CIMdata PLM Industry Summary Online Archive
1 February 2012
Financial News
OpenText Reports Second Quarter Fiscal Year 2012 Financial Results
Open Text(TM) Corporation announced unaudited financial results for its second fiscal quarter ended December 31, 2011. (1)
Financial Highlights for Q2 FY12
- Total revenue for the period was $321.5 million, up 20.2% Y/Y
- License revenue was $89.7 million, up 13.3% Y/Y
- GAAP -based EPS was $0.81 compared to $0.64 Y/Y; Non-GAAP- based EPS was $1.39 compared to $1.22 Y/Y (2)
- GAAP-based income from operations was $55.2 million and 17.2% of revenues; Non-GAAP-based operating income was $98.5 million and 30.7% of revenues (2)
"I am delighted to join OpenText and to be based out of Waterloo, Ontario," said Mark J. Barrenechea, OpenText President and Chief Executive Officer. "With proven success as a market leader in ECM, OpenText has unparalleled talent, innovative products and an impressive group of world-class customers and partners. I see tremendous market opportunity and an exciting future for the Company. I look forward to working with the Company's employees, customers and investors to lead OpenText to the next level of success."
Business Highlights
- Mark J. Barrenechea appointed President and CEO of OpenText effective January 2, 2012; John Shackleton retires
- Americas contributed 53% of total revenue, while EMEA contributed 40% and Asia Pacific 7%
- License was approximately 27.9% of revenue, customer support contributed 51.4% and services and other was approximately 20.7% of revenue
- Partners contributed 44% of license revenue
- Services, technology and financial services verticals saw the most demand
- Customer successes in the second quarter include Peabody Energy, Salzgitter AG, Taco Bell and Volkswagen Finance
- Completion of financing; 5-year term loan of $600 million replaces previous loan; repaid previous credit facility of approximately $332.9 million
- Now shipping: OpenText Tempo, fast, easy, secure document sharing solution that allows enterprise users to share and manage content in secure folders on smartphones, tablets, PCs or laptops.
Summary of Results
Q2 FY12 |
Q1 FY1 2 |
Q 2 FY11 |
% C hange (Q/Q) |
% Ch a nge (Y/Y) |
|||||
Revenue (million)……………………….................. |
$321.5 |
$288.0 |
|
$267.5 |
11.6% |
20.2% |
|||
GAAP-based gross margin……………................. |
67.1% |
64.8% |
68.4% |
230 bps |
(130) bps |
||||
GAAP-based operating income margin................ |
17.2% |
9.4% |
19.7% |
780 bps |
(250) bps |
||||
GAAP-based EPS………..…………….................. |
$0.81 |
$0.60 |
$0.64 |
35.0% |
26.6% |
||||
Non-GAAP-based gross margin (2) …….................... |
73.8% |
72.1% |
74.6% |
170 bps |
(80) bps |
||||
Non-GAAP-based operating margin (2).. |
30.7% |
25.3% |
31.6% |
540 bps |
(90) bps |
||||
Non-GAAP-based EPS (2) ………………............. |
$1.39 |
$1.03 |
$1.22 |
35.0% |
13.9% |
Conference Call Information
The public is invited to listen to the earnings conference call at 5:00 p.m. ET (2:00 p.m. PT) by dialing 800-814-4859 (toll-free) or 416-644-3414 (international). 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 February 15, 2012 and can be accessed by dialing 877-289-8525 (toll-free) or 416-640-1917 (international) and entering the confirmation code: 4502362, followed by the number sign.
Please see below note (2) for a reconciliation of non-US GAAP based financial measures used in this press release, to US GAAP based financial measures.
Use of Non-GAAP Financial Measures
In addition to reporting financial results in accordance with USGAAP, the Company provides certain non-USGAAP financial measures that are not in accordance with US GAAP. These non-USGAAP financial measures have certain limitations in that they do not have a standardized meaning and thus the Company's definition may be different from similar non-USGAAP financial measures used by other companies and/or analysts and may differ from period to period. Thus it may be more difficult to compare the Company's financial performance to that of other companies. However, the Company's management compensates for these limitations by providing the relevant disclosure of the items excluded in the calculation of non-US GAAP net income and non-US GAAP EPS both in its reconciliation to the USGAAP financial measures of net income and EPS and its consolidated financial statements, all of which should be considered when evaluating the Company's results. The Company uses the financial measures non-US GAAP EPS and non-US GAAP net income to supplement the information provided in its consolidated financial statements, which are presented in accordance with US GAAP. The presentation of non-US GAAP net income and non-US GAAP EPS is not meant to be a substitute for net income or net income per share presented in accordance with USGAAP, but rather should be evaluated in conjunction with and as a supplement to such USGAAP measures. OpenText strongly encourages investors to review its financial information in its entirety and not to rely on a single financial measure. The Company therefore believes that despite these limitations, it is appropriate to supplement the disclosure of the USGAAP measures with certain non-USGAAP measures for the reasons set forth below. Non-US GAAP net income and non-US GAAP EPS are calculated as net income or net income per share on a diluted basis, excluding, where applicable, the amortization of acquired intangible assets, other income (expense), share-based compensation, and restructuring, all net of tax. The Company's management believes that the presentation of non-US GAAP net income and non-US GAAP EPS provides useful information to investors because it excludes non-operational charges. The use of the term "non-operational charge" is defined by the Company as those that do not impact operating decisions taken by the Company's management and is based upon the way the Company's management evaluates the performance of the Company's business for use in the Company's internal reports. In the course of such evaluation and for the purpose of making operating decisions, the Company's management excludes certain items from its analysis, such as amortization of acquired intangible assets, restructuring costs, share-based compensation, other income (expense) and the taxation impact of these items. These items are excluded based upon the manner in which management evaluates the business of the Company and are not excluded in the sense that they may be used under US GAAP. The Company believes the provision of supplemental non-USGAAP measures allows investors to evaluate the operational and financial performance of the Company's core business using the same evaluation measures that management uses, and is therefore a useful indication of Open Text's performance or expected performance of recurring operations and facilitates period-to-period comparison of operating performance. As a result, the Company considers it appropriate and reasonable to provide, in addition to USGAAP measures, supplementary non-USGAAP financial measures that exclude certain items from the presentation of its financial results in this press release.
NOTES: For a detailed explanation of notes with financial tables please access the unabridged press release at http://www.opentext.com/2/global/press-release-details.html?id=DD92ABF16E72439991481B985C725758
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