CIMdata PLM Industry Summary Online Archive
11 April 2005
Financial News
Open Text Announces Preliminary Third Quarter 2005 Financial Results
Open TextT Corporation announced preliminary financial results for its third fiscal quarter that ended March 31, 2005. (1)
Based on preliminary financial data, the Company expects to report a modest shortfall to guidance with revenues in the range of $104 to $106 million, up from $80.2 million in the same period last year. Earnings per share (EPS) for the quarter is expected to be in the range of $0.17 to $0.23 on an adjusted basis, and in the range of $0.08 to $0.14 on a GAAP basis, up from $0.07 in the same period last year. (2)
"More customers are electing to increase the size and mix of their ECM deployments. This has had the twin effect of increasing the size of individual sales, but has increased the decision cycle as is normal with higher value transactions," stated John Shackleton, President of Open Text Corporation. "Although, as in recent quarters, this change in our business model makes pinpoint forecasting very difficult, we remain confident in the growth of our business."
"We expect our strong operating cashflow for the quarter to exceed $20.0 million, reflecting our continued profitable operations and high level of customer satisfaction," added Mr. Shackleton.
The Company emphasizes that these results are unaudited and preliminary, and its actual results may vary. Final results for the third quarter of fiscal 2005 will be reported by the Company on May 5, 2005.
Guidance
Based on experience in recent quarters, the Company is expanding its guidance ranges to reflect its evolving business model. For the fourth quarter of fiscal 2005 (ending June 30, 2005), the Company estimates revenue of $115 to $125 million with adjusted EPS of $0.30 to $0.40.
Open Text's actual results for future periods may vary from the guidance presented and such variations may be material. Please see note (2) below for a reconciliation of non GAAP based financial measures, used in this press release, to GAAP based financial measures.
Teleconference Call
Open Text will host a conference call on April 11, 2005, at 5:00 p.m. EDT to discuss its preliminary financial results.
A replay of the call will be available beginning April 11th, at 7:00 p.m. EDT through 11:59 p.m. on April 25th, 2005 and can be accessed by dialing 416-640-1917 and using pass code #21121194.
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=5363768 .
Notes
(1) Based on comparison of future annual revenue guidance publicly disseminated by companies in the Enterprise Content Management ("ECM") sector. All dollar amounts in this press release are in US Dollars unless otherwise indicated.
(2) Use of Non-GAAP financial measures
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