Amdocs Limited Reports Record Revenue of $706 Million

Amdocs Limited Reports Record Revenue of $706 Million

Amdocs Reports 18% Growth in Quarterly Diluted Non-GAAP Earnings Per Share to $0.52; Diluted GAAP Earnings Per Share of $0.40

* Second quarter revenue increased 18% to $706 million

* 18% increase in second quarter diluted non-GAAP EPS, excluding acquisition-related costs, restructuring charges and equity-based compensation expense, net of related tax effects, to $0.52

* Diluted GAAP EPS of $0.40

* Amdocs was awarded a significant managed services contract by AT&T

* Acquisition of SigValue Technologies, Inc. expands Amdocs offering for fast-growing emerging markets

* Third quarter fiscal 2007 guidance: Expected revenue of approximately $710-$720 million and diluted non-GAAP EPS of $0.50 – $0.52, excluding acquisition-related costs and approximately $0.05-$0.06 per share of equity-based compensation expense, net of related tax effects. Diluted GAAP EPS is expected to be approximately $0.38-$0.41

* Reiterated fiscal 2007 guidance: Expected revenue of approximately $2.83–$2.91 billion and diluted non-GAAP EPS of $2.02-$2.12, which exclude acquisition-related costs, restructuring charges and approximately $0.21-$0.24 per share of equity-based compensation expense, net of related tax effects. Diluted GAAP EPS is expected to be approximately $1.54-$1.68

St. Louis, MO – April 26, 2007 – Amdocs Limited (NYSE: DOX) today reported that for the quarter ended March 31, 2007, revenue was $706.4 million, an increase of 17.5% from last year’s second quarter. Net income on a non-GAAP basis was $114.5 million, or $0.52 per diluted share (excluding acquisition-related costs, which include amortization of purchased intangible assets, in-process research and development write-off and other, and excluding restructuring charges and equity-based compensation expense, net of related tax effects, of $27.3 million), compared to non-GAAP net income of $95.5 million, or $0.44 per diluted share, in the second quarter of fiscal 2006 (excluding acquisition-related costs, which include amortization of purchased intangible assets, and equity-based compensation expense, net of related tax effects, of $13.8 million). The Company’s GAAP net income was $87.2 million, or $0.40 per diluted share, compared to GAAP net income of $81.8 million, or $0.38 per diluted share, in the second quarter of fiscal 2006. Free cash flow for the quarter was $57.9 million, comprised of cash flow from operations of $91.2 million less $33.3 million in net capital expenditures.

“We are pleased to report another successful quarter for Amdocs as we continue to execute,” said Dov Baharav, chief executive officer of Amdocs Management Limited. “Revenue is at record levels and earnings growth is strong. During the quarter we formally launched our Amdocs 7 suite of products which are generating wins for Amdocs. We are delivering solutions and therefore we are expanding our relationship with key customers as they transform their businesses to address convergence, competition and consolidation. While the timing of individual projects can be difficult to predict, the ongoing trend is clear. Transformation activity is driving demand for our products and services today and should provide Amdocs with growth opportunities for years to come.”