CIMdata PLM Industry Summary Online Archive
8 February 2007
Financial News
Open Text Reports Second Quarter 2007 Financial Results
Open TextT Corporation reported unaudited financial results for its second quarter that ended December 31, 2006.(1)
Total revenue for the second quarter was $163.3 million, compared to $110.8 million for the same period in the prior fiscal year. License revenue in the second quarter was $51.4 million, compared to $37.1 million for the same period in the prior fiscal year.(2)
Adjusted net income in the quarter was $18.0 million or $0.35 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 $2.3 million or $0.04 per share on a diluted basis, compared to $2.7 million or $0.05 per share on a diluted basis for the same period in the prior fiscal year. Net income in accordance with US GAAP was primarily impacted by restructuring charges and interest costs.(3)
The cash, cash equivalents and short-term investments balance as of December 31, 2006 was $124.4 million, compared to $111.2 million as of September 30, 2006. Accounts receivable at the end of the second quarter totaled $114.1 million, compared to $76.7 million in the prior quarter. Days Sales Outstanding (DSO) was 63 days in the second quarter of fiscal 2007, compared to 68 days in the prior quarter.
Operating cash flow in the second quarter of fiscal 2007 was $31.4 million compared to $16.4 million in the second quarter of fiscal 2006.
"We achieved our profit targets and generated strong cash flow from operations this quarter," said John Shackleton, President and Chief Executive Officer of Open Text. "We are pleased with how the Hummingbird integration is progressing and we are on track to meet our operating goals."
Hummingbird Integration
The majority of Hummingbird's integration was completed during the second quarter. As part of the integration, Open Text has reduced its worldwide workforce by approximately 15 percent. The staff reductions were focused on redundant positions or areas of the business that were not consistent with the Company's strategic focus. Open Text is also reducing 40 facilities by closing or consolidating offices in certain locations. To date, 19 facilities have been closed or consolidated in accordance with this plan.
"We are pleased that the acquisition was accretive in the first quarter of combined operations and have been successful in our efforts to rationalize staff levels and consolidate facilities to meet our operating goals. Based on the run-rate in our second quarter, we continue to believe our actions will result in savings of approximately $50.0 million for the current fiscal year and on an annualized basis, approximately $80.0 million beginning in fiscal 2008," said Paul McFeeters, Chief Financial Officer of Open Text.(4)
Teleconference Call
Open Text will host a conference call on February 8, 2007 at 5:00 p.m. ET to discuss the final financial results of its second quarter. A replay of the call will be available beginning February 8, 2007 at 7:00 p.m.ET through 11:59 p.m. on February 22, 2007 and can be accessed by dialing 416-640-1917 and using pass code 21215721 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/investor/investor_events/ .
For full financials & further information on Notes, please visit http://www.opentext.com/news/pr.html?id=1836 .
Become a member of the CIMdata PLM Community to receive your daily PLM news and much more.
Tell us what you think of the CIMdata Newsletter. Send your feedback.
CIMdata is committed to your privacy. Your personal information will never be sold or shared outside of CIMdata without your express permission.