One of last two independent Enterprise Content Management (ECM) vendor, Open Text (TM) Corporation (NASDAQ:OTEX) (TSX: OTC), announced financial
results for its fourth quarter ended June 30, 2011.
Revenue was reported at $285.5 million, in line with our $285.4 million and just shy of the Wall-Street’s $286.7 million. Lower license revenue and weaker service gross margins contributed to a decline in the overall gross margin level (73.2% vs. 74.5%). Adjusted EPS was US$1.05 vs. the Wall-Street’s $1.11.
We will be following Open Text very closely in the upcoming quarters. Open Text is one of the two remaining independent ECM vendors, making an attractive takeover candidate.
Revenue was reported at $285.5 million, in line with our $285.4 million and just shy of the Wall-Street’s $286.7 million. Lower license revenue and weaker service gross margins contributed to a decline in the overall gross margin level (73.2% vs. 74.5%). Adjusted EPS was US$1.05 vs. the Wall-Street’s $1.11.
Adjusted net income for the fourth quarter of fiscal 2011 was $61.5 million or
$1.05 per share on a diluted basis, up 12.0% compared to $54.9 million or $0.95
per share on a diluted basis for the same period in the prior fiscal year. Net
income in accordance with U.S. generally accepted accounting principles
("US GAAP") was $28.6 million or $0.49 per share on a diluted basis,
compared to $53.2 million or $0.92 per share on a diluted basis for the same
period in the prior fiscal year. (2)
Total revenue for fiscal 2011 was $1,033.3 million, up 13.3% compared to $912.0 million in the prior fiscal year. License revenue for fiscal 2011 was $269.2 million, up 13.1% compared to $238.1 million in the prior fiscal year.
Adjusted net income for fiscal 2011 was $234.5 million, up 31.7% compared to $178.0 million in the prior fiscal year. Adjusted earnings per share for fiscal 2011 was $4.02 per share on a diluted basis, compared to $3.10 per share on a diluted basis, in the prior fiscal year. Net income for fiscal 2011 in accordance with US GAAP was $123.2 million, or $2.11 per share on a diluted basis, compared to $89.2 million, or $1.55 per share on a diluted basis, in the prior fiscal year. (2)
Management expects to remain acquisitive in the BPM space looking at deals of all sizes. It did point to Financial Services and Utilities as sectors where it would like to boost its BPM capabilities after Metastorm and Global 360 acquisitions.
Total revenue for fiscal 2011 was $1,033.3 million, up 13.3% compared to $912.0 million in the prior fiscal year. License revenue for fiscal 2011 was $269.2 million, up 13.1% compared to $238.1 million in the prior fiscal year.
Adjusted net income for fiscal 2011 was $234.5 million, up 31.7% compared to $178.0 million in the prior fiscal year. Adjusted earnings per share for fiscal 2011 was $4.02 per share on a diluted basis, compared to $3.10 per share on a diluted basis, in the prior fiscal year. Net income for fiscal 2011 in accordance with US GAAP was $123.2 million, or $2.11 per share on a diluted basis, compared to $89.2 million, or $1.55 per share on a diluted basis, in the prior fiscal year. (2)
Management expects to remain acquisitive in the BPM space looking at deals of all sizes. It did point to Financial Services and Utilities as sectors where it would like to boost its BPM capabilities after Metastorm and Global 360 acquisitions.
Both acquisitions are taking longer than planned to integrate resulting in
deals in the pipeline to be postponed. The company has taken its eyes off the
expenses building out services and sales headcount, investing data centers for
cloud services, investing in capabilities for OEMs such as Microsoft, SAP and
Oracle due to the anticipated launch of revamped SharePoint in 1Q2013.
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