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Open Text Posts Record Results For Third Quarter 2003

License revenue grows 22%, Adjusted EPS Of $0.33 Exceeds Consensus Estimate

Waterloo, ON – 2003-4-23 – Open Text™ Corporation (Nasdaq: OTEX; TSX: OTC), provider of Livelink®, the leading collaboration and knowledge management software for the global enterprise, today announced financial results for its third quarter ended March 31, 2003. (1)

Financial Highlights

Revenue and adjusted net income (2) all represent the highest third quarter results ever reported in the Company’s history. Total revenue for the quarter was $44.0 million and was driven by strong license revenue of $19.0 million, up 22% from the same quarter in the previous year, and up 10% from the previous quarter.

Net income for the third quarter in accordance with GAAP was a record $6.8 million, or $0.33 (diluted) earnings per share (EPS), up 65% from $0.20 EPS in the third quarter a year ago. Open Text reported record third quarter adjusted net income of $6.7 million and adjusted EPS of $0.33 exceeding consensus estimates. This represents adjusted pre tax EPS of $0.37, up 32% from the third quarter a year ago and marks the 12th consecutive quarter of profitability.

Operational cash flow for the quarter was $10.7 million. This marks the 15th consecutive quarter of positive operating cash flow and, in the past four quarters, the Company has generated more than $40 million in cash flow from operations.

“By improving productivity and profitability for our global 2000 customers, the Livelink product family continues to demonstrate rapid return on investment. Driven by a record number of new customers, the increased demand for Open Text’s products has resulted in the strongest growth in license revenue in three years”, said Tom Jenkins, CEO of Open Text. “We are very pleased with our record financial performance this quarter and remain committed to profitable growth with a continued focus on generating cash flow from operations.”

Open Text's largest customers also drove the financial results by continued enterprise-wide adoptions. Customers buying in the quarter included: Airbus SAS, Chiron, Cisco, Lockheed Martin, Enbridge, States of Jersey as well as a number of government agencies. Revenue results for the quarter were broadly based with 53% of the Company's revenue originating from North America, 43% from Europe and 4% from the Middle East and Asia.

At quarter end, deferred revenue was $37.1 million, up $14.3 million or 62% over a year ago. Livelink maintenance renewal rates continue to be consistently strong with retention rates over 90%. Accounts receivable as of March 31, 2003 was $30.2 million, resulting in days sales outstanding (DSO) of 62 days, down 11 days from a year ago. As of March 31, 2003, cash was $108.1 million or $5.56 per share. The Company has no debt.


The Company is increasing guidance for fiscal 2003 (ending June 2003) to revenue of $173M and $1.35 adjusted EPS (pre tax), or $1.27 adjusted EPS (after tax). Open Text is also increasing its revenue guidance for fiscal 2004 taking revenues to $205M, with $1.69 adjusted EPS (pre tax), representing a 25% annual growth rate. The Company advises that a 35% tax rate should be applied to the pre tax earnings for fiscal 2004, which results in $1.10 adjusted EPS (after tax). This tax provision is primarily a non-cash item.

Third Quarter in Review

1. LiveLinkUp Paris 2003
Global leaders and experts in collaboration and knowledge management will join Pierre Yves Gerbeau, the former CEO of Euro Disney, in speaking at LiveLinkUp Paris 2003, the Company’s annual European User’s Conference May 12-15, 2003. Analysts are welcome and are invited to contact the Open Text Investor Relations department.

More information can be found on the corporate Web site at:

2. Open Text Secures Deal with Largest Fully-Accredited U.S. School District
During the quarter Open Text announced that the School Board of Broward County in Florida purchased the latest version of the FirstClass® Communications Platform, an integrated suite of messaging and communications software. After an intensive evaluation process, Broward County selected the FirstClass system from Open Text over top competitors.

For more information please see the press release at:

3. Open Text Rounds Out Integration Strategy with Corechange Acquisition
The acquisition allows Open Text to offer the most complete array of integration options with Livelink at a critical time when customers are focused on gaining greater ROI from existing systems through improved integration.

For more information please see the press release at:

4. Chiron Selects Livelink for Managing FDA Compliance
Chiron Corporation, a global biopharmaceutical company, selected Livelink to replace its existing systems and to provide a single platform for document management. Chiron will be replacing its legacy systems with Livelink, effectively making Livelink its global standard to meet Chiron's regulatory and controlled document needs throughout its locations in North America and Europe.

More information can be found on the corporate Web site at:

5. Open Text Acquires Eloquent
Eloquent's closed-loop "sales readiness" solution, LaunchForce™, is built on a scaleable technology platform designed to deploy corporate knowledge to front-line employees and partners. Benefits of integration with Open Text's Livelink, the leading collaboration and knowledge management system, include enhancing Livelink MeetingZone™ with live video conferencing, adding Livelink for Sales Readiness, and adding powerful collaboration and knowledge management capabilities to LaunchForce.

For more information please see the press release at:

6. Open Text and Ricoh Corporation Offer Integration
The integration between Ricoh's Global Scan™ software and Livelink will allow users to navigate information in a Livelink knowledge repository via a touch screen on Ricoh Multifunction Products, which print, scan, copy and fax documents. Users will be able to send documents from the Livelink repository to a networked Ricoh device for printing, copying or fax. They will also be able to scan documents from the Ricoh device into the Livelink repository.

For more information please see the press release at:

7. Upcoming Investor Events
Open Text announced it plans to participate in the following financial conferences hosted by the respective brokerage firm. Note event dates and times are subject to change after the release of this announcement. To confirm a date or learn about Web cast availability, visit the Company's Web site closer to the event date at:

June 3-4, 2003
Merrill Lynch Growth Conference
Toronto, ON Canada

June 9, 2003
South West Securities Investor Conference
Chicago, Illinois

June 19, 2003
South West Securities Best Idea Conference
Milwaukee, Wisconsin

Sept 4-5, 2003
CSFB Global Software Conference
New York, NY

Oct 28-30, 2003
RBC Capital Markets
San Francisco, CA

November 3-4, 2003
AIIM Conference
San Diego, CA

November 6, 2003
LivelinkUp Analyst Day
Las Vegas, NV

Teleconference Call

Open Text invites the public to listen to the Company's teleconference call concerning financial results for the third quarter of fiscal 2003.

Date: Wednesday, April 23, 2003
Time: 5:00 p.m. ET / 2:00 p.m. PT
Length: Approximately 60 minutes
Where: 416-640-1907

Please dial the above number approximately 10 minutes before the teleconference is scheduled to begin. The operator will take your name and connect your line with the meeting.

To listen to the call via Web cast, please use the following links:
English URL:
French URL:

Replay will be available beginning April 23, from 7:00 p.m. ET thru midnight on May 7.

For more information and playback instructions:

About Livelink

Livelink is the leader in collaboration and knowledge management for the global enterprise. Its richly-featured enterprise services include virtual team collaboration, business process automation, enterprise group scheduling and information retrieval services, all tightly integrated into a solution that is easily customized and extended. Livelink is essential to the effective management and development of communities of interest that span organizations and industries. For everything from the creation of complex e-community relationships to the automation of simple e-business processes, Livelink delivers true dynamic collaboration between individuals, organizations and large trading communities. Livelink servers are fully Web-based and open-architected to ensure rapid deployment and easy access to its full functionality through a standard Web browser. For more information, visit www.opentext.com/livelink/

About Open Text

Since 1991, Open Text Corporation has delivered innovative software that brings people together to share knowledge, achieve excellence, deliver innovation, and enhance processes. Its legacy of innovation began with the successful deployment of the world’s first search engine technology for the Internet. Today, as the leading global supplier of collaboration and knowledge management software for the enterprise, Open Text supports fifteen million seats across 10,000 corporate deployments in 31 countries and 12 languages throughout the world. As a publicly traded company, Open Text manages and maximizes its resources and relationships to ensure the success of great minds working together. For more information, visit www.opentext.com

For more information, please contact

Alan Hoverd
Open Text Corporation
519-888-7111 ext. 2480