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Open Text Corporation Posts Record Revenues and Earnings for Fourth Quarter and Fiscal 2001
Q4 Adjusted EPS of $0.27 Represents 69% Year-Over-Year Increase
Waterloo, ON - 2001-08-15 - Open Text Corporation (Nasdaq:OTEX)(TSE:OTC), a worldwide leader in delivering collaborative commerce solutions, today announced record financial results for its fourth quarter and fiscal year ending June 30, 2001.(1) The Company reached the milestone of five million users of its Livelink® product family in fiscal 2001.
Financial Highlights
Open Text reported adjusted net income(2) for the fourth quarter of $5.6 million. Earnings per share (EPS) was $0.27 (diluted), compared to $0.16 for the fourth quarter last year, an increase of 69% over the previous year. Cash flow from operations for the quarter was $4.3 million. For the full year, adjusted net income was $19.4 million or $0.91 EPS , compared to $0.06 EPS for last year. For fiscal 2001 cash flow from operations was $19.2 million(3).
Driven by demand for Livelink, Open Text's collaborative commerce software, total revenue for the quarter was $40.5 million, and $147.7 million for the fiscal year. Revenue for fiscal 2001 was up 31% over fiscal 2000. "Open Text continues to perform well in a tough economic environment. This performance is due to the value proposition of Livelink as a significant rapid return on investment for our customers," said Tom Jenkins, CEO of Open Text. "We have continued to achieve record revenues and profits, with significant cash flow and our guidance forward remains unchanged."
Accounts receivable as of June 30, 2001 was $34.2 million, resulting in a DSO (days sales outstanding) of 76 days. As of June 30, 2001, cash was $87.5 million or $4.39 per share.
Fiscal Year in Review
1. Five Million User Milestone Achieved
The number of Livelink users reached five million during the fiscal year. This milestone was driven by a record number of new customers and increased adoption from existing accounts. Customers contributing to Q4 revenues included Siemens AG, Pfizer, Booz Allen & Hamilton, Hewlett Packard, Glaxo Smith Kline, Swissair Group and Cable and Wireless.
2. Livelink: Global Market Leader in Collaborative Commerce
In June 2001 IDC(4) reported that Livelink had captured 47% of the global market share for team collaboration applications, a market share position greater than the next two competitors combined.
3. Global 2000 Adoption Drives Results
During the year OT continued to add to its existing G2000 customer base as well as expanding solutions within its existing customer base. Major customers announced this year include Cable and Wireless, Clarica, AFLAC, British Telecom, Miller Group and the United States Army Reserve. Major customers that increased their use of Livelink during the year include Hewlett Packard, Siemens AG, Merrill Lynch, and United Air Lines.
4. Innovations Drive New Collaborative Solutions
In the second quarter, Open Text continued to expand its product offering with the launch of Livelink 9 - featuring an enhanced user interface, additional collaborative features and increased security. In the third quarter, Livelink Wireless Module was shipped, allowing mobile access to Livelink. In the fourth quarter, the Company introduced Livelink MeetingZone®, a new real-time collaborative product that allows Livelink users to collaborate real-time over the Internet. Livelink MeetingZone will ship as a product in November 2001 further reinforcing Open Text's position as a dominant player in collaborative commerce. The Company will launch the product in November 2001 at Open Text's Annual User Conference.
5. Worldwide Events
During the year Open Text hosted and participated in a series of high profile marketing events throughout the world. These events included Livelinkup2000, held in San Antonio, London and Frankfurt, which attracted more than 2000 participants. The company also keynoted the AIIM Conference in New York and a variety of other conferences throughout the world. Open Text will be hosting Livelinkup2001 at Bellagio in Las Vegas from November 5-9, 2001.
Notes
- Reported under U.S. Generally Accepted Accounting Principles(GAAP). All amounts are in US Dollars.
- Adjusted net income: net income excluding amortization of acquired intangible assets, restructuring, other income(expense), gain (loss) on investments and income tax on equity gain.
- Cash flow from operations: excludes one time payment for income tax on investment gains.
- Refer to June 2001 IDC Report.
About Open Text
Open Text makes collaborative commerce products that provide organizations with the ability to extend their current CRM, SCM and ERP applications to allow users to work together inside and outside their organization. Open Text has pioneered the development of innovative intranet and extranet ebusiness applications. Since creating one of the first search engines to index the World Wide Web, the Company has remained at the forefront of Internet-based technologies. Its product family called Livelink enables individuals, teams, organizations, and global trading communities to collaborate on e-business applications that facilitate e-commerce and other transactions among Global 2000 organizations. For more information, visit www.opentext.com.
Trademark
Copyright (c) 2001 by Open Text Corporation. Livelink, myLivelink, MeetingZone and Open Text are trademarks or registered trademarks of Open Text Corporation. This list is not exhaustive. Other product and company names herein may be trademarks of their respective owners.
Release Disclaimer
This news release may contain forward-looking statements relating to the deployment of Livelink and myLivelink 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, 1997, June 30, 1998, June 30, 1999 and June 30, 2000, and Form 10-Q for the quarters ended September 30, 2000, December 31, 2000 and March 31, 2001. 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.
For more information, please contact
Alan Hoverd
Chief Financial Officer
Open Text Corporation
519-888-7111
ahoverd@opentext.com
Greg Secord
VP, Investor Relations
Open Text Corporation
+1-519-888-7111 ext.2408
gsecord@opentext.com
