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OTEX Republic of Portugal 1.95% 15jun2029

99.94
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Name Symbol Market Type
Republic of Portugal 1.95% 15jun2029 EU:OTEX Euronext Bond
  Price Change % Change Price Bid Price Offer Price High Price Low Price Open Price Traded Last Trade
  0.00 0.00% 99.94 98.08 99.88 0 16:16:16

Open Text Reports First Quarter Fiscal 2010 Financial Results

27/10/2009 8:01pm

PR Newswire (US)


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WATERLOO, ON, Oct. 27 /PRNewswire-FirstCall/ -- Open Text(TM) Corporation (NASDAQ:OTEX) (TSX:OTC), a leading provider of Enterprise Content Management (ECM) software, today announced unaudited financial results for its first quarter ended September 30, 2009.(1) Total revenue for the first quarter was $211.4 million, up 16% compared to $182.6 million for the same period in the prior fiscal year. License revenue in the first quarter was $47.3 million, down 6% compared to $50.1 million in the first quarter of the prior fiscal year. Adjusted net income in the quarter was $32.8 million or $0.58 per share on a diluted basis, up 16% compared to $28.2 million or $0.53 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 $1.7 million or $0.03 per share on a diluted basis, compared to $14.7 million or $0.28 per share on a diluted basis for the same period in the prior fiscal year.(2) The cash and cash equivalents balance as of September 30, 2009 was $212.2 million. Accounts receivable as of September 30, 2009, totaled $135.6 million, compared to $108.3 million as of September 30, 2008, and Days Sales Outstanding (DSO) was 58 days in the first quarter of fiscal 2010, compared to 53 days in the first quarter of fiscal 2009. "We met our profit and revenue goals in what has seasonally been our toughest quarter. License revenue fell short of our expectations, mainly due to deferred purchase decisions for our Web Content Management (WCM) products," said John Shackleton, President and Chief Executive Officer of Open Text. "We are seeing a continued demand for compliance solutions, as well as companies laying the groundwork for ECM 2.0 solutions. In the current economic environment we remain committed to meeting our annual profitability targets, while focusing on capturing market share by leveraging our strategic partnerships." 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 Renews Normal Course Issuer Bid The Company also announced its intention to renew its Normal Course Issuer Bid (the "Bid") through the facilities of the NASDAQ Global Select Market ("NASDAQ"). Purchases over the NASDAQ could commence in November, 2009 if desirable. As of October 26, 2009, Open Text had 56,380,735 issued and outstanding common shares. The Bid will expire one year from the commencement date. The maximum number of shares that may be purchased is calculated as 5% of the outstanding common shares of Open Text at the beginning of the Bid. Teleconference Call Open Text will host a conference call on October 27, 2009 at 5:00 p.m. ET to discuss the final financial results of its first quarter. Date: Tuesday, October 27, 2009 Time: 5:00 p.m. ET/2:00 p.m. PT Length: 60 minutes Where: 800-814-4861 Please dial-in approximately 10 minutes before the teleconference is scheduled to begin. A replay of the call will be available beginning October 27, 2009 at 7:00 p.m. ET through 11:59 p.m. on November 10, 2009 and can be accessed by dialing 416-640-1917 and using pass code 4169327 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/wa-event.html?id=7735475. Supplemental materials regarding new accounting rules - Topic 805: Business Combinations - which will be discussed on the call are available for download on the Investor Relations section of the Open Text web site at: http://mimage.opentext.com/alt_content/binary/ot/investor/2010/fy2010q1.pdf. About Open Text Open Text(TM) is the world's largest independent provider of Enterprise Content Management software. The company's solutions manage information for all types of business, compliance and industry requirements in large companies, government agencies and professional service firms. Open Text supports approximately 46,000 customers in 114 countries and 12 languages. For more information about Open Text, visit http://www.opentext.com/. Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995 This press release contains forward-looking statements, including statements about the financial conditions, and results of operations and earnings for Open Text Corporation ("Open Text" or "the Company"). Forward-looking statements in this press release are not promises or guarantees of future performance and are subject to risks and uncertainties that could cause the Company's actual results to differ materially from those anticipated. The Company cautions not to place undue reliance upon any such forward-looking statements, which speak only as of the date made. The results included in this press release are unaudited and therefore are deemed to be forward-looking statements. Factors that may cause actual results or earnings to differ materially from such forward-looking statements include, among others, the following: (i) the future performance, financial and otherwise, of Open Text; (ii) the ability of Open Text to bring new products to market and to increase sales; (iii) the strength of the Company's product development pipeline; (iv) the Company's growth and profitability prospects; (v) the estimated size and growth prospects of the ECM market; (vi) the Company's competitive position in the ECM market and its ability to take advantage of future opportunities in this market; (vii) the benefits of the Company's products to be realized by customers; and (viii) the demand for the Company's product and the extent of deployment of the company's products in the ECM marketplace. Forward-looking statements may also include, without limitation, any statement relating to future events, conditions or circumstances. The risks and uncertainties that may affect forward-looking statements include, but are not limited to: (i) integration of acquisitions and related restructuring efforts, including the quantum of restructuring charges and the timing thereof; (ii) the possibility that the Company may be unable to meet its future reporting requirements under the Securities Exchange Act of 1934, as amended, and the rules promulgated thereunder; (iii) the risks associated with bringing new products to market; (iv) fluctuations in currency exchange rates; (v) delays in the purchasing decisions of the Company's customers; (vi) the competition the Company faces in its industry and/or marketplace; (vii) the possibility of technical, logistical or planning issues in connection with the deployment of the Company's products or services; (viii) the continuous commitment of the Company's customers; (ix) demand for the Company's products; and (10) other risks detailed from time to time in the Company's filings with the Securities and Exchange Commission (SEC), including the Company's Annual Report on Form 10-K for the year ended June 30, 2009. Forward-looking statements are based on management's beliefs and opinions at the time the statements are made, and the Company does not undertake any obligation to update forward-looking statements should circumstances or management's beliefs or opinions change. Notes (1) Based on comparison of historical 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) Use of US Non-GAAP financial measures In addition to reporting financial results in accordance with US GAAP, the Company provides certain non-US GAAP financial measures that are not in accordance with US GAAP. These non-US GAAP financial measures have certain limitations in that they do not have a standardized meaning and thus the Company's definition may be different from similar non-US GAAP financial measures used by other companies and/or analysts and may differ from period to period. Thus it may be more difficult to compare the Company's financial performance to that of other companies. However, the Company's management compensates for these limitations by providing the relevant disclosure of the items excluded in the calculation of adjusted net income and adjusted EPS both in its reconciliation to the US GAAP financial measures of net income and EPS and its consolidated financial statements, all of which should be considered when evaluating the Company's results. The Company uses the financial measures adjusted EPS and adjusted net income to supplement the information provided in its consolidated financial statements, which are presented in accordance with US GAAP. The presentation of adjusted net income and adjusted EPS is not meant to be a substitute for net income or net income per share presented in accordance with US GAAP, but rather should be evaluated in conjunction with and as a supplement to such US GAAP measures. Open Text strongly encourages investors to review its financial information in its entirety and not to rely on a single financial measure. The Company therefore believes that despite these limitations, it is appropriate to supplement the disclosure of the US GAAP measures with certain non-US GAAP measures for the reasons set forth below. Adjusted net income and adjusted EPS are calculated as net income or net income per share on a diluted basis, excluding, where applicable, the amortization of acquired intangible assets, other income (expense), share-based compensation, and restructuring, all net of tax. The Company's management believes that the presentation of adjusted net income and adjusted EPS provides useful information to investors because it excludes non-operational charges. The use of the term "non-operational charge" is defined by the Company as those that do not impact operating decisions taken by the Company's management and is based upon the way the Company's management evaluates the performance of the Company's business for use in the Company's internal reports. In the course of such evaluation and for the purpose of making operating decisions, the Company's management excludes certain items from its analysis, such as amortization of acquired intangibles, restructuring costs, share-based compensation, other income (expense) and the taxation impact of these items. These items are excluded based upon the manner in which management evaluates the business of the Company and are not excluded in the sense that they may be used under US GAAP. The Company believes the provision of supplemental non-US GAAP measures allows investors to evaluate the operational and financial performance of the Company's core business using the same evaluation measures that management uses, and is therefore a useful indication of Open Text's performance or expected performance of recurring operations and facilitates period-to-period comparison of operating performance. As a result, the Company considers it appropriate and reasonable to provide, in addition to US GAAP measures, supplementary non-US GAAP financial measures that exclude certain items from the presentation of its financial results in this press release. The following charts provide reconciliation (unaudited) of US GAAP based financial measures to non-US GAAP based financial measures referred to in this press release: Reconciliation (unaudited) of US GAAP based Net Income to Adjusted Net ---------------------------------------------------------------------- Income (in millions of US dollars) for the quarters ended September 30, ----------------------------------------------------------------------- 2009 and 2008: -------------- Three months ended Three months ended September 30, 2009 September 30, 2008 GAAP based "Net Income" $1.7 $14.7 Special Charges/(recovery) 18.6 - Amortization of intangibles 23.1 19.0 Other (Income)/Expense (3.4) (0.7) Share-based compensation 1.5 1.4 Tax Impact on Above (8.7) (6.2) ------------------------------------------------------------------------- Non-GAAP based "Adjusted Net Income" $32.8 $28.2 ------------------------------------------------------------------------- Reconciliation (unaudited) of US GAAP based EPS to non-US GAAP based EPS ------------------------------------------------------------------------ (calculated on a diluted basis) for the quarters ended September 30, 2009 ------------------------------------------------------------------------- and 2008: --------- Three months ended Three months ended September 30, 2009 September 30, 2008 GAAP based "Net Income" $0.03 $0.28 Special Charges/(recovery) 0.33 - Amortization of intangibles 0.41 0.36 Other (Income)/Expense (0.06) (0.01) Share-based compensation 0.03 0.03 Tax Impact on Above (0.16) (0.13) ------------------------------------------------------------------------- Non-GAAP based "Adjusted Net Income" $0.58 $0.53 ------------------------------------------------------------------------- (3) The following table provides a composition of our major currencies for revenue and expenses, expressed as a percentage, for the first quarter of Fiscal 2010: Currencies % of Revenue % of Expenses* --------------------------------------- ---------------- ---------------- EURO................................... 25% 23% GBP.................................... 12% 9% CHF.................................... 6% 4% CAD.................................... 6% 23% USD.................................... 44% 34% Others................................. 7% 7% ---------------- ---------------- Total.................................. 100% 100% ---------------------------------- ---------------------------------- * Expenses include all cost of revenues and operating expenses included within the Consolidated Statements of Income, except for amortization of intangible assets, depreciation, share-based compensation and special charges. OPEN TEXT CORPORATION CONSOLIDATED BALANCE SHEETS (In thousands of U.S. dollars, except per share data) September 30 June 30 2009 2009 --------------- --------------- ASSETS Unaudited Audited Current assets: Cash and cash equivalents $ 212,190 $ 275,819 Short-term investments 19,768 - Accounts receivable trade, net of allowance for doubtful accounts of $4,464 as of September 30, 2009 and $4,208 as of June 30, 2009 135,575 115,802 Income taxes recoverable 6,225 4,496 Prepaid expenses and other current assets 27,858 18,172 Deferred tax assets 22,185 20,621 --------------- --------------- Total current assets 423,801 434,910 Investments in marketable securities - 13,103 Capital assets 57,435 45,165 Goodwill 718,600 576,111 Acquired intangible assets 384,242 315,048 Deferred tax assets 75,211 69,877 Other assets 18,871 13,064 Long-term Income taxes recoverable 42,391 39,958 --------------- --------------- Total assets $ 1,720,551 $ 1,507,236 --------------- --------------- --------------- --------------- LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Accounts payable and accrued liabilities $ 128,660 $ 115,018 Current portion of long-term debt 3,489 3,449 Deferred revenues 205,998 189,397 Income taxes payable 7,707 10,356 Deferred tax liabilities 2,083 508 --------------- --------------- Total current liabilities 347,937 318,728 Long-term liabilities: Accrued liabilities 21,506 23,073 Pension liability 16,510 15,803 Long-term debt 299,182 299,234 Deferred revenues 10,969 7,914 Long-term income taxes payable 53,465 47,131 Deferred tax liabilities 134,543 108,889 --------------- --------------- Total long-term liabilities 536,175 502,044 Shareholders' equity: Share capital: 56,373,651 and 52,716,751 Common Shares issued and outstanding at September 30, 2009 and June 30, 2009, respectively; Authorized Common Shares: unlimited 588,871 457,982 Additional paid-in capital 55,307 52,152 Accumulated other comprehensive income 86,052 71,851 Retained earnings 106,209 104,479 --------------- --------------- Total shareholders' equity 836,439 686,464 --------------- --------------- Total liabilities and shareholders' equity $ 1,720,551 $ 1,507,236 --------------- --------------- --------------- --------------- OPEN TEXT CORPORATION CONSOLIDATED STATEMENTS OF INCOME (In thousands of U.S. dollars, except share and per share data) (Unaudited) Three months ended September 30, --------------------------------- 2009 2008 --------------------------------- Revenues: License $ 47,329 $ 50,074 Customer support 123,649 98,429 Service and other 40,444 34,120 --------------------------------- Total revenues 211,422 182,623 --------------------------------- Cost of revenues: License 3,145 2,893 Customer support 20,939 15,567 Service and other 33,294 27,729 Amortization of acquired technology-based intangible assets 14,142 10,747 --------------------------------- Total cost of revenues 71,520 56,936 --------------------------------- Gross profit 139,902 125,687 --------------------------------- Operating expenses: Research and development 31,542 28,578 Sales and marketing 50,690 44,832 General and administrative 21,225 18,387 Depreciation 4,147 2,698 Amortization of acquired customer-based intangible assets 8,917 8,215 Special charges 18,589 - --------------------------------- Total operating expenses 135,110 102,710 --------------------------------- Income from operations 4,792 22,977 --------------------------------- Other income, net 3,440 729 Interest expense, net (3,046) (2,994) --------------------------------- Income before income taxes 5,186 20,712 Provision for income taxes 3,456 5,932 --------------------------------- Net income before minority interest 1,730 14,780 Minority interest - 119 --------------------------------- Net income for the period $ 1,730 $ 14,661 --------------------------------- --------------------------------- Net income per share - basic $ 0.03 $ 0.29 --------------------------------- --------------------------------- Net income per share - diluted $ 0.03 $ 0.28 --------------------------------- --------------------------------- Weighted average number of Common Shares outstanding - basic 55,388 51,298 --------------------------------- --------------------------------- Weighted average number of Common Shares outstanding - diluted 56,469 52,990 --------------------------------- --------------------------------- OPEN TEXT CORPORATION CONSOLIDATED STATEMENTS OF CASHFLOWS (In thousands of U.S. Dollars) Unaudited --------------------------------- Three months ended September 30 --------------------------------- 2009 2008 --------------------------------- Cash flows from operating activities: Net income for the period $ 1,730 $ 14,661 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 27,206 21,660 Share-based compensation expense 3,506 1,423 Employee long-term incentive plan 2,675 1,059 Excess tax benefits on share-based compensation expense (691) (6,629) Undistributed earnings related to minority interest - 119 Pension expense 192 - Amortization of debt issuance costs 266 224 Unrealized (gain) loss on financial instruments (2,390) (722) Release of unrealized gain on marketable securities to income (4,353) - Deferred taxes (2,957) (256) Changes in operating assets and liabilities: Accounts receivable 7,928 27,946 Prepaid expenses and other current assets (3,218) (1,926) Income taxes (4,787) 4,731 Accounts payable and accrued liabilities (9,343) (18,369) Deferred revenue (12,437) (19,430) Other assets 1,175 322 --------------------------------- Net cash provided by operating activities 4,502 24,813 Cash flows from investing activities: Additions of capital assets, net (7,665) (3,887) Purchase of Vignette Corporation, net of cash acquired (90,600) - Purchase of eMotion LLC, net of cash acquired - (3,635) Purchase of a division of Spicer Corporation - (10,836) Purchase consideration for prior period acquisitions (4,801) (3,293) Investments in marketable securities - (3,608) Maturity of short-term investments 27,171 - --------------------------------- Net cash used in investing activities (75,895) (25,259) Cash flows from financing activities: Excess tax benefits on share-based compensation expense 691 6,629 Proceeds from issuance of Common shares 4,477 5,542 Repayment of long-term debt (864) (867) Debt issuance costs (1,024) - --------------------------------- Net cash provided by financing activities 3,280 11,304 --------------------------------- Foreign exchange gain (loss) on cash held in foreign currencies 4,484 (15,641) Decrease in cash and cash equivalents during the period (63,629) (4,783) Cash and cash equivalents at beginning of the period 275,819 254,916 --------------------------------- Cash and cash equivalents at end of the period $ 212,190 $ 250,133 --------------------------------- --------------------------------- DATASOURCE: Open Text Corporation CONTACT: Paul McFeeters, Chief Financial Officer, Open Text Corporation, (905) 762-6121, ; Greg Secord, Vice President, Investor Relations, Open Text Corporation, (519) 888-7111 ext. 2408,

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