Amdocs Limited (DOX) has reported a 5.02 percent rise in profit for the quarter ended Sep. 30, 2016. The company has earned $95.71 million, or $0.64 a share in the quarter, compared with $91.13 million, or $0.59 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $132.36 million, or $0.89 a share compared with $130.35 million or $0.84 a share, a year ago.
Revenue during the quarter went up marginally by 1.50 percent to $940.66 million from $926.78 million in the previous year period. Gross margin for the quarter expanded 11 basis points over the previous year period to 35.03 percent. Total expenses were 87.40 percent of quarterly revenues, down from 88.16 percent for the same period last year. This has led to an improvement of 76 basis points in operating margin to 12.60 percent.
Operating income for the quarter was $118.50 million, compared with $109.70 million in the previous year period.
However, the adjusted operating income for the quarter stood at $161.08 million compared to $156.92 million in the prior year period. At the same time, adjusted operating margin improved 19 basis points in the quarter to 17.12 percent from 16.93 percent in the last year period.
"Our fourth quarter performance was solid and culminated in a stronger second half along the lines we predicted a year ago. North America showed further signs of stabilization, while Europe and Rest of World delivered strong double-digit growth for the full year notwithstanding normal fluctuations in customer activity in Q4. Late in the quarter, we expanded our digital capabilities with the combined acquisitions of Pontis, Brite:Bill and Vindicia for roughly $260 million in cash. We also delivered on our plan to return 100% of free cash flow to shareholders in the second half of the fiscal year, consistent with our ongoing commitment to the disciplined and proactive allocation of cash," said Eli Gelman, president and chief executive officer of Amdocs Management Limited.
For the first-quarter 2017, Amdocs Limited expects revenue to be in the range of $935 million to $975 million. The company projects diluted earnings per share to be in the range of $0.59 to $0.67. On an adjusted basis, the company projects diluted earnings per share to be in the range of $0.87 to $0.93.
Operating cash flow declines
Amdocs Limited has generated cash of $620.23 million from operating activities during the year, down 19.72 percent or $152.39 million, when compared with the last year.
The company has spent $440.85 million cash to meet investing activities during the year as against cash outgo of $379.65 million in the last year.
The company has spent $446.30 million cash to carry out financing activities during the year as against cash outgo of $460.66 million in the last year period.
Cash and cash equivalents stood at $768.66 million as on Sep. 30, 2016, down 25.77 percent or $266.91 million from $1,035.57 million on Sep. 30, 2015.
Debt comes down
Amdocs Limited has recorded a decline in total debt over the last one year. It stood at $200 million as on Sep. 30, 2016, down 9.09 percent or $20 million from $220 million on Sep. 30, 2015. Amdocs has recorded a decline in short-term debt over the last one year. It stood at $200 million as on Sep. 30, 2016, down 9.09 percent or $20 million from $220 million on Sep. 30, 2015.
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