IXOS Software AG
Open Text Announces First Quarter 2005 Financial Results
Corporate-news announcement sent by DGAP.
The sender is solely responsible for the contents of this announcement.
——————————————————————————–
WATERLOO, ON-October 28th, 2004: Open Text(TM) Corporation (Nasdaq: OTEX; TSX:
OTC), the world’s largest provider of enterprise content management (ECM)
software, today announced financial results for its first fiscal quarter ended
September 30, 2004. (1)
Financial Highlights
Total revenue for the first quarter was $85.6 million, up 94% from the same
period last year and license revenue of $23.9 million grew by 41% over the prior
year. Open Text reported total adjusted net income for the first quarter of
$3.9 million, or adjusted earnings per share (EPS) of $0.07. This compares to
adjusted net income of $4.9 million, or $0.12 adjusted EPS in the first quarter
a year ago, marking the 23rd consecutive profitable quarter for the Company.(2)
Open Text reported total net income for the first quarter in accordance with
U.S. generally accepted accounting principles (GAAP) of ($1.0) million, or
($0.02 EPS), compared to net income of $3.4 million, or $0.08 EPS in the first
quarter a year ago.
“We are pleased with the IXOS results this quarter. IXOS was profitable in the
quarter with revenue of approximately $33 million and is now operating on the
Open Text model,” said Tom Jenkins, CEO of Open Text. “We see the ECM market
continuing to grow, especially as it relates to compliance solutions and we
believe that growing profitably is the best route for our future success.”
Total cash flow from operations in the quarter was $5.1 million. The total cash
on hand at quarter end was $111.5 million or $2.07 per share (diluted). The
cash balance reflects the use of cash for acquisitions made during the quarter
(Artesia and Vista) as well as Open Text share repurchases. At quarter end,
total deferred revenue was $64.3 million, up $28.9 million or 82% over a year
ago. Revenue results were broadly based, with 41% derived from North America,
52% from Europe and 7% from the Middle East and Asia. (1) As of March 1, 2004,
Open Text began including the results of IXOS in its financial statements on a
consolidated basis, and these results include a full quarter revenue and
expense. Open Text owns approximately 89% of IXOS Software AG.
“We are seeing traction from customers who want a full ECM suite that includes
content management, collaboration and e-mail archiving,” said John Shackleton,
President of Open Text. “Based on our current visibility into our pipeline, we
reaffirm our guidance for the fiscal 2005 year.”
Guidance
See accompanying Note (2)
The Company is establishing initial guidance for its second quarter, ending
December 31st, 2004. For the second quarter Open Text expects revenue of $100 to
$106 million with adjusted EPS of $0.18 to $0.26. The Company is maintaining
its previously announced guidance for fiscal year 2005, which commenced July 1,
2004. For fiscal year 2005, Open Text expects revenue of $420 to $450 million
with adjusted EPS of $1.10 to $1.30. Open Text’s actual results for future
periods may vary from the guidance presented and such variations may be
material. Please see note (2) below for a discussion regarding net income per
share in accordance with GAAP.
Teleconference Call
Open Text will host a conference call on October 28th, 2004, at 5:00 p.m. EST to
discuss its preliminary financial results.
Date: Thursday, October 28th, 2004
Time: 5:00 p.m. EST/2:00 p.m. PT
Length: 60 minutes
Phone: 416-640-1907
Please dial-in approximately 10 minutes before the teleconference is scheduled
to begin. A replay of the call will be available beginning October 5th, at 7:00
p.m. EST through 11:59 p.m. on November 11th, 2004 and can be accessed by
dialing 416-640-1917 and using pass code # 21097862.
For more information or to listen to the call via Web cast, please use the
following link:
http://www.opentext.com/events/event.html?id=5322581
Additional materials, including accompanying financial and operating statistics
relating to these financial results may be obtained from the investor site
within the Open Text corporate Web site at:
www.opentext.com/investor/quarterly_reports/index.html
About Open Text
Open Text(TM) is the market leader in providing Enterprise Content Management
(ECM) solutions that bring together people, processes and information in global
organizations. Throughout its history, Open Text has matched its tradition of
innovation with a track record of financial strength and growth. Today, the
company supports more than 17 million seats across 13,000 deployments in 67
countries and 12 languages worldwide. For more information on Open Text, go to:
www.opentext.com
Notes
(1) All dollar amounts in this press release are in US Dollars unless otherwise
indicated.
(2) The Company uses the financial measure adjusted EPS and adjusted net income
to supplement its consolidated financial statements, which are presented in
accordance with US GAAP. The presentation of adjusted EPS and adjusted net
income is not meant to be a substitute for net income per share presented in
accordance with GAAP, but rather should be evaluated in conjunction with such
GAAP measure. Adjusted EPS and adjusted net income are calculated as net income
(or per share, as applicable), excluding the following estimated amounts (a)
the amortization of acquired intangible assets net of tax ($4.0 million), (b)
other income, gain (loss) on investments (nil), (c) income tax on equity gain
(nil) (d) restructuring charges including charges that will be incurred as a
result of the acquisition of IXOS (nil). All of the aforementioned amounts are
provided net of tax and extraordinary gains or losses. The term adjusted EPS and
adjusted net income does not have a standardized meaning prescribed by GAAP,
and therefore the Company’s definition is unlikely to be comparable to similar
measures presented by other companies. The Company’s management believes that
the presentation of adjusted EPS and adjusted net income provides useful
information to investors because it excludes non-operational charges and is a
better indication of Open Text’s profitability or expected profitability from
recurring operations. The items excluded from the computation of adjusted EPS
and adjusted net income, which are otherwise included in the determination of
net income per share prepared in accordance with GAAP, are items that Open Text
does not consider to be meaningful in evaluating the Company’s past financial
performance or future prospects and may hinder a comparison of its period-to-
period profitability.
The guidance presented is based on (a) financial information prepared by Open
Text consistent with the manner in which it reports its revenue, adjusted EPS
and net income per share in accordance with GAAP and (b) the assumptions
referred to in this note (2). This guidance assumes minimal fluctuations of
currency exchange rates.
The following assumptions of Company management are an integral part of the
guidance presented. These assumptions represent the current expectations of Open
Text but must be considered preliminary as they will be reviewed and revised,
perhaps materially, based upon Open Text’s assessment of the operations of IXOS.
Open Text’s actual results for future periods may vary from the guidance
presented and such variations may be material.
(a) The guidance assumes a fully diluted share count for the fiscal year ending
June 30, 2005 of 57.6 million shares.
(b) Guidance for adjusted EPS and net income per share is calculated on a fully-
diluted basis, giving effect to the exercise of the common share purchase
warrants issued.
(c) Income taxes are assumed at a rate of 25% on a GAAP net income basis.
(d) Assumptions have been made concerning revenue growth and income tax rates
that will be in effect and which may change depending upon both the timing and
jurisdiction of future revenues.
The Company has provided a reconciliation in note (2) above of its guidance for
adjusted EPS to net income per share, which is the most comparable financial
measure calculated and presented in accordance with GAAP. With respect to
amortization of acquired intangible assets, the Company has retained the
services of an independent valuator to assist in the valuation of intangible
assets acquired through the business combination with IXOS. The Company
estimates that the additional amortization will be approximately $2.5 million
per quarter (net of tax) for the next 5 to 7 years and is based on previous
experience with similar transactions. The specific amount of this amortization
expense for future periods will be determined once this valuation work is
completed.
For more information, please contact:
Greg Secord, Director Investor Relations, Open Text Corporation
+1-519-888-7111 ext.2408 gsecord@opentext.com
Anne Marie Rahm, Director Investor Relations, Open Text Corporation
+1-617-204-3359 arahm@opentext.com
end of message, (c)DGAP 28.10.2004
——————————————————————————–
WKN: 506150; ISIN: DE0005061501; Index:
Listed: Geregelter Markt in Frankfurt (General Standard); Freiverkehr in Berlin-
Bremen, Düsseldorf, Hamburg, Hannover, München und Stuttgart
282243 Okt 04
Aktuelle News
Aktuelle Berichte
Anstehende Events
Keine Events gefunden
Webcasts
Keine Webcasts gefunden