License revenue grows 22%, Adjusted EPS Of $0.33 Exceeds Consensus Estimate
Waterloo, ON-April 23, 2003-Open Text(tm) 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.
Guidance
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.
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verdere informatie en toelichting op de cijfers van het derde kwartaal inclusief webcast en conference call, vindt u op:
http://www.opentext.com/investor/investor_events/Q3-2003_Earnings.html
Voor meer informatie over de cijfers, kunt u contact opnemen met: Greg Secord
Director, Investor Relations
Open Text Corporation
+1-519-888-7111 ext.2408
gsecord@opentext.com
Perscontact Nederland:
Tjerk Suurenbroek
Open Text Benelux
tel: 023-750 44 31
mailto:tsuurenb@opentext.com
Leoni Janssen
Edelman
tel: 023-5542030
mailto:leoni.janssen@edelman.com
www.edelman.nl