CIMdata PLM Industry Summary Online Archive

19 August 2008

Financial News

Open Text Reports Fourth Quarter and Fiscal Year-End 2008 Financial Results

Open Text™ Corporation announced unaudited financial results for its fourth quarter and fiscal year ended June 30, 2008. (1)

Total revenue for the fourth quarter was $200.3 million, up 14% compared to $175.2 million for the same period in the prior fiscal year. License revenue in the fourth quarter was $68.2 million, up 15% compared to $59.2 million in the fourth quarter of the prior fiscal year.

Adjusted net income in the quarter was $33.3 million or $0.63 per share on a diluted basis, up 25% compared to $26.7 million or $0.52 per share on a diluted basis for the same period in the prior fiscal year. Net income in accordance with U.S. generally accepted accounting principles ("US GAAP") was $27.3 million or $0.51 per share on a diluted basis, compared to $8.2 million or $0.16 per share on a diluted basis for the same period in the prior fiscal year. (2)

Total revenue for fiscal year 2008 was $725.5 million, up 22% compared to $595.7 million for the previous fiscal year. License revenue for fiscal year 2008 was $219.1 million, up 20% compared to $182.5 million in the previous fiscal year.

Adjusted net income for fiscal year 2008 was $107.0 million, or $2.03 per share on a diluted basis, up 44% compared to adjusted net income for the previous fiscal year of $74.3 million, or $1.46 per share on a diluted basis. Net income for fiscal year 2008 in accordance with US GAAP was $53.0 million, or $1.01 per share on a diluted basis, compared to the prior fiscal year's net income of $21.7 million, or $0.43 per share on a diluted basis. (2)

Operating cash flow in the fourth quarter of fiscal 2008 was $44.6 million, compared to $28.5 million in the fourth quarter of the prior fiscal year. For the full 2008 fiscal year, Open Text generated $166.0 million in operating cash flow compared to $110.9 million in fiscal 2007.

The cash, cash equivalents and short-term investments balance as of June 30, 2008 was $254.9 million. Accounts receivable as of June 30, 2008, totaled $134.4 million, compared to $128.8 million as of June 30, 2007, and Days Sales Outstanding (DSO) was 60 days in the fourth quarter of fiscal 2008, compared to 66 days in the fourth quarter of fiscal 2007.

"I am very pleased with our performance in the quarter and for the full fiscal year," said John Shackleton, President and Chief Executive Officer of Open Text. "We have achieved our goal of strong license growth, record profitability and exemplary cash flow accumulation. As we enter into fiscal 2009, we remain confident in our momentum and look forward to continued growth in the coming year."

Please see note (2) below for a reconciliation of non-US GAAP based financial measures used in this press release, to US GAAP based financial measures.

Teleconference Call

Open Text will host a conference call on August 19, 2008 at 5:00 p.m. ET to discuss the final financial results of its fourth quarter and fiscal year-end 2008.

Date: Tuesday, August 19, 2008

Time: 5:00 p.m. ET/2:00 p.m. PT

Length: 60 minutes

Where: 416-640-1907

A replay of the call will be available beginning August 19, 2008 at 7:00 p.m. ET through 11:59 p.m. on September 2, 2008 and can be accessed by dialing 416-640-1917 and using pass code 21276674 followed by the number sign.

For more information or to listen to the call via Web cast, please use the following link: http://www.opentext.com/events/wa-event.html?id=6789650. For more detail including financial please visit http://www.opentext.com/news/pr.html?id=2089

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