This was a Jan 27 announcement.
Question: Has opentext ever shown a profit?
They would have according to their last quarterly report except for the
acquisition of ontime software. An R&D shop.
If they start showing profits which it looks like they might. This stock
may start moving. I'm long on otexf. Any opinions from the WS savvy
folks. Im just a developer
Heres there last company report
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WATERLOO, Ontario, Canada, Jan. 22 /PRNewswire/ -- Open Text Corporation (Nasdaq: OTEXF), 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. (1)
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% from the $7.7 million reported for the first quarter, and up 87% 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
(in thousands, except per share data)
Q2 Q1 % Q2 Q2 %
1998 1998 change 1998 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.
The Company
Open Text Corporation's software and services enable Global 2000 companies to leverage the global reach and openness of intranets, truly "Putting the Web to Work(TM). Open Text's dramatic growth has been fueled by the rapid market acceptance of its innovative collaborative knowledge management system, Livelink. The company has been named the growth leader by the Delphi Group and the market share leader by International Data Corporation. Further information about the company, its products and services, partners and customers can be found at opentext.com.
NOTE: Open Text, the Open Text logo, Livelink, Livelink Intranet, OnTime and "Putting the Web to Work" are trademarks of Open Text Corporation. All others are registered trademarks or trademarks of their respective companies.
(1) Reported under U.S. Generally Accepted Accounting Principles (GAAP).
OPEN TEXT CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In US Dollars)
(in thousands, except per share data)
Three months ended Six months ended
December 31, December 31,
1997 1996 1997 1996
(unaudited) (unaudited)
Revenues:
License $6,787 $3,064 $11,209 $5,212
Service 2,988 2,152 6,260 4,046
Total revenues 9,775 5,216 17,469 9,258
Cost of revenues:
License 461 145 693 347
Service 1,594 1,605 3,519 3,048
Total cost of
revenues 2,055 1,750 4,212 3,395
Gross profit 7,720 3,466 13,257 5,863
Operating expenses:
Research and
development 1,773 1,566 3,577 3,050
Sales and marketing 4,862 4,212 9,244 6,933
General and
administrative 1,045 1,468 2,155 2,716
Amortization 513 435 988 841
Acquired research and
development 7,186 -- 7,186 --
Restructuring reserve -- -- -- 650
Total operating
expenses 15,379 7,681 23,150 14,190
Loss from operations (7,659) (4,215) (9,893) (8,327)
Other income 375 406 892 964
Loss before income
taxes (7,284) (3,809) (9,001) (7,363)
Income tax recovery 250 -- 500 --
Loss for the period $(7,034) $(3,809) $(8,501) $(7,363)
Basic and fully diluted
earnings per share $(0.40) $(0.23) $(0.48) $(0.44)
Weighted average number
of Common Shares
outstanding 17,599 16,827 17,533 16,605
OPEN TEXT CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(In US Dollars)
(in thousands, except share data)
December 31, June 30,
1997 1997
(unaudited)
ASSETS
Current assets:
Cash and cash equivalents $20,660 $31,762
Accounts receivable - trade, net
of allowance for doubtful accounts
of $400 as of December 31, 1997 and
$350 as of June 30, 1997 11,349 8,623
Prepaid and other assets 2,328 2,407
Total current assets 34,337 42,792
Furniture and equipment 5,170 5,054
Software, net 1,656 --
Other investments, at cost
(approximates market value) 3,698 1,591
Other assets 2,214 2,908
Total assets $47,075 $52,345
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable - trade, and
accrued liabilities $ 7,470 $7,092
Deferred revenue 4,913 1,857
Current portion of obligations
under capital leases 439 430
Total current liabilities 12,822 9,379
Obligations under capital leases 244 511
Total liabilities 13,066 9,890
Shareholders' equity:
Share capital
17,598,610 and 17,204,120 Common
Shares issued and outstanding at
December 31, 1997 and
June 30, 1997 respectively 102,662 101,103
Other shareholders' equity (68,653) (58,648)
Total shareholders' equity 34,009 42,455
Total liabilities and
shareholders' equity $47,075 $52,345 SOURCE Open Text Corporation
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