Q3 2022 Amdocs Ltd Earnings Call
The conference will begin shortly to raise your hand during Q&A you can dial star one one.
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Ladies and gentlemen, thank you for standing by and welcome to the Q3 2022 amdocs.
Earnings at this time, all participants are in a listen only mode. After the speaker presentation, there will be a question and answer session.
I ask a question during the session you will need to press star one on your telephone.
It's now my pleasure to introduce head of Investor Relations, Matt Smith.
Thank you operator before we begin I need to call your attention to our disclaimer statement on slide two of the presentation and note that some of our comments today may be forward looking statements and are subject to risks and uncertainties as described in Amdocs SEC SEC filings and that we will discuss certain financial information that is not prepared in.
Accordance with GAAP 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 6K.
Participating on the call with me today are shooting Shaffer, President and Chief Executive Officer of Amdocs Management Limited and Tomorrow Rocket Board began chief financial and operating officer.
As for today's earnings call, we are providing a presentation, which can be found on the investor Relations section of our website and as always a copy of today's prepared remarks will be also posted immediately following the conclusion of this call on today's agenda shooting well recap our business and financial achievements for the third quarter fiscal 2022, and we'll update you on the continued progress we have made.
Executing against our strategic growth framework cheeky will finish by commenting on our financial outlook. After waste Tomorrow will provide additional details on our third quarter financial performance and guidance as a reminder, our comments today will refer to certain financial metrics on a pro forma basis, where applicable to provide you with a sense of the underlying business trends excluding refinance.
The impact of open market, which we divested on December 31, 2020, and with that I'll turn it over to Shelly.
Thanks, Matt.
Good afternoon to everyone joining us on the call today.
I'm happy to report a solid third quarter financial performance, reflecting strong demand for our product and services expertise across our core strategic growth pillar five G monetization cloud adoption.
The modernization and network automation.
As you can see from the highlights on slide six we delivered record revenue of 1.16 billion in Q3, which was at the midpoint of guidance, despite unfavorable foreign currency headwinds as compared with our assumptions.
Adjusting for currency revenue was up 10, 8% year over year.
Additionally, we maintain a robust sales momentum, which translates to record 12 months backlog of $3 95 billion.
Up 10% from a year ago, and the fifth consecutive quarter will roughly double digits. You believe gloss in this key leading indicators on.
On the bottom line, we delivered non-GAAP earnings per share of $1, two 7%, which was better than the midpoint of our guidance.
Overall, we successfully achieve our financial targets for revenue profitability and non-GAAP diluted earnings per share for the quarter, Despite volatile foreign currency markets and inflation related cost ratios, which reached this exit which we successfully navigated with a continued focus on operational excellence.
Across all aspects of our business now.
Now turning to slide seven let me address the key operating highlights of our Q3 performance.
To begin our global business activity was strong led by yet another record quarter in North America.
While we are closely monitoring the uncertain global macroeconomic environment and potential headwinds, we believe our customers remain committed to their most strategic initiatives central to which is the innovation of Amdocs is delivering in respect to digital modernization five G in fiber rollout.
And monetization the journey to the cloud and network automation.
In addition to North America, we continue to where Europe is a strategic long term growth engine for Amdocs adjusting for currency movements Europe showed signs of flip of second half acceleration.
Projects awarded in recent quarters started to ramp up its customer like bps book to UK and various Vodafone group a few years.
Q3 was also another quarter of robot sales momentum, we are starting a relationship with a large and long standing customers like T mobile and AT&T is tickets wireless we're happy to say that we expanded our managed services engagement for an additional five years, that's the amount we'll touch on later.
Additionally, we felt as though our footprint with other major operators, including Vodafone, Germany, which has selected amdocs for follow on digital transformation projects.
Consistent operating execution was another Q3 highlights we successfully deployed mainly project milestone on behalf of our customers, including the integration of more than 27 million customers as part of a multiyear managed digital transformation project for excel in Indonesia.
Which enables them to launch innovative digital services and enhanced customer experiences.
Additionally, we reached millions of Brazilians subscribers across all cities covered by Telefonica vivo in relation to the full BSS quad play transformation, well executing to enable them to combine multiple lines of products in order to deliver more valuable customer interactions.
Reflecting our committed to continuously bring fresh innovation to our customer referral increased R&D investment on our cloud platforms. In Q3. Additionally, we announced a definitive agreement to acquire Microhm oil side for 188 million cash detail of which are on slide eight.
Headquartered in the U K, Michael My site is expected to expand Amdocs network portfolio to include end to end service and network orchestration by bringing key SaaS based assurance platform capabilities to power. The next generation of networks.
Service assurance as a key ingredient in the race to deliver differentiated experiences we've seen a slight G <unk>.
Mike I'm always side, Michael Morris I, therefore represent a gross move this complements our other recent deals in the network and cloud space, while executing on three of our core strategic pillars intelligent network automation five G and cloud.
Mike I want to say is on track to close in the first quarter of fiscal 2023, and we look forward to combining our own expertise with that of the highly talented micro mill site team to create a unique and broad range of complementary and innovative platforms.
Now, let's take a closer look at our recent progress executing against our four pillar growth strategy of cloud five G digital and network automation as shown in slide nine.
Beginning with cloud services, we secured multiple new wins with North American customer this quarter at AT&T cricket wireless we further expanded our operation development and testing leverage our cloud native technology.
T mobile USA extend Amdocs digital Bill presentment product to its enterprise customers a cloud based service provider provides a cost effective solution to personalize the message to each business customer boosting engagement and increasing satisfaction, all while driving to eco friendly footprint.
Yeah.
Additionally, <unk> was selected by dish and AWS to support these five G Oregon Rollouts.
This enabled us to derive towards a more intelligent open virtualized and fully interoperable mobile and cloud network.
In <unk>, we recently completed an exciting proof of concept with <unk> Telekom, Austria group doing which we showcased the ability of <unk> standalone networks to unlock the meta barrels and other next generation web three experiences with on demand connectivity for consumers and enterprises.
Moreover, our collaboration was a one demonstrate the monetization potential of such new new revenue streams for telcos by significantly reducing the launch time to market with new and innovative commercial models.
Switching to digital we are excited to announce that Vodafone, Germany has shown that amdocs to further accelerate its digital transformation under a new multi year deal that will harmonize the customer experiences across all touch points and improve operating efficiencies by consolidated technology of course.
Different lines of businesses.
This project follows an initial production loans under the large strategic transformation project, we won with Vodafone, Germany in 2019, and further strengthen deepens amdocs existing relationships with these major operator.
And we were happy that Comcast is expanding Amdocs bill presented solution to support its business service customers.
Moving to network automation, we expanded our scope of activity with some of the walls lots of operation during Q3.
A small time, albeit settled by the operator, we continue to deliver enhanced form of connectivity.
Fair enough connectivity, we're excited that SCS selected amdocs to provide end to end service orchestration solution of course additional lines of business, allowing more SCS customer to benefit from faster turnaround time for orders reduce overtime and improve access to the operators.
New products services and tools.
Additionally, America mobile selected Amdocs to deliver its latest policy and charging products in several countries in Latin America.
Finally, let me quickly comment on Amdocs media, which recently collaborate with a major U K content provider to launch a new subscription streaming offering that is powered by a cloud based SaaS market one platform.
Market, one will enable the delivery of personalized flexible and seamless it seamless access to vast catalog of a premium on demand content for these customers, which is the latest in the growing list of operators that has chosen the flexibility and the scalability of this platform including <unk>.
T mobile USA, NTT, Mexico, XL com and others.
Docs media deals this quarter, we began to expand its multiyear content services agreement with Oi, Brazil, and signed a multiyear deal with Edison interactive to provide license premium content for the hospitality industry, including major hotel brands Hotel ownership group as well as gaming and results.
Additionally, <unk> is collaborating with ACI worldwide to provide subscription based merchant with turnkey integrated payment solution.
Now turning to our financial outlook on slide 10.
As I mentioned before while we're closely monitoring the uncertain global macroeconomic environment and potential headwinds we are confident in our unique business model that enables mission critical products and services in line with the strategic needs of our customers highly recurring revenue streams.
Longtime customer engagement.
More broadly we believe that connectivity is continues to be a cornerstone of society.
Essential to supporting hybrid environments to walk indication and curtailment and much more we believe that services provider. We are still in the early stages of a multiyear five gene cloud driven investment cycle at the heart of Leaches Amdocs as the key technology enabler.
In fact as service providers look for new growth opportunities in the <unk> area. We believe amdocs has been better positioned as the highly relevant and trusted partner to help them achieve these goals our industry, leading products and services cloud portfolio delivers amazing customer experiences that reduces cost and improve.
<unk> C, helping service provider around the world to delight, our customers and operate more sustainability.
Consistent with this view, we continue to see a strong demand environment of rich pipeline of opportunities is supported by the many customer visit in top level management interaction we have recently seen.
Tying everything together on slide 11, we remain well on track to deliver accelerated revenue growth of roughly 10% on a pro forma constant currency basis for the full fiscal year of 2022.
Visibility to which is underpinned by our record 12 months backlog and the strong year to date financial performance <unk>.
Really what I would like to meet our guidance was before my non-GAAP diluted earnings per share growth of roughly 10% for the full fiscal year 2022.
And with our dividend yield of roughly 2% on top we are positioned to deliver a double digit expected total shareholder returns for the second year running.
Before handing over to Tomorrow, let me highlight our new 2021 to 232 corporate social responsibility in each of the ESG report, which we use as the platform for our first ever ESG, where we know for analysts and investors following its publication in June .
As you know, we take our responsibility to our customers their end user our employees and the wider community and of course, our investors very seriously.
Given our corporate purpose to enrich lives and progressed society with creativity and technology, we focus on delivering sustainable products and derived digital inclusion, which we believe promote diversity and inclusion and improves the wellbeing of our employees and the people in our communities.
And also media recently provided a great example, with Rubicon is walking we signed studios to provide a complete end to end technology solution for a new streaming platform that exclusively provides premium quality sign language content to the deaf and hard of hearing represent.
And our worldwide community of over 430 million people.
This innovative work includes ubiquitous unique creative and technical designing of the platform. The core is the duration of the content and Dana innovative personalizing of the user experience.
I would like to take this opportunity to acknowledge and thank all of our customers partners shareholders and communities. So together working to create a better connected world.
I, particularly like to call out a global and diverse base of incredibly talented employees and thank them all for the amazing devotion to turning the bolus ideas into reality with that let me turn the call to Tamara for her remarks.
Thank you <unk> and Hello, everyone. Thank you for joining us.
As a reminder, my comments today will refer to certain financial metrics on a pro forma basis, which exclude the financial impact of open market, which we divested on December 31 2020.
Turning to our financial highlights on slide 15, I'm happy with our third quarter results, which follow a very strong first half performance we already delivered.
Record Q3 revenue of $1 billion 16 was up eight 8% year over year as reported primarily driven by yet another record performance in North America.
Q2 revenue was at the midpoint of guidance, despite an unfavorable impact from foreign currency movements of approximately $7 million compared to our guidance assumptions and relative to the second quarter of fiscal 2022.
Additionally, revenue was up eight 8% in constant currency from a year ago, marking the fourth consecutive quarter of better than 10% revenue growth on a pro forma constant currency basis.
During Q3 foreign currency headwinds, primarily impacted our performance in Europe .
Adjusting for which revenue showed additional initial signs of acceleration as the ramp up of recent project awards kicked in.
Moving down the income statement, our Q3 non-GAAP operating margin of 17, 6% was consistent with the prior quarter and year ago period, as we offset the effects of accelerated R&D investments and a competitive labor environment with a relentless focus on operational excellence, including the ongoing.
Implementation of automation and other sophisticated tool designed to continuously improve efficiency.
As a reminder, our foreign currency hedging program is designed to protect our profitability and free cash flow generation rather than revenue and we are once again pleased that this strategy has proven effective for the volatile currency markets of Q3.
On the bottom line non-GAAP diluted EPS of $1 $27 was above the midpoint of our guidance range.
Diluted non-GAAP EPS included in non-GAAP effective tax rate of 26%, which as we expected was above the high end of our annual non-GAAP effective tax rate guidance of 13% to 17% for the full fiscal year 2022.
Diluted GAAP EPS was $1 point or four for the third fiscal quarter, which was towards the high end of the guidance range of 97.
So $1 five.
Moving to slide 16, or bus sales momentum during the third quarter translated to record high 12 months backlog of $3 $95 billion, which was up 10% from a year ago.
On a sequential basis 12 months backlog was up by $60 million as compared to the second quarter.
Given the overall nature of work included our 12 months backlog has traditionally served as a good leading indicator of our business, having consistently averaged around 80% of forward looking 12 months revenue over the years.
Turning to slide 17.
Managed services delivered a record quarter in Q3.
When you have $718 million was up roughly 10% from a year ago and accounted for about 62% of total revenue.
I'm Walter your managed services engagements underpin the resiliency of our business with recurring revenue streams high renewal rates and expanded activities, which may sometimes include transformation projects with existing customers.
A prime example of our proven ability to successfully renew and expand our customer relationship is AT&T cricket wireless as choking highlighted earlier.
This new agreement extends our long standing relationship with cricket's for an additional five years.
Moreover, the deal expands our relationship to include incident management and next generation digital catalog <unk>.
<unk>, our latest cloud native technologies to ensure the best possible experience for cricket business and customers.
Turning to the balance sheet and cash flow as you can see in slide 18.
DSO of 82 days increased by three days year over year, and one day sequentially in Q3.
The increase in DSO, primarily reflects a large number of successful milestone deliveries achieved in North America in the quarter and timing differences between the subsequent the invoicing of customers triggered by those milestone attainment by the customers.
Additionally, the net positive difference of deferred revenue and Unbilled receivables improved by $62 million as compared with a year ago.
We generated no one is free cash flow of 144 million positioning us to achieve our target of $650 million for the full fiscal year 2022.
Overall, we ended the quarter with a strong cash balance of approximately $850 million, including aggregate borrowings of roughly 650.
Our balance sheet remains strong and with ample liquidity, we expect to be in a good position to continue to support our ongoing business needs why don't we turn in maintaining the capacity to fund our future strategic growth investments.
Along those lines, we expect to close the acquisition of Michael most die so roughly $188 million in cash in the first fiscal quarter of 2023.
Turning to capital allocation on slide 19.
As you can see in the first chart, we repurchased $100 million of our shares in the third quarter.
Including cash dividend payments of 49 million, we returned 149 million to shareholders in Q3, equating to more than 100% of normalized free cash flow.
Taking into consideration, our quarterly cash dividend payments and ongoing share repurchase program. We now expect to return slightly more than 100% of our normalized free cash flow to shareholders for the full fiscal year 2022.
While we are experiencing strong growth momentum in our business I expected normalized free cash flow outlook of $650 million in fiscal 2022 equates to a conversion rate of roughly 100% of non-GAAP net income. It also represents a healthy free cash flow yield of roughly 6% relative to amdocs.
Current market capitalization.
Over the long term, but remind you that the rate of normalized free cash flow conversion may fluctuate slightly above or below our long term average of 100% in any given year.
As an additional point of fiscal 2020 to normalize free cash flow outlook that was close anticipated capex of about $110 million in relation to the development of our new Israel capitals.
This is less than our previous guidance of roughly $131 million, primarily due to the timing of payments, which have moved into fiscal year 2023.
Finally, we raised our reported free cash flow outlook for fiscal 2022% to $520 million.
Now turning to our outlook on slide 20.
As Sean mentioned earlier, we are closely monitoring the prevailing level of macroeconomic business and operational certainty, which remains elevated including with respect to the magnitude and duration of the COVID-19 pandemic.
The fourth quarter and full year fiscal 2022 revenue guidance reflects what we consider to be the most likely outcome there.
Based on the information we have today, but we cannot predict all possible scenarios.
On track to deliver full year fiscal 2022 revenue growth of roughly 10% on a pro forma constant currency basis in line with the midpoint of our new guidance range of nine 6% to 10, 6%.
Additionally, we continue to expect growth on a constant currency basis in each of our three operating regions of North America, Europe and rest of the world in fiscal 2022.
Our annual outlook includes fourth fiscal quarter revenue within a range of 114 5 billion to $1 185 billion, the midpoint of which represents the most likely outcome based on our internal analysis.
On a reported basis, we expect full year revenue consistent with the midpoint of our guidance range of six 2% to seven point to year over year, which now anticipates, an unfavorable foreign currency impact of approximately 120 basis points year over year as compared with our previous expectation of 80 basis points.
Moving down the income statement, we anticipate non-GAAP operating margins to track roughly in line with the midpoint of our annual target range of 17, 2% to 17, 8% in the fourth fiscal quarter.
This outlook continues to assume an accelerated pace of R&D investments in line with our strategy balanced with a constant focus on operational excellence.
Below the operating line, we anticipate as foreign currency fluctuations will continue to impact our non-GAAP net interest and other expense line in the range of a few million dollars on a quarterly basis.
As previously anticipated, we expect that our non-GAAP effective tax rate in the fourth fiscal quarter will be above the high end of our annual target range of 13 to 17 for the full fiscal year 2022, we expect our non-GAAP effective tax rate to be within the annual target range.
Bringing everything together, we are on track to meet our guidance for pro forma non-GAAP diluted earnings per share growth of approximately 12% for the full year fiscal 2022.
Pretty consistent with the midpoint of our guidance range of 11 to 12, 5%.
On a reported basis, we expect non-GAAP diluted earnings per share growth in line with the midpoint of our guidance range of nine 6% to 10, 9% year over year.
Overall, we are firmly on track to deliver double digit total shareholders return for the second fiscal you're running in 2022, assuming the midpoint of our pro forma non-GAAP , earning per share growth guidance of approximately 12% plus our dividend yield.
With that that's the issue okay. Thanks.
Thanks Tamara.
You can probably tell from our remarks today, we are pleased with our sales momentum and overall level of execution in Q3.
We remain confident in our strategy and ability to deliver on the full year financial targets with that we're happy to take your questions operator.
Thank you.
As a reminder to ask a question you will need to press star one one on your telephone and.
And we ask that you please limit yourself to one question.
Please stand by while we compile the Q&A roster.
Okay.
And our first question comes from the line of Tim Horan with Oppenheimer.
Thanks, guys good quarter could you talk a little bit more on the cloud maybe you can quantify a little bit more of the savings that you think you can provide your customers with flexibility and just maybe what's.
Whats the competitive intensity like for you within cloud now thank you.
Hi team, but I think that and when we talk about cloud it's not about.
Do you see a reduction only are seeing that.
When you look at the holistic.
You did say moving to the cloud it's much more beyond that.
Coming to a much more resilient this environment.
Much more secure time.
Time to market is much faster.
Ability to come with new innovation as much faster and obviously.
Much more capabilities for disaster recovery.
And there is also opportunity for cost reductions so when we talk with our customer on the journey to the cloud we are not just talking about.
The cost.
Cost reduction.
All of the bodies I, just mentioned and the vertical positioning is by far a much broader than just the <unk> reduction.
And I can talk about the competitive intensity like who do you compete with for these products.
And I'm trying to be extremely humble and I can tell you then when you talk about.
Existing.
Amdocs.
Amdocs customer.
We are by far the market leader in the field choice for all our customers.
Cause if you.
The migration to the cloud and in Amdocs customers actually moving from one platform with Amdocs to a different platform onto which is cloud enabled or cloud Navy. All this integration is something that we are doing the best and I don't think I don't see any amdocs customer customers thinking about taking the other partners.
To do this I think both because of our capabilities across our relationship and I think we are the only one that's understanding those health systems.
When we talk as we mentioned before.
And we do also a cloud activity in on non Amdocs systems. Although there are obviously there is competition. This is in order to be the Accenture order all the emphasis of the world I think we are coming brings a very strong knowhow a based on my organic.
The knowhow that we have on top of it you can add all the consultant capabilities that we acquired with top notch consultants, So I think that.
We have a very very competitive also in Orlando application, but in Amdocs application I think that we are extremely well positioned to take the industry to the cloud.
Just wanted to clarify that in addition to a check sugar said about migrating existing applications to the <unk>.
Cloud.
Everything we're bringing out of R&D shop is cloud native so whenever a customer goes through modernization by.
By definition selecting amdocs is making them cloud native.
R&D and.
It's their call whether they want to deploy first on Prem on private cloud public cloud, but it is all cloud native in terms of the software architecture.
They go to the organization with our product is very good comments all the transformation review today in AT&T in the new mobile and consumer platform and T mobile and Vodafone all of them are by design cloud native platforms. So all the transformation there are going to the cloud.
Thank you.
Thank you.
And our next question comes from the line of Ashwin <unk> with Citi.
Pardon me Ashwin, please check your mute button.
Okay.
Okay.
Okay.
Okay, one moment please.
Our next question comes from the line of Tao Liana <unk> with Bank of America.
Can you hear me Houston.
Yes.
Yeah.
I don't have a question on the quarter because it is straightforward I have a question on the environment.
Well some of the questions. We're getting about Amdocs is what is the historical correlation between an economic slowdown.
The business you have with customers. So if you can address things like.
In previous downturns have you seen cancellations.
Or or push outs of orders or what's the correlation between new orders and kind of economic cycle and then maybe speak about your own view on the environment the spending environment.
Hi, Todd.
Tomorrow, we'll ethical forget something.
Yes.
If I want to simplify it we have to.
Main activities with our customers.
The first one very large one is all the Minnesota operation on the call.
The current system. These are mission critical systems. This is not something that you can stop all that mean this is Ron all the monetization of the organization. So this is extremely solid.
We call area, even in the biggest downtime of pandemic 2008 that this business was impacted.
At the same time as we announced and are also reflected in our backlog we have the highest number of project and these new stores. The company now as I mentioned before in different discussion. The projects that we are doing today are not discretionary projects, meaning that.
You can say that every spending discretionary, but when you do projects on the <unk> monetization.
<unk> network automation and digital transformation. These projects are so strategic to our customers. It's I'm not say that there are 100% immune but at the same time, probably the last one by far to be touched so I can tell you that right now while we see some customers with our mouths.
Much more cautious on their spending this.
Strategic programs continues as well so strategic to the growth in the future.
You know.
We've been in cycles of downturn there in the last 20 years I'm looking on the financial crisis 2008 and nine.
While our managed services portfolio has been much smaller.
It's been exactly the phenomena the GOP talks about and now we are even more incumbent with more customers with managed services, meaning this is pretty.
Mission critical in everything that Yoki mentioned on top of that we have not seen cancellation of projects.
What happens typically is the projects that have been secured already.
Have been continuing.
There was a slower pace of signing new projects out of the pipeline.
To give you everything a quantification.
Revenue was down back then in the financial crisis, one year alone.
And then this year it was down 9% reported basis, 6% constant currency only because there was a slower pace of getting in new projects.
Pandemic same story only for one quarter, though not even full year, one quarter was slower in terms of signing new project, but all the projects we had in the pipeline and have been continuing.
Managed services, we have close to 100% renewal rate for many many years, including industrial situations. So I feel that the combination of them and as we mentioned.
<unk> got another record backlog, which is 10% year over year. So we see a very strong momentum in sales.
The combination of what we do for our customers around mission critical system. The fact that the very high portion of our revenues recurring in nature and the fact that the customers are investing with us in del.
Strategic domains of five G moves to the cloud et cetera, it is creating.
Our unique business model for Us and also I would say more sustainable.
Investment thesis for our investors.
Got it.
This was a short answer.
Yeah.
The.
The second question and final question is what do you do with your hiring.
Are you can you talk to us about kind of hiring this year what are you planning for hiring.
Any plans to slow down just to address maybe economic uncertainty or do you continue to hire according to plan.
So we are continuing to grow our staff and frankly speaking I prefer that this growth will come with lower attrition.
So less people that we need to hire in order to achieve this net growth, but the bottom line is that we are growing our staff. We are very focused while we've talked about the global picture also to balanced in terms of where we are growing and I think we talked about it in the past in terms of our global delivery model and now we are thinking about.
Do we have access to talent vis a via well do we need to.
To provide proximity to customers the cost structure et cetera, many considerations that go into where do we how yeah, which skills how do we on boarded effectively employees and make it as fast as possible to productive NASS.
So these are all considerations, we continue to focus on with the hope that the current conditions in the macro aspect will help us reduce attrition and the improved play that the retention rates that we have with employees like many other companies in the Tech World. This has been a challenge in the last.
18 months in and we hope that will come down a bit but we did not stop hiring no. We did not stop hiring for sure. We are growing if you. If you noticed you actually reported.
On a higher number of employees.
This quarter versus the prior one.
Perfect. Thanks, so much and congrats on a great quarter.
Thank you.
Thank you.
I'm showing no further questions at this time, so with that I'll hand, the call back over to head of Investor Relations, Matt Smith for any closing remarks.
Thanks, everybody for joining the call today and for your interest in Amdocs. We do look forward to hearing from you in the coming days and as always please reach out to US here in the Investor Relations group with any additional questions with that we'll conclude the call have a great evening everyone.
Ladies and gentlemen, this concludes today's conference call. Thank you for participating and you may now disconnect.
Okay.
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The conference will begin shortly to raise your hand during Q&A you can dial star one one.
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