CIMdata PLM Industry Summary Online Archive
1 November 2007
Financial News
Open Text Reports First Quarter Fiscal 2008 Financial Results
Open TextT Corporation announced unaudited financial results for its first quarter that ended September 30, 2007.(1)
Total revenue for the first quarter was $164.0 million, compared to $101.2 million for the same period in the prior fiscal year. License revenue in the first quarter was $44.3 million, compared to $28.8 million in the first quarter of the prior fiscal year.
Adjusted net income in the quarter was $22.1 million or $0.43 per share on a diluted basis, compared to $12.2 million or $0.24 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 $7.8 million or $0.15 per share on a diluted basis, compared to $7.3 million or $0.15 per share on a diluted basis for the same period in the prior fiscal year.(2)
Operating cash flow in the first quarter of fiscal 2008 was $32.2 million, compared to $9.6 million in the first quarter of fiscal 2007.
"The Company plans to make an additional debt prepayment of $30.0 million. This will reduce our debt from $390 million at the time of the Hummingbird acquisition to approximately $296.3 million. We are pleased with our accelerated repayment of the debt ahead of schedule and plans 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 September 30, 2007 was $150.3 million. Accounts receivable as of September 30, 2007, totaled $117.0 million, compared to $76.7 million as of September 30, 2006, and Days Sales Outstanding (DSO) was 64 days in the first quarter of fiscal 2008, compared to 68 days in the first quarter of fiscal 2007. "I am pleased with our performance in the quarter," said John Shackleton, President and Chief Executive Officer of Open Text. "We experienced strong sales in the pharmaceutical and energy sectors, meeting our profitability targets and generating strong operating cash flow. We are well on our way to meeting our objectives for 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 November 1st, 2007 at 5:00 p.m. ET to discuss the final financial results for its first quarter.
A replay of the call will be available beginning November 1, 2007 at 7:00 p.m. ET through 11:59 p.m. on November 15, 2007 and can be accessed by dialing 416-640-1917and using pass code 21249297 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=6638677 .
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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