CRM Software Comparison Blog

ST. LOUIS, MO. - January 11, 2007 - Amdocs Limited (NYSE: DOX) today announced that it expects to report results in line with guidance for its fiscal first quarter, which ended December 31, 2006. The Company also now expects that revenue in fiscal 2007 will be approximately $2.83-$2.91 billion, slightly lower than the Company’s previous guidance.

In its earnings press release dated November 1st, 2006 Amdocs announced that it expected that revenue for the first quarter of fiscal 2007 would be approximately $690 million. Diluted earnings per share on a non-GAAP basis for the first quarter were expected to be $0.50, excluding acquisition-related costs and the impact of approximately $0.05-$0.06 per share of equity-based compensation expense, net of related tax effects. Diluted GAAP EPS was expected to be approximately $0.39-$0.40. In the same press release, the Company announced that for fiscal 2007 it expected revenue of approximately $2.89-$2.97 billion.

“We remain positive about the Company and our outlook,” said Dov Baharav, Chief Executive Officer of Amdocs Management Limited. “Our acquisition of Cramer Systems Group Ltd. has strengthened Amdocs strategically and is consistently contributing new wins. I am pleased to report that the integration of this businesses is proceeding according to plan. We have also achieved several important customer milestones during the first quarter. Overall, our existing business is strong. We continue to see demand for our products and services as major service providers around the world continue to embark on transformation and convergence projects, but not at the same pace that we had expected. As a result we feel it prudent to slightly update our revenue growth estimates for fiscal 2007.”

As originally scheduled, Amdocs will host a conference call on January 17, 2007 at 5 p.m. Eastern Time to discuss the Company’s first quarter results. The call will be carried live on the Internet via www.InvestorCalendar.com and the Amdocs website, www.amdocs.com.

Non-GAAP Financial Measures
This release includes non-GAAP diluted earnings per share information which may exclude the following items:

* amortization of purchased intangible assets;
* in-process research and development write-off;
* restructuring charges;
* equity-based compensation expense; and
* tax effects related to the above.

These non-GAAP financial measures are not in accordance with, or an alternative for, generally accepted accounting principles and may be different from non-GAAP financial measures used by other companies. In addition, these non-GAAP financial measures are not based on any comprehensive set of accounting rules or principles. Amdocs believes that non-GAAP financial measures have limitations in that they do not reflect all of the amounts associated with Amdocs’ results of operations as determined in accordance with GAAP and that these measures should only be used to evaluate Amdocs’ results of operations in conjunction with the corresponding GAAP measures.Amdocs believes that the presentation of non-GAAP diluted earnings per share, when shown in conjunction with the corresponding GAAP measures, provides useful information to investors and management regarding financial and business trends relating to its financial condition and results of operations as well as the net amount of cash generated by its business operations after taking into account capital spending required to maintain or expand the business.

For its internal budgeting process and in monitoring the results of the business, Amdocs’ management uses financial statements that do not include amortization of purchased intangible assets, in-process research and development write-off, restructuring charges, equity-based compensation expense, and related tax effects. Amdocs’ management also uses the foregoing non-GAAP financial measures, in addition to the corresponding GAAP measures, in reviewing the financial results of Amdocs. In addition, Amdocs believes that significant groups of investors exclude these non-cash expenses in reviewing its results and those of its competitors, because the amounts of the expenses between companies can vary greatly depending on the assumptions used by an individual company in determining the amounts of the expenses.

Filed under: Amdocs