Open Text Corporation announced today its financial results for the third quarter ended March 31, 2015.
- Recurring revenue was $383.6 million, up 4%; in constant currency*, up 10%
- Cloud services revenue was $143.8 million, up 12%; in constant currency, up 17%
- Record operating cash flow of $143.1 million and raises quarterly dividend to $0.20
- Total revenue was $447.6 million, up 1%; in constant currency, up 8%
"In Q315, our cloud revenue grew 12%, up 17% in constant currency and we closed 7 iX deals over $1 million, the benefit of which we will see in our future ongoing cloud revenues," said OpenText CEO Mark J. Barrenechea. "Our products and services are resonating with enterprise customers and OpenText is well positioned to lead the digital transformation in the cloud."
Barrenechea further added, "As for our quarterly financial results, we did not meet our full financial objectives. As for revenue, we were affected by foreign exchange and customers transitioning to our cloud; as for profit, we were affected by foreign exchange and unique items in the quarter, such as acquisitions, litigation costs and others, the benefits of which should be seen in future quarters. With that said, I am pleased that our recurring revenues grew by 4%, up 10% in constant currency, and we had record operating cash flows of $143.1 million in the quarter."
"Foreign currency volatility continued to have a significant impact on our results in the quarter and on a year-to-date basis," said John Doolittle, OpenText CFO. "Although we are fighting currency headwinds, we are pleased with our growth in recurring revenues and our operating cash flow performance, attributed to our strong working capital management this quarter. Based on the operating cash performance, our strong liquidity position and our focus on delivering value to shareholders, we have increased our quarterly dividend to $0.20."
*Constant currency for this purpose is defined as the current period reported revenues/expenses/earnings represented at the prior comparative period's foreign exchange rate.
