631,582
Total assets	$	6,471,666		$	6,425,653
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable	$	278,627		$	293,344
Accrued expenses and other current liabilities		749,882			634,742
Accrued personnel costs		216,037			214,695
Lease liabilities		41,361			39,960
Deferred revenue		149,826			170,634
Total current liabilities		1,435,733			1,353,375
Deferred income taxes and taxes payable		198,577			252,609
Lease liabilities		117,155			121,654
Long-term debt, net of unamortized debt issuance costs		645,844			645,696
Other noncurrent liabilities		472,004			485,387
Total liabilities		2,869,313			2,858,721
Equity:
Amdocs Limited Shareholders' equity:
Preferred Shares — Authorized 25,000 shares; £0.01 par value; 0 shares issued and outstanding		—			—
Ordinary Shares — Authorized 700,000 shares; £0.01 par value; 287,379 and 286,330 issued and 116,502 and 117,348 outstanding, respectively		4,584			4,571
Additional paid-in capital		4,294,652			4,244,256
Treasury stock, at cost 170,877 and 168,982 ordinary shares, respectively		(7,379,838	)		(7,221,313	)
Accumulated other comprehensive loss		(6,452	)		(53,272	)
Retained earnings		6,646,799			6,549,517
Total Amdocs Limited Shareholders' equity		3,559,745			3,523,759
Noncontrolling interests		42,608			43,173
Total equity		3,602,353			3,566,932
Total liabilities and equity	$	6,471,666		$	6,425,653


	Three months ended December 31,
	2023			2022
Revenue	$	1,245,199		$	1,185,720
Operating expenses:
Cost of revenue		812,744			756,849
Research and development		89,207			95,726
Selling, general and administrative		142,504			143,222
Amortization of purchased intangible assets and other		16,410			15,313
Restructuring charges		—			24,536
		1,060,865			1,035,646
Operating income		184,334			150,074
Interest and other expense, net		(9,778	)		(4,963	)
Income before income taxes		174,556			145,111
Income tax expense		25,834			15,239
Net income	$	148,722		$	129,872
Net income attributable to noncontrolling interests		757			205
Net income attributable to Amdocs Limited	$	147,965		$	129,667
Basic earnings per share attributable to Amdocs Limited	$	1.27		$	1.07
Diluted earnings per share attributable to Amdocs Limited	$	1.26		$	1.07
Cash dividends declared per ordinary share	$	0.435		$	0.395


	Three months ended December 31,
	2023		2022
Net income	$	148,722	$	129,872
Other comprehensive income, net of tax:
Net change in fair value of cash flow hedges(1)		42,146		11,193
Net change in fair value of available-for-sale securities(2)		4,674		2,147
Other comprehensive income, net of tax		46,820		13,340
Comprehensive income	$	195,542	$	143,212
Comprehensive income attributable to noncontrolling interests		757		205
Comprehensive income attributable to Amdocs Limited	$	194,785	$	143,007


	Ordinary Shares
	Shares			Amount		Additional Paid-in Capital		Treasury Stock			Accumulated Other Comprehensive Loss (1)			Retained Earnings			Total Amdocs Limited Shareholders’ Equity			Non- controlling Interests (2)			Total Equity
Balance as of September 30, 2023		117,348		$	4,571	$	4,244,256	$	(7,221,313	)	$	(53,272	)	$	6,549,517		$	3,523,759		$	43,173		$	3,566,932
Comprehensive income:
Net income		—			—		—		—			—			147,965			147,965			757			148,722
Other comprehensive income		—			—		—		—			46,820			—			46,820			—			46,820
Comprehensive income																		194,785			757			195,542
Employee stock options exercised		74			1		4,349		—			—			—			4,350			—			4,350
Repurchase of shares		(1,895	)		—		—		(158,525	)		—			—			(158,525	)		—			(158,525	)
Cash dividends declared ($0.435 per ordinary share)		—			—		—		—			—			(50,683	)		(50,683	)		—			(50,683	)
Issuance of restricted stock, net of forfeitures		700			9		—		—			—			—			9			—			9
Employee share purchase plan		275			3		19,967		—			—			—			19,970			—			19,970
Equity-based compensation expense related to employees		—			—		26,080		—			—			—			26,080			—			26,080
Distribution to noncontrolling interests (2)		—			—		—		—			—			—			—			(1,322	)		(1,322	)
Balance as of December 31, 2023		116,502		$	4,584	$	4,294,652	$	(7,379,838	)	$	(6,452	)	$	6,646,799		$	3,559,745		$	42,608		$	3,602,353

	Ordinary Shares
	Shares			Amount		Additional Paid-in Capital		Treasury Stock			Accumulated Other Comprehensive (Loss) (1)			Retained Earnings			Total Amdocs Limited Shareholders’ Equity			Non- controlling Interests			Total Equity
Balance as of September 30, 2022		120,842		$	4,548	$	4,105,900	$	(6,731,789	)	$	(72,476	)	$	6,211,586		$	3,517,769		$	42,509		$	3,560,278
Comprehensive income:
Net income		—			—		—		—			—			129,667			129,667			205			129,872
Other comprehensive loss		—			—		—		—			13,340			—			13,340			—			13,340
Comprehensive income																		143,007			205			143,212
Employee stock options exercised		247			3		14,590		—			—			—			14,593			—			14,593
Repurchase of shares		(1,183	)		—		—		(100,021	)		—			—			(100,021	)		—			(100,021	)
Cash dividends declared ($0.395 per ordinary share)		—			—		—		—			—			(47,635	)		(47,635	)		—			(47,635	)
Issuance of restricted stock, net of forfeitures		682			8		—		—			—			—			8			—			8
Equity-based compensation expense related to employees		—			—		19,490		—			—			—			19,490			—			19,490
Balance as of December 31, 2022		120,588		$	4,559	$	4,139,980	$	(6,831,810	)	$	(59,136	)	$	6,293,618		$	3,547,211		$	42,714		$	3,589,925


	As of December 31,2023
	Level 1		Level 2		Level 3			Total
Available-for-sale securities:
Money market funds	$	198,091	$	—	$	—		$	198,091
Corporate bonds		—		145,618		—			145,618
U.S. government treasuries		42,131		—		—			42,131
Supranational and sovereign debt		—		17,260		—			17,260
Asset backed obligations		—		5,816		—			5,816
Municipal bonds		—		7,218		—			7,218
Total available-for-sale securities		240,222		175,912		—			416,134
Equity Investments		—		—		46,451			46,451
Derivative financial instruments, net		—		10,036		—			10,036
Other liabilities		—		—		(61,761	)		(61,761	)
Total	$	240,222	$	185,948	$	(15,310	)	$	410,860


	As of September 30, 2023
	Level 1		Level 2			Level 3			Total
Available-for-sale securities:
Money market funds	$	308,354	$	—		$	—		$	308,354
Corporate bonds		—		150,310			—			150,310
U.S. government treasuries		41,138		—			—			41,138
Supranational and sovereign debt		—		16,792			—			16,792
Asset backed obligations		—		7,115			—			7,115
Municipal bonds		—		7,096			—			7,096
Total available-for-sale securities		349,492		181,313			—			530,805
Equity Investments		—		—			47,985			47,985
Derivative financial instruments, net		—		(36,832	)		—			(36,832	)
Other liabilities		—		—			(24,627	)		(24,627	)
Total	$	349,492	$	144,481		$	23,358		$	517,331


	As of December 31,2023
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Money market funds	$	198,091	$	—	$	—	$	198,091
Corporate bonds		152,650		—		7,032		145,618
U.S. government treasuries		44,831		—		2,700		42,131
Supranational and sovereign debt		18,565		—		1,305		17,260
Asset backed obligations		6,022		—		206		5,816
Municipal bonds		7,504		—		286		7,218
Total(1)	$	427,663	$	—	$	11,529	$	416,134


	Market Value
Due within one year	$	257,895
1 to 2 years		102,411
2 to 3 years		55,828
	$	416,134


	Losses Reclassified from
	Accumulated Other Comprehensive Loss (Effective Portion)
	Three months ended December 31,
	2023			2022
Line item in consolidated statements of income:
Revenue	$	355		$	815
Cost of revenue		(6,130	)		(7,212	)
Research and development		(2,040	)		(2,007	)
Selling, general and administrative		(2,096	)		(1,965	)
Total	$	(9,911	)	$	(10,369	)


	Losses Recognized in Income
	Three months ended December 31,
	2023			2022
Line item in consolidated statements of income:
Cost of revenue	$	2,935		$	1,232
Research and development		850			174
Selling, general and administrative		944			260
Interest and other expense, net		(6,134	)		(11,408	)
Income taxes		(617	)		(204	)
Total	$	(2,022	)	$	(9,946	)


Declaration Date	Dividends Per Ordinary Share		Record Date	Total Amount		Payment Date
November 7, 2023	$	0.435	December 29, 2023	$	50,683	January 26, 2024
November 8, 2022	$	0.395	December 30, 2022	$	47,635	January 27, 2023


	Three months ended December 31,						Increase (Decrease)
	2023			2022			Amount			%
	(in thousands)
Revenue (1)	$	1,245,199		$	1,185,720		$	59,479			5.0	%
Operating expenses:
Cost of revenue		812,744			756,849			55,895			7.4
Research and development		89,207			95,726			(6,519	)		(6.8	)
Selling, general and administrative		142,504			143,222			(718	)		(0.5	)
Amortization of purchased intangible assets and other		16,410			15,313			1,097			7.2
Restructuring charges		—			24,536			(24,536	)		(100.0	)
		1,060,865			1,035,646			25,219			2.4
Operating income		184,334			150,074			34,260			22.8
Interest and other expense, net		(9,778	)		(4,963	)		(4,815	)		(97.0	)
Income before income taxes		174,556			145,111			29,445			20.3
Income tax expense		25,834			15,239			10,595			69.5
Net income	$	148,722		$	129,872		$	18,850			14.5	%
Net income attributable to noncontrolling interests		757			205			552			269	%
Net income attributable to Amdocs Limited	$	147,965		$	129,667		$	18,298			14.1	%


(1) Geographic Information:
	Three months ended December 31,				Increase (Decrease)
	2023		2022		Amount		%
	(In thousands)
North America (mainly United States)	$	838,135	$	812,690	$	25,445		3.1	%
Europe		181,420		168,666		12,754		7.6
Rest of the world		225,644		204,364		21,280		10.4
Total	$	1,245,199	$	1,185,720	$	59,479		5.0	%


Declaration Date	Dividends Per Ordinary Share		Record Date	Total Amount in millions		Payment Date
November 7, 2023	$	0.435	December 29, 2023	$	50.7	January 26, 2024
November 8, 2022	$	0.395	December 30, 2022	$	47.6	January 27, 2023


	As of
	December 31, 2023			September 30, 2023
Accounts receivable - billed (net of allowances for credit losses of $21,752 and $19,801 as of December 31, 2023 and September 30, 2023, respectively)	$	747,421		$	732,979
Accounts receivable – unbilled (current)	$	281,873		$	211,498
Accounts receivable – unbilled (non-current)	$	32,310		$	45,176
Total Accounts receivable - unbilled	$	314,183		$	256,674
Deferred revenue (current)	$	(149,826	)	$	(170,634	)
Deferred revenue (non-current)	$	(658	)	$	(805	)
Total Deferred revenue	$	(150,484	)	$	(171,439	)


	Notional Value*
Foreign exchange contracts	$	2,222,280


	Three months ended December 31,
	2023			2022

Net unrealized losses on cash flow hedges, net of tax, beginning of period	$	(34,677	)	$	(46,580	)
Changes in fair value of cash flow hedges, net of tax		32,854			1,367
Reclassification of net losses into earnings, net of tax		9,292			9,826
Net unrealized gains (losses) on cash flow hedges, net of tax, end of period	$	7,469		$	(35,387	)


	Three months ended December 31,
	2023			2022
Numerator:
Net income attributable to Amdocs Limited	$	147,965		$	129,667
Net income attributable to Amdocs Limited and dividends attributable to participating restricted stock		(2,679	)		(2,014	)
Numerator for basic earnings per common share	$	145,286		$	127,653
Undistributed income allocated to participating restricted stock		1,759			1,274
Undistributed income reallocated to participating restricted stock		(1,748	)		(1,265	)
Numerator for diluted earnings per common share	$	145,297		$	127,662
Denominator:
Weighted average number of shares outstanding - basic		116,841			120,652
Weighted average number of participating restricted stock		(2,115	)		(1,874	)
Weighted average number of common shares - basic	$	114,726			118,778
Effect of dilutive equity-based compensation awards		695			848
Weighted average number of common shares - diluted		115,421			119,626
Basic earnings per common share attributable to Amdocs Limited	$	1.27		$	1.07
Diluted earnings per common share attributable to Amdocs Limited	$	1.26		$	1.07


Period	Total Number of Shares Purchased		Average Price Paid per Share(1)		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs		Maximum Number (or Approximate Dollar Value) of Shares that May Yet Be Purchased Under the Plans or Programs(2)
10/01/23-10/31/23		753,381	$	82.29		753,381	$	1,038,667,012
11/01/23-11/30/23		395,302	$	80.95		395,302	$	1,006,667,921
12/01/23-12/31/23		746,106	$	86.45		746,106	$	942,169,030
Total		1,894,789	$	83.65		1,894,789	$	942,169,030


	AMDOCS LIMITED

	/s/ Matthew E. Smith
	Matthew E. Smith
	Secretary and Authorized Signatory

Date: February 20, 2024