GlobeNewswire Inc | Nov 2, 2021 04:01PM EDT

November 02, 2021

Record Fiscal 2021 Revenue of $4.3 Billion, up 7.0%YoY(2)(3)Record 12-Month Backlog of $3.7 Billion, up 10.5%YoY(2)Issues Fiscal 2022 Guidance for Expected Revenue Growth Acceleration

Full Year Fiscal 2021 Highlights

(All comparisons are against the prior year)

-- Record revenue of $4,289 million, up 7.0% on a pro forma(2) basis in constant currency(3) and up 2.9% as reported, including record revenue of $2,791 million in North America -- GAAP diluted EPS of $5.32, up 43.4% as reported including a gain from previously announced divestiture of OpenMarket -- Non-GAAP diluted EPS of $4.81, up 9.8% on a pro forma(2) basis and 8.3% as reported -- Free cash flow of $715 million, reflecting record-high annual cash collections, and comprised of cash flow from operations of $926 million, less $210 million in net capital expenditures and other(1) -- Record normalized free cash flow of $869 million(1), equating to a conversion rate of roughly 140% compared to non-GAAP net income -- Record twelve-month backlog of $3.69 billion, up approximately $100 million sequentially; on a pro forma(2) basis, twelve-month backlog was up 10.5% as compared to last years fourth fiscal quarter

Fourth Quarter Fiscal 2021Highlights

(All comparisons are against the prior yearsfourth quarter)

-- Revenue of $1,087 million, up 10.2% on a pro forma(2) basis in constant currency(3) and up 3.3% as reported, including record revenue of $723 million in North America -- GAAP diluted EPS of $0.97, above the midpoint of $0.91-$0.99 guidance range -- Non-GAAP diluted EPS of $1.16, at the midpoint of the $1.13-$1.19 guidance range -- GAAP operating income of $154 million; GAAP operating margin of 14.2% -- Non-GAAP operating income of $190 million; non-GAAP operating margin of 17.5%, up 30 basis points while accelerating R&D investments -- The board of directors approved a roughly 10% increase in the Companys quarterly cash dividend payment from $0.36 per share to $0.395 per share, anticipated to be first paid in April 2022, subject to shareholder approval at the January 2022 annual meeting

JERSEY CITY, N.J., Nov. 02, 2021 (GLOBE NEWSWIRE) -- Amdocs Limited (NASDAQ: DOX), a leading provider of software and services to communications and media companies, today reported operating results for the fourth fiscal quarter and full fiscal year ended September 30, 2021.

I could not be prouder of our outstanding achievements in fiscal 2021, much of the credit for which belongs to our talented people worldwide. Over the last few years, we have been building Amdocs to support the next wave of growth, executing on our strategy of delivering market-leading innovation that is well aligned with the industrys need for digital modernization, 5G monetization, journey to the cloud and network automation. We are at an exciting inflection point in our business as fiscal year 2021 revenue growth accelerated to 7.0% on a pro forma(2) constant currency(3) basis. We ended the year on a strong note, setting us up to continue to capture momentum as we enter fiscal year 2022. To that end, we are thrilled that AT&T has selected us for next-gen cloud operations of its business support systems evolution (BSSe) under a long-term agreement, on top of choosing our cloud-native products for the BSSe program earlier this year. We believe this reflects our relentless dedication to driving customer success across cloud journeys for the worlds leading communications service providers, said Shuky Sheffer, president and chief executive officer of Amdocs Management Limited.

Amdocs continues to lead the industry with innovative platforms and exceptional delivery, as demonstrated by a record number of production milestones we achieved for our customers in Q4 and for the full 2021 fiscal year. Moreover, we delivered improved profitability in fiscal 2021 and achieved our best-ever level of cash collections. As a result, we delivered record normalized free cash flow generation of $869 million for fiscal 2021 and returned a similar amount to shareholders through share repurchases and quarterly cash dividend payments, said Tamar Rapaport-Dagim, chief financial officer & chief operating officer of Amdocs Management Limited.

Sheffer concluded, As we look ahead to fiscal year 2022, we believe we are in the early innings of a multi-year 5G and cloud-driven investment and transformation cycle. We see a rich pipeline of opportunity across the communications industry to enable our customers to create amazing experiences for consumers and enterprises. We believe our advantaged competitive position, growing customer relationships, highly skilled talent and disruptive innovation approach will further extend our lead in the market. Tying it altogether, we expect to deliver accelerated revenue growth of roughly 8%(5) in fiscal 2022.

Revenue

(All comparisons are against the prior year period)

In millions Three months ended Fiscal yearended September 30, 2021 September 30, 2021 Actual Previous Actual Previous Guidance GuidanceRevenue $1,087 $1,065 - $4,289 -- $1,105Revenue growth, as reported^(a) 3.3% -- 2.9% 2.3% - 3.3%Pro forma^(^2) revenue growth, constant 10.2% -- 7.0% 6.3% -currency^(3) 7.3%

-- Revenue for the fourth fiscal quarter was above the midpoint of Amdocs guidance, despite an unfavorable impact from foreign currency movements of approximately $5 million compared to our guidance assumptions -- Revenue for the fourth fiscal quarter of 2021 includes an unfavorable impact from foreign currency movements of approximately $6 million relative to the third quarter of fiscal 2021

Net Income and Earnings Per Share

In thousands, except per share data Three months ended Fiscal yearended September 30, September 30, 2021^(a) 2020 2021^(a) 2020GAAP Measures Net income $ 123,525 $ 134,463 $ 688,374 $ 497,840 Diluted earnings per share $ 0.97 $ 1.01 $ 5.32 $ 3.71 Non-GAAP Measures Net income $ 147,470 $ 162,716 $ 621,820 $ 595,758 Diluted earnings per share $ 1.16 $ 1.23 $ 4.81 $ 4.44

-- Non-GAAP net income excludes amortization of purchased intangible assets and other acquisition-related costs, changes in certain acquisition related liabilities measured at fair value, equity-based compensation expenses, gain from divestiture of OpenMarket, and other, net of related tax effects, in all the periods presented -- In fiscal year 2021, the GAAP net income includes a gain from divestiture of OpenMarket, net of related tax effects, at the amount of $1.44 per share, which is excluded from the Non-GAAP net income

For further details of the reconciliation of selected financial metrics from GAAP to Non-GAAP, please refer to the tables below.

Capital Allocation: M&A Investments & Returning Cash to Shareholders

-- M&A Activity: On October 1, 2021, Amdocs completed the acquisition of Roam Digital, a digital consultancy agency in Southeast Asia Pacific, for $31 million in cash -- Quarterly Cash Dividend Program: On November 2, 2021, the Board approved the Companys next quarterly cash dividend payment of $0.36 per share and set December 31, 2021 as the record date for determining the shareholders entitled to receive the dividend, which will be payable on January 28, 2022 -- The Board also approved a roughly 10% increase in the Companys quarterly cash dividend payment to $0.395 per share, which is anticipated to be first paid in April 2022, provided that the increase is approved by shareholders at the January 2022 annual general meeting of shareholders -- Share Repurchase Activity: Repurchased $140 million of ordinary shares during the fourth quarter of fiscal 2021

Twelve-month BacklogTwelve-month backlog was a record $3.69 billion at the end of the fourth quarter of fiscal 2021, up approximately 10.5% on a pro forma(2) basis as compared to last years fourth fiscal quarter. Twelve-month backlog includes anticipated revenue related to contracts, estimated revenue from managed services contracts, letters of intent, maintenance and estimated on-going support activities.

FirstQuarter Fiscal 2022Outlook

In millions, except per share data Q1 2022Revenue $1,080-$1,120GAAP diluted EPS $0.91-$0.99Non-GAAP diluted EPS $1.15-$1.21

-- First quarter revenue guidance assumes approximately $2 million sequential unfavorable impact from foreign currency fluctuations as compared to the fourth quarter of fiscal 2021 -- First quarter Non-GAAP diluted EPS guidance excludes amortization of purchased intangible assets and other acquisition-related costs, changes in certain acquisitions related liabilities measured at fair value, and approximately $0.10-$0.12 per share of equity-based compensation expense, net of related tax effects

Full Year Fiscal 2022Outlook

FY 2022, year-over-year growthRevenue growth, as reported 3.7%-7.7%Pro forma^(^2) revenue growth, constant currency^ 6.0%-10.0%(3) GAAP diluted EPS growth (23.0)% -(17.5)%Adjusted GAAP diluted EPS growth^(^4) 6.0%-13.0%Non-GAAP diluted EPS growth 6.3%-10.3%Pro forma^(^2) non-GAAP diluted EPS growth 8.0%-12.0% In millions FY 2022,Free cash flow^(^1) ~$500Normalized free cash flow^(^1) ~$650

-- Full year fiscal 2022 revenue guidance incorporates an expected unfavorable impact from foreign currency fluctuations of approximately 0.3% year-over-year -- Non-GAAP diluted earnings per share growth, and pro forma(2) non-GAAP diluted earnings per share growth, excludes amortization of purchased intangible assets and other acquisition-related costs, changes in certain acquisitions related liabilities measured at fair value, approximately $0.45-$0.53 per share of equity-based compensation expense, and gain from divestiture of OpenMarket, net of related tax effects in the previous fiscal year 2021. Adjusted GAAP diluted earnings per share growth, excludes gain from divestiture of OpenMarket, net of related tax effects in the previous fiscal year 2021 -- Free cash flow(1) is comprised of cash flow from operations, less net capital expenditures and other -- Normalized free cash flow excludes expected capital expenditure of $131 million related to the new campus development in Israel, and other items

Our first fiscal quarter 2022 and full year fiscal 2022 outlook takes into consideration the Companys current expectations regarding macro and industry specific risks and various uncertainties and certain assumptions that we will discuss on our earnings conference call. However, we note that market dynamics continue to shift rapidly and we cannot predict all possible outcomes, including those resulting from the COVID-19 pandemic, including its novel strains, which has created, and continues to create, a significant amount of uncertainty, or from current and potential customer consolidation or their other strategic corporate activities.

Conference Call and Earnings Webcast Presentation Details Amdocs will host a conference call and earnings webcast presentation on November 2, 2021 at 5:00 p.m. Eastern Time to discuss the Company's fourth quarter of fiscal 2021 results. To participate, please dial +1 (844) 513-7152, or +1 (508) 637-5600 outside the United States, approximately 15 minutes before the call and enter passcode 9941807. The conference call and webcast will also be carried live on the Internet and may be accessed via the Amdocs website at https://investors.amdocs.com. Presentation slides will be available shortly before the webcast.

Non-GAAP Financial MeasuresThis release includes non-GAAP diluted earnings per share and other non-GAAP financial measures, including free cash flow and normalized free cash flow, revenue on a constant currency(3) basis, non-GAAP cost of revenue, non-GAAP research and development, non-GAAP selling, general and administrative, non-GAAP operating income, non-GAAP operating margin, non-GAAP interest and other expenses, net, non-GAAP income taxes, non-GAAP effective tax rate, non-GAAP net income and non-GAAP diluted earnings per share growth. These other non-GAAP measures exclude the following items:

-- amortization of purchased intangible assets and other acquisition-related costs; -- changes in certain acquisition-related liabilities measured at fair value; -- non-recurring and unusual charges or benefits (such as a gain from divestiture of OpenMarket); -- equity-based compensation expense; -- other; and -- tax effects related to the above.

Free cash flow equals cash generated by operating activities less net capital expenditures and other. Normalized free cash flow, a measure of our operating performance, is further adjusted to exclude net capital expenditures related to the new campus development, payments for non-recurring and unusual charges (such as capital gains tax in relation to the divestiture of OpenMarket), and payments of acquisition related liabilities. 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 and normalized free cash flow, non-GAAP cost of revenue, non-GAAP research and development, non-GAAP selling, general and administrative, non-GAAP operating income, non-GAAP operating margin, non-GAAP interest and other expenses, net, non-GAAP income taxes, non-GAAP effective tax rate, non-GAAP net income and non-GAAP diluted earnings per share growth 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, changes in certain acquisition-related liabilities measured at fair value, non-recurring and unusual charges or benefits, equity-based compensation expense, other 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 items in reviewing its results and those of its competitors, because the amounts of the items between companies can vary greatly depending on the assumptions used by an individual company in determining the amounts of the items.

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 revenue, research and development, selling, general and administrative, operating income, interest and other expenses, net, 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.

Supporting Resources

-- Keep up with Amdocs news by visiting the Companys website -- Subscribe to Amdocs RSS Feed and follow us on Twitter, Facebook, LinkedIn and YouTube

About AmdocsAmdocs helps those who build the future to make it amazing. With our market-leading portfolio of software products and services, we unlock our customers innovative potential, empowering them to provide next-generation communication and media experiences for both the individual end user and large enterprise customers. Our 28,000 employees around the globe are here to accelerate service providers migration to the cloud, enable them to differentiate in the 5G era, and digitalize and automate their operations. Listed on the NASDAQ Global Select Market, Amdocs had revenue of $4.3 billion in fiscal 2021.

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, the duration and severity of the COVID-19 pandemic, and its impact on the global economy, 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, Amdocs specifically disclaims any obligation to do so. These and other risks are discussed at greater length in Amdocs filings with the Securities and Exchange Commission, including in our Annual Report on Form 20-F for the fiscal year ended September 30, 2020 filed on December 14, 2020 and our Form 6-K furnished for the first quarter of fiscal 2021 on February 16, 2021 and for the second quarter of fiscal 2021 on May 24, 2021 and for the third quarter of fiscal 2021 on August 16, 2021.

Contact Matthew SmithHead of Investor RelationsAmdocs314-212-8328E-mail: dox_info@amdocs.com

(1) Please refer to the Selected Financial Metrics tables below (figures may not sum because of rounding).(2) Pro forma growth rate excludes the financial impact of OpenMarket (which was divested on December 31, 2020) from the current fiscal year and comparable fiscal year(3) Revenue on a constant currency basis assumes exchange rates in the current period were unchanged from the prior period(4) Adjusted GAAP excludes the gain from the sale of OpenMarket, which was divested on December 31, 2020.(5) Assumes midpoint of full year fiscal 2022 pro forma revenue growth guidance of 6.0%-10% year-over-year, constant currency

AMDOCS LIMITED

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

Three months ended Fiscal year ended September 30, September 30, 2021^(a) 2020 2021^(a) 2020 Revenue $ 1,087,309 $ 1,052,948 $ 4,288,640 $ 4,169,039 Operating expenses: Cost of revenue 707,366 703,556 2,810,967 2,755,563 Research and 81,324 75,843 312,941 282,042 developmentSelling, general 126,015 106,352 487,255 458,539 and administrativeAmortization ofpurchased 18,274 20,259 78,784 78,137 intangible assetsand other 932,979 906,010 3,689,947 3,574,281 Operating income 154,330 146,938 598,693 594,758 Interest and other (1,099 ) (6,377 ) (10,797 ) (11,436 )expense, net Gain from sale of a - - 226,410 - businessIncome before 153,231 140,561 814,306 583,322 income taxes Income taxes 29,706 6,098 125,932 85,482 Net income $ 123,525 $ 134,463 $ 688,374 $ 497,840 Basic earnings per $ 0.98 $ 1.02 $ 5.36 $ 3.73 shareDiluted earnings $ 0.97 $ 1.01 $ 5.32 $ 3.71 per shareBasic weightedaverage number of 125,923 132,330 128,495 133,590 sharesoutstandingDiluted weightedaverage number of 126,820 132,661 129,284 134,232 sharesoutstandingCash dividends $ 0.36 $ 0.3275 $ 1.4075 $ 1.2675 declared per share

AMDOCS LIMITEDSelected Financial Metrics(In thousands, except per share data)

Three months ended Fiscal year ended September 30, September 30, 2021^(a) 2020 2021^(a) 2020 Revenue $ 1,087,309 $ 1,052,948 $ 4,288,640 $ 4,169,039 Non-GAAP operating 190,195 181,082 750,665 715,022income Non-GAAP net income 147,470 162,716 621,820 595,758 Non-GAAP diluted $ 1.16 $ 1.23 $ 4.81 $ 4.44earnings per share Diluted weightedaverage number of 126,820 132,661 129,284 134,232shares outstanding



Free Cash Flows and Normalized Free Cash Flow(In thousands)

Three months ended Fiscal year ended September 30, September 30, 2021 2020 2021 2020 Net Cash Provided by $ 199,713 $ 204,680 $ 925,807 $ 658,136 Operating Activities^(a) Purchases of property and (60,873 ) (59,555 ) (210,438 ) (205,510 )equipment, net ^(c) Free Cash Flow 138,840 145,125 715,369 452,626 Tax payment on sale of 809 - 39,596 - business^(b) Payments of acquisition - - 13,234 9,417 related liabilities Payments for previouslyexpensed restructuring - 214 - 2,143 charges Net capital expendituresrelated to the new campus 32,801 15,975 100,680 62,727 development Normalized Free Cash Flow $ 172,450 $ 161,314 $ 868,879 $ 526,913

(a) Since January 1, 2021, OpenMarket results are not included in theConsolidated Statements of Income given its divestiture.(b) Tax payment related to capital gain from divesture of OpenMarket, whichwas completed on December 31, 2020.(c) The amounts under "Purchase of property and equipment, net? includeproceeds from sale of property and equipment of $328 and $194 for the Fiscalyear ended September 30, 2021 and 2020, respectively.

AMDOCS LIMITEDReconciliation of Selected Financial Metrics from GAAP to Non-GAAP(In thousands)

Three months ended September 30, 2021^(a) Reconciliation items Changes in Amortization certain of purchased Equity based acquisitions Tax GAAP intangible compensation related Other effect Non-GAAP assets and expense liabilities other measured at fair valueOperating expenses: Cost of revenue $ 707,366 $ - $ (6,148 ) $ (3,285 ) $ - $ - $ 697,933 Research and 81,324 - (1,145 ) - - - 80,179 developmentSelling, general 126,015 - (7,013 ) - - - 119,002 andadministrativeAmortizationofpurchased 18,274 (18,274 ) - - - - - intangibleassetsand other Total 932,979 (18,274 ) (14,306 ) (3,285 ) - - 897,114 operatingexpenses Operating income 154,330 18,274 14,306 3,285 - - 190,195 Interest and other (1,099 ) - - - (4,360 ) - (5,459 )expense, net Income taxes 29,706 - - - - 7,560 37,266 Net income $ 123,525 $ 18,274 $ 14,306 $ 3,285 $ (4,360 ) $ (7,560 ) $ 147,470

Three months ended September 30, 2020 Reconciliation items Changes in Non-GAAP Amortization certain Tax of purchased Equity based acquisitions Other effect GAAP intangible compensation related assets and expense liabilities other measured at fair valueOperating expenses: Cost of revenue $ 703,556 $ - $ (4,981 ) $ (4,021 ) $ - $ - $ 694,554 Research and 75,843 - (821 ) - - - 75,022 developmentSelling, general 106,352 - (4,062 ) - - - 102,290 and administrativeAmortization ofpurchased 20,259 (20,259 ) - - - - - intangible assetsand otherTotal 906,010 (20,259 ) (9,864 ) (4,021 ) - - 871,866 operatingexpenses Operating income 146,938 20,259 9,864 4,021 - - 181,082 Interest and other(expense) income, (6,377 ) - - - (600 ) - (6,977 )net Income taxes 6,098 - - - - 5,291 11,389 Net income $ 134,463 $ 20,259 $ 9,864 $ 4,021 $ (600 ) $ (5,291 ) $ 162,716

AMDOCS LIMITEDReconciliation of Selected Financial Metrics from GAAP to Non-GAAP(In thousands)

Fiscal year ended September 30, 2021^(a) Reconciliation items Changes in Amortization certain Gain from Tax of purchased Equity based acquisitions sale of a effect GAAP intangible compensation related business Other Non-GAAP assets and expense liabilities other measured at fair valueOperating expenses: Cost of revenue $ 2,810,967 $ - $ (22,691 ) $ (18,939 ) $ - $ - $ - $ 2,769,337 Research and 312,941 - (4,021 ) - - - - 308,920 developmentSelling, general 487,255 - (27,537 ) - - - - 459,718 andadministrativeAmortization ofpurchased 78,784 (78,784 ) - - - - - - intangible assetsand otherTotal 3,689,947 (78,784 ) (54,249 ) (18,939 ) - - - 3,537,975 operatingexpenses Operating income 598,693 78,784 54,249 18,939 - - - 750,665 Interest and other (10,797 ) - - - - (5,046 ) - (15,843 )expense, net Gain from sale of a 226,410 - - - (226,410 ) - - - business Income taxes 125,932 - - - - - (12,930 ) 113,002 Net income $ 688,374 $ 78,784 $ 54,249 $ 18,939 $ (226,410 ) $ (5,046 ) $ 12,930 $ 621,820

Fiscal year ended September 30, 2020 Reconciliation items Changes in Non-GAAP Amortization certain Tax GAAP of purchased Equity based acquisitions Other effect intangible compensation related assets and expense liabilities other measured at fair valueOperating expenses: Cost of revenue $ 2,755,563 $ - $ (20,005 ) $ 307 $ - $ - $ 2,735,865 Research and 282,042 - (3,058 ) - - - 278,984 developmentSelling, general 458,539 - (19,371 ) - - - 439,168 and administrativeAmortization ofpurchased 78,137 (78,137 ) - - - - - intangible assetsand otherTotal 3,574,281 (78,137 ) (42,434 ) 307 - - 3,454,017 operatingexpenses Operating income 594,758 78,137 42,434 307 - - 715,022 Interest and other(expense) income, (11,436 ) - - - (600 ) - (12,036 )net Income taxes 85,482 - - - - 21,746 107,228 Net income $ 497,840 $ 78,137 $ 42,434 $ 307 $ (600 ) $ (21,746 ) $ 595,758

AMDOCS LIMITEDCondensed Consolidated Balance Sheets(In thousands)

As of September September 30, 30, 2021 2020 ASSETS Current assets Cash and cash equivalents $ 709,064 $ 983,188Short-term interest-bearing investments 256,527 752Accounts receivable, net, including unbilled of 866,819 861,033$162,278 and $175,548, respectivelyPrepaid expenses and other current assets 235,089 229,604Total current assets 2,067,499 2,074,577 Property and equipment, net 698,768 607,951Lease assets 233,162 295,494Goodwill and other intangible assets, net 2,881,676 2,874,979Other noncurrent assets 630,669 488,620Total assets $ 6,511,774 $ 6,341,621 LIABILITIES AND SHAREHOLDERS? EQUITY Current liabilities Accounts payable, accruals and other $ 1,007,777 $ 930,259Short-term financing arrangement - 100,000Lease liabilities 58,714 59,100Deferred revenue 237,374 126,841Total current liabilities 1,303,865 1,216,200Lease liabilities 177,906 230,076Long-term debt, net of unamortized debt issuance 644,553 644,023costsOther noncurrent liabilities 750,266 586,167Total Amdocs Limited Shareholders? equity 3,592,675 3,622,646Noncontrolling interests 42,509 42,509Total equity 3,635,184 3,665,155Total liabilities and equity $ 6,511,774 $ 6,341,621

AMDOCS LIMITEDConsolidated Statements of Cash Flows(In thousands)

Fiscal year ended September 30, 2021 2020 Cash Flow from Operating Activities: Net income^(a) $ 688,374 $ 497,840 Reconciliation of net income to net cash provided by operating activities:Depreciation and amortization 208,830 198,409 Amortization of debt issuance costs 548 144 Equity-based compensation expense 54,249 42,434 Gain from sale of a business (226,410 ) - Deferred income taxes (50,605 ) 30,239 Loss from short-term interest-bearing 1,726 - investmentsNet changes in operating assets and liabilities, net of amounts acquired:Accounts receivable, net (69,051 ) 134,584 Prepaid expenses and other current assets (17,041 ) (10,815 )Other noncurrent assets (50,038 ) (23,329 )Lease assets and liabilities, net 9,630 (7,881 )Accounts payable, accrued expenses and accrued 122,224 (190,354 )personnelDeferred revenue 193,655 (15,184 )Income taxes payable, net 26,814 (9,281 )Other noncurrent liabilities 32,902 11,330 Net cash provided by operating activities 925,807 658,136 Cash Flow from Investing Activities: Purchase of property and equipment, net ^(c) (210,438 ) (205,510 )Proceeds from sale of short-term 18,205 - interest-bearing investmentsPurchase of short-term interest-bearing (276,978 ) (753 )investmentsNet cash paid for business and intangible (142,697 ) (249,358 )assets acquisitionsNet cash received from sale of a business 288,990 - Other (6,082 ) (6,104 )Net cash used in investing activities (329,000 ) (461,725 ) Cash Flow from Financing Activities: Borrowings under financing arrangements - 450,000 Payments under financing arrangements (100,000 ) (350,000 )Proceeds from issuance of debt, net - 643,919 Repurchase of shares (679,996 ) (360,912 )Proceeds from employee stock options exercises 89,056 97,850 Payments of dividends (177,472 ) (164,061 )Payment of contingent consideration from a (2,519 ) (1,411 )business acquisitionOther - (240 )Net cash (used in) provided by financing (870,931 ) 315,145 activities Net (decrease) increase in cash and cash (274,124 ) 511,556 equivalentsCash and cash equivalents at beginning of 983,188 471,632 periodCash and cash equivalents at end of period $ 709,064 $ 983,188

AMDOCS LIMITEDSupplementary Information(In millions)

Three months ended September June 30, March 31, December September 30, 2021^(a) 2021^(a) 31, 30, 2021^(a) 2020 2020North $ 722.8 $ 686.1 $ 679.1 $ 703.4 $ 681.6AmericaEurope 146.8 155.7 148.8 171.6 165.3Rest of the 217.7 224.5 220.8 211.3 206.0WorldTotal $ 1,087.3 $ 1,066.3 $ 1,048.7 $ 1,086.3 $ 1,052.9Revenue

Three months ended September June March December September 30, 30, 31, 31, 30, 2021 2021 2021 2020 2020Managed Services $ 637.5 $ 650.5 $ 634.6 $ 623.7 $ 610.5Revenue

As of September June March December September 30, 30, 31, 31, 30, 2021^(d) 2021^ 2021^(d) 2020^(d) 2020 (d)12-Month $ 3,690 $ 3,590 $ 3,540 $ 3,490 $ 3,620Backlog

(d) Excludes OpenMarket, which we divested on December 31, 2020