UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 6-K

REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 UNDER
THE SECURITIES EXCHANGE ACT OF 1934

For the month of January, 2011

Commission File Number 1-14840

AMDOCS LIMITED

Suite 5, Tower Hill House Le Bordage
St. Peter Port, Island of Guernsey, GY1 3QT

Amdocs, Inc.
1390 Timberlake Manor Parkway, Chesterfield, Missouri 63017

(Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

FORM 20-F   x                    FORM 40-F   o

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):   o

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):   o

Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to rule 12g3-2(b) under the Securities Exchange Act of 1934.

YES   o                    NO   x

 

 

     On January 25, 2011, Amdocs Limited (“Amdocs”) issued a press release announcing financial results for the quarter ended December 31, 2010. A copy of the press release is furnished as Exhibit 99.1 to this Report of Foreign Private Issuer on Form 6-K.

     The information in this Form 6-K (including Exhibit 99.1) shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”) or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933 or the Exchange Act.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Date: January 25, 2011

EXHIBIT INDEX

EXHIBIT NO.				DESCRIPTION
	99.1			Amdocs Limited Press Release dated January 25, 2011.

Exhibit 99.1

Amdocs Limited Reports Quarterly Revenue of $775 Million, Up 6.9% YoY
Expects 4-6% Revenue Growth in Fiscal 2011 and Improving Profitability
During the Fiscal Year

Key highlights:

	•		First fiscal quarter revenue of $775 million, compared to the $760-$780 million guidance range. Similar to what was factored into the guidance, foreign currency movements positively impacted revenue by approximately $6 million sequentially relative to the fourth fiscal quarter of 2010
	•		First fiscal quarter non-GAAP operating income of $120 million; non-GAAP operating margin of 15.5%; GAAP operating income of $88 million
	•		First fiscal quarter diluted non-GAAP EPS of $0.52, compared to the $0.49-$0.58 guidance range, excluding amortization of purchased intangible assets and other acquisition related costs and equity-based compensation expense, net of related tax effects
	•		Diluted GAAP EPS of $0.38 for the first fiscal quarter, compared to the $0.34-$0.45 guidance range
	•		Free cash flow of $127 million for the first fiscal quarter
	•		Twelve-month backlog of $2.56 billion at the end of the first fiscal quarter, up $35 million from the end of the fourth fiscal quarter of 2010
	•		Second quarter fiscal 2011 guidance: Expected revenue of approximately $775-$790 million and diluted non-GAAP EPS of $0.53-$0.60, excluding acquisition-related costs and approximately $0.03-$0.04 per share of equity-based compensation expense, net of related tax effects. Diluted GAAP EPS is expected to be approximately $0.43-$0.51
	•		Expected revenue growth of 4-6% in fiscal 2011 as compared to fiscal 2010
	•		Repurchased $113 million of ordinary shares during the first fiscal quarter

ST. LOUIS — January 25, 2011 — Amdocs Limited (NYSE: DOX) today reported that for its first fiscal quarter ended December 31, 2010, revenue was $775.2 million, up 1.7% sequentially from the fourth fiscal quarter of 2010 and up 6.9% as compared to last year’s first fiscal quarter. Net income on a non-GAAP basis was $99.8 million, or $0.52 per diluted share,

compared to non-GAAP net income of $113.1 million, or $0.55 per diluted share, in the first quarter of fiscal 2010. Non-GAAP net income excludes amortization of purchased intangible assets and other acquisition related costs and equity-based compensation expenses of $26.4 million, net of related tax effects, in the first quarter of fiscal 2011 and excludes such amortization and equity-based compensation expenses of $24.8 million, net of related tax effects, in the first quarter of fiscal 2010. The Company’s GAAP net income for the first quarter of fiscal 2011 was $73.4 million, or $0.38 per diluted share, compared to GAAP net income of $88.4 million, or $0.43 per diluted share, in the prior year’s first quarter.

“Our performance in the first fiscal quarter of 2011 reflects continued revenue growth for Amdocs as a result of healthy demand trends. Additionally, consistent with our guidance, the results reflect a decline in the operating margin due to the effects of several of the current investment initiatives we had cited last quarter, including the one-time impact of winning the strategic emerging markets contract. Furthermore, we made progress over the course of the first quarter with some of our key near-term challenges while sharpening our focus on the long-term growth initiatives of the company,” said Eli Gelman, chief executive officer of Amdocs Management Limited.

Gelman continued, “Specific to the discussion of near-term profitability, we have important updates on the progress we made against several initiatives and issues that we shared last quarter, including:

	•		First, we are pleased to report that in the first fiscal quarter we won the agreement with the emerging markets customer that we referenced in our November 3, 2010 earnings announcement. While this agreement resulted in a non-recurring upfront expense, it significantly expands a strategic relationship with a key global service provider and, we believe, opens an even larger opportunity for long-term growth in the region in which the emerging markets customer operates.
	•		Second, we successfully re-scoped our contract with Clearwire to address the changes in the customer’s strategic direction. Amdocs and Clearwire continue to maintain a strong, long-term managed services relationship.
	•		Third, we have begun to realize early benefits in our employee productivity as a result of the focused investments we made in our knowledge base during the first quarter. Given the importance of employee knowledge to our long-term success, we expect to continue making these investments throughout the remainder of 2011.

•

Lastly, we made important progress with key customer implementations during the first quarter, including in the cable industry; however, we are still engaged in some of the industry’s most complex projects which may require continued investment in the near-term.”

Gelman concluded, “After my first quarter as CEO, I am even more excited about the opportunities in front of Amdocs. Furthermore, I have greater confidence that we have both identified and are appropriately addressing our near-term challenges while focusing the company on the growth potential ahead of us. Looking forward, we now expect revenue to grow in the range of 4-6% in fiscal 2011 as compared to fiscal 2010. In addition, we expect profitability to improve during the fiscal year as we begin to realize the benefits of our internal and customer-focused investments.”

Financial Discussion of First Fiscal Quarter Results

Free cash flow was $127 million for the quarter, comprised of cash flow from operations of $162 million less approximately $35 million in net capital expenditures and other.

Twelve-month backlog, which includes anticipated revenue related to contracts, estimated revenue from managed services contracts, letters of intent, maintenance and estimated on-going support activities, was $2.56 billion at the end of the first quarter of fiscal 2011.

Financial Outlook

Amdocs expects that revenue for the second quarter of fiscal 2011 will be approximately $775-$790 million. Diluted earnings per share on a non-GAAP basis for the second quarter are expected to be $0.53-$0.60, excluding acquisition-related costs and approximately $0.03-$0.04 per share of equity-based compensation expense, net of related tax effects. Amdocs estimates GAAP diluted earnings per share for the second quarter will be $0.43-$0.51.

Conference Call Details

Amdocs will host a conference call on January 25, 2011 at 5:00 p.m. Eastern Time to discuss the Company’s first quarter results. The call will be carried live on the Internet via the Amdocs website, www.amdocs.com.

Non-GAAP Financial Measures

This release includes non-GAAP diluted earnings per share and other non-GAAP financial

measures, including free cash flow, non-GAAP cost of service, non-GAAP research and development, non-GAAP selling, general and administrative, non-GAAP operating income, non-GAAP operating margin, non-GAAP income taxes and non-GAAP net income. These non-GAAP measures exclude the following items:

	•		amortization of purchased intangible assets and other acquisition related costs;
	•		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 and other financial measures, including free cash flow, non-GAAP cost of service, non-GAAP research and development, non-GAAP selling, general and administrative, non-GAAP operating income, non-GAAP operating margin, non-GAAP income taxes and non-GAAP net income, 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 and other acquisition related costs, 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.

Amdocs further believes that, where the adjustments used in calculating non-GAAP diluted earnings per share are based on specific, identified amounts that impact different line items in the Consolidated Statements of Income (including cost of service, research and development, selling, general and administrative, operating income, income taxes and net income), it is useful to investors to understand how these specific line items in the Consolidated Statements of Income are affected by these adjustments.

Please refer to the Reconciliation of Selected Financial Metrics from GAAP to Non-GAAP tables below.

About Amdocs

Amdocs is the market leader in customer experience systems innovation. The company combines business and operational support systems, service delivery platforms, proven services, and deep industry expertise to enable service providers and their customers to do more in the connected world. Amdocs’ offerings help service providers explore new business models, differentiate through personalized customer experiences, and streamline operations. A global company with revenue of approximately $3.0 billion in fiscal 2010, Amdocs has over 19,000 employees and serves customers in more than 60 countries worldwide. For more information, visit Amdocs at www.amdocs.com.

This press release includes information that constitutes forward-looking statements made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995, including statements about Amdocs growth and business results in future quarters. Although we believe the expectations reflected in such forward-looking statements are based upon reasonable assumptions, we can give no assurance that our expectations will be obtained or that any deviations will not be material. Such statements involve risks and uncertainties that may cause future results to differ from those anticipated. These risks include, but are not limited to, the effects of general economic conditions, Amdocs ability to grow in the business markets that it serves, Amdocs ability to successfully integrate acquired businesses, adverse effects of market competition, rapid technological shifts that may render the Company’s products and services obsolete, potential loss of a major customer, our ability to develop long-term relationships with our customers, and risks associated with operating businesses in the

international market. Amdocs may elect to update these forward-looking statements at some point in the future; however, the Company specifically disclaims any obligation to do so. These and other risks are discussed at greater length in the Company’s filings with the Securities and Exchange Commission, including in our Annual Report on Form 20-F for the fiscal year ended September 30, 2010 filed on December 7, 2010.

Contact:
Elizabeth W. Grausam
Vice President of Investor Relations
Amdocs
314-212-8328
E-mail: dox_info@amdocs.com

 

AMDOCS LIMITED

Consolidated Statements of Income
(in thousands, except per share data)

		Three months ended
		December 31,
		2010				2009
Revenue:
License		$	29,906			$	24,150
Service			745,275				700,661
			775,181				724,811
Operating expenses:
Cost of license			700				442
Cost of service			508,138				462,215
Research and development			54,992				50,106
Selling, general and administrative			104,357				91,580
Amortization of purchased intangible assets and other			19,410				21,319
			687,597				625,662
Operating income			87,584				99,149
Interest and other expense, net			3,117				715
Income before income taxes			84,467				98,434
Income taxes			11,076				10,081
Net income		$	73,391			$	88,353
Basic earnings per share		$	0.38			$	0.43
Diluted earnings per share		$	0.38			$	0.43
Basic weighted average number of shares outstanding			191,599				205,430
Diluted weighted average number of shares outstanding			192,969				206,656

AMDOCS LIMITED
Selected Financial Metrics
(in thousands, except per share data)

		Three months ended
		December 31,
		2010				2009
Revenue		$	775,181			$	724,811
Non-GAAP operating income			120,268				131,321
Non-GAAP net income			99,769				113,127
Non-GAAP diluted earnings per share		$	0.52			$	0.55
Diluted weighted average number of shares outstanding			192,969				206,656

AMDOCS LIMITED
Reconciliation of Selected Financial Metrics from GAAP to Non-GAAP
(in thousands)

		Three months ended
		December 31, 2010
						Reconciliation items
						Amortization of
						purchased				Equity based
						intangible assets				Compensation
		GAAP				and other				expense				Tax effect				Non-GAAP
Operating expenses:
Cost of license		$	700			$	—			$	—			$	—			$	700
Cost of service			508,138				—				(4,484	)			—				503,654
Research and development			54,992				—				(849	)			—				54,143
Selling, general and administrative			104,357				—				(7,941	)			—				96,416
Amortization of purchased intangible assets and other			19,410				(19,410	)			—				—				—
Total operating expenses			687,597				(19,410	)			(13,274	)			—				654,913
Operating income			87,584				19,410				13,274				—				120,268
Income taxes			11,076				—				—				6,306				17,382
Net income		$	73,391			$	19,410			$	13,274			$	(6,306	)		$	99,769

		Three months ended
		December 31, 2009
						Reconciliation items
						Amortization of
						purchased				Equity based
						intangible assets				compensation
		GAAP				and other				expense				Tax effect				Non-GAAP
Operating expenses:
Cost of license		$	442			$	—			$	—			$	—			$	442
Cost of service			462,215				—				(4,785	)			—				457,430
Research and development			50,106				—				(1,133	)			—				48,973
Selling, general and administrative			91,580				—				(4,935	)			—				86,645
Amortization of purchased intangible assets and other			21,319				(21,319	)			—				—				—
Total operating expenses			625,662				(21,319	)			(10,853	)			—				593,490
Operating income			99,149				21,319				10,853				—				131,321
Income taxes			10,081				—				—				7,398				17,479
Net income		$	88,353			$	21,319			$	10,853			$	(7,398	)		$	113,127

AMDOCS LIMITED
Condensed Consolidated Balance Sheets
(in thousands)

		As of
		December 31,				September 30,
		2010				2010
ASSETS
Current assets
Cash, cash equivalents and short-term interest-bearing investments		$	1,251,639			$	1,433,299
Accounts receivable, net, including unbilled of $65,634 and $62,246, respectively			547,867				580,000
Deferred income taxes and taxes receivable			137,879				126,083
Prepaid expenses and other current assets			156,720				112,417
Total current assets			2,094,105				2,251,799
Equipment and leasehold improvements, net			250,902				258,273
Goodwill and other intangible assets, net			1,836,722				1,856,178
Other noncurrent assets			465,614				454,354
Total assets		$	4,647,343			$	4,820,604
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current Liabilities
Accounts payable, accruals and other		$	614,148			$	621,549
Short-term financing arrangements			—				200,000
Deferred revenue			216,258				184,481
Deferred income taxes and taxes payable			16,457				18,117
Total current liabilities			846,863				1,024,147
Other noncurrent liabilities			581,508				567,077
Shareholders’ equity			3,218,972				3,229,380
Total liabilities and shareholders’ equity		$	4,647,343			$	4,820,604

AMDOCS LIMITED
Consolidated Statements of Cash Flows
(in thousands)

		Three months ended December 31,
		2010				2009
Cash Flow from Operating Activities:
Net income		$	73,391			$	88,353
Reconciliation of net income to net cash provided by operating activities:
Depreciation and amortization			49,153				50,050
Equity-based compensation expense			13,274				10,853
Deferred income taxes			6,903				(8,501	)
Excess tax benefit from equity-based compensation			(24	)			(17	)
Loss (gain) from short-term interest-bearing investments			832				(329	)
Net changes in operating assets and liabilities, net of amounts acquired:
Accounts receivable			34,330				(22,161	)
Prepaid expenses and other current assets			(40,891	)			6,159
Other noncurrent assets			(26,751	)			(14,409	)
Accounts payable, accrued expenses and accrued personnel			5,462				28,258
Deferred revenue			39,015				47,599
Income taxes payable			(2,515	)			4,534
Other noncurrent liabilities			10,122				3,118
Net cash provided by operating activities			162,301				193,507
Cash Flow from Investing Activities:
Payments for purchase of equipment and leasehold improvements, net			(35,340	)			(23,589	)
Proceeds from sale of short-term interest-bearing investments			124,797				278,183
Purchase of short-term interest-bearing investments			(88,605	)			(348,662	)
Net cash paid for acquisitions			—				(56,454	)
Other			(7,672	)			—
Net cash used in investing activities			(6,820	)			(150,522	)
Cash Flow from Financing Activities:
Payments under financing arrangements			(200,000	)			—
Repurchase of shares			(113,431	)			—
Proceeds from employee stock options exercised			13,845				5,141
Payments under capital lease, short-term financing arrangements and other			(228	)			(104	)
Net cash (used in) provided by financing activities			(299,814	)			5,037
Net (decrease) increase in cash and cash equivalents			(144,333	)			48,022
Cash and cash equivalents at beginning of period			1,036,195				728,762
Cash and cash equivalents at end of period		$	891,862			$	776,784

AMDOCS LIMITED
Supplementary Information
(in millions)

		Three months ended
		December 31,				September 30,				June 30,				March 31,				December 31,
		2010				2010				2010				2010				2009
North America		$	564.6			$	569.7			$	572.3			$	572.4			$	547.6
Europe			98.4				91.0				80.6				92.1				89.5
Rest of World			112.2				101.5				100.3				79.5				87.7
Total Revenue		$	775.2			$	762.2			$	753.2			$	744.0			$	724.8

		Three months ended
		December 31,				September 30,				June 30,				March 31,				December 31,
		2010				2010				2010				2010				2009
Customer Experience Systems		$	725.4			$	714.9			$	693.0			$	689.0			$	678.4
Directory			49.8				47.3				60.2				55.0				46.4
Total Revenue		$	775.2			$	762.2			$	753.2			$	744.0			$	724.8

		As of
		December 31,				September 30,				June 30,				March 31,				December 31,
		2010				2010				2010				2010				2009
12-Month Backlog		$	2,560			$	2,525			$	2,470			$	2,460			$	2,425