Category Archives: News

DocuWare’s “Cloud-First” Strategy Produces Strong 2017 Results

DocuWare Reports Record Revenue of Euro 44 million, led by nearly 140% Cloud Growth

DocuWare announced today its full-year fiscal 2017 financial results for the period ending December 31, 2017.

“In 2017, DocuWare experienced accelerated growth and increased profitability across its entire business,” said company co-president Juergen Biffar.  “Our total revenues of 44.0 million EUR were up 18% from 2016, 20% after adjusting for foreign currency effects. Overall, our Cloud revenues grew nearly 140%, while our traditional new and add-on premise license sales increased 17%. We attribute this breakthrough year to our relentless customer-centric focus, highlighted by our product’s ease of use, and excellent execution from our large and growing partner base that continues to benefit from our structured sales and enablement programs.”

Other fiscal 2017 financial highlights include:

  • Total cloud revenue of 4.1 million EUR, up 139%, and total cloud bookings of 6.5 million EUR, the majority of which will be recognized in 2018 and beyond.
  • Added nearly 1,800 new customers, up 44%
  • Consistent with our strategy to become a “cloud-first” company, 45% of new customers selected cloud, up from 29% in the previous year.
  • Total order achievement (defined as license orders and first-year maintenance plus the total contract value of cloud orders) was up 35%.
  • Total deferred revenue of 19.2 million EUR, up 22% from year-end 2016.
  • EBITDA margin of 12%, or 5.4 million EUR, while generating 9.7 million EUR of additional cash.
  • Cash flow from operations of 10.8 million EUR, driving an increase in the company’s cash position to almost 30 million EUR.
  • A 96% cloud renewal rate in 2017, proving the maturity and attractiveness of our cloud product, and demonstrating our ability to support cloud through channel partners.

DocuWare Cloud delivers the full functionality of an on-premises system and is used by companies of all sizes and industries worldwide.

Biffar continued, “DocuWare offers the right range of features at an attractive price with minimal implementation effort. The compelling economies of scale of the Azure hosting platform and relatively low operating and support costs of the cloud give us a strong competitive advantage as we continue our transition into a cloud-first company. We want to express our thanks to all employees and business partners for their continued support of DocuWare and look forward to continued market momentum in 2018.”

Ideagen completes acquisition of US-based Medforce Technologies Inc

Healthcare software specialists, Medforce, marks Ideagen’s first American acquisition1

Ideagen, the UK-based technology firm, has announced the acquisition of American healthcare software specialists, Medforce Technologies Inc, for $8.7m.

Medforce is a growing, profitable and cash generative organization which has successfully developed its Command suite of enterprise information management, workflow, and compliance software since 1993.

Its flagship CommandCenter product is used by over 300 customers including CVS Caremark, McKesson, Lincare Holdings Inc, Rotech Healthcare Inc and Mayo Clinic, supporting business process productivity and legal compliance.

With offices near New York and Kansas, Medforce becomes Ideagen’s first American acquisition and adds a strong client base, an established suite of intellectual property and a skilled workforce to Ideagen’s growing global operations.

David Hornsby, Ideagen’s CEO, said the acquisition met Ideagen’s strict performance metrics and would provide the company with further growth opportunities in a strategic market.

He added: “Medforce is a valuable addition to the Group and is in line with our strategy of acquiring businesses that have strong IP and recurring revenues.

“Medforce has established an extremely compelling value proposition and brings to the Group a complementary solution offering a talented workforce and long-term customer relationships. This acquisition further strengthens our position in the US Healthcare market.”

Medforce established itself as an innovative software provider through its comprehensive Command product suite, which includes business process and information management software as well as an electronic signature product designed specifically for healthcare.

For the year ending 31st December, 2017, the company achieved revenue totaling $4.7m of which 82% was recurring.

Mr. Hornsby added: “The acquisition of Medforce provides an additional source of recurring revenue and broadens our relationships in the existing healthcare sector while enhancing our geographic customer footprint.

“The first half of the current financial year saw significant growth in the US for Ideagen, with over 50% of all new logo wins and 70% of all new SaaS wins. The Medforce acquisition will provide infrastructure and a platform for further growth in this key market as we continue our global growth plan.”

Medforce is Ideagen’s 13th acquisition in just over a decade and means the company now has a major operational presence in the US, UK, Asia and Central Europe.

1Xamcor Inc. acted as sole M&A advisor to Medforce for this transaction.

Consilio and Advanced Discovery Join Forces to Form Global eDiscovery and Risk Management Market Leader

Combined global operations, patented innovation and expert consulting resources to deliver an unparalleled service experience to clients

Consilio, a global leader in eDiscovery, document review, and legal consulting services, and Advanced Discovery, a global eDiscovery and risk management provider, have announced a definitive agreement to unite their worldwide operations, technology solutions and consulting resources.  The combined company will consist of over 2,500 employees, 14 data centers and 23 document review facilities in 11 countries.  The company’s global operations will support large-scale, fast-moving matters that need to process, host and review vast repositories of data.  The full solution suite will span information governance, risk management, eDiscovery and document and contract review.

“Advanced Discovery and Consilio are both recognized leaders in our market – with complementary products and services and a shared culture and vision,” said Andy Macdonald, chief executive officer of Consilio.  “Together, we bring the industry’s most consultative and capable services delivery team with the industry’s most innovative technologies – on a global scale – to ensure long term success for our clients.”

“By combining with Consilio, we create the scale and scope of operations to serve our clients anywhere in the world and provide a tremendous breadth of technology solutions at all stages of the eDiscovery and risk management lifecycles,” said Jim Burke, chief executive officer of Advanced Discovery.  “Together, we plan to build even more competitive advantages for our clients by expanding our infrastructure, extending our solutions portfolio, expanding our geographic coverage and retaining and attracting the strongest teams of expert advisors.”

As part of this transaction, Consilio and Advanced Discovery have announced a new partnership with GI Partners, a leading private equity firm based in San Francisco, California.  Under the terms of the partnership, GI Partners will take a majority position in the combined companies, and current investors, Shamrock Capital Advisors and Trivest Partners, will exit their respective positions. 

“We are excited to catalyze the combination of these two outstanding companies,” said Hoon Cho, Managing Director at GI Partners.  “Scale is a critical factor in this market, enabling us to make important investments in technology, data security, talented people and worldwide operations.  We believe that these two particular companies – which are well-matched strategically, operationally and culturally – are very complementary to one another and will mesh seamlessly to create an unparalleled technology-enabled services provider.”

The combined company will be led by Andy Macdonald, who has been named chief executive officer.  Jim Burke will join the new company board as a director.

The transaction is expected to close in the second quarter of 2018 followed by an integration period of several quarters as the two businesses align systems and processes. 

Konica Minolta Acquires Techline Communications

Konica Minolta Business Solutions U.S.A., Inc. (Konica Minolta) today announced the acquisition of TechLine Communications, Inc., a Seattle, Washington-based systems integrator that specializes in the design and implementation of Process Automation, Content Integration and Business Information Delivery Systems.

TechLine works closely with its clients to automate and streamline key business processes. The company provides professional services for consulting, implementation, custom development, training and support. It has successfully implemented hundreds of solutions since 1993, and has years of continuous relationships supporting its customers. TechLine is also a reseller of an ECM product line that includes the offerings of partners like OnBase, OpenText, Dialogic, and AVST.

“This acquisition expands our reach into the Pacific Northwest through a well-established group that does a considerable amount of work with both the public and private sectors,” said Kevin Kern, Senior Vice President, Business Intelligence Services and Product Planning, Konica Minolta. We couldn’t be more thrilled by the addition of this new group.

John Fisk, President of TechLine, added, “This deal solidifies our longstanding commitment to provide our customers with a broader set of resources and software solutions to better meet their continuing needs.”

Konica Minolta’s ECM solutions and services capabilities leverage the speed and power of technology to make organizations run more efficiently, while helping them transition into the workplace of the future.

GI Partners acquires Doxim from Strattam

Doxim Inc. (“Doxim”) today announced that GI Partners (“GI”) has acquired a majority stake in the company from Strattam Capital (“Strattam”). Doxim’s existing management team will maintain a significant ownership in the company.

Founded in 2000, Doxim helps over 1,700 clients in the financial services industry digitize the consumer experience to create better connections at every touch-point and dramatically improve service at a fraction of current operating costs. Doxim’s offering includes its enterprise content management platform and statements solutions, which comprise digital composition, delivery, and archiving, as well as print services. The Doxim Customer Engagement Platform enables omni-channel customer experience that improves long-term loyalty and drives wallet share.

Chris Rasmussen, CEO of Doxim, said “We are excited to welcome GI as a partner for this new chapter and thank the Strattam team for helping us build the foundation for our next phase of growth. We have become the technology provider of choice for financial institutions across North America with relentless passion for delivering quality, innovation, and superior customer service. GI’s experienced team and commitment to the growth of our business strengthen the promise we have made and direction we have outlined to our valued clients, partners, and employees.”

“It has been wonderful to see Doxim’s progress since our initial investment,” said Bob Morse, Managing Partner and co-Founder of Strattam. “When we first met Chris, we were impressed by his goals for the company, and we knew that we had the people and tools to make those goals reality. We agreed to a 5-Point Plan before we signed the deal to make a meaningful difference in the company’s growth curve by augmenting its process, team and market reach. What the company has achieved is outstanding, even by the ambitious goals we had at the outset. Chris and the team have done a fantastic job in positioning the company for future growth.”

Travis Pearson, Managing Director at GI Partners said, “Doxim’s leadership in customer engagement solutions, its sizable market opportunity, and the company’s intense focus on its clients’ success all combine to create a unique opportunity. We are excited and proud to partner with Chris and the Doxim leadership team to help them continue their emphasis on innovation and growth.”

Headquartered in Markham, Ontario, Doxim has offices throughout the United States and Canada.

 

M-Files Delivers 37 Percent Revenue Growth in 2017 and Exceeds 750 Percent Over the Last Six Years

M-Files 2018 and the Intelligent Metadata Layer fuel strong global performance with a new system-neutral approach for accessing and managing information across the enterprise without migration

M-Files Corporation today announced 2017 growth metrics and corporate achievements, reaffirming its position as the most innovative and fastest-growing provider in the enterprise content management (ECM) and content services platforms (CSP) space.

M-Files grew revenue by more than 37 percent in 2017 over 2016, including strong growth in both direct sales and through its global partner network, now numbering more than 600 partners worldwide. The Company also achieved a 121 percent increase in cloud revenue in 2017. Continued strong growth in the Company’s SaaS (Software-as-a-Service) business, along with accelerating market acceptance of its unique intelligent information management platform, has fueled sustained revenue growth of more than 750 percent over the last six years.

M-Files also opened offices in France, Australia and Canada in 2017, with the French office resulting from the acquisition of Steamdesign, a local French M-Files partner. In addition, M-Files has been aggressively hiring with an increase in staff of over 12 percent in 2017.

M-Files focused on expanding artificial intelligence (AI) capabilities in 2017, partnering with ABBYY, a global provider of innovative language-based and artificial intelligence technologies. Then in August, M-Files acquired Apprento, a Canada-based provider of AI technology solutions that brought new natural language processing (NLP) and natural language understanding (NLU) technologies to the M-Files platform. In December, M-Files launched M-Files 2018, a major new product release that represents a fundamental step forward in how businesses manage information. M-Files 2018 and the new Intelligent Metadata Layer (IML) provide a unified and simple interface that leverages AI to enable users to quickly access and use documents and other information regardless of the system in which they are stored. The resulting approach allows businesses to innovate and improve how they manage information in a flexible and phased manner without disturbing existing systems and processes and without complex migration projects.

“Our incredible track record of rapid growth is a direct result of our commitment to customer success and aggressive investment in our unique approach and innovative technologies that change how companies manage the overwhelming amount of information they confront daily,” said Miika Mäkitalo, CEO at M-Files Corporation. “We’re performing exceptionally well in all key areas of the business, far outpacing the market and any individual competitor. M-Files 2018 and the new Intelligent Metadata Layer are not only changing our business, they have changed the definition of the market by the analysts who now describe a new, more dynamic and flexible approach that is system-neutral and intelligent. This is our vision; it’s shaping the market in profound ways, and if the uptake on M-Files 2018 in December is any indication, 2018 will be another year of record-breaking growth.”

 

Nintex Announces Agreement with Thoma Bravo as New Lead Investor

New investment from Thoma Bravo will facilitate the company’s continued growth and market leadership in delivering intelligent process automation technology to thousands of enterprises worldwide

Nintex today announced that it has entered into an agreement with Thoma Bravo, LLC in which the leading private equity investment firm will now own a majority stake in the company.  Founded in Melbourne, Australia in 2006, Nintex leveraged its early success with a major global expansion and move to the cloud in 2013.  Since then, Nintex has established itself as the leading innovator in intelligent process automation, helping nearly 8,000 enterprises in 90 countries automate millions of critical business processes.

“For several years, we’ve watched Nintex pioneer the workflow and content automation category by delivering best-in-class technology and evolving to the cloud, all while producing impressive growth and financial results,” said Thoma Bravo Partner Hudson Smith. “We firmly believe that process automation is highly achievable for many more thousands of enterprises through the Nintex Workflow Cloud.  Our goal is to help Nintex achieve its strategic objectives and vision through leveraging the experience and resources of Thoma Bravo.  We’re excited to become the company’s lead investor in its next phase of growth.”

Harry Taylor, Managing Director of investor TA Associates noted, “It’s been an amazing transformation for Nintex over the last four years; we’re very pleased to have been a key partner to management in creating a new market category and assuming the leadership position. We welcome this new partnership with Thoma Bravo and will retain an ownership position.”

The transaction is expected to be completed by the end of March 2018 subject to customary closing conditions.

“Nintex will continue to drive its aggressive strategy to the benefit of its customers and partners and will extend its market leadership for the long term,” said Nintex Chairman and CEO John Burton, who upon closing of the transaction will transition the CEO role to Eric Johnson, who has served as Nintex CFO for the last four years. “I can think of no one better equipped to lead Nintex in its next phase than Eric.  I look forward to assisting him to continue his career success in his new role.”

Eric Johnson is a proven SaaS executive with more than two decades of financial and operational experience at mid- and large-sized software companies.  At Nintex, he has been key in driving the company’s move to the cloud and subscription pricing.  Prior to Nintex, he served as VP of Finance for Jive Software, where he helped lead the company through its IPO process.  Prior thereto, he served as VP of Worldwide Sales Operations at Serena Software. “Thoma Bravo has a proven track record of helping software companies achieve exceptional results, and we’re pleased to be part of its portfolio going forward,” said Johnson. “With a new lead investor, we can continue our rapid and profitable growth and continue to deliver industry-leading intelligent process automation capabilities to our worldwide customers and partners.”

Keith Fujinaga, who joined Nintex in January 2017 as VP of Finance, will assume the CFO role.  Before Nintex, Fujinaga served as the CFO at ipCreate and VP of Finance at Global Market Insight, Inc.  He also has held Director of Finance roles at Microsoft and Penfords.

A History of Success and Innovation

Nintex has unwaveringly committed to innovation and growth since its inception more than a decade ago.  The company has a rich history of automating processes for SharePoint and Office 365, the latter of which recently surpassed 50 million workflow executions.

Additionally, the company introduced Nintex for Box and Nintex for Salesforce in 2017 and has continued building upon deep partnerships with industry leaders like DocuSign and ServiceMax.  With a strong ecosystem of partners, Nintex is uniquely positioned to help business professionals manage their business processes from within the enterprise software tools they know and use, such as CRM, Cloud Content Management, E-Signature, and Field Service Management providers.

Today, thousands of enterprises worldwide across industries, such as banking, insurance, pharmaceuticals, government, manufacturing and healthcare, turn to the Nintex platform every day to automate, orchestrate and optimize a wide-range of business processes.

Leading industry analyst firms regularly cite the company’s innovation in digital process automation (DPA) as well as its position as a leading digital business platform (DBP) and a leader in workflow and content automation (WCA) and advanced digital transaction management (DTM).

 

Thomas H. Lee Partners To Acquire Alfresco Software

Thomas H. Lee Partners, L.P. (“THL”) announced today that it has signed a definitive agreement under which funds affiliated with THL will acquire Alfresco Software, Inc. (the “Company” or “Alfresco”), a leading enterprise open-source provider of process automation, content management, and information governance software.

Founded in 2005 and headquartered in San Mateo, California and Maidenhead, United Kingdom, Alfresco is an enterprise open-source software company focused on making business flow quickly, seamlessly, and intelligently, by driving the convergence of enterprise content management and business process management. Alfresco provides enterprise content management solutions that enable clients to retain, manage, and share documents, files, and processes across cloud, mobile, hybrid, and on-premise environments. The Company’s innovative software powers the work of over 11 million people at industry-leading organizations in 195 countries worldwide.

“We are thrilled about the opportunity to partner with THL – a firm with an impressive track record of growing successful technology and information services businesses,” said Doug Dennerline, Alfresco’s Chief Executive Officer. “With THL’s deep industry experience, operational expertise, and strategic guidance, we will be well positioned to expand our platform, build on our space in the enterprise content management and business process automation markets, and continue providing customers with the best-in-class service they have come to know and expect.”

“We are very excited about this new partnership with Alfresco,” said Laura Grattan, Managing Director at THL. “Alfresco is an innovative leader in content management and process automation solutions, operating in a large, underserved market. Their modern, cloud-native platform is the preferred technology for companies that are carrying out successful digital transformations, making this a highly attractive investment opportunity for THL. Alfresco has an outstanding reputation for enabling customers to collaborate more effectively, optimize business processes, and strengthen compliance, and we look forward to working closely with their talented team to help the Company execute its go-forward strategy and accelerate growth.”

The transaction is subject to customary closing conditions and regulatory approvals and is expected to close in the first quarter of 2018. Terms of the transaction were not disclosed.

Canon Solutions America Announces 2018 Executive Appointments

Canon Solutions America, Inc., a wholly owned subsidiary of Canon U.S.A., Inc., today announced key senior executive appointments that will help continue to expand the company’s position as an innovative and forward-thinking industry leader. These internal moves represent Canon Solutions America’s commitment to elevating its own leaders and putting them in a position to succeed, both personally and professionally.

Executive promotions include:

  • Toyo Kuwamura has been promoted from president and CEO to chairman and CEO, of Canon Solutions America.
  • Peter Kowalczuk has been promoted from executive vice president and general manager to president of Canon Solutions America.
  • Francis McMahon has been promoted from vice president to executive vice president, Production Print Solutions, of Canon Solutions America.

“It is with great pride and a great deal of respect that I can share the well-deserved promotions of some of our leading Canon Solutions America team members,” said Toyo Kuwamura, chairman and CEO, Canon Solutions America. “These individuals are truly representative of the Canon culture, our company vision and shared values. Having shown a strong commitment to helping grow Canon Solutions America as an industry leader, I thank them for their continued service and dedication to push Canon Solutions America even further in 2018 and beyond.”

Lastly, Canon Solutions America once again thanks Malkon Baboyian, executive vice president, Production Print Solutions/Large Format Solutions and James Sharp, executive vice president, Professional Services, who both have retired after 30 years of service each with Canon.” Mal and James were both instrumental in positioning Canon Solutions America as the leader it is today. Both the company and the industry at large were impacted by their ability to blend immense knowledge and leadership abilities,” said Toyo Kuwamura.

OpenText Reports Second Quarter Fiscal Year 2018 Financial Results

Total Revenue of $734 Million, up 35% Y/Y; Operating Cash Flows of $167 Million, up 148% Q/Q, up 56% Y/Y

Open Text Corporation (NASDAQ: OTEX, TSX: OTEX),  today announced its financial results for the second quarter ended December 31, 2017.

“OpenText’s Fiscal Year 2018 Q2 results represent the power of the OpenText Business System: our strategic focus on M&A, functional integration, operational excellence and innovation.  The company delivered 35% year-over-year revenue growth, adjusted operating margin of 36.5%, and operating cash flows of $167 million,” said Mark Barrenechea, OpenText Vice Chairman, CEO & CTO.  “Our Annual Recurring Revenues (ARR) were strong at $516 million or 31% year-over-year growth; we also had solid organic growth within the quarter.”

“With ECD now on our adjusted operating model and the integration complete, our energy turns to our go-to-market initiatives for calendar year 2018.  These go-to-market initiatives include cross-selling, expanded partner footprint and new offerings.  We also see increasing demand in our Enterprise Information Management (EIM) product suite, including Security and AI products,” said Barrenechea.  “Mergers and Acquisitions continue to be our leading growth driver and by utilizing the OpenText Business System, we are well positioned for future M&A opportunities within the EIM market.”

Barrenechea further added, “We are introducing a 2021 adjusted operating margin target range of 36% to 40%, up from our previously stated 2020 target range of 34% to 38%.”

Financial Highlights for Q2 Fiscal 2018 with Year Over Year Comparisons

Summary of Quarterly Results                
(in millions except per share data) Q2 FY18 Q2 FY17 $ Change % Change
(Y/Y)
  Q2 FY18 in
CC*
% Change
in CC*
 
Revenues:                
Cloud services and subscriptions $208.1   $175.1   $33.1   18.9 %   $207.2   18.3 %  
Customer support 308.1   219.7   88.4   40.3 %   301.2   37.1 %  
Total annual recurring revenues** $516.2   $394.7   $121.5   30.8 %   $508.4   28.8 %  
License 135.2   97.8   37.5   38.3 %   130.6   33.6 %  
Professional service and other 83.0   50.2   32.7   65.2 %   80.9   61.0 %  
Total revenues $734.4   $542.7   $191.7   35.3 %   $719.8   32.6 %  
GAAP-based operating income $166.6   $107.2   $59.5   55.5 %        
Non-GAAP-based operating income (1) $267.9   $184.5   $83.4   45.2 %   $262.0   42.0 %  
GAAP-based operating margin 22.7 % 19.7 % n/a   300   bps      
Non-GAAP-based operating margin (1) 36.5 % 34.0 % n/a   250   bps 36.4 % 240   bps
GAAP-based EPS, diluted (2) $0.32   $0.18   $0.14   77.8 %        
Non-GAAP-based EPS, diluted (1)(3) $0.76   $0.54   $0.22   40.7 %   $0.74   37.0 %  
GAAP-based net income attributable to OpenText (2) $85.1   $45.0   $40.1   89.0 %        
Adjusted EBITDA (1) $290.1   $199.8   $90.3   45.2 %        
Operating cash flows $166.6   $107.0   $59.6   55.7 %        

 

Summary of YTD Results                
(in millions except per share data) FY18 YTD FY17 YTD $ Change % Change

(Y/Y)

  FY18 YTD in
CC*
% Change
in CC*
 
Revenues:                
Cloud services and subscriptions $402.0   $344.7   $57.2   16.6 %   $402.0   16.6 %  
Customer support 603.5   429.9   173.6   40.4 %   593.5   38.1 %  
Total annual recurring revenues** $1,005.4   $774.6   $230.8   29.8 %   $995.4   28.5 %  
License 213.5   158.4   55.1   34.8 %   207.8   31.2 %  
Professional service and other 156.2   101.3   54.8   54.1 %   152.5   50.5 %  
Total revenues $1,375.1   $1,034.4   $340.7   32.9 %   $1,355.7   31.1 %  
GAAP-based operating income $253.7   $181.2   $72.5   40.0 %        
Non-GAAP-based operating income (1) $469.0   $335.9   $133.1   39.6 %   $460.9   37.2 %  
GAAP-based operating margin 18.5 % 17.5 % n/a   100   bps      
Non-GAAP-based operating margin (1) 34.1 % 32.5 % n/a   160   bps 34.0 % 150   bps
GAAP-based EPS, diluted (2) $0.46   $3.89   ($3.43)   (88.2) %        
Non-GAAP-based EPS, diluted (1)(3) $1.30   $0.97   $0.33   34.0 %   $1.27   30.9 %  
GAAP-based net income attributable to OpenText (2) $121.7   $957.9   ($836.2)   (87.3) %        
Adjusted EBITDA (1) $510.1   $366.4   $143.6   39.2 %        
Operating cash flows $233.7   $180.5   $53.3   29.5 %        

 

“We delivered very strong margins in the quarter with a significant increase in operating cash flow,” said John Doolittle, OpenText CFO. “Our gross leverage ratio has significantly improved and it is now below 3.0 times.  With a strengthening balance sheet and growing adjusted EBITDA, OpenText is well positioned for future growth initiatives.”

Madhu Ranganathan to Join OpenText as CFO; John Doolittle to Complete Four Successful Years

OpenText also announced today that Madhu Ranganathan, CFO at [24]7.ai (www.247.ai), a leading company for AI and Customer Experience Software, will join OpenText as EVP and CFO, effective April 2, 2018.  John Doolittle will continue as CFO until April 2, 2018, and will remain with the Company until September 2018, ensuring a successful transition. 

“I am very pleased to welcome Madhu Ranganathan to OpenText, a Silicon Valley veteran and a highly experienced global finance executive. Madhu brings over 25 years of strategic and financial leadership experience with deep operational focus in software, hardware & tech-enabled services businesses,” said Mark J. Barrenechea, OpenText Vice Chairman, CEO and CTO. 

Madhu Ranganathan, formerly with PriceWaterhouse LLP, holds an MBA in Finance from the University of Massachusetts, is a Certified Public Accountant and a Chartered Accountant (India).

“I would like to thank John for his four years of great service to OpenText, and recognize his commitment to a significant transition period. I wish him all the best in his continued journey,” added Mark J. Barrenechea.

“After four successful years, I have accomplished the objectives Mark and I initially set out,” said John Doolittle, EVP & CFO of OpenText.  “I will work closely with Mark, Madhu and the senior management team to ensure a successful transition.”

OpenText Quarterly Business Highlights

  • OpenText added to S&P/TSX 60 Index
  • 30 customer transactions over $1 million, 14 OpenText Cloud and 16 on-premise
  • Financial, Consumer Goods, Services, Technology and Public Sector industries saw the most demand in cloud and license
  • Customer wins in the quarter included Tata Consultancy Services, Canon Electronics, WTC Captive Insurance Company, gkv informatik, TAFE Queensland, Peabody, Pandora Media, Helaba Invest, Air France-KLM, ConvaTec, County of Los Angeles, OCHIN, Zurn, US WorldMeds, Syngene, Adif, Informática del Ayuntamiento de Madrid, Transports Metropolitans de Barcelona, OILES Corporation, FreightVerify, Nifco Inc.,Campari Group, Froneri International, Malakoff Médéric, MetaSource, Opel Automobile GmbH, Broadcom Limited, Zodiac Aerospace, A1 and Elcom
  • OpenText expands operations in India and announces on-going investment in people, infrastructure and customers

Dividend Program Highlights

Cash Dividend
As part of our quarterly, non-cumulative cash dividend program, the Board declared on January 30, 2018, a cash dividend of $0.132 per common share. The record date for this dividend is March 2, 2018 and the payment date is March 23, 2018. Future declarations of dividends and the establishment of future record and payment dates are subject to the final determination and discretion of the Board of Directors.

Summary of Quarterly Results              
  Q2 FY18 Q1 FY18 Q2 FY17 % Change

(Q2 FY18 vs
Q1 FY18)

  % Change

(Q2 FY18 vs
Q2 FY17)

 
Revenue (million) $734.4   $640.7   $542.7   14.6 %   35.3 %  
GAAP-based gross margin 67.3 % 65.1 % 69.0 % 220   bps (170)   Bps
GAAP-based operating margin 22.7 % 13.6 % 19.7 % 910   bps 300   Bps
GAAP-based EPS, diluted(1) $0.32   $0.14   $0.18   128.6 %   77.8 %  
Non-GAAP-based gross margin (2) 73.9 % 72.2 % 73.8 % 170   bps 10   Bps
Non-GAAP-based operating margin (2) 36.5 % 31.4 % 34.0 % 510   bps 250   Bps
Non-GAAP-based EPS, diluted (2)(3) $0.76   $0.54   $0.54   40.7 %   40.7 %  

 

 

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