CIMdata PLM Industry Summary Online Archive
3 November 2005
Financial News
Open Text Reports First Quarter 2006 Financial Results
Open TextT Corporation announced unaudited financial results for its first quarter of fiscal 2006, ended September 30, 2005.
Total revenue for the first quarter of fiscal 2006 was $92.6 million (1), compared to $85.6 million for the same period last year. License revenue in the first quarter of fiscal 2006 was $24.9 million, compared to $23.9 million for the same period last year. Revenue was broadly based, with 50% from North America, 45% derived from Europe and 5% from the Middle East and Asia.
Adjusted net income in the first quarter of fiscal 2006 was $6.3 million or $0.13 per share on a diluted basis, compared to $3.9 million or $0.07 per share on a diluted basis for the same period last year. (2)
Beginning July 1, 2005, Open Text adopted Financial Accounting Standard No. 123R, "Share-based payment" with respect to the expensing of share-based compensation. The U.S. generally accepted accounting principles ("US GAAP") net income figure reported today is inclusive of share-based compensation expense of $1.4 million or approximately $0.03 per share on a diluted basis.
During the first quarter of fiscal 2006 the Company took a pre-tax restructuring charge of $18.1 million.
Net loss in accordance with US GAAP for the first quarter was $12.9 million or $0.27 per share on a diluted basis compared to a loss of $1.0 million or $0.02 per share on a diluted basis in the same period last year.
Operating cash flow in the first quarter of fiscal 2006 was $0.3 million, compared to $5.1 million in the same period last year. Accounts receivable as of September 30, 2005 was $73.6 million, compared to $66.1 million at the same time last year. Days Sales Outstanding (DSO) was 71 days in the first quarter of fiscal 2006, compared to 70 days in the same period last year. Deferred revenue was $68.4 million in the first quarter of fiscal 2006, compared to $64.3 million at the same time last year.
At the end of the first quarter of fiscal 2006, the Company had $68.1 million in cash and cash equivalents. Open Text has no debt.
"Meeting our profitability goals is my key objective, and our restructuring program has put us on track to meet these goals," said John Shackleton, President and CEO of Open Text.
Guidance
For the second quarter of fiscal 2006 ending December 31, 2005, the Company estimates revenue will be in the range of $103 million to $113 million with adjusted EPS on a diluted basis of approximately $0.21 to $0.32. (3)
On September 8, 2005, the Company announced that it would take a pre-tax restructuring charge of $25 million to $30 million of which approximately $18 million was recognized in the first fiscal quarter of 2006. The Company expects to recognize the remainder of the restructuring charge during its second fiscal quarter of 2006.
Open Text's actual results for future periods, including any charges taken, may vary from the guidance presented and such variations may be material. Please see the Safe Harbor language below and note (3) for information on the risks and uncertainties that may cause such variations. 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.
Open Text will host a conference call on November 3, 2005 at 5:00 p.m. ET to discuss final financial results for its first quarter of fiscal 2006. A replay of the call will be available beginning November 3, 2005 at 7:00 p.m. ET through 11:59 p.m. on November 17, 2005 and can be accessed by dialing 416-640-1917 and using pass code # 21156960.
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=5431388 .
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