Amdocs Limited

Ladies and gentlemen, thank you for standing by, and welcome to the Q1 2020 MDocs Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question-and-answer session. To ask a question during that session, you will need to press star 1 on your telephone. Please be advised that today's conference is being recorded. If you require any further assistance, please press star and 0. Now it's my pleasure to hand the conference over to your speaker today, Matthew Smith, Head of Investor Relations.

Thank you, operator. Before we begin, I would like to point out that during this call, we will discuss certain financial information that is not prepared in accordance with GAAP. The company's management uses this financial information in its internal analysis in order to exclude the effect of acquisitions and other significant items that may have a disproportionate effect in a particular period. Accordingly, management believes that isolating the effects of such events enables management and investors to consistently analyze the critical components and results of operations of the company's business and to have a meaningful comparison to prior periods. For more information regarding our use of non-GAAP financial measures, including reconciliations of these measures, we refer you to today's earnings release, which will also be furnished with the SEC on Form 6-K. Also, this call includes information that constitutes forward-looking statements. 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 and such other risks as discussed in our earnings release today and a greater length in the company's violence with the Securities and Exchange Commission including in our annual report on Form 20 after the fiscal year ended September 30, 2019, filed on December 16, 2019. 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. Participating on the call with me today are Shuki Sheffer, President and Chief Executive Officer of Amdocs Management Limited, and Tamar Rapoport-DeGim, Joint Chief Financial and Operating Officer. With that, I'll turn it over to Shuki.

Thank you, Matt, and good afternoon to everyone joining us today. I am pleased to report solid first quarter results, which include record revenue above the report of guidance after adjusting for currency. In addition, profitability was consistent with our operating plan, including investments to support new customer activity. We returned more than 100% of normalized free cash flow to shareholders. and we ended Q1 with record 20 months backlog of more than $3.5 billion. This strong book of business reflects our high win rate during the quarter and includes the recent signing of major transformation projects such as Vodafone Germany and Orenstein, both of which are among the largest of their kind in the industry today. We believe a world like this reflects our pedigree for innovation, Our reputation for consistent project delivery and our unique ability to help our customers respond to major industry trends through our market-leading portfolio of products and services. A prime example is CES20, a fully cloud-native and microservices-based version of our customer experience suite. Leading global services providers like Oren Spain, Korea Telecom Corporation, Sprint, and Vodafone Germany are already adopting CES20. By combining these with our go-to market partners like Microsoft Azure and AWS, we believe Amdocs is well positioned to bring the critical services needed to accelerate the industry's secure and rapid path to the cloud over the coming years. Now, let me proceed as usual with the recap of our quarterly activities by region. Beginning with North America, sequential revenue growth reflects stabilization at AT&T and the ongoing strategic support we are providing to customers in the border region. Notably, the quarter includes Amdocs Media signing a multi-year content services servicing and global delivery deal with the iconic film and television studio MGM. Regarding dialogue in North America, let me take a moment to comment on the border market condition in which we are operating. We believe the long-term regional market dynamics remain generally favorable as service providers invest in strategic areas like digital transformation, wireless and 3D convergence, media, 5G, the enterprise segment, and engineering to the cloud. Such investments create opportunities for Amdocs to bring customer value with our products and services. At Dell Canada, for instance, we recently launched RevenueOne, A key building block of CS20 to help build simplified retail engagement and improve customer experience. As a further example, I am pleased to say that we have recently partnered with Microsoft Azure to support the migration of AT&T's IT systems to the public cloud. Second, we remain committed to demonstrating the future value we can bring to T-Mobile and Sprint. Our relationship remains strong at Bosch Customer as demonstrated by Sprint's recent decision to collaborate with Project 202, an Amdocs company, which will bring experience-driven design and development methodologies as part of Sprint's continued transformation and modernization of the customer experience. Having said that, we continue to see some indication of softness relating to the delayed merger of T-Mobile and Sprint, the immediate future of which rests in the hands of the product. To summarize North America, we remain on track to deliver modest growth this fiscal year but we remind you that ongoing consolidation activity in the region remains a source of uncertainty in our near-term outlook. Moving to Europe, we maintain healthy year-over-year revenue growth in Q1 and achieve a high win rate for the quarter that includes the previously announced transformation project at Waterfront Germany. We are today pleased to announce the formal Q1 signing of a large-scale, multi-year, meta-transformation product at Orange Spain that will include the deployment of Amdocs One in the AWS cloud environment to bring Orange improved customer experience, smart monetization, and faster time to market with new services. The new deal follows our preliminary selection by this customer a few quarters ago and positions Spain as a meaningful market for Amdocs by adding by adding to our existing activities in this platform. Our notable wins this quarter include a multi-year managed services agreement with A1 Bulgaria, a subsidiary of A1 Telecom Austria Group, where we have been selected to modernize, automate, and digitize its business as part of a long-term expansion to our previous engagement. Looking ahead, we expect you to deliver solid growth this fiscal year, including a stronger second half as new project activity ramps up. Having said that, we are, of course, closely monitoring macroeconomic developments in the region. Telling the rest of the world, we delivered another quarter of high-singed year-over-year growth, as we continue to support customer investment to modernize automated digital enterprises. In my brief highlights, we signed a multi-year managed services renewal with Liberty Latin America for a digital customer management and commerce, and successfully completed revenue assurance implementation and Safaricom, a major mobile network operator in Kenya. Q1 was also notable for an important 5G award at KIT Corporation, the largest one-place services provider in South Korea, which will deploy Amdocs Catalog One on the cloud in order to accelerate the launch of new 5G services, monetize new revenue opportunities, and federal-private market position as one of the world's leading service providers to commercially launch 5G services. Looking ahead, the rest of the world is positioned for growth in fiscal 2020, driven by working progress and the rich pipeline of opportunities we see across Southeast Asia, Latin America, and parts of Africa. However, we remind you that quarterly trends may fluctuate given the project orientation of our activities in this region. To conclude my initial summary, Q1 was a successful quarter in which we extended our global market leadership by bringing the core engines we have built to support our customer needs and to drive our future goals. Of this engine is the next generation networks where we recently launched our Amdoc service and network automation solution that can be implemented on Telco Cloud or public cloud environments like Microsoft Azure or AWS. Amdoc is already deploying components of this technology to accelerate the network transformation energy journey for several customers, including three integrated service providers in Europe, a major T1 provider of telecommunications services in Asia Pacific, and a leading MSO in North America. I am also pleased to report strong first quarter sales momentum in Amdos Media, which include the content process management expertise of Ubiquiti, the cloud-based subscription billing capabilities of Indicia, and our newly launched Market Run platform. In addition to MGM, which I mentioned earlier, MDoc Sweden wants several new customers in Q1, including A1 Bulgaria, to support the rollout of A1 Telecom's first keyboard platform in the region, and Unifiq, a private owned Brazilian pay TV operator for which we will provide the content, services, and licensing of keyboard and S4 titles. Demonstrating continued traction in the sports arena, we are also pleased to announce that Vildicia Subscribers has been selected to support FC Barcelona OTT Platform, Balsa TV. Finally, we are encouraged to report a positive initial customer response to Amdocs Market One, a new platform that combines our solutions for subscription monetization, user lifecycle management, and the efficient onboarding of OTT partners in One. As we announced last quarter, T-Mobile recently selected Market One to support its OTT strategy, and a further validation of this offering to reveal today that we have also signed a major Latin America operator to the platform. Overall, we believe Androx Media is developing as a growth agent for the future and provides an example of the unique innovation we constantly bring to our customers by combining strategic acquisition with our portfolio of products and services. To wrap up, we are pleased with our operational and financial progress in the first quarter. Our record 20-month backlog is up 4.5% from a year ago and points to a stronger second half in which we expect revenue growth to accelerate and new customer activities ramp up. And we are on track to deliver total expected shareholder return in the mid to high single digit for the eighth consecutive year in fiscal 2020, including non-GAAP diluted earnings per share, growth of 3% to 7%, plus our dividend yield. With that, Let me turn the call over to Tamar for remarks.