Open Text generates US$248 million in the second quarter

Reports unaudited financial results

Enterprise content management (ECM) software provider Open Text generated US$247.8 million as the total revenue for the second quarter of fiscal 2010 and says the figure has increased about 19 per cent as compared to the same period last year.

The company has just announced its unaudited financial results for its second quarter ended 31 December 2009.

Profits look up

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Enterprise content management (ECM) software provider Open Text generated US$247.8 million as the total revenue for the second quarter of fiscal 2010 and says the figure has increased about 19 per cent as compared to the same period last year.

The company has just announced its unaudited financial results for its second quarter ended 31 December 2009.

Profits look up

The company collected about US$207.7 million for the same period in the prior fiscal year and reports that its licence revenue in the second quarter was an impressive US$72.7 million. This figure shows an increase of 12 per cent as compared to US$64.9 million in the second quarter of the previous fiscal year.

According to Open Text, its adjusted net income in the quarter was US$50.1 million or 87 US$ cents per share on a diluted basis. Here, the company has experienced an increase again and it is up 47 per cent in contrast to US$34 million or 64 US cents per share on a diluted basis for the same period in the prior fiscal year.

The enterprise content management (ECM) software provider was able to collect a net income in accordance with US generally accepted accounting principles (US GAAP) was US$21.2 million or 37 US cents per share on a diluted basis. The company compares it to the US$800,000 or 1 US cent per share on a diluted basis for the same period in the prior fiscal year.

Good quarter

As of 31 December 2009, the cash and cash equivalents balance was US$247.6 million, compared to US$275.8 million as of 30 June 2009. The net cash paid for the Vignette acquisition was US$90.6 million during the six months that ended 31 December 2009.

The company also compared the accounts receivable in 31 December 2009 to that of 30 June 2009 and said it totalled US$143.4 million and US$115.8 million respectively. Also, the Days Sales Outstanding (DSO) was 52 days in the second quarter of fiscal 2010 in contrast to 53 days in the second quarter of fiscal 2009.

John Shackleton, president and chief executive officer of Open Text, said his company experienced a very good quarter across the board, in all geographies and verticals.

He noted that Open Text's strong licence revenue growth has brought the company to where he expected it to be on a year-to-date basis and said the company was able to generate a pre-tax adjusted operating margin of 28.8 per cent.

"The integration of Vignette is progressing well and we are very encouraged by the synergies we see from the combined businesses," he added.