Amdocs(US:DOX)2024-08-19 20:16Revenue Performance - Revenue increased by $96.1 million, or 2.6%, to $3,741.1 million for the nine months ended June 30, 2024, compared to $3,645.0 million for the same period in 2023[185]. - Revenue from managed services arrangements accounted for approximately $740.8 million and $2.18 billion in the three and nine months ended June 30, 2024, respectively, showing growth from $719.8 million and $2.14 billion in the same periods of 2023[181]. - Revenue for the three months ended June 30, 2024, increased by $14.1 million, or 1.1%, to $1,250.1 million from $1,236.0 million in the same period of 2023[226]. - Total revenue for the nine months ended June 30, 2024, was $3,741.1 million, an increase of $96.1 million, or 2.6%, from $3,645.0 million in 2023[218]. - Total revenue for the nine months ended June 30, 2024, was $1,250.1 million, an increase of 1.1% compared to $1,235.9 million for the same period in 2023[243]. Income and Expenses - Net income attributable to Amdocs Limited was $140.3 million for the three months ended June 30, 2024, down from $159.4 million in the same period of 2023, a decrease of 12.0%[192]. - For the nine months ended June 30, 2024, net income decreased by $31.9 million, or 7.3%, to $406.8 million compared to $438.7 million for the same period in 2023[224]. - Operating income for the three months ended June 30, 2024, decreased by $6.8 million, or 3.7%, to $175.9 million, or 14.1% of revenue[229]. - Research and development expense decreased by $6.4 million, or 2.3%, to $270.7 million in the nine months ended June 30, 2024, from $277.2 million in the same period of 2023, representing 7.2% of revenue[188]. - Research and development expenses for the three months ended June 30, 2024, slightly decreased by $1.8 million, or 1.9%, to $90.4 million, representing 7.2% of revenue[228]. - Selling, general and administrative expenses increased by $3.8 million, or 0.9%, to $434.1 million for the nine months ended June 30, 2024, while decreasing as a percentage of revenue from 11.8% to 11.6%[222]. - Interest and other expense, net, increased from a net expense of $12.3 million in the nine months ended June 30, 2023, to a net expense of $28.3 million in the same period of 2024[190]. - Income tax expense for the nine months ended June 30, 2024, was $78.5 million on pre-tax income of $487.6 million, resulting in an effective tax rate of 16.1%[241]. - The effective tax rate for the three months ended June 30, 2024, was 16.6%, compared to 10.2% in the same period in 2023[247]. Shareholder Actions - The company repurchased 5,212 ordinary shares at an average price of $85.05 per share in the nine months ended June 30, 2024, under its share repurchase plans[198]. - The company repurchased 5.2 million ordinary shares at an average price of $85.05 per share during the nine months ended June 30, 2024[252]. - The remaining authority to repurchase under the August 2023 plan is $657.4 million as of June 30, 2024[252]. Operational Efficiency - Cost of revenue as a percentage of revenue decreased to 64.8% in the three months ended June 30, 2024, from 65.1% in the same period of 2023, reflecting operational efficiency improvements[194]. - Restructuring charges for the nine months ended June 30, 2024, were $47.9 million, compared to $24.5 million for the same period in 2023[223]. - Restructuring charges for the three months ended June 30, 2024, were $14.7 million, with no charges in the same period in 2023[246]. Market Segmentation - Customers in North America accounted for 66.6% of total revenue, while Europe and the rest of the world accounted for 14.5% and 18.9%, respectively[179]. - Revenue from customers in North America increased by $17.6 million, or 0.7%, to $2,490.2 million for the nine months ended June 30, 2024[218]. - Revenue from North America decreased by $2.0 million, or 0.2%, while revenue from Europe decreased by $11.4 million, or 6.1%[243]. Strategic Investments - The company continues to invest in cloud offerings, 5G, AI, and digital innovations as part of its long-term strategy[188]. Financial Instruments - The Company issued $650 million in Senior Notes with a fixed interest rate of 2.538% per annum, maturing in June 2030[233]. - The Company had outstanding letters of credit and bank guarantees totaling $78,704 as of June 30, 2024[200]. Amortization and Intangible Assets - Amortization of purchased intangible assets increased by $6.2 million, or 14.8%, to $47.7 million in the nine months ended June 30, 2024, due to recent acquisitions[189].