NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(IN THOUSANDS, EXCEPT PER SHARE DATA)
SEPTEMBER 30, 1998
NOTE 1 NATURE OF ENTITY
Amdocs Limited (the "Company") is a leading provider of product-driven information system solutions to the
telecommunications industry. The Company and its subsidiaries operate in one business segment, providing
computer systems integration and related services for the telecommunications industry. The Company designs,
develops, markets, and supports computer software products and related services to telecommunications
companies throughout the world.
The Company is a Guernsey corporation, which holds directly or indirectly several wholly owned subsidiaries in
the United States, Europe, Canada, Israel, Japan, Cyprus and Australia. The Company's customers are mainly in
the North America, Europe, South America, Australia, and the Asia-Pacific region. The Company derives
approximately 55 percent of its revenue from outside the United States. The majority of the Company's
production facilities are located in the State of Israel. Additional development and support centers are located in
the U.S., Brazil and Cyprus.
NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
BASIS OF PRESENTATION
The consolidated financial statements of the Company have been prepared in accordance with accounting
principles generally accepted in the U.S.
The financial statements include the accounts of the Company and all its subsidiaries, which are wholly owned. All
significant intercompany transactions and balances have been eliminated in consolidation.
The U.S. dollar is the functional currency for the Company and its subsidiaries, as the U.S. dollar is the
predominant currency of the Company's revenue.
CASH AND CASH EQUIVALENTS
Cash and cash equivalents consist of cash and short-term investments with insignificant interest rate risk and
original maturities of 90 days or less.
EQUIPMENT AND LEASEHOLD IMPROVEMENTS
Computers, office furniture and