Press Releases Details

Waterloo, ON - 2007-11-01 - Open Text Corporation (NASDAQ:OTEX) (TSX:OTC), a leading provider of Enterprise Content Management (ECM) software, today announced unaudited financial results for its first quarter that ended September 30, 2007. (1)

Total revenue for the first quarter was $164.0 million, compared to $101.2 million for the same period in the prior fiscal year. License revenue in the first quarter was $44.3 million, compared to $28.8 million in the first quarter of the prior fiscal year.

Adjusted net income in the quarter was $22.1 million or $0.43 per share on a diluted basis, compared to $12.2 million or $0.24 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 $7.8 million or $0.15 per share on a diluted basis, compared to $7.3 million or $0.15 per share on a diluted basis for the same period in the prior fiscal year. (2)

Operating cash flow in the first quarter of fiscal 2008 was $32.2 million, compared to $9.6 million in the first quarter of fiscal 2007.

The Company plans to make an additional debt prepayment of $30.0 million. This will reduce our debt from $390 million at the time of the Hummingbird acquisition to approximately $296.3 million. We are pleased with our accelerated repayment of the debt ahead of schedule and plans for future lump sum debt repayments will continue to be reviewed on a periodic basis, said Paul McFeeters, Chief Financial Officer of Open Text.

The cash, cash equivalents and short-term investments balance as of September 30, 2007 was $150.3 million. Accounts receivable as of September 30, 2007, totaled $117.0 million, compared to $76.7 million as of September 30, 2006, and Days Sales Outstanding (DSO) was 64 days in the first quarter of fiscal 2008, compared to 68 days in the first quarter of fiscal 2007.

I am pleased with our performance in the quarter, said John Shackleton, President and Chief Executive Officer of Open Text. We experienced strong sales in the pharmaceutical and energy sectors, meeting our profitability targets and generating strong operating cash flow. We are well on our way to meeting our objectives for fiscal 2008.

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.

Teleconference Call
Open Text will host a conference call on November 1st, 2007 at 5:00 p.m. ET to discuss the final financial results for its first quarter.

Open Text 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 the world's largest 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 www.opentext.com.

This press release contains forward-looking statements, including statements about the financial conditions, results of operations and earnings and revenue outlook 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 you 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 (x) 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, 2007. 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 historic 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) In addition to these GAAP and adjusted results, the Company has provided financial information that adds-back maintenance revenue eliminated due to the impact of purchase accounting entries on deferred revenue and the impact of interest expense. Management believes that the furnishing of these adjustments provide a consistent basis for comparison between quarters and help to more accurately reflect Open Text s underlying operating results.

Paul McFeeters
Chief Financial Officer
Open Text Corporation
+1-905-762-6121
pmcfeeters@opentext.com

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