Press Releases Details

Waterloo, ON - 2002-07-31 - Open Text Corporation (Nasdaq:OTEX)(TSX:OTC.), provider of Livelink®, the leading collaboration and knowledge management software for the global enterprise, today announced financial results for its fourth quarter and year ending June 30, 2002.(1)

Financial Highlights

Open Text reported record adjusted net income(2) for the fourth quarter of $7.3 million. This result does not include any gains from the Accelio transaction. Adjusted earnings per share (EPS) of $0.35 (diluted) is up 30% from the fourth quarter a year ago. Adjusted net income for the year was $21.6M, or $1.02 per share. Cash flow from operations for the quarter was $8.5 million, for a record total of $28.5 million during the fiscal year. GAAP net income for the quarter was $7.3 million and for the year was $16.7 million.

Total revenue for the quarter of $41.2 million represents the largest total revenue recorded in the Company's history. This amount represents an increase of 12% from the previous quarter. This increase was driven by strong license and networking revenue of $19.9 million, which increased 28% from the previous quarter. Total revenue for the year of $152.5 million also represents record annual revenue for the Company, an increase of $4.8 million over last year.

"With another quarter of strong earnings and license revenue growth, we continue to operate the Company with a focus on profitability and cash flow," said Tom Jenkins, CEO of Open Text. "The Livelink product family continues to demonstrate a rapid return on investment for our global 2000 customers particularly in this difficult economic climate. Livelink has earned its leadership position in collaboration and knowledge management by successfully improving organizational productivity and profitability."

Revenue results for the quarter were broadly based globally. For the quarter, 59% of the Company's revenue originated from North America, 39% from Europe & the Middle East, and the remaining 2% from Asia.

Accounts receivable as of June 30, 2002 was $33.1 million, resulting in days sales outstanding (DSO) of 72 days. As of June 30, 2002, cash was $109.9 million or $5.53 per share. Working capital is $103.9 million with no debt. Deferred revenue was $23.9 million, up $1 million from the previous quarter.

Also during the quarter, as part of its share repurchase program, the Company repurchased a total of 271,500 common shares, representing a total cost of $5.5 million. The Company plans to continue this program.

The Company remains comfortable with First Call consensus earnings estimates of $1.18 for FY03.

New Accounts and Large Deals drive License Revenue

During the fourth quarter, new account revenue grew by 87% from the previous quarter and half of all license revenue was generated from new accounts. There were 6 multi-million dollar transactions in the quarter which is the highest in Company history. New name accounts buying in the quarter included: EnCana, European Investment Bank, Pacific Life Insurance, BUPA (British United Provident Association), Giant Eagle and T-Systems, a subsidiary of Deutsche Telekom AG. Open Text's largest customers also drove the financial results by continued enterprise-wide adoptions. Repeat customers buying in the quarter included: Unilever, Hewlett-Packard, Vodafone, British Telecom, ALSTOM, Wells Fargo, and Northrop Grumman.

Fiscal Year in Review

1. Six Million Seat Milestone Achieved

The number of Livelink product family seats reached six million during the fiscal year. This milestone was driven by a record number of new customers and increased adoption from existing accounts.

2. Livelink: Leader in Team Collaboration Support

Open Text has been placed in the leadership category in several recent reports on collaboration and knowledge management. In May 2002, a Gartner report on Team collaboration places Open Text as a leader in technology vision as well as ability to execute.

Throughout fiscal 2002, Livelink was featured as a leader in the following recently published industry analyst reports:

• Giga's IdeaByte of June 14, 2002 entitled Comparing Team Collaboration Vendors on Their Collaboration Functionality by Director Erica Rugullies.
  
  
• IDC's Case Study Interview of June 11, 2002 entitled Siemens Gains Efficiency with Livelink and SAP R/3 Integration by Analysts Andrew Adelson and William Joyce.
  
  
• Gartner's Research Note of May 23, 2002 entitled Magic Quadrant: Team Collaboration Support by Research Directors Simon Hayward and James Jacobs.
  
  
• Doculabs' White Paper of May 17, 2002 entitled The Open Text Livelink Records Management Platform by Principal Analyst Richard Medina.
  
  
• Gartner's Research Note of May 8, 2002 entitled The First Wave of Smart Enterprise Suites by Research Directors K. Shegda, M. Gilbert, D. Logan, Simon Hayward, L. Latham, and French Caldwell.
  
  

• Livelink Archive for SAP R/3
• Livelink Certification
• Livelink for Learning Management
• Livelink virtualteams
• Livelink for Program Management
• Livelink Unite

Livelink is the leader in collaboration and knowledge management for the global enterprise. Its richly-featured enterprise services include virtual team collaboration, business process automation, enterprise group scheduling and information retrieval services, all tightly integrated into a solution that is easily customized and extended. Livelink is essential to the effective management and development of communities of interest that span organizations and industries. For everything from the creation of complex e-community relationships to the automation of simple e-business processes, Livelink delivers true dynamic collaboration between individuals, organizations and large trading communities. Livelink servers are fully Web-based and open-architected to ensure rapid deployment and easy access to its full functionality through a standard Web browser. For more information, visit www.opentext.com/livelink/.

Since 1991, Open Text Corporation has delivered innovative software that brings people together to share knowledge, achieve excellence, deliver innovation, and enhance processes. Its legacy of innovation began with the successful deployment of the world's first search engine technology for the Internet. Today, as the leading global supplier of collaboration and knowledge management software for the enterprise, Open Text supports 6 million seats across 4,500 corporations in 31 countries and 12 languages throughout the world. As a publicly traded company, Open Text manages and maximizes its resources and relationships to ensure the success of great minds working together. For more information, visit www.opentext.com.

Copyright© 2002 by Open Text Corporation. LIVELINK, LIVELINK MEETINGZONE, and OPEN TEXT are trademarks or registered trademarks of Open Text Corporation in the United States of America, Canada, the European Union and/or other countries. This list of trademarks is not exhaustive. Other trademarks, registered trademarks, product names, company names, brands and service names mentioned herein are property of Open Text Corporation or other respective owners.

This news release may contain forward-looking statements relating to the deployment of Livelink and Livelink MeetingZone by customers, and future performance of Open Text Corporation. Forward-looking statements are subject to certain risks and uncertainties, and actual results may differ materially. These risks and uncertainties include, among others, risks involved in the completion and integration of acquisitions, the possibility of technical, logistical or planning issues in connection with deployments, the continuous commitment of the Company's customers and other risks detailed from time to time in the Company's filings with the Securities and Exchange Commission (SEC), including the final prospectus for the Company's initial public offering of common stock in January 1996, Form 10-K for the years ended June 30, 1996, June 30, 1997, June 30, 1998, June 30, 1999, June 30, 2000, and June 30, 2001, and Form 10-Q for the quarters ended September 30, 2001, December 31, 2001 and March 31, 2002. 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 obligations to update forward-looking statements should circumstances or management's beliefs or opinions change.

Alan Hoverd
Chief Financial Officer
Open Text Corporation
+1-519-888-7111 ext. 2480
ahoverd@opentext.com

Greg Secord
Open Text Corporation
+1-519-888-7111 ext.2408
gsecord@opentext.com