CIMdata PLM Industry Summary Online Archive
31 August 2004
Financial News
Open Text Reports Record Revenue for Fourth Quarter and Fiscal 2004 Revenue Grows 98%-Results in Line With Guidance-Record Operating Cash Flow
Open TextT Corporation announced financial results for its fourth quarter and fiscal year ended June 30, 2004. (1)
Financial Highlights
Total revenue for the fourth quarter was a record $105.0 million, up 98% from the same period last year and license revenue for the fourth quarter of $42.3 million grew by 76% over the prior year. Revenue results were broadly based, with 38% derived from North America, 57% from Europe and 5% from the Middle East and Asia. Total revenue for fiscal year 2004 was $291.1 million, up 64% from the same period last year, and total license revenue for fiscal year 2004 of $121.6 million grew by 60% over the prior year.
Open Text reported record adjusted net income for the fourth quarter of $14.5 million, a 49% increase from the same period last year. Adjusted earnings per share (EPS) for the quarter was $0.27. This compares to adjusted net income of $9.8 million in the fourth quarter a year ago, marking the 22nd consecutive profitable quarter for the Company. Open Text reported a 42% increase in total adjusted net income for the fiscal year of $40.1 million, with adjusted EPS of $0.85, compared to $28.2 million, or $0.68 EPS in fiscal 2003. (2)
Open Text reported total net income for the fourth quarter in accordance with U.S. generally accepted accounting principles (GAAP) of $9.0 million, or $0.16 diluted EPS, compared to net income of $9.4 million, or $0.22 diluted EPS in the fourth quarter a year ago. Net income for the fiscal year in accordance with US GAAP was $23.3 million, or $0.49 diluted EPS, compared to net income of $27.8 million, or $0.67 diluted EPS in fiscal 2003.
Total cash flow from operations in the fourth quarter was $16.9 million, or $0.31 per share, the highest quarterly cash flow ever recorded by the Company. As of June 30, 2004, total cash on hand was $157.0 million or $2.86 per share (fully diluted). The Company has no debt or convertible debt.
"We are pleased to have achieved record results in the quarter and for the fiscal year," said Tom Jenkins, CEO of Open Text. "While Open Text continues to successfully consolidate the ECM industry, in the June quarter we defined our leadership position with the highest revenue growth, highest profitability and highest operating cash flow of all the major participants in our sector."
At quarter end, total deferred revenue was $63.6 million, up $23.8 million, a 60% increase over the prior year. Maintenance renewal rates continue to be consistently strong with over 90% retention for the fourth quarter and full year.
Accounts receivable as of June 30, 2004, was $83.0 million, resulting in days sales outstanding (DSO) of 71 days, an improvement of 28 days from the previous quarter.
"We are very pleased with our progress of integrating IXOS into our product roadmap and operational model. In fact, the addition of IXOS has been immediately accretive to our results and has significantly expanded our global customer base," said John Shackleton, President of
Open Text. "As the world's largest ECM vendor, our leadership position is driven by customer demand for our software. We continue to execute on a business model that does not rely on large deals. " (3)
Open Text owns approximately 89% of IXOS Software AG. As of March 1, 2004, Open Text began including the results of IXOS in its financial statements on a consolidated basis.
Guidance (2)
The Company is maintaining its previously announced guidance for Fiscal Year 2005.
For Fiscal Year 2005 (which commenced July 1, 2004), Open Text expects revenue of $420 to $450 million with adjusted EPS of $1.10 to $1.30.
With the start of the new fiscal year, the Company is establishing quarterly guidance which reflects the inherent seasonality of the IXOS business combination. For the first quarter ending September 30, 2004, Open Text expects revenue of $87 to $93 million with adjusted EPS of $0.07 to $0.12.
Recent Highlights
1. Open Text Acquires Vista Plus Product Suite from Quest Software
Open Text has signed a definitive agreement to acquire the Vista Plus® suite of products and related assets from Quest Software Inc. Vista Plus captures and stores business-critical information from ERP applications like Oracle E-Business Suite, PeopleSoft and mySAP.
For more information use the following link: http://www.opentext.com/news/pr.html?id=1501
2. Open Text Acquires Digital Asset Management Vendor Artesia Technologies
The acquisition of Artesia Technologies, Inc. of Rockville, Md., is an important step towards helping customers better integrate and manage all types of media for improved content management and collaboration.
For more information use the following link: http://www.opentext.com/news/pr.html?id=1490
3. Open Text and Siemens Business Services Announce European Alliance
The partnership is intended to provide customers with a comprehensive one-stop solution for consulting and system design, systems integration, deployment and ongoing support; and both parties have indicated the potential to extend the agreement into a global alliance in the future.
For more information use the following link: http://www.opentext.com/news/pr.html?id=1483
4. Open Text Ranks High in Business 2.0's List of the 100 Fastest Growing Technology Companies
Open Text ranked 11th in Business 2.0 magazine's list of the 100 fastest growing technology companies, called the 2004 B2 100. The ranking was Open Text's highest, a significant move up from 49th when Open Text last placed in the B2 100.
For more information use the following link: http://www.opentext.com/news/pr.html?id=1477
Upcoming Investor Events
To confirm a date or learn about Web cast availability, visit the Company's Web site at: http://www.opentext.com/investor/investor_events/
Open Text invites the public to listen to the Company's teleconference call discussing the financial results of its fourth quarter and fiscal year 2004 onTuesday, August 31, 2004.Replay of the call will be available beginning August 31, at 7:00 p.m. ET thru 11:59 p.m. on September 14, 2004 and can be accessed by dialing 416-640-1917 and using pass code #21056631. For more information or to listen to the call via Web cast, please use the following link: http://www.opentext.com/events/event.html?id=35509
Additional materials, including accompanying financial and operating statistics relating to these financial results may be obtained from the investor site within the Open Text corporate Web site at: http://www.opentext.com/investor/quarterly_reports/index.html
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