Open Text Corporation Reports Second-Quarter Fiscal 1998 Results
Eighth Consecutive Quarter of Record Revenue, Quarterly Profits Achieved, Excluding One-Time Acquisition Charges
Waterloo, ON - 1998-01-22 - -- Open Text Corporation
(NASDAQ: OTEX), the leading provider of intranet-based collaborative
knowledge management application software and services, today
announced its financial results for the second quarter ended December 31,
1997.
Excluding one-time charges for acquired research and development related
to the acquisition of the OnTime software technology net income for the
second quarter was $152,000, or $0.01 per share. Including the one-time
charges, the net loss for the second quarter was $7.0 million, or a loss of
$0.40 per share. This compared with a net loss of $1.5 million, or a loss of
$0.08 per share, for the first quarter, and a net loss of $3.8 million, or a
loss of $0.23 per share, for the year-earlier quarter.
License revenues for the quarter ended December 31, 1997 were $6.8
million, up 53% compared with $4.4 million for the first quarter, and up
122% compared with $3.1 million for the second quarter of fiscal 1997.
For the eighth consecutive quarter, Open Text reported the highest
quarterly total revenues in the company's history. Total revenues for the
quarter were US$9.8 million, up 27 percent from the $7.7 million reported
for the first quarter, and up 87 percent from $5.2 million for the year-earlier
period.
"I am delighted to report the company's continued improved financial
performance. " said Tom Jenkins, Chief Executive Officer. "Except for the
planned acquisition related charges we would be reporting the first
quarterly profits since our IPO. This achievement confirms the value of our
approach to corporate intranets. I now look forward to using our OnTime
acquisition to build on this base."
"The 53% growth in our license revenues affirms the growing importance of
enterprise-wide intranets." said Brett Newbold, President. "Our
relationships with our new major customers endorses the power of Livelink
intranets worldwide."
Major new accounts contributing to Open Text's second-quarter revenues
included John Hancock, Kinkos, Lockheed Martin, Nynex/Bell Atlantic and
Steelcase. Existing accounts contributing to revenues included AT&T
Wireless, GTE, Motorola, Nortel, Siemens, Swiss Bank, United Airlines
and many others.
Financial Highlights
Q2
1998
Q1
1998
%
change
Q2
1998
Q2
1997
%
change
License
revenue
6,787
4,422
53%
6,787
3,064
122%
Service revenue
2,988
3,272
(9%)
2,988
2,152
39%
Total revenue
9,775
7,694
27%
9,775
5,216
87%
Net Income
(excl. one-time
charges)
152
(1,467)
152
(3,809)
EPS
(excl. one-time
charges)
$0.01
$(0.08)
$0.01
$(0.23)
Net Income
(7,034)
(1,467)
(7,034)
(3,809)
EPS
$(0.40)
$(0.08)
$(0.40)
$(0.23)
At December 31, 1997, Open Text's cash and cash equivalents totaled
approximately $21 million. Accounts receivable were $11.3 million, on
quarterly revenues of $9.8 million. Total shareholders' equity, or net book
value, was $34 million.
To review the Statements of Operations and Balance Sheet, please see
Financials.
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.
For more information, please contact
Margaret E. Dobbin
Director, Industry Analyst Relations
Open Text Corporation
+1-519-888-7111 ext.2410
mdobbin@opentext.com
