Business News
Open Text Reports Second Quarter Fiscal 2008 Financial Results
Friday 08. February 2008 - Open Text(TM) Corporation (NASDAQ:OTEX) (TSX:OTC), a leading provider of Enterprise Content Management (ECM) software, today announced unaudited financial results for its second quarter that ended December 31, 2007.(1)
Total revenue for the second quarter was $182.5 million, up 12% compared to $163.3 million for the same period in the prior fiscal year and up 11% compared to $164.0 million in the previous quarter. License revenue in the second quarter was $55.2 million, up 7% compared to $51.4 million in the second quarter of the prior fiscal year and up 25% compared to $44.3 million in the previous quarter.
Adjusted net income in the quarter was $26.2 million or $0.50 per share on a diluted basis, up 46% compared to $18.0 million or $0.35 per share on a diluted basis for the same period in the prior fiscal year and up 19% compared to $22.1 million or $0.43 per share on a diluted basis in the previous quarter. Net income in accordance with U.S. generally accepted accounting principles (“US GAAP”) was $10.7 million or $0.20 per share on a diluted basis, up 365% compared to $2.3 million or $0.04 per share on a diluted basis for the same period in the prior fiscal year and up 37% compared to $7.8 million or $0.15 per share on a diluted basis in the previous quarter.(2)
Operating cash flow in the second quarter of fiscal 2008 was $39.3 million, up 25% compared to $31.4 million in the second quarter of the prior fiscal year and up 22% compared to $32.2 million in the previous quarter.
“I am very pleased with our performance in the quarter,” said John Shackleton, President and Chief Executive Officer of Open Text. “We have grown license revenue while maintaining our profitability targets and generating strong operating cash flow. Sales in the quarter were led by the telecommunications, energy and government sectors and our strategic partner programs with SAP, Microsoft, Oracle and Accenture continue to gain traction.”
The cash, cash equivalents and short-term investments balance as of December 31, 2007 was $159.7 million compared to $150.0 million at June 30, 2007. Accounts receivable as of December 31, 2007, totaled $120.6 million, compared to $128.8 million as of June 30, 2007, and Days Sales Outstanding (DSO) was 60 days at the end of the second quarter of fiscal 2008, compared to 66 days at June 30, 2007.
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.