{
  "docId": "019dd923-622c-750b-8b98-9727cc72301c",
  "docSlug": "778e2cbfbfaa",
  "documentTitle": "Amdocs Limited (DOX)",
  "authorId": "54_Spruce_Point_Capital",
  "authorName": "Ben Axler",
  "documentKindSlug": "activist-deck",
  "documentKindLabel": "Activist deck",
  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2019-01-23 00:00:00",
  "orientation": "landscape",
  "aspectRatio": 1.3333334,
  "pageNumber": 73,
  "pageCount": 128,
  "prevPage": 72,
  "nextPage": 74,
  "slideType": "expose_contradiction",
  "function": "expose_contradiction",
  "density": "overcrowded",
  "nDataPoints": 48,
  "notes": "The slide uses a table to highlight specific quarters where non-cash revenue contributions were significant.",
  "elementsJson": [
    "headline_text",
    "paragraph",
    "data_table",
    "callout_box",
    "footnote"
  ],
  "metadataConfidence": 1,
  "imagePath": null,
  "slideHref": "/slides/019dd923-622c-750b-8b98-9727cc72301c/73",
  "deckHref": "/decks/019dd923-622c-750b-8b98-9727cc72301c",
  "deckJsonHref": "/decks/019dd923-622c-750b-8b98-9727cc72301c.json",
  "deckAnchorHref": "/decks/019dd923-622c-750b-8b98-9727cc72301c#slide-73",
  "components": [
    {
      "bbox": null,
      "kind": "callout",
      "text": "Changes in percentage-of-completion-related balance sheet accounts contributed more than 2.5% of quarterly revenue four times since Q1 FY 2016, and more than 5% three times, contributing up to 7.8% in Q3 FY 2016.",
      "attrs": null,
      "subkind": null,
      "toolName": "Visual emphasis",
      "toolSlug": "visual-emphasis",
      "confidence": null,
      "componentId": "019dd953-0f1e-7015-9025-30dc77cb2d8a",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": null,
      "kind": "metric",
      "text": "Percentage of Quarterly Sales: 7.8%",
      "attrs": null,
      "subkind": "primary",
      "toolName": "Quantification",
      "toolSlug": "quantification",
      "confidence": null,
      "componentId": "019dd953-0f1e-7015-9025-3578a54b8b9b",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.12,
        "w": 0.9,
        "x": 0.05,
        "y": 0.16
      },
      "kind": "paragraph",
      "text": "The preceding analysis gives us a clearer understanding of Amdocs' cash flow trends: though sales have grown at a steady, low-single-digit rate through the last several years, sales growth has not translated into cash flow growth because it was supported by revenue drawn from projects which had not yet been billed, and from receipts which had already been paid but for which revenue had yet to be recognized.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "4d559035-be4e-47ba-8970-4a37965414d7",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.08,
        "w": 0.9,
        "x": 0.05,
        "y": 0.82
      },
      "kind": "paragraph",
      "text": "If Amdocs can manage to grow sales only through M&A and aggressive percentage-of-completion accounting, yet earnings growth remains muted due in part to acquisition-related amortization, and cash flow growth muted due to working capital changes, we question whether this manufactured top-line growth is of any real value to investors.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "8e12d4e5-5ae4-4de7-b776-3f58ccd766ce",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.05,
        "w": 0.9,
        "x": 0.05,
        "y": 0.76
      },
      "kind": "paragraph",
      "text": "Changes in percentage-of-completion-related balance sheet accounts contributed more than 2.5% of quarterly revenue four times since Q1 FY 2016, and more than 5% three times, contributing up to 7.8% in Q3 FY 2016.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "96454e22-e981-4d1f-8ba8-8f949a0604f7",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.03,
        "w": 0.9,
        "x": 0.05,
        "y": 0.95
      },
      "kind": "source-note",
      "text": "Also of note: Sales growth has also not always translated into earnings growth due in part to the rapid growth in amortization associated with acquisitions and associated intangible assets.",
      "attrs": {
        "numbered": true
      },
      "subkind": null,
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "563049ef-f1d5-4f23-acc0-8105347df2e3",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.25,
        "w": 0.9,
        "x": 0.05,
        "y": 0.48
      },
      "kind": "table",
      "text": "Potential Contribution of Percentage-of-Completion-Related Items to Amdocs Sales",
      "attrs": null,
      "subkind": "data",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "6ca3860f-b395-4d53-ba74-14a22ea93b5f",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.08,
        "w": 0.65,
        "x": 0.28,
        "y": 0.03
      },
      "kind": "title",
      "text": "Percentage-Of-Completion Aggressiveness May Create Material Revenue For Amdocs",
      "attrs": null,
      "subkind": "headline",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "a4ab6ba8-a075-4887-8985-0f18cbb8e78a",
      "frameworkName": null,
      "frameworkSlug": null
    }
  ],
  "metrics": [],
  "tools": [],
  "frameworks": [
    {
      "name": "fraud-exposure",
      "slug": null,
      "matchId": "079d01dd-bbf3-4abe-8797-b03610bb964c",
      "evidence": "The slide explicitly links accounting practices to 'manufactured top-line growth' and questions the value to investors.",
      "confidence": 0.9
    }
  ],
  "arcBeats": [],
  "loops": [],
  "imagePathAlt": null,
  "thumbSrc": null,
  "thumbSrcAlt": null,
  "locked": true
}