Amdocs Limited (DOX) has reported a 4.49 percent rise in profit for the quarter ended Mar. 31, 2017. The company has earned $112.56 million, or $0.76 a share in the quarter, compared with $107.72 million, or $0.71 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $139.16 million, or $0.94 a share compared with $140.16 million or $0.92 a share, a year ago. Revenue during the quarter grew 4.33 percent to $966.01 million from $925.94 million in the previous year period. Gross margin for the quarter expanded 45 basis points over the previous year period to 35.64 percent. Total expenses were 86.15 percent of quarterly revenues, down from 87.02 percent for the same period last year. This has led to an improvement of 87 basis points in operating margin to 13.85 percent.
Operating income for the quarter was $133.78 million, compared with $120.15 million in the previous year period.
However, the adjusted operating income for the quarter stood at $166 million compared to $157.95 million in the prior year period. At the same time, adjusted operating margin improved 13 basis points in the quarter to 17.18 percent from 17.06 percent in the last year period.
“We are pleased with our performance in the second fiscal quarter, during which we maintained our relentless focus on execution to produce record revenue and stable profitability. Indeed, we successfully delivered on dozens of transformation project milestones during Q2, a key highlight of which was the go-live of a single real-time convergent charging system for KT Corporation, South Korea’s largest quad-play service provider. At the same time, we continued to see healthy rates of service renewals among long-standing Amdocs and former Comverse customers, which we believe demonstrates the unique combination of industry-leading innovation and dependability we have consistently brought to service providers over the years,” said Eli Gelman, president and chief executive officer of Amdocs Management Limited.
For the third-quarter, Amdocs expects revenue to be in the range of $945 million to $985 million. The company projects diluted earnings per share to be in the range of $0.69 to $0.77 for the third-quarter. On an adjusted basis, the company projects diluted earnings per share to be in the range of $0.93 to $0.99 for the third-quarter.
Operating cash flow declines
Amdocs Limited has generated cash of $275.35 million from operating activities during the first half, down 13.05 percent or $41.32 million, when compared with the last year period. The company has spent $69.05 million cash to meet investing activities during the first six months as against cash outgo of $121.22 million in the last year period.
The company has spent $152.23 million cash to carry out financing activities during the first six months as against cash outgo of $407.57 million in the last year period.
Cash and cash equivalents stood at $822.73 million as on Mar. 31, 2017, down 0.09 percent or $0.73 million from $823.46 million on Mar. 31, 2016.
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