Open Text Corporation announced its financial results for the third quarter ended March 31, 2014.
Financial Highlights for Q3 FY14 (1)
· Total revenue was $442.8 million, up 31% Y/Y
· License revenue was $73.1 million, up 6% Y/Y
· Customer Support revenue was $180.3 million, up 8% Y/Y
· Non-GAAP-based EPS, diluted was $0.84 compared to $0.63 Y/Y; GAAP-based EPS, diluted was $0.38 compared to $0.22 Y/Y, on a post stock-split basis.(2)
· Non-GAAP-based income from operations was $129.0 million and 29% of revenues; GAAP-based income from operations was $66.8 million and 15% of revenues.(2)
· Operating cash flow was $141.4 million, compared to $116.8 million Y/Y, up 21%Y/Y, with an ending cash balance of $336.1 million.
"In the third quarter we delivered strong year-over-year results with revenue growth of 31%, adjusted operating income growth of 43% and operating cash flow growth of 21%," said OpenText CEO Mark J. Barrenechea.
"With our intelligent growth strategy, we are focused on delivering value through acquisitions, innovation and now an increased dividend program. The GXS integration is off to a fast start and has established OpenText as a key cloud services provider. Our newly upgraded EIM product suite is driving customer demand, and reinforces our market position as a leader in EIM."
Business Highlights
· On January 16, 2014 OpenText bought GXS, a Maryland-based leader in business-to-business (B2B) cloud integration
· Public sector, services and technology industries saw the most demand
· 6 license transactions over $1 million and 10 license transactions between $500K and $1 million
· Customer successes in the quarter include PBS, Western Cape Local Government, T-Mobile, Nokia and The Home Office
· Delivers on the future of business process management with Process Suite launch
· Launches Experience Suite to provide an omni-channel digital experience strategy
· OpenText Tempo delivers new capabilities to increase business productivity through secure social collaboration
· Launches SharePoint Services for OpenText Extended Enterprise Content Management for SAP® Solutions
· Opens first Australian data centre for locally hosted OpenText Cloud Services
Dividend Program Highlights
Cash Dividend - Raised by 15%
As part of our quarterly, non cumulative cash dividend program the Board declared, on April 24, 2014 a fifteen percent increase in its quarterly cash dividend from $0.15 to $0.1725 per Common Share. The record date for this dividend is May 23, 2014 and the payment date is June 13, 2014. Future declarations of dividends and the establishment of future record and payment dates are subject to the final determination and discretion of our Board of Directors.
|
Summary of Quarterly Results |
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|
Q3 FY14 |
Q2 FY14 |
Q3 FY13 |
% Change (Q/Q) |
% Change (Y/Y) |
|||
|
Revenue (million) |
$442.8 |
$363.5 |
$337.7 |
21.8% |
31.1% |
||
|
GAAP-based gross margin |
67.3% |
70.3% |
63.9% |
(300) |
bps |
340 |
bps |
|
GAAP-based operating margin |
15.1% |
20.3% |
12.1% |
(520) |
bps |
300 |
bps |
|
GAAP-based EPS, diluted |
$0.38 |
$0.45 |
$0.22 |
(15.6)% |
72.7% |
||
|
Non-GAAP-based gross margin (2) |
71.3% |
74.0% |
70.8% |
(270) |
bps |
50 |
bps |
|
Non-GAAP-based operating margin (2) |
29.1% |
30.9% |
26.8% |
(180) |
bps |
230 |
bps |
|
Non-GAAP-based EPS, diluted (2) |
$0.84 |
$0.79 |
$0.63 |
6.3% |
33.3% |
|
Summary of Year to Date Results |
|||||
|
Q3 FY14 |
Q2 FY14 |
Q3 FY13 |
% Change (Y/Y) |
||
|
Revenue (million) |
$1,130.7 |
$688.0 |
$1,016.1 |
11.3% |
|
|
GAAP-based gross margin |
68.3% |
68.8% |
63.8% |
450 |
bps |
|
GAAP-based operating margin |
17.1% |
18.3% |
14.6% |
250 |
bps |
|
GAAP-based EPS, diluted |
$1.08 |
$0.71 |
$0.90 |
20.0% |
|
|
Non-GAAP-based gross margin (2) |
73.0% |
74.0% |
70.8% |
220 |
bps |
|
Non-GAAP-based operating margin (2) |
30.1% |
30.7% |
29.2% |
90 |
bps |
|
Non-GAAP-based EPS, diluted (2) |
$2.32 |
$1.48 |
$2.07 |
12.1% |
Conference Call Information
The public is invited to listen to the earnings conference call today at 5:00 p.m. ET (2:00 p.m. PT) by dialing 1-800-814-4859 (toll-free) or 416-644-3414 (international). Please dial in 15 minutes ahead of time to ensure proper connection. Alternatively, a live webcast of the earnings conference call will be available on the Investor Relations section of the Company's website at http://investors.opentext.com/events.cfm .
An audio replay of the conference call will also be made available approximately two hours after the conclusion of the call. The audio replay will remain available until 11:59 p.m. on May 8, 2014 and can be accessed by dialing 1-877-289-8525 (toll-free) or 416-640-1917 (international) and entering the confirmation code: 4677835 followed by the number sign.
To view an unabridged version of this press release, visit: http://investors.opentext.com/releasedetail.cfm?ReleaseID=842467
