CIMdata PLM Industry Summary Online Archive
30 August 2007
Financial News
Open Text Reports Fourth Quarter and Year-End 2007 Financial Results
Open TextT Corporation announced unaudited financial results for its fourth quarter and fiscal year ended June 30, 2007(1).
Total revenue for the fourth quarter was $175.2 million, compared to $105.2 million for the same period in the prior fiscal year. License revenue in the fourth quarter was $59.2 million, compared to $32.0 million in the fourth quarter of the prior fiscal year. License revenues grew 38% from $43.0 million in the previous quarter ended March 31, 2007.
Adjusted net income in the quarter was $26.6 million or $0.52 per share on a diluted basis, compared to $15.4 million or $0.31 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 $8.2 million or $0.16 per share on a diluted basis, compared to $7.8 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 2007 was $595.7 million, compared to $409.6 million for the previous fiscal year. License revenue for fiscal year 2007 was $182.5 million, compared to $122.5 million in the previous fiscal year. Adjusted net income for fiscal year 2007 was $74.3 million, or $1.46 per share on a diluted basis, compared to adjusted net income for the previous fiscal year of $50.8 million, or $1.01 per share on a diluted basis. This represents a growth of 45% of adjusted EPS for the year. Net income for fiscal year 2007 in accordance with US GAAP was $21.7 million, or $0.43 per share on a diluted basis, compared to the prior fiscal year's net income of $5.0 million, or $0.10 per share on a diluted basis(2).
Operating cash flow in the fourth quarter of fiscal 2007 was $28.5 million, compared to $15.4 million in the fourth quarter of the prior fiscal year. For the full 2007 fiscal year, Open Text generated $110.9 million in operating cash flow compared to $60.8 million in fiscal 2006.
"The Company plans to make an additional debt repayment of $30 million. This will reduce our debt from $390 million at the time of the Hummingbird acquisition to approximately $327 million this quarter. We are pleased with our accelerated repayment of the debt ahead of schedule and planning for future lump sum debt repayments will continue to be reviewed on a periodic basis," said Paul McFeeters, Chief Financial Officer of Open Text.
The cash, cash equivalents and short-term investments balance as of June 30, 2007 was $150.0 million. Accounts receivable as of June 30, 2007, totaled $128.8 million, compared to $75.0 million as of June 30, 2006, and Days Sales Outstanding (DSO) was 66 days in the fourth quarter of fiscal 2007, compared to 64 days in the fourth quarter of fiscal 2006.
"I am very pleased with our performance in the quarter and for the full fiscal year. The integration of Hummingbird has gone well and investments in our partner strategy are paying off," said John Shackleton, President and Chief Executive Officer of Open Text. "We will continue to focus on profitability as we now position the Company for growth in fiscal 2008."
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 30, 2007 at 5:00 p.m. ET to discuss the final financial results of its fourth quarter and fiscal year-end 2007.
Date : Thursday, August 30, 2007
Time : 5:00 p.m. ET/2:00 p.m. PT
Length : 60 minutes
Where : 416-640-1907
Please dial-in approximately 10 minutes before the teleconference is scheduled to begin. A replay of the call will be available beginning August 30, 2007 at 7:00 p.m. ET through 11:59 p.m. on September 13, 2007 and can be accessed by dialing 416-640-1917 and using pass code 21238674 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/event.html?id=5726174
Notes
(1) Based on comparison of historic revenue figures 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) In addition to these GAAP and adjusted results the Company has provided financial information that adds-back maintenance revenue eliminated due to the impact of purchase accounting entries on deferred revenue and the impact of interest expense. Management believes that the furnishing of these adjustments provide a consistent basis for comparison between quarters and help to more accurately reflect Open Text's underlying operating results.
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