Open Text Corporation Posts Record Results -- Company Continues to Execute on Profitable Growth Strategy
WATERLOO, Ontario--(BUSINESS WIRE)--Jan. 27, 1999--Open Text Corporation (NASDAQ:OTEXF - news; TSE:OTC - news) the worldwide leader of Web-based collaborative knowledge management application software, today announced record revenues and operating profits for its second quarter ended December 31, 1998(1).
Net income, excluding a one time charge, for the second quarter was US$3.3 million, which is $0.15 per share (diluted) compared to net income of $153,000 or $0.01 per share, excluding a one-time charge, for the year-earlier quarter. The one-time charge of $3.4 million in the second quarter of fiscal 1999 relates to the company's purchase of certain assets of LAVA Systems.
For the twelfth consecutive quarter, Open Text reported the highest quarterly total revenues in the company's history. Total revenues for the quarter were US$20.8 million up 113 percent from $9.8 million
for the year-earlier period. License revenues for the quarter ended December 31, 1998 were $12.9 million, up 90 percent compared to $6.8 million for the second quarter of fiscal 1998.
''Our strong corporate performance once again validates our ongoing strategy to combine internal growth with strategic acquisitions,'' said Tom Jenkins, Chief Executive Officer of Open Text Corporation. ''We have moved into a solid, profitable growth position, today reporting our fifth consecutive quarter of profits, excluding one time charges, while maintaining strong growth momentum.''
''We continue to enjoy a leadership position in the enterprise knowledge management market, with IDC recently reporting that we have 42 percent of the worldwide market in the all important enterprise-centric part of the document and knowledge management market,'' added Jenkins. ''We are also proceeding well with the acquisition of LAVA Systems and the addition of strong enterprise integration capabilities and substantial business practices in the financial services and insurance vertical of the knowledge
management industry.''
New accounts contributing to Open Text's second-quarter revenues included Conoco, FIAT, Johnson & Johnson, Texaco, and Underwriters Laboratories. Existing accounts contributing to revenues included
Canon, Ford, Nationsbanc, Newbridge Networks, Nortel, Motorola, Shell Corporation, Siemens, Sprint, and many others.
''Recent announcements of major companies such as Nortel and Shell Corporation deploying Livelink on an enterprise scale across their networks further demonstrates the growing market demand for a truly
Web-based knowledge management solution that can scale across all of their requirements,'' added Jenkins.
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