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Technology Stocks : Open Text -- Ignore unavailable to you. Want to Upgrade?

To: Rob D. who wrote (643)	12/5/1997 2:18:00 PM
From: James Joyce	Read Replies (1) \| Respond to of 1195

good news. Their document management system is stil ranked as the industry leader. Test is now to keep on target on revenue growth and turn to profitability. James

To: Rob D. who wrote (643)	12/5/1997 3:08:00 PM
From: Sirius Pointer	Read Replies (1) \| Respond to of 1195

It seems that the acquisition has a minor negative impact in the short term, but a minor positive impact in the long term. Some observations: * In the press release, Jenkins said "begins our strategy of rapid growth through well-thought-out acquisitions,". So there will be more acquisitions to come. It's a good idea to expand rapidly through strategic acquisitions providing the products can be well integrated. I wonder if its Canadian location has any impact on keeping key personnel. * Adding scheduling to LiveLink sounds a logical extension. It's not hard to add scheduling components to the LiveLink. But it's a better idea to acquire a company with some big-name customers. * The combined company did 34M in the last 4 quarters. With OpenText making 26.3M, OnTime had about 7.7M revenue in the last 4Q. My guess is that OnTime is losing about 2~3M annually. There will probably be some employees leaving the company after consolidation. So the net impact after two quarters is minimum. * 6.7M cash is translated into about 1~2 cents loss of annual interest income . The acquisition looks positive in the long run from the perspective of products. But it looks negative in the short term from financial perspective especially since OpenText achieved better than expected earnings by holding flat spending in last quarter.