Press Releases Details

Waterloo, ON - 2003-10-23 - Open Text Corporation (Nasdaq: OTEX; TSX: OTC), an enterprise content management (ECM) vendor and, provider of Livelink®, the leading collaboration and knowledge management software for the global enterprise, today announced financial results for its first quarter ended September 30, 2003.(1)

Financial Highlights

For the quarter, Open Text reported adjusted net income(2) of $4.9 million, or adjusted earnings per share (EPS) of $0.23. This compares to $5.2 million, or $0.25 adjusted EPS in the first quarter a year ago. Excluding the change in taxes, adjusted EPS would have been $0.30, a 20% increase over last year.

Net income for the quarter in accordance with GAAP was $3.4 million, or $0.16 EPS. This compares to $5.4 million, or $0.26 EPS a year ago. This marks the 19th consecutive profitable quarter for the Company. Open Text has approximately 21.1 million shares on a fully diluted basis.

As of September 30th, 2003, deferred revenue was $35.4 million, up $10.7 million or 43% over a year ago. Accounts receivable was $27.9 million, resulting in days sales outstanding (DSO) of 57 days, down 14 days from a year ago. Cash increased to $120.7 million or $6.02 per share.

On October 21st, 2003, Open Text and IXOS (Nasdaq: XOSY; Frankfurt: XOS) announced that Open Text will acquire all of the issued and outstanding shares of IXOS. The transaction will proceed via a tender offer for a cash consideration of either 9 Euro per share (approximately US$10.46) or a fixed rate of 0.2610 of an Open Text share for each share of IXOS tendered. Each IXOS share that is exchanged for an Open Text share, will receive a freely traded warrant to purchase 0.0742 of an Open Text share for up to one year after closing the transaction, with a strike price of US $41.50 per share. The cash consideration represents a 34% premium based on the three months weighted average volume of IXOS shares, prior to the announcement. The financing of the tender offer will be arranged through a letter of credit provided to a German financial institution according to German securities law.

Our pipeline continues to show strength, and we are pleased to have achieved the highest first quarter revenue ever reported in the history of Open Text," said Tom Jenkins, CEO of Open Text. "The business combination agreement with IXOS will strengthen our leadership position in the ECM market and further strengthens our pipeline by significantly expanding our global customer base."

Guidance

After taking into account the 2-for-1 stock split and excluding the IXOS business agreement, Open Text is increasing guidance for the second quarter to $53 million in revenues and adjusted net income of $6.7 million, or $0.16 adjusted EPS. For fiscal 2004, Open Text is also increasing annual revenue guidance to approximately $227 million (28% annual growth rate), and earnings guidance to $28.1 million adjusted net income or $0.67 adjusted EPS. After the successful completion of the IXOS tender offer, Open Text will further update guidance to reflect the combined forecast of both companies.

Teleconference Call

Please dial the above number approximately 15 minutes before the teleconference is scheduled to begin. The operator will take your name and connect your line with the meeting.

To listen to the call via Web cast, please use the following link:
www.newswire.ca/webcast/viewEventCNW.html?eventID=653180

Replay will be available beginning October 23, 2003 from 12:00 p.m. For more information and playback instructions:
www.opentext.com/events/event.html?id=35116

Additional materials, including accompanying financial and operating statistics relating to these financial results may be obtained from the investor site within the Open Text corporate web site at:
www.opentext.com/investor/quarterly_reports/index.html

Recent Highlights

For more information please see the press release at:
www.opentext.com/news/pr.html?id=1411

2. Open Text Implements Two-for-One Stock Split
The Company announced that its Board of Directors declared a 100 percent stock dividend, which will double the number of the company's outstanding common shares, and effectively achieving a two-for-one split of Open Text's outstanding common shares. Open Text currently has approximately 21.1 million shares of common stock on a fully diluted basis. After the split, there will be approximately 42.2 million shares outstanding.

Open Text's common shares are expected to commence trading on a post-stock dividend basis on October 29, 2003 on the Nasdaq National Market.

For more information please see the press release at:
www.opentext.com/news/pr.html?id=1402

3. Open Text Acquires 75% interest in Gauss
Together, the companies present a powerful combination in the market for enterprise content management (ECM) software, with Gauss adding its extensive Web content management, and high-throughput business process management solutions to Open Text s Livelink suite and its integrated collaboration and content management capabilities.

For more information please see the press release at:
www.opentext.com/news/pr.html?id=1410

4. Open Text Announces LiveLinkUp Orlando, November 3-6
This year's conference program will demonstrate how Open Text is helping public agencies and other organizations balance the need to address regulatory compliance issues while also achieving real business value through their Livelink solutions. Attendees will have the opportunity to learn from peers, and meet and share ideas with key industry players and Open Text senior management. Keynote sessions, product demonstrations, case studies, product sessions, and round table discussions will provide the strategy and vision for organizations to extend both the value and return on investment in their Open Text solutions.

For more information please see the press release at:
www.opentext.com/news/pr.html?id=1374

5. Open Text to Host Analyst Day, November 6th
Designed to provide the opportunity for in-depth analysis and data gathering, Open Text s Analyst Day features detailed briefings by senior executives, customers and partners. The briefing takes place on location at LiveLinkUp in Orlando, Florida and is available to all investors in listen-only mode by conference call.

For more information please see details at:
www.opentext.com/events/event.html?id=35036

6. Upcoming Investor Events
Open Text announced it plans to participate in the following financial conferences. Note that event dates and times are subject to change after the release of this announcement. To confirm a date or learn about Web cast availability, visit the Company's Web site closer to event date at:
www.opentext.com/investor/investor_events.

October 27, 2003
TD Technology Conference
Toronto, ON Canada

November 2-4, 2003
The AEA Classic
San Diego, CA USA

November 6, 2003
Open Text Analyst Day/LivelinkUp Conference
Orlando, FL USA

November 24, 2003
Canaccord Emerging Technologies Conference
Toronto, ON Canada

December 2-5, 2003
Annual CSFB Technology Conference
Scottsdale, AZ USA

December 11, 2003
Open Text s Annual General Meeting
Toronto, ON Canada

February 3-4, 2004
RBC Banff Springs Conference
Banff, AB Canada

February 2004
Orion Securities Technology Conference
Toronto, ON Canada

Copyright © 2003 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.

1. Reported under U.S. Generally Accepted Accounting Principles (GAAP). All amounts are in US Dollars.
2. The Company uses the financial measures adjusted net income and adjusted EPS to supplement its consolidated financial statements, which are presented in accordance with GAAP. The presentation of adjusted net income and adjusted EPS are not meant to be a substitute for net income or net income per share presented in accordance with GAAP, but rather should be evaluated in conjunction with such GAAP measures. Adjusted net income and adjusted EPS are calculated as net income excluding (a) the amortization of acquired intangible assets, (b) other income, gain (loss) on investments and ^© income tax on equity gain. The terms adjusted net income and adjusted EPS do not have a standardized meaning prescribed by GAAP, and therefore the Company s definitions are unlikely to be comparable to similar measures presented by other companies. The Company s management believes that the presentation of adjusted net income and adjusted EPS provide useful information to investors because they exclude non-operational charges and are a better indication of Open Text s profitability from recurring operations. The items excluded from the computation of adjusted net income and adjusted EPS, which are otherwise included in the determination of net income and EPS prepared in accordance with GAAP, are items that Open Text does not consider to be meaningful in evaluating the Company s past financial performance or the future prospects and may hinder a comparison of its period-to-period profitability.

Anne Marie Rahm
Director, Investor Relations
Open Text Corporation
+1-617-204-3359
arahm@opentext.com

Alan Hoverd
Chief Financial Officer
Open Text Corporation
+1-905-762-6222
ahoverd@opentext.com

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