Amdocs Limited (DOX) has reported a 3.02 percent fall in profit for the quarter ended Dec. 31, 2016. The company has earned $97.79 million, or $0.66 a share in the quarter, compared with $100.84 million, or $0.66 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $133.57 million, or $0.90 a share compared with $132.02 million or $0.86 a share, a year ago.
Revenue during the quarter grew 3.61 percent to $954.73 million from $921.50 million in the previous year period. Gross margin for the quarter contracted 40 basis points over the previous year period to 34.97 percent. Total expenses were 87.26 percent of quarterly revenues, up from 87.03 percent for the same period last year. That has resulted in a contraction of 24 basis points in operating margin to 12.74 percent.
Operating income for the quarter was $121.59 million, compared with $119.54 million in the previous year period.
However, the adjusted operating income for the quarter stood at $164.08 million compared to $156.87 million in the prior year period. At the same time, adjusted operating margin improved 16 basis points in the quarter to 17.19 percent from 17.02 percent in the last year period.
"We are pleased with our first quarter results which reflect record revenue above the midpoint of our guidance on a constant currency basis and further signs of stabilization in North America. Our win rate remained high and included our selection for significant transformation projects with Vodafone Italy and a leading communications service provider in Southeast Asia. Additionally, we renewed important managed services arrangements with existing customers, strengthening the base on which to further expand our future scope of business activities. These include five-year services extension agreements with BT, the largest communications service provider in the UK, and Rostelecom, Russia's national service provider," said Eli Gelman, president and chief executive officer of Amdocs Management Limited.
For the second-quarter 2017, Amdocs Limited expects revenue to be in the range of $940 million to $980 million. The company projects diluted earnings per share to be in the range of $0.66 to $0.74. On an adjusted basis, the company projects diluted earnings per share to be in the range of $0.90 to $0.96.
Operating cash flow declines
Amdocs Limited has generated cash of $168.03 million from operating activities during the quarter, down 15.50 percent or $ 30.81 million, when compared with the last year period.
The company has spent $38.58 million cash to meet investing activities during the quarter as against cash outgo of $41.27 million in the last year period.
The company has spent $284.30 million cash to carry out financing activities during the quarter as against cash outgo of $327.25 million in the last year period.
Cash and cash equivalents stood at $613.82 million as on Dec. 31, 2016, down 29.11 percent or $252.08 million from $865.89 million on Dec. 31, 2015.
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