CIMdata PLM Industry Summary Online Archive
5 May 2005
Financial News
Open Text Announces Third Quarter 2005 Financial Results
Open TextT Corporation, a provider of Enterprise Content Management (ECM) software (1), announced financial results for its third fiscal quarter ended March 31, 2005.
Financial Highlights
Total revenue for the third quarter was $105.2 million, compared to $80.2 million in the same period last year. License revenue for the quarter was $33 million, compared to $34.5 million in the same period last year. Revenue results were broadly based, with 51% derived from Europe, 42% from North America and 7% from the Middle East and Asia.
Open Text reported adjusted net income for the third quarter of $10.7 million, or adjusted earnings per share on a diluted basis (EPS) of $0.21, compared to $0.25 adjusted EPS from the same period last year. Open Text had 51.7 million fully-diluted shares outstanding for the three month period ended March 31, 2005. (2)
Net income for the third quarter in accordance with U.S. Generally Accepted Accounting Principles (GAAP) was $5.3 million, or $0.10 EPS on a diluted basis. This compares to GAAP net income of $3.3 million, or $0.07 EPS in the same period a year ago.
Total cash flow from operations in the third quarter was $30 million, up 94% from the same period last year. The total cash on hand at quarter end was $99 million or $1.91 per diluted share. Total deferred revenue at quarter end was $80 million, up 18% over the same period a year ago. Days Sales Outstanding (DSO) was 68 days. During the quarter, the Company repurchased approximately 1 million shares for cancellation at a cost of $18.9 million.
"Driven by a need for compliance and efficiency, more of our customers are electing to increase the size and mix of their deployments to the entire Livelink ECM suite." said John Shackleton, President of Open Text. "As the leader in ECM, we remain confident in our business and believe that focusing on our profitably is the best route for our future success."
Guidance
As announced on April 11, 2005, 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.
Some Recent Highlights
1. Open Text Completes Rollout of Industry's Most Advanced E-mail Management Solutions
Open Text has completed the rollout of an e-mail management software as part of its Livelink ECM Solutions. The solutions include the first-ever integrated platform combining e-mail archiving, records management and search capabilities.
For more information use the following link: http://www.opentext.com/news/pr.html?id=1611 .
2. LiveLinkUp Europe 2005: Open Text comes to the User
Open Text hosted its user conference, LiveLinkUp Europe 2005. The central theme of the user conference was the Open Text SAP® strategy, which aims to integrate any type of business content in SAP processes. Open Text also unveiled its latest product roadmap, including tailored solutions for the manufacturing, banking and insurance, and pharmaceutical sectors, as well as public administration and media.
For more information use the following link:
http://www.opentext.com/news/pr.html?id=1578 .
Teleconference Call
Open Text will host a conference call on May 5, 2005, at 5:00 p.m. EDT to discuss its financial results.
A replay of the call will be available beginning May 5th, at 7:00 p.m. EDT through 11:59 p.m. on May 19th, 2005 and can be accessed by dialing 416-640-1917 and using pass code #21119847.
For more information or to listen to the call via Webcast, please use the following link:
http://www.opentext.com/events/event.html?id=5367923 .
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 .
(1) Based on comparison of future 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
In addition to reporting financial results in accordance with United States generally accepted accounting principles ("GAAP"), the Company provides certain non-GAAP financial measures that are not in accordance with GAAP. The Company's definition of these non-GAAP financial measures do not have a standardized meaning prescribed by GAAP and may be different from similar non-GAAP financial measures used by other companies and may differ from period to period. The Company uses the financial measures adjusted net income and adjusted EPS to supplement the information provided in its consolidated financial statements, which are presented in accordance with GAAP. The presentation of adjusted EPS and adjusted net income is not meant to be a substitute for net income per share or net income, respectively, presented in accordance with GAAP, but rather should be evaluated in conjunction with such GAAP measures. Adjusted EPS and adjusted net income are calculated as net income (or per share on a diluted basis, as applicable), excluding the amortization of acquired intangible assets, other income (loss), and restructuring, all net of tax. The Company's management believes that the presentation of adjusted EPS and adjusted net income provides useful information to investors because it excludes non-operational charges and allows investors to evaluate the operational and financial performance of the Company's core business and is therefore a better indication of Open Text's performance or expected performance of recurring operations and facilitates period-to-period comparison of operating performance.
More information including financial tables is available at http://www.opentext.com/news/pr.html?id=1616 .
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