Paul, I posted the news below. Gary thanks for your advice, especially concerning the info about margins and the need for growth to produce positive earnings. As mentioned before this company has the luxury of considerable cash to continue positioning itself for growth. It is also evidently a takeover target. Its products appear to be used to complement intranet products such as Netscape's...and if the bigger companies are really duking it out they might want to gobble up Open Text's technology, especially at these prices.
My favourite bit from the news release is:
"Siemens Nixdorf is providing a complete intranet solution for managing critical business processes by combining our advanced intranet application suite, Livelink, with Netscape's advanced intranet operating system, SuiteSpot."
In my opinion the stock isn't moving on this news because some of the institutional holders (and there are/were many), especially those who call themselves "aggressive growth funds" etc., are trying to bail out completely at this point, so are "selling the shit out of it" on any news release. Also, tax-loss selling. Today there would appear to be more buyers than sellers though. Anyone with a nose for value would get in at these levels. Could be a nice short term bounce for anyone getting in around 5. I may wait a couple of days to buy more, I don't think these momentum-players-cum-aggressive-fund-managers are finished bailing out yet.
WATERLOO, Ontario--(BUSINESS WIRE)--Nov. 25, 1996--
Computer Giant to license Livelink Intranet for new class of intranet server
Open Text Corporation (OTEXF:NASDAQ) of Waterloo, Ontario, Canada today announced that SIEMENS NIXDORF INFORMATIONSSYSTEME AG (Siemens Nixdorf) of Paderborn, Germany had agreed to bundle the Livelink Intranet suite of intranet applications with Siemens Nixdorf's Intranet-Server platform, to complement the SuiteSpot intranet solution from Netscape Corporation on these UNIX and Microsoft Windows NT servers.
"We're extremely pleased to have a new, powerful IT partner in Siemens Nixdorf and view this as a long-term, strategic relationship involving close co-operation in both marketing and product development," said Tom Jenkins, president and CEO of Open Text Corp. "Siemens Nixdorf is providing a complete intranet solution for managing critical business processes by combining our advanced intranet application suite, Livelink, with Netscape's advanced intranet operating system, SuiteSpot."
"The flexibility, openness and comprehensiveness of Livelink Intranet were the key factors in our decision to add Livelink to our intranet-based, information management systems," said Robert Hoog, vice president of Siemens Nixdorf's `Open Enterprise Computing' Line Of Business. "By integrating the document management, workflow and search capabilities of Livelink with the messaging, conferencing, security and administration features of SuiteSpot, our customers will enjoy a total intranet solution, on the most advanced UNIX and Windows NT servers available."
SIEMENS NIXDORF COMPANIES BEGIN LIVELINK EVALUATIONS
Siemens Nixdorf has approved Livelink for use by its worldwide divisions and subsidiaries. A number of Siemens Nixdorf companies are already planning deployment of Livelink Intranet internally, in addition to the corporate parent's decision to re-sell the suite. In North America, Siemen's power research division is integrating Livelink for use in managing technical documentation, software program management and document version control.
In Europe, OSRAM, best known for lighting products, will be developing a Livelink-based system to manage product information on their wide range of products, which are stored in various formats including Microsoft Office and which require rapid retrieval and a common presentation (HTML).
SIEMENS NIXDORF INFORMATIONSSYSTEME AG, Paderborn, Germany, is a systems partner with universal expertise in the field of information technology. It is one of the world's largest companies in this area and is the largest supplier of information technology of European origin. In the past fiscal year (1 Oct. 1995-30 Sept. 1996) Siemens Nixdorf had incoming orders worth DM13.9 billion and revenues of DM13.6 billion. The company has a workforce of about 34,000 and is represented in 58 countries.
Open Text Corp is an intranet applications company whose mission is to put the Web to work. Open Text enables organizations to leverage the power and global reach of Internet technology by providing applications, tools and services that transform intranets into platforms for collaborative, distributed computing. Global 2000 companies use Open Text solutions to find and manage information and documents, empower teams and drive critical business processes. |
