Open Text Posts Strong Financial Results for Second Quarter 2002

Q2 Adjusted EPS of $0.24, up 60% Sequentially From Previous Quarter

Waterloo, ON - 2002-02-06 - Open Text Corporation (Nasdaq: OTEX; TSE: OTC), a worldwide leader in delivering collaborative knowledge management (CKM) solutions, today announced financial results for its second quarter ending December 31, 2001.(1)

Financial Highlights

Open Text reported adjusted net income (2) for the second quarter of $5.1 million. Earnings per share (EPS) was $0.24 (diluted), up 60% from $0.15 in the previous quarter. Earnings were up $0.02 from Q2 a year ago. Cash flow from operations for the quarter was $6.0 million, marking the 10th consecutive quarter of positive operating cash flow.

Driven by demand for Livelink®, Open Text's collaborative knowledge management (CKM) software, total revenue for the quarter was $39.2 million up 11% sequentially over the previous quarter and up $1.4 million from the previous year.

"With another quarter of growth and profitability, Open Text continues to perform well, despite the challenging market conditions," said Tom Jenkins, CEO of Open Text.

Accounts receivable as of December 31st, 2001 was $30.3 million, resulting in days sales outstanding (DSO) of 70 days. As of December 31st, 2001, cash was $91.2 million or $4.57 per share.

Forward guidance remains unchanged. The Company is comfortable with consensus earnings of $1.00 EPS for fiscal 2002.

1. Return on Investment and Continued Customer Satisfaction Drives Repeat Business

Livelink continues to enjoy strong momentum as Global 2000 companies implement CKM to reduce costs through more efficient utilization of their knowledge workers. Open Text's largest customers drove the financial results by continued enterprise-wide adoptions. Customers buying in the quarter include: AFLAC, American Dental Association, Applied Materials, Internal Revenue Service (IRS), Northrop Grumman, Pfizer, Roche and Siemens.

2. Global Growth Drives Revenues

Revenue results were broadly based across North America, Europe and Asia. For the quarter, 60% of the Company's revenue originated from North America, 38% from Europe & the Middle East, and the remaining 2% from Asia.

3. Global Marketing Event with Livelink users: LiveLinkUp 2001 User Conference

The Company hosted LiveLinkUp, its Annual User Conference from November 5th to 9th, 2001. LiveLinkUp 2001 was the largest user conference in Open Text's history. Customers and partners in attendance confirmed the direction of Open Text's strategy. Open Text will be hosting LiveLinkUp 2002 Europe in Paris on April 13-17, 2002.

4. New Internet Meeting Product Introduced This Quarter: Livelink MeetingZone

At LiveLinkUp 2001, Open Text rolled out the first release of Livelink MeetingZone. Open Text considers MeetingZone to be the first practical meeting software that allows corporate users to meet over the internet using low bandwidth connections. Livelink MeetingZone allows users to further leverage an organization's investment in Livelink by conducting meetings on demand and in real-time from their existing Web browser. Livelink MeetingZone integrates real-time collaboration with other Livelink functions, such as document management, records management and automated workflow tools.

Open Text will be conducting a teleconference call to discuss the financial results for second quarter fiscal 2002 on Wednesday, February 6, 2002 at 5:00 P.M., EST. The public is invited to listen to the call by dialing 416-641-6710. Details for playback of the call are available at: www.opentext.com

(1) Reported under U.S. Generally Accepted Accounting Principles (GAAP). All amounts are in US Dollars.
(2) 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.

About Open Text

Open Text provides collaborative knowledge management (CKM) solutions for e-business that enable users to extend and build CRM, SCM and ERP applications and allow them to work together within and across organizations. Open Text has pioneered the development of innovative intranet, extranet and e-business 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 solution 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 © 2002 by Open Text Corporation. Livelink, myLivelink, Livelink 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 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, 1997, June 30, 1998, June 30, 1999, June 30, 2000, and June 30, 2001, and Form 10-Q for the quarter ended September 30, 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

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