[2] Open Text Corporation Announces Results For Third Quarter of Fiscal 2000; b2bScene.com Signs First Major Customer and Company Appoints Alan Hoverd New CFO.Business/Technology Editors WATERLOO, Ontario--(BUSINESS WIRE)--April 27, 2000 Open Text(TM)Corporation (Nasdaq:OTEX OTEX Open Text Corporation (stock symbol) OTEX Orientation Technico-Economique de l’Exploitation , TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). :OTC OTC See: Over-the-counter. OTC See over-the-counter market (OTC). ) today announced results for its third quarter ended March 31, 2000. Revenues for the quarter were $28.5 million, an increase of 7% over the previous quarter and 28% year-to-date. Third quarter net income was $4.4 million or $0.19 per share (fully diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. ) compared to net income of $0.19 per share in the third quarter last year.(1) Net income year-to-date was $22.8 million compared to $6.2 million in the previous year. Excluding one time gains (investments) and charges (foreign exchange, goodwill), the Company realized a gain of $0.14 million or $0.01 per share (fully diluted). License revenues were $14.2 million, an increase of 9% over the previous quarter. Cash flow from operations Cash flow from operations A firm's net cash inflow resulting directly from its regular operations (disregarding extraordinary items such as the sale of fixed assets or transaction costs associated with issuing securities), calculated as the sum of net income plus noncash expenses during the quarter was $7 million, contributing to the Company's total cash balance of $109 million, or $4.72 per share as at March 31, 2000. Days Sales Outstanding In accountancy, Days Sales Outstanding is a company's average collection period. A low figure indicates that the company collects its outstanding receivables quickly. Typically it is looked at either quarterly or yearly (90 or 365 days). (DSO See CSO. ) have been significantly improved by another 11 days to 89 days. The results also incorporate new investments in b2bScene.com and an ASP initiative, which the Company announced in the quarter. These investments accounted for $1 million in expenses. "We are particularly pleased we are profitable despite carrying the additional costs of establishing b2bScene.com and our ASP initiative. We believe profitability will improve as these initiatives come to fruition," says Tom Jenkins For the baseball player, see . Thomas Wayne Jenkins (born December 14, 1947) is an American golfer. Jenkins was born in Houston, Texas. He attended the University of Houston, where he was a member of the winning 1970 NCAA Division I golf team. , Chief Executive Officer, Open Text Corporation. "In our core business, growth in license sales of Livelink drove our results this quarter, as we continue to benefit from the post Y2K See Y2K problem and Y2K compliant. Y2K - Year 2000 period with corporations turning their attention to implementing e-business solutions using Livelink. Specifically, during the quarter, we announced that the United States Navy United States Navy Major branch of the U.S. military forces, charged with defending the nation at sea and maintaining security on the seas wherever U.S. interests extend. The Continental Navy was established by the Continental Congress in 1775. , Scotland Yard Scotland Yard, headquarters of the London Metropolitan Police. The term is often used, popularly, to refer to one branch, the Criminal Investigation Department (CID). Named after a short street in London, the site of a palace used in the 12th cent. and KPNQwest chose Livelink as enterprise-wide standards for collaboration." Agilent Selects b2bScene.com: Agilent Technologies This article needs sources or references that appear in reliable, third-party publications. Alone, primary sources and sources affiliated with the subject of this article are not sufficient for an accurate encyclopedia article. Inc. (NYSE NYSE See: New York Stock Exchange :A) selected b2bScene.com e-business application services See ASP and Web services. to host virtual project teams. Open Text's b2bScene.com Division and Agilent Technologies signed an agreement for b2bScene.com to provide collaborative virtual-community hosting services for improving the interaction of Agilent test and measurement project teams at multiple locations. New b2bScene.com Division: During the quarter, Open Text announced the creation of b2bScene.com, a separate operating Division of the Company. b2bScene.com, which provides private and public community services to the b2b marketplace, has been a success since its launch in the middle of the third quarter, with traffic more than doubling in the past month. Market: "Now that the Global 2000 sector has emerged from the Y2K lockdown Lockdown A specified period when an employee of a public company is barred from selling - and occasionally buying - their company's stock. Notes: These types of equity transaction restrictions can be imposed by securities regulators or underwriting firms if a company has period, we look forward to benefiting from the renewed interest of corporations in using Livelink as the mission critical support in developing e-business applications for collaboration," said Jenkins. "We are also pleased with the continued growth of our install base. During the quarter we continued our b2b user growth and now have more than 3.8 million users." ASP Strategy underway: Today, Open Text announced an Application Services Provider (ASP) strategy to create a worldwide network of ASP partners. The Affinity ASP program will extend the Company's market reach, targeting small and medium-sized enterprises (SME (1) (Small and Medium-sized Enterprise) See SMB. (2) (Subject Matter Expert) An individual who is well-versed in the policies and procedures of a particular department or division. ) through its ASP partners. SMEs are now investing in the development of e-business applications by using the hosted services model to accelerate delivery, minimize risk and reduce overall cost of ownership. During the quarter, Open Text announced a strategic ASP relationship with a major telecommunications firm, KPNQwest, the joint venture of KPN KPN Koninklijke PTT Nederland (Royal Dutch Telecom) KPN Konfederacja Polski Niepodleglej (Polish conservative party) and Qwest. The Affinity ASP program will result in an expanded distribution channel for Livelink, making it available, for the first time, to SMEs. Alan Hoverd Appointed New CFO See Chief Financial Officer. : It is with great pleasure that Open Text promotes Alan Hoverd to the position of CFO. Mr. Hoverd has more than 30 years experience in financial management, with the last 15 years as an executive at the $2 billion Canadian subsidiary of Digital Equipment Corporation (DEC), where he last held the position of CFO and VP Finance. Shareholder Value: During the quarter, Open Text completed its substantial issuer bid, announcing on January 14, 2000 that it had taken up and arranged payment for 4 million of its common shares at $20 per share, for a total of $80 million. The purchased shares have been cancelled, reducing the number of common shares outstanding to approximately 20 million shares. The Company plans to continue its share repurchase Share Repurchase A program by which a company buys back its own shares from the marketplace, reducing the number of outstanding shares. This is usually an indication that the company's management thinks the shares are undervalued. program through its normal course issuer bid. After taking into account the purchase and the sale of securities, the cash balance was $109 million at the end of the quarter. Other Highlights of the Quarter: Global 2000 customers continued to add to their deployments of Livelink as an e-business application. Nortel Networks (Nortel Networks Limited, Brampton, Ontario, www.nortelnetworks.com) A world leader in telecommunications products, which includes switching, wireless and broadband systems for service providers and carriers, telephones and systems for residential and business users, computer telephony and Raytheon continue to be significant follow-on customers. Open Text shipped its portal product, myLivelink, during the quarter and expects a rapid adoption in the coming quarters. Open Text and Research In Motion Limited (RIM), a world leader in the mobile communications market, announced a strategic relationship in the third quarter with plans to integrate Livelink and BlackBerry blackberry, name for several species of thorny plants of the genus Rubus of the family Rosaceae (rose family). See bramble. blackberry (TM) features so that mobile Livelink users may collaborate dynamically within their organizations and throughout their supply chain communities. Also, during the third quarter, Open Text grew its install base to 3.8 million users of the Livelink product family for e-business. About b2bscene.com b2bScene.com, a Division of Open Text, is the first cross-industry, collaborative commerce e-marketplace offering a collection of b2b services to small, medium and large organizations. In addition to buying and selling goods and services In economics, economic output is divided into physical goods and intangible services. Consumption of goods and services is assumed to produce utility (unless the "good" is a "bad"). It is often used when referring to a Goods and Services Tax. online, our e-marketplace promotes e-business interaction and collaboration between buyers and sellers, facilitating dialogue between parties, automating business processes and managing the wealth of information around each transaction. b2bScene.com leverages a variety of industry leading applications including Open Text's leading collaborative business applications to achieve dynamic interaction between an organization's employees, business partners and customers in both public and private trading communities. About Open Text Open Text has pioneered the development of innovative intranet and extranet ebusiness applications. Since creating one of the first search engines to index the World Wide Web, the Company has remained at the forefront of Internet-based technologies Refers to the communications infrastructure of the Internet, which is based on the IP protocol. IP is part of the TCP/IP protocol suite. It may also refer to voice over IP (VoIP), which uses the Internet to make telephone calls. See VoIP, IP and TCP/IP. . It's product family called Livelink enables individuals, teams, organizations, and global trading communities to collaborate on e-business applications that facilitate e-commerce and other transactions among Global 2000 organizations. Open Text has become one of the largest providers of Web based Coming from a Web server. See Web application. collaboration for e-business applications for e-communities of all types from intranets to extranets and public groups. The Livelink product family has over 3.5 million users in 3,800 installations in 31 countries, speaking 12 languages throughout the world. For more information, visit www.opentext.com. Copyright (c) 2000 by Open Text Corporation. Livelink, myLivelink, b2bScene.com and Open Text are trademarks or registered trademarks of Open Text Corporation. This list is not exhaustive. Other product and Company names herein may be trademarks of their respective owners. This news release may contain forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the deployment of Livelink and myLivelink by customers, and future performance of Open Text Corporation and b2bScene.com. Forward-looking statements are subject to certain risks and uncertainties, and actual results may differ materially. These risks and uncertainties include, among others, risks involved in the completion and integration of acquisitions, the possibility of technical, logistical lo·gis·tic also lo·gis·ti·cal adj. 1. Of or relating to symbolic logic. 2. Of or relating to logistics. [Medieval Latin logisticus, of calculation or planning issues in connection with deployments, the continuous commitment of the Company's customers and other risks detailed from time to time in the Company's filings with the Securities and Exchange Commission (SEC), including the final prospectus Final Prospectus A legal document stating the price of a newly issued security, the delivery date, and other facts that are important for investors. Notes: The final prospectus must be given to every investor who purchases a new issue of registered securities. for the Company's initial public offering of common stock in January 1996, Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the years ended June 30, 1997, June 30, 1998 and June 30, 1999, and Form 10-Q Form 10-Q See 10-Q. for the quarters ended September 30, 1999 and December 31, 1999. Forward-looking statements are based on management's beliefs and opinions at the time the statements are made, and the Company does not undertake any obligations to update forward-looking statements should circumstances or management's beliefs or opinions change. (1) Reported under U.S. Generally Accepted Accounting Principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting (GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). ).
OPEN TEXT CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(In US Dollars)
(in thousands, except share data)
March 31, June 30,
2000 1999
(unaudited)
ASSETS
Current Assets:
Cash and cash equivalents $ 108,913 $ 140,256
Available for sale
securities 788 45,920
Accounts receivable -
trade, net of allowance
for doubtful accounts
of $1,447 as at
March 31, 2000 and $1,658
as at June 30, 1999 28,233 31,632
Deferred tax assets -- 4,000
Prepaid and other assets 3,002 7,736
Total current assets 140,936 229,544
Furniture and equipment 9,654 9,988
Goodwill, net of accumulated
amortization of $3,725 at
March 31, 2000 and $1,946
at June 30, 1999 22,610 14,388
Deferred tax asset 3,000 1,800
Other assets 6,727 9,054
Total assets $ 182,927 $ 264,774
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable - trade,
and accrued liabilities $ 16,200 $ 13,995
Deferred revenue 17,763 9,802
Income tax payable 10,324 --
Deferred tax liability 228 8,152
Total current liabilities 44,515 31,949
Shareholders' equity:
Share capital 161,720 150,252
20,302,048 and 21,280,463
Common Shares issued and
outstanding at March 31, 2000
and June 30, 1999 respectively
Nil and 3,000,000 Special
Warrants issued and outstanding
at March 31, 2000 and
June 30, 1999 respectively -- 97,420
Other capital 64 64
Accumulated deficit (23,038) (45,875)
Accumulated other comprehensive
income
Unrealized gain on available
for sale securities (net of tax) 457 31,699
Cumulative translation adjustment (791) (735)
Total shareholders' equity 138,412 232,825
Total liabilities and
shareholders' equity $ 182,927 $ 264,774
OPEN TEXT CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In US Dollars)
(in thousands, except per share data)
Three months ended Nine months ended
March 31, March 31,
2000 1999 2000 1999
(unaudited) (unaudited)
(restated) (restated)
Revenues:
License $ 14,170 $ 14,272 $ 39,493 $ 36,661
Service 14,316 10,771 41,117 26,475
Total Revenues 28,486 25,043 80,610 63,136
Cost of revenues:
License 778 446 1,801 1,356
Service 7,532 5,142 22,506 11,030
Total cost of
revenues 8,310 5,588 24,307 12,386
Gross profit 20,176 19,455 56,303 50,750
Operating expenses:
Research and
development 4,893 2,999 12,962 7,998
Sales and
marketing 10,010 8,831 30,589 25,319
General and
administrative 5,768 1,727 15,945 4,103
Depreciation 1,104 1,144 3,395 3,135
Amortization of
acquired intangible
assets 813 582 2,151 1,618
Acquired in-process
research and
development -- -- -- 3,419
Restructuring reserve -- -- 2,022 --
Total operating expenses 22,588 15,283 67,064 45,592
Income (loss) from
operations (2,412) 4,172 (10,761) 5,158
Other income (expense) 12,453 (43) 48,979 (176)
Interest income 1,373 341 4,742 1,181
Income before
income taxes 11,914 4,470 42,960 6,163
Income tax expense (7,024) -- (19,624) --
Income for the period $ 4,390 $ 4,470 $ 23,336 $ 6,163
Basic earnings
per share $ 0.21 $ 0.22 $ 1.05 $ 0.31
Diluted earnings
per share $ 0.19 $ 0.19 $ 0.93 $ 0.27
Weighted average
number of Common
Shares outstanding - Basic 20,722 20,777 22,220 20,206
Weighted average
number of Common
Shares outstanding - Diluted 23,083 23,574 25,191 22,775
|
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion