News Column

OpenText Intelligent Growth Strategy Drives Record Fourth Quarter and Fiscal Year 2014 Financial Results Appoints John Doolittle Chief Financial Officer

July 30, 2014

WATERLOO, Ontario, July 30, 2014 /CNW/ -- Open Text Corporation (NASDAQ: OTEX) (TSX: OTC) announced today its financial results for the fourth quarter and fiscal year ended June 30, 2014, and the appointment of John Doolittle as Chief Financial Officer.

Financial Highlights for Q4 FY14 (1)

•Total revenue was $494.0 million, up 42% Y/Y •License revenue was $99.7 million, up 27% Y/Y •Cloud services revenue was $148.9 million, up 255% Y/Y •Customer support revenue was $183.9 million, up 12% Y/Y •Non-GAAP-based EPS, diluted was $1.05 compared to $0.72 Y/Y, up 48%; GAAP-based EPS, diluted was $0.72 compared to $0.36 Y/Y up 100%, on a post stock-split basis.(2)   •Non-GAAP-based income from operations was $162.2 million and 33% of revenues up 58% Y/Y; GAAP-based income from operations was $107.7 million and 22% of revenues, up 118% Y/Y.(2) •Operating cash flow was $134.9 million, up 107%Y/Y, with an ending cash balance of $427.9 million.

Financial Highlights for FY14 (1)

•Total revenue for the period was $1,624.7 million, up 19% Y/Y •License revenue was $309.2 million, up 11% Y/Y •Cloud services revenue was $361.1 million, up 108% Y/Y •Customer support revenue was $707.0 million, up 7% Y/Y •Non-GAAP-based EPS, diluted was $3.37 compared to $2.79 Y/Y, up 21%; GAAP-based EPS, diluted was $1.81 compared to $1.26 Y/Y up 44%, on a post stock-split basis.(2) •Non-GAAP-based income from operations was $502.7 million and 31% of revenues, up 26% Y/Y; GAAP-based income from operations was $300.5 million and 18% of revenues, up 52% Y/Y.(2) •Operating cash flow was $417.1 million,  up 31%Y/Y, with an ending cash balance of $427.9 million.

"Our focus on Enterprise Information Management is well aligned to the strategic priorities of our customers.  We delivered record quarterly and full fiscal year results, including full fiscal year total revenues of $1.625 billion, up 19%, license of $309 million, up 11%, and operating cash flows of $417 million, up 31% year over year," said Mark J. Barrenechea OpenText CEO. "For Fiscal 2015, we are committed to unlocking further value, growth and leadership for our customers, partners and shareholders through focused execution utilizing our Intelligent Growth Business System (OTIGS)."

Appoints John Doolittle as Chief Financial Officer

Mr. Doolittle is a senior executive with more than 20 years of financial experience, including most recently as Chief Financial Officer (CFO) of Mattamy Homes Limited, Canada's largest new home builder, and with Nortel Networks Corporation, where he held senior global finance roles.

"John brings tremendous experience as a seasoned global executive," said Mark J. Barrenechea OpenText CEO. "He has the breadth of financial skills, experience and leadership to take our finance organization and our company to the next level of scale, efficiency and growth."

Commenting on his appointment, Mr. Doolittle said, "OpenText's strategy of Enterprise Information Management is placing OpenText in a winning market position. I look forward to joining Mark's world-class executive team and contributing to the company's exciting next phase of growth and execution."

Effective September 8, 2014, Mr. Doolittle will replace Paul McFeeters who previously announced his intention to retire from his position as CFO by no later than September 30, 2014. Mr. Doolittle will work with Mr. McFeeters to ensure a seamless transition of financial leadership responsibilities.

Barrenechea further added, "I would like to take this opportunity again to thank Paul McFeeters.  Paul has served as our CFO for 8 years, his career spans nearly 40 years and I thank him for his extraordinary service to the company.  John and Paul will work together to ensure a textbook transition."

Business Highlights

•Basic materials, technology, services and financial industries saw the most demand •16 license transactions over $1 million and 11 license transactions between $500K and $1 million•Customer successes in the quarter include Banco Original, The City of Calgary, FMC Technologies, Joy Global, Del Monte Foods Inc, Tata Motors Limited, Superior Tribunal de Justica, AbbVie and Eisenmann AG•OpenText launches Discovery Suite to capture and create value in big content •SAP and OpenText to accelerate global adoption of enterprise content management •OpenText receives SAP® Pinnacle Award for the seventh consecutive year •OpenText announces free enterprise file synchronization and sharing for content management customers

Dividend Program Highlights

Cash Dividend

As part of our quarterly, non cumulative cash dividend program the Board declared a quarterly cash dividend to holders of the Company's Common Shares of $0.1725. The record date for this dividend is August 29, 2014 and the payment date is September 19, 2014. Future declarations of dividends and the establishment of future record and payment dates are subject to the final determination and discretion of our Board of Directors.

Summary of Quarterly Results



Q4 FY14

Q3 FY14

Q4 FY13

% Change

(Q/Q)



% Change

(Y/Y)



Revenue (million)

$494.0



$442.8



$347.3



11.6

%



42.2

%



GAAP-based gross margin

69.1

%

67.3

%

66.0

%

180



bps

310



bps

GAAP-based operating margin

21.8

%

15.1

%

14.2

%

670



bps

760



bps

GAAP-based EPS, diluted

$0.72



$0.38



$0.36



89.5

%



100.0

%



Non-GAAP-based gross margin (2)

72.9

%

71.3

%

72.9

%

160



bps





bps

Non-GAAP-based operating margin (2)

32.8

%

29.1

%

29.5

%

370



bps

330



bps

Non-GAAP-based EPS, diluted (2)

$1.05



$0.84



$0.72



25.0

%



45.8

%





 

 

Summary of Year to Date Results



FY14

Q3 FY14 YTD

FY13

% Change

(Y/Y)



Revenue (million)

$1,624.7



$1,130.7



$1,363.3



19.2

%



GAAP-based gross margin

68.5

%

68.3

%

64.4

%

410



bps

GAAP-based operating margin

18.5

%

17.1

%

14.5

%

400



bps

GAAP-based EPS, diluted

$1.81



$1.08



$1.26



43.7

%



Non-GAAP-based gross margin (2)

72.9

%

73.0

%

71.3

%

160



bps

Non-GAAP-based operating margin (2)

30.9

%

30.1

%

29.3

%

160



bps

Non-GAAP-based EPS, diluted (2)

$3.37



$2.32



$2.79



20.8

%







Conference Call Information

The public is invited to listen to the earnings conference call today at 5:00 p.m. ET (2:00 p.m. PT) by dialing 866-530-1553 (toll-free) or 416-847-6330 (international). Please dial-in 15 minutes ahead of time to ensure proper connection. Alternatively, a live webcast of the earnings conference call will be available on the Investor Relations section of the Company's website at http://investors.opentext.com/events.cfm.

An audio replay of the conference call will also be made available approximately two hours after the conclusion of the call. The audio replay will remain available until 8:00 p.m. on August 14, 2014 and can be accessed by dialing 888-203-1112 (toll-free) or 647-436-0148 (international) and entering the confirmation code: 6995981 followed by the number sign.

Please see below note (2) for a reconciliation of non-U.S. GAAP-based financial measures used in this press release, to U.S. GAAP-based financial measures.

About OpenText

OpenText is the largest independent software provider of Enterprise Information Management (EIM). For more information please visit www.opentext.com.

Cautionary Statement Regarding Forward-Looking Statements

Certain statements in this press release, including statements about the focus of Open Text Corporation ("OpenText" or "the Company") in Fiscal 2014 on growth in earnings and cash flows, creating value through investments in broader Enterprise Information Management (EIM) capabilities, distribution, the Company's presence in the cloud and in growth markets, its financial condition, results of operations and earnings, declaration of quarterly dividends, and other matters, may contain words such as "anticipates", "expects", "intends", "plans", "believes", "seeks", "estimates", "may", "could", "would", "might", "will" and variations of these words or similar expressions are considered forward-looking statements or information under applicable securities laws. In addition, any information or statements that refer to expectations, beliefs, plans, projections, objectives, performance or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking, and based on our current expectations, forecasts and projections about the operating environment, economies and markets in which we operate.  Forward-looking statements reflect our current estimates, beliefs and assumptions, which are based on management's perception of historic trends, current conditions and expected future developments, as well as other factors it believes are appropriate in the circumstances, such as certain assumptions about the economy, as well as market, financial and operational assumptions. Management's estimates, beliefs and assumptions are inherently subject to significant business, economic, competitive and other uncertainties and contingencies regarding future events and, as such, are subject to change. We can give no assurance that such estimates, beliefs and assumptions will prove to be correct. Such forward-looking statements involve known and unknown risks, uncertainties and other factors and assumptions that may cause the actual results, performance or achievements to differ materially. Such factors include, but are not limited to: (i) the future performance, financial and otherwise, of OpenText; (ii) the ability of OpenText to bring new products and services to market and to increase sales; (iii) the strength of the Company's product development pipeline; (iv) the Company's growth and profitability prospects; (v) the estimated size and growth prospects of the EIM market; (vi) the Company's competitive position in the EIM market and its ability to take advantage of future opportunities in this market; (vii) the benefits of the Company's products and services to be realized by customers; (viii) the demand for the Company's products and services and the extent of deployment of the Company's products and services in the EIM marketplace; and (ix) the Company's financial condition and capital requirements. The risks and uncertainties that may affect forward-looking statements include, but are not limited to: (i) integration of acquisitions and related restructuring efforts, including the quantum of restructuring charges and the timing thereof;  (ii) the possibility that the Company may be unable to meet its future reporting requirements under the Securities Exchange Act of 1934, as amended, and the rules promulgated thereunder; (iii) the risks associated with bringing new products and services to market; (iv) fluctuations in currency exchange rates; (v) delays in the purchasing decisions of the Company's customers; (vi) the competition the Company faces in its industry and/or marketplace; (vii) the final determination of litigation, tax audits and other legal proceedings; (viii) the possibility of technical, logistical or planning issues in connection with the deployment of the Company's products or services; (ix) the continuous commitment of the Company's customers; and (x) demand for the Company's products. For additional information with respect to risks and other factors which could occur, see the Company's Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and other securities filings with the Securities and Exchange Commission (SEC) and other securities regulators. Readers are cautioned not to place undue reliance upon any such forward-looking statements, which speak only as of the date made. Unless otherwise required by applicable securities laws, the Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

OTEX-F

For more information, please contact:



United States:

Greg Secord

Vice President, Investor Relations

Open Text Corporation

San Francisco: 415-963-0825

gsecord@opentext.com

Canada:

Sonya Mehan

Senior Manager, Investor Relations

Open Text Corporation

Waterloo: 519-888-7111 ext. 2446

smehan@opentext.com

Copyright ©2014 Open Text Corporation. OpenText is a trademark or registered trademark of Open Text SA and/or Open Text ULC. The list of trademarks is not exhaustive of other trademarks, registered trademarks, product names, company names, brands and service names mentioned herein are property of Open Text SA or other respective owners. All rights reserved. For more information, visit: http://www.opentext.com/2/global/site-copyright.html_SKU.

 






 

OPEN TEXT CORPORATION

CONSOLIDATED BALANCE SHEETS

(In thousands of U.S. dollars, except share data)

 



June 30, 2014



June 30, 2013













ASSETS











Cash and cash equivalents

$

427,890





$

470,445



Accounts receivable trade, net of allowance for doubtful accounts of $4,499 as of June 30, 2014 and $4,871 as of June 30, 2013

292,929





174,927



Income taxes recoverable

24,648





17,173



Prepaid expenses and other current assets

42,053





43,464



Deferred tax assets

28,215





11,082



Total current assets

815,735





717,091



Property and equipment

142,261





88,364



Goodwill

1,963,557





1,246,872



Acquired intangible assets

725,318





363,615



Deferred tax assets

156,712





135,695



Other assets

52,041





25,082



Deferred charges

52,376





67,633



Long-term income taxes recoverable

10,638





10,465



Total assets

$

3,918,638





$

2,654,817



LIABILITIES AND SHAREHOLDERS' EQUITY











Current liabilities:











Accounts payable and accrued liabilities

$

231,954





$

188,443



Current portion of long-term debt

62,582





51,742



Deferred revenues

332,664





282,387



Income taxes payable

31,630





4,184



Deferred tax liabilities

1,053





1,127



Total current liabilities

659,883





527,883



Long-term liabilities:











Accrued liabilities

41,999





17,849



Deferred credits

17,529





11,608



Pension liability

60,300





24,509



Long-term debt

1,256,750





513,750



Deferred revenues

17,248





11,830



Long-term income taxes payable

162,131





140,508



Deferred tax liabilities

60,631





69,672



Total long-term liabilities

1,616,588





789,726



Shareholders' equity:











Share capital











121,758,432 and 118,057,772 Common Shares issued and outstanding at June 30, 2014 and June 30, 2013, respectively; Authorized Common Shares: unlimited

792,834





651,642



Additional paid-in capital

112,398





101,865



Accumulated other comprehensive income

39,449





39,890



Retained earnings

716,317





572,885



Treasury stock, at cost (763,278 shares at June 30, 2014 and 1,221,756 at June 30, 2013, respectively)

(19,132)





(29,074)



Total OpenText shareholders' equity

1,641,866





1,337,208



Non-controlling interests

301









Total shareholders' equity

1,642,167





1,337,208



Total liabilities and shareholders' equity

$

3,918,638





$

2,654,817






 


 

OPEN TEXT CORPORATION

CONSOLIDATED STATEMENTS OF INCOME

(In thousands of U.S. dollars, except share and per share data)

 





Year Ended June 30,





2014





2013





2012



Revenues:



















License



$

309,217





$

279,598





293,719



Cloud services



361,069





173,799









Customer support



707,024





658,216





656,568



Professional service and other



247,389





251,723





257,186



Total revenues



1,624,699





1,363,336





1,207,473



Cost of revenues:



















License



13,362





16,107





18,033



Cloud services



135,472





72,365









Customer support



95,980





106,948





110,504



Professional service and other



196,939





196,874





204,909



Amortization of acquired technology-based intangible assets



69,917





93,610





84,572



Total cost of revenues



511,670





485,904





418,018



Gross profit



1,113,029





877,432





789,455



Operating expenses:



















Research and development



176,834





164,010





169,043



Sales and marketing



345,643





289,157





274,544



General and administrative



142,450





109,325





97,072



Depreciation



35,237





24,496





21,587



Amortization of acquired customer-based intangible assets



81,023





68,745





53,326



Special charges



31,314





24,034





24,523



Total operating expenses



812,501





679,767





640,095



Income from operations



300,528





197,665





149,360



Other income (expense), net



3,941





(2,473)





3,549



Interest and other related expense, net



(27,934)





(16,982)





(15,564)



Income before income taxes



276,535





178,210





137,345



Provision for income taxes



58,461





29,690





12,171



Net income for the period



$

218,074





$

148,520





$

125,174



Net loss attributable to non-controlling interests



51











$





Net income attributable to OpenText



$

218,125





$

148,520





$

125,174



Earnings per share—basic attributable to OpenText



$

1.82





$

1.27





$

1.08



Earnings per share—diluted attributable to OpenText



$

1.81





$

1.26





$

1.07



Weighted average number of Common Shares outstanding—basic



119,674





117,208





115,780



Weighted average number of Common Shares outstanding—diluted



120,576





118,124





117,468



Dividends declared per Common Share



$

0.6225





$

0.15





$







 

 

OPEN TEXT CORPORATION

CONSOLIDATED STATEMENTS OF INCOME

(In thousands of U.S. dollars, except share and per share data)

 





Three Months Ended

June 30,






2014





2013



Revenues:













License



$

99,664





$

78,782



Cloud services



148,891





41,890



Customer support



183,869





164,889



Professional service and other



61,554





61,706



Total revenues



493,978





347,267



Cost of revenues:













License



3,495





3,529



Cloud services



55,780





17,696



Customer support



24,195





25,351



Professional service and other



51,041





47,879



Amortization of acquired technology-based intangible assets



18,205





23,579



Total cost of revenues



152,716





118,034



Gross profit



341,262





229,233



Operating expenses:













Research and development



47,502





42,383



Sales and marketing



101,240





79,338



General and administrative



41,413





27,857



Depreciation



11,354





6,218



Amortization of acquired customer-based intangible assets



26,635





17,197



Special charges



5,413





6,767



Total operating expenses



233,557





179,760



Income from operations



107,705





49,473



Other income (expense), net



1,103





(4,180)



Interest and other related expense, net



(10,775)





(3,990)



Income before income taxes



98,033





41,303



Provision for (recovery of) income taxes



9,885





(869)



Net income for the period



$

88,148





$

42,172



Net gain attributable to non-controlling interests



(37)









Net income attributable to OpenText



$

88,111





$

42,172



Earnings per share—basic attributable to OpenText



$

0.72





$

0.36



Earnings per share—diluted attributable to OpenText



$

0.72





$

0.36



Weighted average number of Common Shares outstanding—basic



121,692





117,750



Weighted average number of Common Shares outstanding—diluted



122,511





118,476



Dividends declared per Common Share



$

0.1725





$

0.15





 


 

 

OPEN TEXT CORPORATION

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(In thousands of U.S. dollars)

 



Year Ended June 30,



2014





2013





2012



Net income for the period

$

218,074





$

148,520





$

125,174



Other comprehensive income—net of tax:

















Net foreign currency translation adjustments

(2,779)





(1,879)





(9,197)



Unrealized gain (loss) on cash flow hedges

















Unrealized loss

(357)





(1,054)





(1,403)



(Gain) loss reclassified into net income

3,242





(1,482)





334



Actuarial gain (loss) relating to defined benefit pension plans, net of tax

















Actuarial loss

(841)





(351)





(5,840)



Amortization of actuarial loss into net income

294





292









Total other comprehensive loss, net, for the period

(441)





(4,474)





(16,106)



Total comprehensive income

217,633





144,046





109,068



Comprehensive loss attributable to non-controlling interests

51















Total comprehensive income attributable to OpenText

$

217,684





$

144,046





$

109,068





 



Three Months Ended

June 30,




2014





2013



Net income for the period

$

88,148





$

42,172



Other comprehensive income—net of tax:











Net foreign currency translation adjustments

(2,046)





2,911



Unrealized gain (loss) on cash flow hedges











Unrealized loss

1,160





(2,151)



(Gain) loss reclassified into net income

832





(43)



Actuarial gain (loss) relating to defined benefit pension plans, net of tax











Actuarial loss

(60)





401



Amortization of actuarial loss into net income

74





73



Total other comprehensive loss, net, for the period

(40)





1,191



Total comprehensive income

88,108





43,363



Comprehensive gain attributable to non-controlling interests

(37)









Total comprehensive income attributable to OpenText

$

88,071





$

43,363





 








OPEN TEXT CORPORATION

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands of U.S. dollars)

 



Year Ended June 30,



2014





2013





2012



Cash flows from operating activities:

















Net income for the period

$

218,074





$

148,520





$

125,174



Adjustments to reconcile net income to net cash provided by operating activities:

















Depreciation and amortization of intangible assets

186,177





186,851





159,485



Share-based compensation expense

19,906





15,575





18,097



Excess tax benefits on share-based compensation expense

(1,844)





(915)





(2,723)



Pension expense

3,232





1,448





1,125



Amortization of debt issuance costs

3,191





2,123





1,703



Amortization of deferred charges and credits

11,307





11,815





11,579



Loss on sale and write down of property and equipment

15





24





203



Deferred taxes

(31,016)





(5,796)





(78,792)



Impairment and other non cash charges













1,389



Changes in operating assets and liabilities:

















Accounts receivable

(17,186)





17,965





5,319



Prepaid expenses and other current assets

11,146





4,242





(2,079)



Income taxes

29,990





(17,053)





68,601



Deferred charges and credits

9,870





(9,274)





(22,035)



Accounts payable and accrued liabilities

(36,478)





(41,947)





(18,394)



Deferred revenue

16,601





5,418





(4,581)



Other assets

(5,858)





(494)





2,419



Net cash provided by operating activities

417,127





318,502





266,490



Cash flows from investing activities:

















Additions of property and equipment

(42,268)





(23,107)





(25,828)



Purchase of patents

(192)





(192)





(193)



Purchase of GXS Group, Inc., net of cash acquired

(1,076,886)















Purchase of Cordys Holding B.V., net of cash acquired

(30,588)















Purchase of EasyLink Services International Corporation, net of cash acquired







(315,331)









Purchase of Resonate KT Limited, net of cash acquired







(19,366)









Purchase of ICCM Professional Services Limited, net of cash acquired







(11,257)









Purchase of System Solutions Australia Pty Limited (MessageManager), net of cash acquired







(516)





(1,738)



Purchase of Global 360 Holding Corp., net of cash acquired













(245,653)



Purchase of Operitel Corporation, net of cash acquired













(7,014)



Purchase consideration for prior period acquisitions

(887)





(875)





(1,113)



Other investing activities

(2,547)





(3,750)









Net cash used in investing activities

(1,153,368)





(374,394)





(281,539)



Cash flows from financing activities:

















Excess tax benefits on share-based compensation expense

1,844





915





2,723



Proceeds from issuance of Common Shares

24,808





16,347





21,270



Equity issuance costs

(144)















Purchase of Treasury Stock

(1,275)











(10,888)



Proceeds from long-term debt and revolver

800,000











648,500



Repayment of long-term debt

(45,911)





(30,677)





(349,187)



Debt issuance costs

(16,685)











(9,834)



Payments of dividends to shareholders

(74,693)





(17,703)









Net cash provided by (used in) financing activities

687,944





(31,118)





302,584



Foreign exchange gain (loss) on cash held in foreign currencies

5,742





(2,292)





(11,928)



Increase (decrease) in cash and cash equivalents during the period

(42,555)





(89,302)





275,607



Cash and cash equivalents at beginning of the period

470,445





559,747





284,140



Cash and cash equivalents at end of the period

$

427,890





$

470,445





$

559,747

































 

OPEN TEXT CORPORATION

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands of U.S. dollars)

 



Three Months Ended

June 30,




2014





2013



Cash flows from operating activities:











Net income for the period

$

88,148





$

42,172



Adjustments to reconcile net income to net cash provided by operating activities:











Depreciation and amortization of intangible assets

56,194





46,994



Share-based compensation expense

4,199





5,422



Excess tax benefits on share-based compensation expense

(169)





(303)



Pension expense

1,268





339



Amortization of debt issuance costs

1,131





532



Amortization of deferred charges and credits

2,667





3,195



Loss on sale and write down of property and equipment











Deferred taxes

(26,813)





1,566



Changes in operating assets and liabilities:











Accounts receivable

(36,315)





2,578



Prepaid expenses and other current assets

29,771





6,303



Income taxes

24,412





(2,146)



Deferred charges and credits







(12,854)



Accounts payable and accrued liabilities

(3,600)





(14,354)



Deferred revenue

(3,421)





(12,774)



Other assets

(2,558)





(1,453)



Net cash provided by operating activities

134,914





65,217



Cash flows from investing activities:











Additions of property and equipment

(13,825)





(7,315)



Purchase of patents







(192)



Purchase of GXS Group, Inc., net of cash acquired

785









Purchase of Cordys Holding B.V., net of cash acquired











Purchase of EasyLink Services International Corporation, net of cash acquired











Purchase of Resonate KT Limited, net of cash acquired











Purchase of ICCM Professional Services Limited, net of cash acquired







(11,257)



Purchase of System Solutions Australia Pty Limited (MessageManager), net of cash acquired











Purchase consideration for prior period acquisitions

(222)





(222)



Other investing activities







(3,750)



Net cash used in investing activities

(13,262)





(22,736)



Cash flows from financing activities:











Excess tax benefits on share-based compensation expense

169





303



Proceeds from issuance of Common Shares

5,090





8,817



Equity issuance costs











Purchase of Treasury Stock











Proceeds from long-term debt and revolver











Repayment of long-term debt

(13,412)





(7,669)



Debt issuance costs

(653)









Payments of dividends to shareholders

(21,001)





(17,703)



Net cash provided by (used in) financing activities

(29,807)





(16,252)



Foreign exchange gain (loss) on cash held in foreign currencies

(26)





(2,695)



Increase (decrease) in cash and cash equivalents during the period

91,819





23,534



Cash and cash equivalents at beginning of the period

336,071





446,911



Cash and cash equivalents at end of the period

$

427,890





$

470,445





 





Notes



(1)

All dollar amounts in this press release are in U.S. Dollars unless otherwise indicated.

 

(2)

Use of Non-GAAP Financial Measures: In addition to reporting financial results in accordance with U.S. GAAP, the Company provides certain financial measures that are not in accordance with U.S. GAAP (non-GAAP).These non-GAAP financial measures have certain limitations in that they do not have a standardized meaning and thus the Company's definition may be different from similar non-GAAP financial measures used by other companies and/or analysts and may differ from period to period. Thus it may be more difficult to compare the Company's financial performance to that of other companies. However, the Company's management compensates for these limitations by providing the relevant disclosure of the items excluded in the calculation of these non-GAAP financial measures both in its reconciliation to the U.S. GAAP financial measures and its consolidated financial statements, all of which should be considered when evaluating the Company's results.

 



The Company uses these non-GAAP financial measures to supplement the information provided in its consolidated financial statements, which are presented in accordance with U.S. GAAP. The presentation of non-GAAP financial measures are not meant to be a substitute for financial measures presented in accordance with U.S. GAAP, but rather should be evaluated in conjunction with and as a supplement to such U.S. GAAP measures. OpenText strongly encourages investors to review its financial information in its entirety and not to rely on a single financial measure. The Company therefore believes that despite these limitations, it is appropriate to supplement the disclosure of the U.S. GAAP measures with certain non-GAAP measures defined below.

 



Non-GAAP-based net income and non-GAAP-based EPS are calculated as net income or net income per share on a diluted basis, excluding, the amortization of acquired intangible assets, other income (expense), share-based compensation, and special charges, all net of tax. Non-GAAP-based gross profit is the arithmetical sum of GAAP-based gross profit and the amortization of acquired technology-based intangible assets. Non-GAAP-based gross margin is calculated as non-GAAP-based gross profit expressed as a percentage of revenue. Non-GAAP-based income from operations is calculated as income from operations, excluding, the amortization of acquired intangible assets, special charges, and share-based compensation. Non-GAAP-based operating margin is calculated as non-GAAP-based income from operations expressed as a percentage of revenue.

 



The Company's management believes that the presentation, of the above defined non-GAAP financial measures, provides useful information to investors because they portray the financial results of the Company before the impact of certain non-operational charges. The use of the term "non-operational charge" is defined for this purpose as an expense that does not impact the ongoing operating decisions taken by the Company's management and is based upon the way the Company's management evaluates the performance of the Company's business for use in the Company's internal reports. In the course of such evaluation and for the purpose of making operating decisions, the Company's management excludes certain items from its analysis, including amortization of acquired intangible assets, special charges, share-based compensation, other income (expense), and the taxation impact of these items. These items are excluded based upon the manner in which management evaluates the business of the Company and are not excluded in the sense that they may be used under U.S. GAAP.

 



The Company believes the provision of supplemental non-GAAP measures allow investors to evaluate the operational and financial performance of the Company's core business using the same evaluation measures that management uses, and is therefore a useful indication of OpenText's performance or expected performance of future operations and facilitates period-to-period comparison of operating performance (although prior performance is not necessarily indicative of future performance). As a result, the Company considers it appropriate and reasonable to provide, in addition to U.S. GAAP measures, supplementary non-GAAP financial measures that exclude certain items from the presentation of its financial results in this press release.







The following charts provide (unaudited) reconciliations of U.S. GAAP-based financial measures to non-U.S. GAAP-based financial measures for the following periods presented:









Reconciliation of selected GAAP-based measures to Non-GAAP-based measures for the three months ended June 30, 2014.

(In thousands except for per share amounts)



Three Months Ended

June 30, 2014



GAAP-based

Measures

GAAP-based Measures

% of Revenue

Adjustments

Note

Non-GAAP-based

Measures

Non-GAAP-based Measures

% of Revenue

Cost of revenues























Cloud services

$

55,780







$

(197)



(1)

$

55,583







Customer support

24,195







(207)



(1)

23,988







Professional service and other

51,041







(112)



(1)

50,929







Amortization of acquired technology-based intangible assets

18,205







(18,205)



(2)









GAAP-based gross profit and gross margin (%) /

Non-GAAP-based gross profit and gross margin (%)


341,262



69.1

%

18,721



(3)

359,983



72.9

%

Operating expenses























Research and development

47,502







(450)



(1)

47,052







Sales and marketing

101,240







(1,112)



(1)

100,128







General and administrative

41,413







(2,121)



(1)

39,292







Amortization of acquired customer-based intangible assets

26,635







(26,635)



(2)









Special charges

5,413







(5,413)



(4)









GAAP-based income from operations and operating margin (%) / Non-GAAP-based income from operations and operating margin (%)

107,705



21.8

%

54,452



(5)

162,157



32.8

%

Other income (expense), net

1,103







(1,103)



(6)









Provision for (recovery of) income taxes

9,885







12,785



(7)

22,670







GAAP-based net income / Non-GAAP-based net income, attributable to OpenText

88,111







40,564



(8)

128,675







GAAP-based earnings per share /

Non GAAP-based earnings per share-diluted, attributable to OpenText


$

0.72







$

0.33



(8)

$

1.05









 

(1)

Adjustment relates to the exclusion of share based compensation expense from our Non-GAAP-based operating expenses as this expense is excluded from our internal analysis of operating results.

(2)

Adjustment relates to the exclusion of amortization expense from our Non-GAAP-based operating expenses as the timing and frequency of amortization expense is dependent on our acquisitions and is hence excluded from our internal analysis of operating results.

(3)

GAAP-based and Non-GAAP-based gross profit stated in dollars, and gross margin stated as a percentage of revenue.

(4)

Adjustment relates to the exclusion of Special charges from our Non-GAAP-based operating expenses as Special charges are generally incurred in the periods following the relevant acquisitions and are not indicative or related to continuing operations and are therefore excluded from our internal analysis of operating results.

(5)

GAAP-based and Non-GAAP-based income from operations stated in dollars, and operating margin stated as a percentage of revenue.

(6)

Adjustment relates to the exclusion of Other income (expense) from our Non-GAAP-based operating expenses as Other income (expense) relates primarily to the transactional impact of foreign exchange and is generally not indicative or related to continuing operations and is therefore excluded from our internal analysis of operating results.

(7)

Adjustment relates to differences between the GAAP-based tax provision of approximately 10% and a Non-GAAP-based tax rate of 15%; these rate differences are due to the income tax effects of expenses that are excluded for the purpose of calculating Non-GAAP-based adjusted net income.

(8)

Reconciliation of Non-GAAP-based adjusted net income to GAAP-based net income:  



 



Three Months Ended

June 30, 2014








Per share diluted

Non-GAAP-based net income, attributable to OpenText

$

128,675



$

1.05



Less:









Amortization

44,840



0.37



Share-based compensation

4,199



0.03



Special charges

5,413



0.04



Other (income) expense, net

(1,103)



(0.01)



GAAP-based provision for (recovery of) income taxes

9,885



0.08



Non-GAAP-based provision for income taxes

(22,670)



(0.18)



GAAP-based net income, attributable to OpenText

$

88,111



$

0.72







 

Reconciliation of selected GAAP-based measures to Non-GAAP-based measures for the year ended June 30, 2014.

(In thousands except for per share amounts)



Year Ended

June 30, 2014




GAAP-based

Measures

GAAP-based Measures

% of Revenue

Adjustments

Note

Non-GAAP-based

Measures

Non-GAAP-based Measures

% of Revenue

Cost of revenues























Cloud services

$

135,472







$

(342)



(1)

$

135,130







Customer support

95,980







(754)



(1)

95,226







Professional service and other

196,939







(855)



(1)

196,084







Amortization of acquired technology-based intangible assets

69,917







(69,917)



(2)









GAAP-based gross profit and gross margin (%) /

Non-GAAP-based gross profit and gross margin (%)


1,113,029



68.5

%

71,868



(3)

1,184,897



72.9

%

Operating expenses























Research and development

176,834







(2,356)



(1)

174,478







Sales and marketing

345,643







(7,312)



(1)

338,331







General and administrative

142,450







(8,287)



(1)

134,163







Amortization of acquired customer-based intangible assets

81,023







(81,023)



(2)









Special charges

31,314







(31,314)



(4)









GAAP-based income from operations and operating margin (%) / Non-GAAP-based income from operations and operating margin (%)

300,528



18.5

%

202,160



(5)

502,688



30.9

%

Other income (expense), net

3,941







(3,941)



(6)









Provision for (recovery of) income taxes

58,461







9,569



(7)

68,030







GAAP-based net income / Non-GAAP-based net income, attributable to OpenText

218,125







188,650



(8)

406,775







GAAP-based earnings per share /

Non GAAP-based earnings per share-diluted, attributable to OpenText


$

1.81







$

1.56



(8)

$

3.37









 

(1)

Adjustment relates to the exclusion of share based compensation expense from our Non-GAAP-based operating expenses as this expense is excluded from our internal analysis of operating results.

(2)

Adjustment relates to the exclusion of amortization expense from our Non-GAAP-based operating expenses as the timing and frequency of amortization expense is dependent on our acquisitions and is hence excluded from our internal analysis of operating results.

(3)

GAAP-based and Non-GAAP-based gross profit stated in dollars, and gross margin stated as a percentage of revenue.

(4)

Adjustment relates to the exclusion of Special charges from our Non-GAAP-based operating expenses as Special charges are generally incurred in the periods following the relevant acquisitions and are not indicative or related to continuing operations and are therefore excluded from our internal analysis of operating results.

(5)

GAAP-based and Non-GAAP-based income from operations stated in dollars, and operating margin stated as a percentage of revenue.

(6)

Adjustment relates to the exclusion of Other income (expense) from our Non-GAAP-based operating expenses as Other income (expense) relates primarily to the transactional impact of foreign exchange and is generally not indicative or related to continuing operations and is therefore excluded from our internal analysis of operating results.

(7)

Adjustment relates to differences between the GAAP-based tax provision of approximately 21% and a Non-GAAP-based tax rate of 14.3%; these rate differences are due to the income tax effects of expenses that are excluded for the purpose of calculating Non-GAAP-based adjusted net income.

(8)

Reconciliation of Non-GAAP-based adjusted net income to GAAP-based net income:  



 



Year Ended

June 30, 2014








Per share diluted

Non-GAAP-based net income, attributable to OpenText

$

406,775



$

3.37



Less:









Amortization

150,940



1.25



Share-based compensation

19,906



0.17



Special charges

31,314



0.26



Other (income) expense, net

(3,941)



(0.03)



GAAP-based provision for (recovery of) income taxes

58,461



0.48



Non-GAAP-based provision for income taxes

(68,030)



(0.57)



GAAP-based net income, attributable to OpenText

$

218,125



$

1.81





 





Reconciliation of selected GAAP-based measures to Non-GAAP-based measures for the three months ended March 31, 2014.

(In thousands except for per share amounts)



Three Months Ended

March 31, 2014




GAAP-based

Measures

GAAP-based Measures

% of Revenue

Adjustments

Note

Non-GAAP-based

Measures

Non-GAAP-based Measures

% of Revenue

Cost of revenues























Cloud services

$

49,464







$

(167)



(1)

$

49,297







Customer support

25,206







(138)



(1)

25,068







Professional service and other

49,218







(245)



(1)

48,973







Amortization of acquired technology-based intangible assets

17,147







(17,147)



(2)









GAAP-based gross profit and gross margin (%) /

Non-GAAP-based gross profit and gross margin (%)


298,192



67.3

%

17,697



(3)

315,889



71.3

%

Operating expenses























Research and development

47,199







(384)



(1)

46,815







Sales and marketing

93,700







(1,926)



(1)

91,774







General and administrative

39,336







(1,558)



(1)

37,778







Amortization of acquired customer-based intangible assets

24,679







(24,679)



(2)









Special charges

15,902







(15,902)



(4)









GAAP-based income from operations and operating margin (%) / Non-GAAP-based income from operations and operating margin (%)

66,849



15.1

%

62,146



(5)

128,995



29.1

%

Other income (expense), net

1,652







(1,652)



(6)









Provision for (recovery of) income taxes

12,971







3,814



(7)

16,785







GAAP-based net income / Non-GAAP-based net income, attributable to OpenText

45,884







56,680



(8)

102,564







GAAP-based earnings per share /

Non GAAP-based earnings per share-diluted, attributable to OpenText


$

0.38







$

0.46



(8)

$

0.84









 

(1)

Adjustment relates to the exclusion of share based compensation expense from our Non-GAAP-based operating expenses as this expense is excluded from our internal analysis of operating results.

(2)

Adjustment relates to the exclusion of amortization expense from our Non-GAAP-based operating expenses as the timing and frequency of amortization expense is dependent on our acquisitions and is hence excluded from our internal analysis of operating results.

(3)

GAAP-based and Non-GAAP-based gross profit stated in dollars, and gross margin stated as a percentage of revenue.

(4)

Adjustment relates to the exclusion of Special charges from our Non-GAAP-based operating expenses as Special charges are generally incurred in the periods following the relevant acquisitions and are not indicative or related to continuing operations and are therefore excluded from our internal analysis of operating results.

(5)

GAAP-based and Non-GAAP-based income from operations stated in dollars, and operating margin stated as a percentage of revenue.

(6)

Adjustment relates to the exclusion of Other income (expense) from our Non-GAAP-based operating expenses as Other income (expense) relates primarily to the transactional impact of foreign exchange and is generally not indicative or related to continuing operations and is therefore excluded from our internal analysis of operating results.

(7)

Adjustment relates to differences between the GAAP-based tax provision of approximately 22% and a Non-GAAP-based tax rate of 14%; these rate differences are due to the income tax effects of expenses that are excluded for the purpose of calculating Non-GAAP-based adjusted net income.

(8)

Reconciliation of Non-GAAP-based adjusted net income to GAAP-based net income:  



 



Three Months Ended

March 31, 2014








Per share diluted

Non-GAAP-based net income, attributable to OpenText

$

102,564



$

0.84



Less:









Amortization

41,826



0.34



Share-based compensation

4,418



0.04



Special charges

15,902



0.13



Other (income) expense, net

(1,652)



(0.01)



GAAP-based provision for (recovery of) income taxes

12,971



0.11



Non-GAAP-based provision for income taxes

(16,785)



(0.15)



GAAP-based net income, attributable to OpenText

$

45,884



$

0.38







 

Reconciliation of selected GAAP-based measures to Non-GAAP-based measures for the nine months ended March 31, 2014.

(In thousands except for per share amounts)



Nine Months Ended

March 31, 2014




GAAP-based

Measures

GAAP-based Measures

% of Revenue

Adjustments

Note

Non-GAAP-based

Measures

Non-GAAP-based Measures

% of Revenue

Cost of revenues























Cloud services

$

79,692







$

(145)



(1)

$

79,547







Customer support

71,785







(547)



(1)

71,238







Professional service and other

145,898







(743)



(1)

145,155







Amortization of acquired technology-based intangible assets

51,712







(51,712)



(2)









GAAP-based gross profit and gross margin (%) /

Non-GAAP-based gross profit and gross margin (%)


771,767



68.3

%

53,147



(3)

824,914



73.0

%

Operating expenses























Research and development

129,332







(1,906)



(1)

127,426







Sales and marketing

244,403







(6,200)



(1)

238,203







General and administrative

101,037







(6,166)



(1)

94,871







Amortization of acquired customer-based intangible assets

54,388







(54,388)



(2)









Special charges

25,901







(25,901)



(4)









GAAP-based income from operations and operating margin (%) / Non-GAAP-based income from operations and operating margin (%)

192,823



17.1

%

147,708



(5)

340,531



30.1

%

Other income (expense), net

2,838







(2,838)



(6)









Provision for (recovery of) income taxes

48,576







(3,216)



(7)

45,360







GAAP-based net income / Non-GAAP-based net income, attributable to OpenText

130,014







148,086



(8)

278,100







GAAP-based earnings per share /

Non GAAP-based earnings per share-diluted, attributable to OpenText


$

1.08







$

1.24



(8)

$

2.32









 

(1)

Adjustment relates to the exclusion of share based compensation expense from our Non-GAAP-based operating expenses as this expense is excluded from our internal analysis of operating results.

(2)

Adjustment relates to the exclusion of amortization expense from our Non-GAAP-based operating expenses as the timing and frequency of amortization expense is dependent on our acquisitions and is hence excluded from our internal analysis of operating results.

(3)

GAAP-based and Non-GAAP-based gross profit stated in dollars, and gross margin stated as a percentage of revenue.

(4)

Adjustment relates to the exclusion of Special charges from our Non-GAAP-based operating expenses as Special charges are generally incurred in the periods following the relevant acquisitions and are not indicative or related to continuing operations and are therefore excluded from our internal analysis of operating results.

(5)

GAAP-based and Non-GAAP-based income from operations stated in dollars, and operating margin stated as a percentage of revenue.

(6)

Adjustment relates to the exclusion of Other income (expense) from our Non-GAAP-based operating expenses as Other income (expense) relates primarily to the transactional impact of foreign exchange and is generally not indicative or related to continuing operations and is therefore excluded from our internal analysis of operating results.

(7)

Adjustment relates to differences between the GAAP-based tax provision of approximately 27% and a Non-GAAP-based tax rate of 14%; these rate differences are due to the income tax effects of expenses that are excluded for the purpose of calculating Non-GAAP-based adjusted net income.

(8)

Reconciliation of Non-GAAP-based adjusted net income to GAAP-based net income:  



 



Nine Months Ended

March 31, 2014








Per share diluted

Non-GAAP-based net income, attributable to OpenText

$

278,100



$

2.32



Less:









Amortization

106,100



0.88



Share-based compensation

15,707



0.13



Special charges

25,901



0.22



Other (income) expense, net

(2,838)



(0.02)



GAAP-based provision for (recovery of) income taxes

48,576



0.40



Non-GAAP-based provision for income taxes

(45,360)



(0.37)



GAAP-based net income, attributable to OpenText

$

130,014



$

1.08





 





Reconciliation of selected GAAP-based measures to Non GAAP-based measures for the three months ended June 30, 2013.

(In thousands except for per share amounts)



Three Months Ended

June 30, 2013




GAAP-based

Measures

GAAP-based Measures

% of Revenue

Adjustments

Note

Non-GAAP-based

Measures

Non-GAAP-based Measures

% of Revenue

Cost of revenues:























Cloud services

$

17,696







$

(48)



(1)

$

17,648







Customer support

25,351







(159)



(1)

25,192







Professional service and other

47,879







(255)



(1)

47,624







Amortization of acquired technology-based intangible assets

23,579







(23,579)



(2)









GAAP-based gross profit and gross margin (%) /

Non-GAAP-based gross profit and gross margin (%)


229,233



66.0

%

24,041



(3)

253,274



72.9

%

Operating expenses























Research and development

42,383







(526)



(1)

41,857







Sales and marketing

79,338







(2,476)



(1)

76,862







General and administrative

27,857







(1,958)



(1)

25,899







Amortization of acquired customer-based intangible assets

17,197







(17,197)



(2)









Special charges

6,767







(6,767)



(4)









GAAP-based income from operations and operating margin (%) / Non-GAAP-based income from operations and operating margin (%)

49,473



14.2

%

52,965



(5)

102,438



29.5

%

Other income (expense), net

(4,180)







4,180



(6)









Provision for (recovery of) income taxes

(869)







14,652



(7)

13,783







GAAP-based net income / Non-GAAP-based net income, attributable to OpenText

42,172







42,493



(8)

84,665







GAAP-based earnings per share /

Non GAAP-based earnings per share-diluted, attributable to OpenText


$

0.36







$

0.36



(8)

$

0.72









 

(1)

Adjustment relates to the exclusion of share based compensation expense from our Non-GAAP-based operating expenses as this expense is excluded from our internal analysis of operating results.

(2)

Adjustment relates to the exclusion of amortization expense from our Non-GAAP-based operating expenses as the timing and frequency of amortization expense is dependent on our acquisitions and is hence excluded from our internal analysis of operating results.

(3)

GAAP-based and Non-GAAP-based gross profit stated in dollars, and gross margin stated as a percentage of revenue.

(4)

Adjustment relates to the exclusion of Special charges from our Non-GAAP-based operating expenses as Special charges are generally incurred in the periods following the relevant acquisitions and are not indicative or related to continuing operations and are therefore excluded from our internal analysis of operating results.

(5)

GAAP-based and Non-GAAP-based income from operations stated in dollars, and operating margin stated as a percentage of revenue.

(6)

Adjustment relates to the exclusion of Other income (expense) from our Non-GAAP-based operating expenses as Other income (expense) relates primarily to the transactional impact of foreign exchange and is generally not indicative or related to continuing operations and is therefore excluded from our internal analysis of operating results.

(7)

Adjustment relates to differences between the GAAP-based tax recovery of approximately 2% and a Non-GAAP-based tax rate of 14%; these rate differences are due to the income tax effects of expenses that are excluded for the purpose of calculating Non-GAAP-based adjusted net income.

(8)

Reconciliation of Non-GAAP-based adjusted net income to GAAP-based net income:  



 



Three Months Ended

June 30, 2013








Per share diluted

Non-GAAP-based net income, attributable to OpenText

$

84,665



$

0.72



Less:









Amortization

40,776



0.34



Share-based compensation

5,422



0.05



Special charges

6,767



0.06



Other (income) expense, net

4,180



0.04



GAAP-based provision for (recovery of) income taxes

(869)



(0.01)



Non-GAAP-based provision for income taxes

(13,783)



(0.12)



GAAP-based net income, attributable to OpenText

$

42,172



$

0.36





 



 

Reconciliation of selected GAAP-based measures to Non GAAP-based measures for the year ended June 30, 2013.

(In thousands except for per share amounts)



Year Ended

June 30, 2013




GAAP-based

Measures

GAAP-based Measures

% of Revenue

Adjustments

Note

Non-GAAP-based

Measures

Non-GAAP-based Measures

% of Revenue

Cost of revenues:























Cloud services

$

72,365







$

(128)



(1)

$

72,237







Customer support

106,948







(434)



(1)

106,514







Professional service and other

196,874







(915)



(1)

195,959







Amortization of acquired technology-based intangible assets

93,610







(93,610)



(2)









GAAP-based gross profit and gross margin (%) /

Non-GAAP-based gross profit and gross margin (%)


877,432



64.4

%

95,087



(3)

972,519



71.3

%

Operating expenses























Research and development

164,010







(1,693)



(1)

162,317







Sales and marketing

289,157







(8,429)



(1)

280,728







General and administrative

109,325







(3,976)



(1)

105,349







Amortization of acquired customer-based intangible assets

68,745







(68,745)



(2)









Special charges

24,034







(24,034)



(4)









GAAP-based income from operations and operating margin (%) / Non-GAAP-based income from operations and operating margin (%)

197,665



14.5

%

201,964



(5)

399,629



29.3

%

Other income (expense), net

(2,473)







2,473



(6)









Provision for (recovery of) income taxes

29,690







23,881



(7)

53,571







GAAP-based net income / Non-GAAP-based net income, attributable to OpenText

148,520







180,556



(8)

329,076







GAAP-based earnings per share /

Non GAAP-based earnings per share-diluted, attributable to OpenText


$

1.26







$

1.53



(8)

$

2.79









 

(1)

Adjustment relates to the exclusion of share based compensation expense from our Non-GAAP-based operating expenses as this expense is excluded from our internal analysis of operating results.

(2)

Adjustment relates to the exclusion of amortization expense from our Non-GAAP-based operating expenses as the timing and frequency of amortization expense is dependent on our acquisitions and is hence excluded from our internal analysis of operating results.

(3)

GAAP-based and Non-GAAP-based gross profit stated in dollars, and gross margin stated as a percentage of revenue.

(4)

Adjustment relates to the exclusion of Special charges from our Non-GAAP-based operating expenses as Special charges are generally incurred in the periods following the relevant acquisitions and are not indicative or related to continuing operations and are therefore excluded from our internal analysis of operating results.

(5)

GAAP-based and Non-GAAP-based income from operations stated in dollars, and operating margin stated as a percentage of revenue.

(6)

Adjustment relates to the exclusion of Other income (expense) from our Non-GAAP-based operating expenses as Other income (expense) relates primarily to the transactional impact of foreign exchange and is generally not indicative or related to continuing operations and is therefore excluded from our internal analysis of operating results.

(7)

Adjustment relates to differences between the GAAP-based tax provision of approximately 17% and a Non-GAAP-based tax rate of 14%; these rate differences are due to the income tax effects of expenses that are excluded for the purpose of calculating Non-GAAP-based adjusted net income.

(8)

Reconciliation of Non-GAAP-based adjusted net income to GAAP-based net income:  



 



Year Ended

June 30, 2013








Per share diluted

Non-GAAP-based net income, attributable to OpenText

$

329,076



$

2.79



Less:









Amortization

162,355



1.37



Share-based compensation

15,575



0.13



Special charges

24,034



0.20



Other (income) expense, net

2,473



0.02



GAAP-based provision for (recovery of) income taxes

29,690



0.25



Non-GAAP-based provision for income taxes

(53,571)



(0.44)



GAAP-based net income, attributable to OpenText

$

148,520



$

1.26





 


(3)

The following tables provide a composition of our major currencies for revenue and expenses, expressed as a percentage, for the three months and year ended June 30, 2014 and 2013:



 



Three Months Ended

June 30, 2014




Three Months Ended

June 30, 2013


Currencies

% of Revenue

% of Expenses*



% of Revenue

% of Expenses*

EURO

25

%

18

%



26

%

17

%

GBP

9

%

10

%



8

%

8

%

CAD

5

%

12

%



6

%

19

%

USD

49

%

42

%



49

%

42

%

Other

12

%

18

%



11

%

14

%

Total

100

%

100

%



100

%

100

%



 



Year Ended

June 30, 2014




Year Ended

June 30, 2013


Currencies

% of Revenue

% of Expenses*



% of Revenue

% of Expenses*

EURO

27

%

18

%



26

%

17

%

GBP

9

%

9

%



8

%

8

%

CAD

5

%

15

%



6

%

18

%

USD

48

%

42

%



49

%

43

%

Other

11

%

16

%



11

%

14

%

Total

100

%

100

%



100

%

100

%





*Expenses include all cost of revenues and operating expenses included within the Consolidated Statements of Income, except for amortization of intangible assets, share-based compensation and Special charges.



SOURCE Open Text Corporation


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