Waterloo, ON - 2005-11-03 - Open Text Corporation (NASDAQ:OTEX) (TSX:OTC), the leading independent provider of Enterprise Content Management (ECM) software, today announced unaudited financial results for its first quarter of fiscal 2006, ended September 30, 2005.
Total revenue for the first quarter of fiscal 2006 was $92.6 million (1), compared to $85.6 million for the same period last year. License revenue in the first quarter of fiscal 2006 was $24.9 million, compared to $23.9 million for the same period last year. Revenue was broadly based, with 50% from North America, 45% derived from Europe and 5% from the Middle East and Asia.
Adjusted net income in the first quarter of fiscal 2006 was $6.3 million or $0.13 per share on a diluted basis, compared to $3.9 million or $0.07 per share on a diluted basis for the same period last year. (2)
Beginning July 1, 2005, Open Text adopted Financial Accounting Standard No. 123R, Share-based payment with respect to the expensing of share-based compensation. The U.S. generally accepted accounting principles ( US GAAP ) net income figure reported today is inclusive of share-based compensation expense of $1.4 million or approximately $0.03 per share on a diluted basis.
During the first quarter of fiscal 2006 the Company took a pre-tax restructuring charge of $18.1 million.
Net loss in accordance with US GAAP for the first quarter was $12.9 million or $0.27 per share on a diluted basis compared to a loss of $1.0 million or $0.02 per share on a diluted basis in the same period last year.
Operating cash flow in the first quarter of fiscal 2006 was $0.3 million, compared to $5.1 million in the same period last year. Accounts receivable as of September 30, 2005 was $73.6 million, compared to $66.1 million at the same time last year. Days Sales Outstanding (DSO) was 71 days in the first quarter of fiscal 2006, compared to 70 days in the same period last year. Deferred revenue was $68.4 million in the first quarter of fiscal 2006, compared to $64.3 million at the same time last year.
At the end of the first quarter of fiscal 2006, the Company had $68.1 million in cash and cash equivalents. Open Text has no debt.
"Meeting our profitability goals is my key objective, and our restructuring program has put us on track to meet these goals," said John Shackleton, President and CEO of Open Text.
http://www.opentext.com/events/event.html?id=5431388Forward-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 you not to place undue reliance upon any such forward-looking statements, which speak only as of the date made. Forward-looking statements relate to, among other things, the future performance, financial and otherwise, of Open Text, the ability of the Company to streamline its organization and the effectiveness of any cost reduction activities or any restructuring, the ability of the Company to bring new products to market and increase its profits, the Company s growth and profitability prospects, or ability to meet its profitability goals, the potential for growth in and the drivers of growth in the ECM market, the Company's position in the market and future opportunities therein, the success of any of the Company s go-to-market strategies, the Company s ability to execute any key initiatives, and the benefits of the Company's products to be realized by customers. 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, among others, the failure to develop new products, risks involved in fluctuations in currency exchange rates, delays in purchasing decisions of customers, 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, demand for the Company's products and 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, 2005. 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.
Reconciliation (unaudited) of US GAAP based Net Income to Adjusted Net Income (in millions of US dollars) for the fiscal quarters ended September 30, 2005 and 2004:| |
Three months ended September 30, 2005 |
Three months ended September 30, 2004 |
| GAAP based "Net Income" |
($12.9) |
($1.0) |
| Amortization of intangibles |
6.9 |
5.4 |
| Special charges |
18.1 |
- |
| Share-based compensation expense |
1.4 |
- |
| Other expense |
0.5 |
1.0 |
| Tax impact on above |
(7.7) |
(1.5) |
| Non-GAAP based "Adjusted Net Income" |
$6.3 |
$3.9 |
Reconciliation (unaudited) of US GAAP based EPS to non-US GAAP based EPS for the fiscal quarters ended September 30, 2005 and 2004; EPS has been calculated on a diluted basis:| |
Three months ended September 30, 2005 |
Three months ended September 30, 2004 |
| GAAP based "Net Income" |
($0.27) |
($0.02) |
| Amortization of intangibles |
0.14 |
0.10 |
| Special charges |
0.37 |
- |
| Share-based compensation expense |
0.03 |
- |
| Other expense |
0.01 |
0.02 |
| Tax impact on above |
(0.15) |
(0.03) |
| Non-GAAP based "Adjusted Net Income" |
$0.13 |
$0.07 |
©Alan Hoverd
Chief Financial Officer
Open Text Corporation
+1-905-762-6222
ahoverd@opentext.com
Anne Marie K. Schwartz
Director, Investor Relations
Open Text Corporation
+1-617-378-3369
aschwartz@opentext.com
Greg Secord
Open Text Corporation
+1-519-888-7111 ext.2408
gsecord@opentext.com