Open Text Corporation Reports Third-Quarter Fiscal 1998 Results

Ninth Consecutive Quarter of Record Revenue, Record Operating Profits Achieved

Waterloo, ON - 1998-04-30 - -- Open Text Corporation (NASDAQ: OTEX), the developer of Livelink, the leading intranet-based collaborative knowledge management application software, today announced its financial results for the third quarter ended March 31, 1998.¹

Net income for the third quarter was US$1,018,000, which is $0.06 per share (basic) compared to a net loss of $3.5 million, or a loss of $0.20 per share, for the year-earlier quarter.

For the ninth consecutive quarter, Open Text reported the highest quarterly total revenues in the company's history. Total revenues for the quarter were US$11.8 million, up 21 percent from the $9.8 million reported for the second quarter, and up 93 percent from $6.1 million for the year-earlier period. License revenues for the quarter ended March 31, 1998 were $7.6 million, up 102% compared with $3.8 million for the third quarter of fiscal 1997.

"I am delighted to report the company's continued improved financial performance," said Tom Jenkins, Chief Executive Officer. "In particular, we are combining our acquisition strategy with our internal growth effectively and we are continuing to report strong growth in our quarterly operating profits. This achievement confirms our bottom line focused approach to corporate intranets."

"We are extremely pleased with the growth we are experiencing in all areas of the business. Clearly, Livelink delivers the business efficiencies our customers desire," said Brett Newbold, President.

New accounts contributing to Open Text's third-quarter revenues included Sitel Worldwide and Unisys. Existing accounts contributing to revenues included GTE, Nortel, Swiss Bank, United Airlines and many others.

¹ Reported under U.S. Generally Accepted Accounting Principles (GAAP).

Release Disclaimer

This news release may contain forward-looking statements relating to the future performance of Open Text Corporation. Forward-looking statements, specifically those concerning future performance, are subject to certain risks and uncertainties, and actual results may differ materially. These risks and uncertainties are 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 year ended June 30, 1997, and Form 10-Q for the quarters ended September 30, 1997, and December 31, 1997. Note to Editors: Livelink Pinstripe, Livelink 8, Livelink Search, Livelink Library, Livelink Workflow and Livelink Project Collaboration are trademarks of Open Text Corporation. All other trademarks are the property of their respective companies.