Category Archives: News

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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FUJIFILM Holdings and Xerox Announce Agreement to Combine Fuji Xerox Joint Venture with Xerox

Creates a Global Leader in Innovative Print Technologies and Intelligent Work Solutions

  • Xerox shareholders to receive a $2.5 billion special cash dividend, or approximately $9.80 per share1, and 49.9% of the combined company; Fujifilm to own 50.1%
  • Combined company to deliver at least $1.7 billion in total cost savings, with $1.2 billion to be achieved by 2020
  • Accelerates path to revenue growth through global reach, industry-leading scale and enhanced innovation capabilities
  • Well-positioned to lead in growing business areas such as high-speed inkjet, industrial print and workplace solutions, while leveraging Fujifilm’s extensive technologies
  • Combined company will have enhanced financial flexibility for future growth investments and capital returns
  • Combined company will have dual headquarters in Norwalk, CT, U.S. and Minato, Tokyo, Japan, and will maintain the iconic “Xerox” and “Fuji Xerox” brands within its respective operating regions

FUJIFILM Holdings Corporation (“Fujifilm”) (TSE: 4901) and Xerox Corporation (“Xerox”) (NYSE: XRX) today announced that they have entered into a definitive agreement to combine Xerox and their longstanding Fuji Xerox joint venture. The combined company will be a global leader in innovative print technologies and intelligent work solutions with annual revenues of $18 billion and leadership positions in key geographic regions.           

This proposed combination provides Xerox shareholders with significant cash at closing, as well as a substantial interest in the significantly enhanced combined company. Under the terms of the agreement, Xerox shareholders will receive a $2.5 billion special cash dividend, or approximately $9.80 per share1, funded from the combined company’s balance sheet, and own 49.9% of the combined company at closing. The cash dividend represents more than 30% of Xerox’s unaffected share price of $30.35 based on closing share price as of January 10, 2018. Fujifilm will own 50.1% of the combined company and provide important operational support and transformational leadership.

The transaction has been unanimously approved by the Boards of Directors of both Fujifilm and Xerox. The combined company will be named “Fuji Xerox” and trade on the NYSE under the ticker XRX. The new Fuji Xerox will have dual headquarters in Norwalk, CT, U.S. and in Minato, Tokyo, Japan, with a presence in over 180 countries. The combined company will go to market and maintain the iconic “Xerox” and “Fuji Xerox” brands within its respective operating regions.

Shigetaka Komori, chairman and chief executive officer of Fujifilm, said, “Fujifilm and Xerox have fostered an exceptional partnership through our existing Fuji Xerox joint venture, and this transaction is a strategic evolution of our alliance. The Document Solutions business represents a significant part of Fujifilm’s portfolio, and the creation of the new Fuji Xerox allows us to more directly establish a leadership position in a fast-changing market. We believe Fujifilm’s track record of advancing technology in innovative imaging and information solutions – especially in inkjet, imaging, and AI areas – will be important components of the success of the new Fuji Xerox.”

Mr. Komori added, “I am confident that Fujifilm’s ability to drive change as well as its experience of successful reinvention will give a competitive edge to the new Fuji Xerox, delivering significant value creation to shareholders of both the new Fuji Xerox and Fujifilm. We are delighted to welcome Xerox and its employees to the Fujifilm family and look forward to combining our strengths towards jointly shaping the future of our industry.”

Jeff Jacobson, Chief executive officer of Xerox, said, “The proposed combination has compelling industrial logic and will unlock significant growth and productivity opportunities for the combined company, while delivering substantial value to Xerox shareholders. The new Fuji Xerox will be better positioned to compete in today’s environment with truly global scale, increased presence in fast-growing markets, and innovation capabilities to effectively meet our customers’ rapidly-evolving demands. In addition, the combined company’s strong financial profile will enable investments that support continued market leadership, while also providing opportunities for increasing capital returns over time.”

Robert J. Keegan, chairman of Xerox’s Board of Directors, said, “Today’s announcement follows a comprehensive review of our strategic and financial alternatives led by Xerox’s independent directors that began after the separation of Conduent in 2016. Upon careful consideration of all alternatives available to the company, the Board of Directors concluded that this combination is clearly the best path to create value for our shareholders. An attractive, certain cash dividend, together with participation in the future success of the combined company, presents a compelling value equation for Xerox shareholders. We are excited to strengthen our longstanding relationship with Fujifilm as we enter the next phase of Xerox’s transformation journey.”

Clear Leader in Innovative Print Technologies and Intelligent Work Solutions
Xerox shareholders will have the opportunity to participate in the new Fuji Xerox’s accelerated revenue trajectory and long-term value creation potential. The transaction builds on the 56-year collaborative history between Fujifilm and Xerox to create a global leader in innovative print technologies and intelligent work solutions with enhanced scale and innovation capabilities:

  • Global leader with combined revenue of approximately $18 billion and nearly $120 billion total addressable opportunity.
  • Enhanced scale with presence in over 180 countries and covering key geographies including North America, Japan, Europe, Asia Pacific and China.
  • Combined leadership with a strong track record of operational excellence, transformation experience, customer relationships and industry expertise.
  • Improved revenue profile and growth trajectory by leveraging the combined expertise, competitive strengths and geographic reach of the two companies.
  • World-class innovation capabilities to define the future of innovative print technologies and intelligent work solutions by bringing together two R&D and innovation leaders, along with Fujifilm’s extensive expertise. The new Fuji Xerox will be well-positioned to lead in growing areas such as high-speed inkjet, packaging, industrial print and workplace automation, as well as future development opportunities in artificial intelligence, machine learning, internet of things and augmented reality.
  • Strengthened balance sheet and cash flow generation to provide flexibility to support strategic investments in growth and enable increasing capital returns

Significant Value Creation Opportunity
This highly synergistic combination is expected to deliver at least $1.7 billion in total annual cost savings by 2022, with approximately $1.2 billion of the total cost savings expected to be achieved by 2020. The targeted cost savings represent approximately 10% of the total cost base of the new Fuji Xerox and will drive significant margin expansion over the next four years. 

Of the total $1.7 billion cost savings, $1.25 billion is related to the synergies that will be achieved through the transaction. In addition, the combined company will benefit from a cost reduction program commencing immediately at the existing Fuji Xerox joint venture, which is targeted to generate approximately $450 million of cost savings on an annualized basis. These amounts are incremental to Xerox’s ongoing Strategic Transformation initiatives. The new company expects to incur approximately $1.4 billion in one-time integration and restructuring costs, mainly in the first three years.

The new Fuji Xerox will also have significant revenue synergy opportunities over time as it capitalizes on its global reach, industry-leading scale and enhanced innovation capabilities. Importantly, the combined company will have an increased total addressable opportunity estimated at nearly $120 billion and a strong presence in attractive growth markets, allowing the new company to become more competitive and better able to serve customers and business partners globally.

Balance Sheet and Capital Allocation
The new Fuji Xerox expects to maintain investment grade credit ratings at closing. The new company will maintain Xerox’s current $1.00 annual dividend per share and commitment to return at least 50 percent of free cash flow to shareholders. The enhanced financial flexibility of the combined company is expected to allow for greater capital deployment toward targeted growth initiatives, share repurchases and increased dividends over time.

Leadership and Governance
Upon close of the transaction, Jeff Jacobson will serve as Chief executive officer of the new Fuji Xerox.

The combined company’s Board of Directors will include 12 members, seven of whom will be appointed by the Fujifilm Board. Five independent directors will be appointed from the Xerox Board. Shigetaka Komori will serve as chairman of the board.

Financing Commitments
Financing commitments of $2.5 billion have been provided by Citigroup Global Markets Inc. and Morgan Stanley Senior Funding, Inc.   

Path to Completion
The transaction, which is expected to close in the second half of calendar year 2018, is subject to the satisfaction of customary closing conditions and regulatory approvals and approval by Xerox shareholders.

 

Iron Mountain Enters into Agreement to Expand Presence in China with Acquisition

Agreement to acquire Chinese records management operations of Santa Fe A/S delivers on strategy to expand operations in key emerging markets

 Iron Mountain Incorporated® (NYSE: IRM) today announced it has entered into an agreement to acquire the China records and information management operations of Santa Fe Group A/S, a leading provider of services for international mobility and relocation. The acquisition includes five facilities in four locations in China – Beijing, Shanghai, Dalian, and Guangzhou – serving 700 customers, with storage volumes that include one million cubic feet of records and 51,000 data protection assets, expanding the company’s current operational footprint to 11 facilities in China. The transaction is expected to close later this year.

Established in 1980, Santa Fe has grown to become the leading global mobility services company with operations on six continents providing global, regional or local solutions, including commercial services for office moving, records management, furniture, fixtures and equipment, and specialty art and other special project shipping and exhibition services. 

The acquisition expands upon Iron Mountain’s prior acquisition of Santa Fe’s operations in 10 European and Asian regions that closed in 2016 and earlier in 2017. Iron Mountain’s footprint in Asia now includes a network of 16 facilities in mainland China and an additional 36 facilities across Hong Kong, Macau, Taiwan, Singapore, Malaysia, Thailand, South Korea, the Philippines and Indonesia, serving the storage and information management needs of more than 8,600 customers with services for records information management, data storage, document imaging and secure destruction.

“Our agreement to purchase Santa Fe’s information management operations in China supports Iron Mountain’s strategy to drive growth in key emerging and international markets through acquisition,” said Ernest Cloutier, executive vice president and general manager, International for Iron Mountain. “When seeking opportunities to expand our presence in these regions, we look to acquire or invest in established local companies that share our focus on security and trust as cornerstones of excellent customer service. Coupled with the prior acquisition of Santa Fe’s operations in Europe and Asia, this acquisition will give us a significant presence in the Chinese market, and we look forward to maintaining the high standard of customer service for Santa Fe’s customers.”

 

AbacusNext Expands Technology-as-a-Service Platform with Acquisition of HotDocs

Pioneer and Global Leader in Document Automation, HotDocs, Becomes Part of the AbacusNext Family of Business Management Solutions

AbacusNext® is pleased to announce the acquisition of HotDocs, the global leader in document automation. Integration of HotDocs into the existing technology solutions for legal, accounting, and business management makes AbacusNext the most complete technology provider to the professional services industry.

Highlights of Acquisition:

  • HotDocs is the leading provider of document automation software, with customers in 60 different countries and a user-base, globally, that exceeds one million.
  • AbacusNext pioneered the only Compliance-Ready™ suite of technology solutions designed exclusively to cloud-enable desktop, mobile and SaaS applications in a single sign-on, secured and fully managed environment.
  • HotDocs is widely used in the legal, banking, insurance, government, public and corporate sectors, for increasing accuracy, reducing cost, mitigating risk, and improving efficiency in the generation of complex documentation. Users can quickly and efficiently generate customized documents such as contracts, sales agreements, government forms, and loan documentation.
  • HotDocs Market, the standalone marketplace and publishing platform, gives professionals access to thousands of premium templates. Utilized by over 9,000 users, HotDocs Market is populated with content created by leading publishers and state bar associations.
  • AbacusNext’s combined user base, 1.5 million worldwide, will benefit from the most compelling products and services portfolio in the industry, including case management and practice management software solutions, private cloud hosting, Desktop-as-a-Service (DaaS), IT infrastructure management, security endpoint protection, and business automation.

This caps a year of expansion for AbacusNext—which saw acquisitions of Results Software, an award-winning CRM, OfficeTools, an industry leading practice management application, and Cloudnine Realtime, a hosting platform for accounting firms. The combination represents a unique opportunity to bring end-to-end technology services to existing clients, and AbacusNext will be positioned to capture significant market share in a highly fragmented market as the first company to provide a comprehensive suite of enterprise-level technology services and products.

In addition to core products, AbacusNext acquires HotDocs Market, an online ecommerce marketplace that allows clients to purchase and use HotDocs templates whenever and wherever they want. This unique, self-contained e-store built by HotDocs will ultimately allow on-demand access to products and templates across the unified AbacusNext portfolio. Incorporating HotDocs Market into the AbacusNext ecosystem will deliver yet another game-changing automation platform for clients.

“Today marks another milestone as we continue building on our unique technology services platform for our current and future clients,” said Alessandra Lezama, CEO of AbacusNext. “HotDocs’ document automation software is the perfect addition to our portfolio and will make an immediate impact for our client base of legal and accounting firms. By leveraging the HotDocs platform and support staff, we’ll be able to offer organizations greater business efficiency than ever before, with the broadest value proposition to support customer growth. The combined company will have an unmatched position in serving clients by providing a complete end-to-end solution.”

Rapid technology changes in recent years, together with increased pressure to reduce costs and increased mobility, is driving the movement to cloud-enable firms in the professional services industry to considerably reduce their costs and increase revenues. With this acquisition, AbacusNext builds HotDocs service offerings into its platform, allowing deeper relationships with business clients by providing the solutions they need to maximize operational efficiency and strengthen profit margins.

“HotDocs and AbacusNext work across many of the same markets and are a natural fit,” said Russell Shepherd, outgoing CEO of HotDocs. “I was looking for an acquirer with the same grand scale of ambition as the HotDocs team, and Abacus has the ambition to take the combined businesses on to even greater heights. HotDocs offers Abacus the opportunity to expand vertically and internationally in one bold strategic move, through the acquisition of a global, market leading brand, and I am delighted to be passing on the leadership and ownership of HotDocs to this successful and expanding company.”

Steve Spratt, COO at HotDocs, commented, “HotDocs document automation technology will enhance the existing product suite that AbacusNext already provides to its impressive client base and the 11,500 existing HotDocs client organizations will now have access to new CRM, practice management and hosting services under one roof. We welcome this new partnership and I look forward to sharing the benefits it brings with existing and new customers across our key verticals of banking, legal and large enterprise.”

 

Upland Software Reports Record Third Quarter 2017 Financial Results with 36% Revenue Growth and Raises Full Year 2017 Guidance

Company achieves greater than $100 million annualized revenue run rate for the first time.

Upland Software, Inc. (Nasdaq: UPLD) today announced financial and operating results for the third quarter of 2017 and provided increased guidance for its fourth quarter and full year of 2017.

Third Quarter 2017 Financial Highlights

  • Total revenue was $26.1 million, an increase of 36% from $19.2 million in the third quarter of 2016.
  • Subscription and support revenue was $23.2 million, an increase of 36% from $17.0 million in the third quarter of 2016.
  • GAAP net loss was $3.5 million compared to a net loss of $2.4 million in the third quarter of 2016, principally as a result of one-time expenses related to the accretive acquisition of Waterfall in the current quarter that were not present in the third quarter of 2016 and a $0.7 million non-cash charge for the write-down of an unnecessary office lease from a recent acquisition.
  • Adjusted EBITDA was $8.3 million, an increase of 133% from $3.6 million in the third quarter of 2016. A reconciliation of Adjusted EBITDA to net loss, the most directly comparable GAAP measure, is provided in the financial tables that accompany this release.
  • Cash on hand as of the end of the third quarter was $53.0 million.

“Q3 was another outstanding quarter with record 36% revenue growth, record Adjusted EBITDA, and the strategic and accretive acquisition of Waterfall,” said Jack McDonald, chairman and chief executive officer of Upland Software. “We have now met or beat guidance in each of the 13 consecutive quarters since going public,” he added. “Moreover, we are raising our guidance resulting in Q4 revenue growth of 35% and Adjusted EBITDA margins of 35% at the midpoints, continuing our strong momentum. Our pipeline of accretive acquisitions remains robust, and we have the operating and financial resources to execute.”

Third Quarter Business Highlights

  • Expanded 173 existing customer relationships, including 23 major expansions, and added 94 new customer relationships, including 14 major accounts.
  • Delivered the first major release of our Upland RightAnswers Enterprise Knowledge Management solution to improve overall agent and self-service experience; improved the product foundation; and implemented the first phase of Upland’s consistent, intuitive UI/UX.
  • Delivered a new cloud cost and usage management module, integrated with Amazon Web Services, for our ComSci ITFM offering.
  • Released seven customer-driven feature packs and product foundation enhancements that included updates to the mobile app in our web content management platform; multipart-SMS reporting improvements, new legislator and geocoding data, and performance improvements in our Upland Mobile Messaging platform; and performance and security enhancements for our Workflow Automation product family.
  • Continued to transition from a colocation data center strategy to Amazon Web Services to create a scalable, standard cloud environment in anticipation of ongoing customer growth.

Business Outlook

Upland provides quarterly and annual revenue guidance, updated, as appropriate, at each quarterly reporting period. For the fourth quarter of 2017, Upland expects reported total revenue to be between $25.6 and $26.6 million, including subscription and support revenue between $23.0 and $23.8 million, for growth in recurring revenue of 37% at the mid-point over the fourth quarter ended December 31, 2016. Adjusted EBITDA is expected to be between $8.8 and $9.4 million, for an Adjusted EBITDA margin of 35% at the mid-point, representing growth of 114% at the mid-point over the quarter-ended December 31, 2016. 

Upland raises its 2017 annual revenue guidance range and expects a total reported revenue to be between $95.8 and $96.8 million, including subscription and support revenue between $83.7 and $84.5 million, for growth in recurring revenue of 28% at the mid-point over the year ended December 31, 2016. Adjusted EBITDA is expected to be between $29.4 and $30.0 million, for an Adjusted EBITDA margin of 31% at the mid-point, representing growth of 135% at the mid-point over the year ended December 31, 2016.

InStream Acquires Binary Office, Inc. to Continue Growth of Next Generation ECM Solutions Nationwide

InStream today announces the acquisition of Binary Office, Inc., based in Phoenix, AZ.

The latest acquisition continues the InStream growth pattern in the Western half of the US; complementing previous western US acquisitions of Tallega Software in California and Twinstar, Inc. in Colorado. InStream and Binary Office share many of the same business values, vendors, philosophies and processes, enabling InStream to provide unparalleled levels of business process automation, customer service, and technical support to their combined client base throughout the country.

For new and future Binary Office clients, InStream adds the following:

  • Access to InStream’s automation of document-intensive, core business processes – through system development and integration or by Business Process Outsourcing (BPO).
  • ECM solutions for organizations wanting to outsource document-intensive processes, including scanning, data entry, benefits enrollment, check scanner fulfillment, virtual mailroom, and image lockbox services
  • Deep healthcare payer and provider experience, including the automation of Medicare enrollment and processing prior authorizations via BPO.
  • Profitability enhancement for those needing to deploy a mobile strategy, integration automation and business process analytics.
  • Strong national technical support, operations, logistics, and back-office support
  • Strong experience with government, education, medical, banking, finance and SMB.
  • Ability to closely serve InStream’s Western-based clients, along with the other markets served by Binary Office.

“The addition of Binary Office strengthens our technical resources significantly, thereby continuing to create a strong value proposition for our customers and prospects,” said InStream Chairman, Mark Hinson. “Our industry understands that Binary Office has a reputation for developing creative and complex solutions for corporate applications across the US, and for being excellent corporate citizens in Arizona. The combination of their customers with ours in the Phoenix area further enhances our presence in Arizona and the western US. Naturally, we are excited about this addition to the InStream family of technology brands, and believe our clients, prospects and vendor partners will see continued value as we add the Binary Office solution set to our suite of solutions for healthcare, financial, government, and corporate applications.”

“As President of Binary Office, Inc. it has always been my goal to focus on three major objectives,” says Marc Carleno. “First, ensure our clients that we were providing them with world-class solutions, systems, services, and support. Second, ensure our employees that they have dependable employment and a ‘great’ place to work while always trying to stay ahead of the ever-changing technology curve. Third, ensure our suppliers that they were receiving excellent representation and support in the marketplace.”

For InStream clients, Binary Office adds the following:

  • Extensive experience with advanced capture and workflow software from industry leading vendors that include AX, Teleform, LiquidOffice, Upland Filebound, and ABBYY.
  • Binary Office helps broaden the entire technical resources offered by InStream, including advanced integration toolkits needed in the ECM space.

 

Xamcor Inc. announces the addition of David Gerber as Xamcor Senior Associate

Xamcor’s Growth and Success Continues with Addition of Industry Veteran and ECM Professional

Xamcor Inc. is pleased to announce that David Gerber has joined the company as a Senior Associate. David will help drive West Coast initiatives to build on Xamcor’s leading position as an M&A Specialist for Information Management Companies.

“We are excited to have Dave as part of the Xamcor Team” Paul Carman, Xamcor CEO said. Dave’s focus will be to expand our visibility and engagement in the burgeoning West Coast markets, and to leverage his existing strong connections with more established Information Management vendors.”

“As an engineer at Kodak and owner of an ECM company that was acquired recently, I’ve enjoyed both sides of optimizing processes and operations.  I believe this unique perspective will prove helpful to our clients.”  David said.  “Let’s face it, you’re either moving forward, or you’re moving backward.  The information management space is moving forward, both in technology and how companies go to market.  If owners, or companies, want to move forward, the team at Xamcor has broad and deep levels of expertise in this field to help them move forward the right way.”

Dave has had a distinguished 30+ year career, spanning his engineering background into sales, marketing, and as a business leader. After driving results for a number of leading Information Management companies, Dave founded Tallega Software and grew their market share every year.  Tallega was part of Orange County’s 100 Most Profitable Private Companies in 2009, 2010 and 2012. Tallega executives were also selected for Orange County’s Excellence in Entrepreneurship Award in 2013, 2014 and 2015. 

Living in Southern California, Dave will help serve Xamcor’s global market clients.

About Xamcor
Xamcor provides M&A Services and builds Strategic Alliances for companies in the Information Management industry. Headquartered in New York, Xamcor is managed by principals with broad global relationships who have over 5 decades of M&A and sector experience.  Services include buy-side services, sell-side services, M&A Advisory Services, and Strategic Partnership services, combining experience, teamwork and industry-honed skills to help clients achieve superior business results. 

Industry Visionary and Leader Anthony Macciola Joins Haystac Inc. as Chairman of the Board

 Haystac Inc., The Content Intelligence CompanyTM, today announced that Anthony Macciola has joined Haystac as its Chairman of the Board.

“Haystac is extremely pleased to have attracted Anthony to take this leadership position on our board.  I view this as an incredible addition to the team and a validation of our technology and value proposition in the Content Analytics and Intelligent Capture space,” said Haystac’s CEO Barak Tsivkin, adding that “Anthony brings significant accomplishments, expertise and market awareness that will help accelerate our business strategy and provide welcomed insight and direction as we continue to differentiate ourselves and gain market share.”

“I’m very excited about joining Haystac at this critical juncture in the company’s execution plan. The capture industry has been going through a pivot and in some areas a renaissance as it relates to mobile-centric digital transformation, text analytics, machine learning, content orchestration and robotic automation. I believe Haystac’s products are well suited to take advantage of changing market conditions, and I’m looking forward to being able to provide insight and direction as they navigate the changing market landscape,” said Mr. Macciola.  

Over the past 25 years, Mr. Macciola has been responsible for running Professional Services, Product Management & Product Marketing, Corporate Marketing, Global Engineering and Applied Research.

As the Chief Technology Officer (CTO) for Kofax, he acted as the company’s visionary and thought leader, and was responsible for initiating and directing the company’s move into mobile capture, natural language processing and entity extraction, text analytics, and image processing technologies.

He holds over 45 patents in the areas of mobility, text analytics, image processing, and process automation.

HPE Acquires Cloud Technology Partners (CTP) to Strengthen Expertise in Cloud Consulting Services

CTP Strengthens HPE’s Hybrid IT Capabilities by Extending its Cloud Consulting Expertise

To further strengthen our consulting capabilities, today HPE announces our intent to acquire Cloud Technology Partners (CTP), a bornin- the-cloud services company with strong enterprise experience and DNA. Put simply, CTP helps its enterprise clients:

  • Move to the cloud– CTP helps sophisticated IT organizations move to the cloud by helping them determine which applications are optimal for both public and private clouds, executing the migrations, while helping them transform their organizations for the future.
  • Innovate on the cloud– CTP helps its clients build new and disruptive solutions using key technologies like IoT, Big Data and Machine Learning.
  • Operate the cloud– With its Managed Cloud Controls (suite of next-generation managed services), CTP helps its clients achieve governance, risk and regulatory compliance on day 1 while also automating the reconciliation of actual cloud spend back to the projected TCO savings in the original business case and optimize spend.

Since it was founded in 2010, CTP’s architects have been designing, building and implementing IT solutions for Fortune 500 clients across industries and have completed almost 500 enterprise cloud transformation projects. CTP is cloud agnostic, with extensive experience on multiple platforms, such as Amazon Web Services, Microsoft Azure, Google and OpenStack. Together, HPE and CTP will provide our customers with a comprehensive IT strategy that includes private, managed and public clouds, as well as traditional IT.  

Together, HPE and CTP can Accelerate Business Performance & Help Customers Drive Digital Innovation

CTP’s consulting, design and operational advisory services for cloud environments will strengthen our Hybrid IT consulting expertise in a fast growing market. Spending on the Hybrid IT Consulting and Cloud Native Development segments is approximately $6 billion today, growing at over 18 percent. Together, we will be even better positioned to capitalize on this market trend. The CTP team has built strong customer momentum and will be able to accelerate that momentum by leveraging HPE’s global brand and go-to- market.
 
More and more, customers are seeking a trusted advisor who knows where the market is going, and can shape their long-term roadmap and provide the solutions that will allow them to keep pace in this digital world. Together with CTP, we will provide customers with the ability to more quickly build new innovative digital experiences, simply manage and forecast IT costs and ensure the applications running their business stay secure. All while optimizing their environment so they can free up resources to grow, innovate and stay ahead of the competition.

Konica Minolta Expands Enterprise Content Management Capacity with the Acquisition of DSSI

Move delivers additional Enterprise Content Management (ECM) services and expands the company’s footprint in the western region

Building on its strong imaging heritage and extensive experience in document and content management,  Konica Minolta Business Solutions U.S.A., Inc. (Konica Minolta), today announced the acquisition of Document Scanning Systems and Imaging, Inc. (DSSI). The move will allow the company to enhance its current document management capabilities and increase its customer base in the west, further fueling its fast-growing ECM business. 

Located in Chatsworth, CA, DSSI is a reseller of OnBase® by Hyland and Kofax and leading provider of document scanning services and information management solutions for commercial, entertainment, government and healthcare companies. It is a single-source provider that helps businesses to effectively manage, control and protect their information by creating document workflow programs that save them time and money. Since 1996, it has been providing clients with personalized services using state of the art scanning technology and the latest imaging and database software, supplying customers with cost-effective, customized solutions. 

DSSI will fold into the company’s existing ECM operation and will be led by Les Walker, President, Business Intelligence Services, ECM. 

The synergy between the organizations will provide new opportunities for both entities. Konica Minolta will benefit from DSSI’s diverse customer base and grow its OnBase and BPO scanning services. Additionally, it will receive an advantage from Konica Minolta’s expanded ECM solutions portfolio for both the enterprise and mid markets. 

“This acquisition supports Konica Minolta’s growing ECM practice with a specialty in scanning, enabling us to better serve our customers who are looking to digitize and ultimately manage content for greater efficiency as well as a smarter work environment,” said Kevin Kern, Senior Vice President, Business Intelligence Services and Product Planning, Konica Minolta. “Businesses are realizing that they need to make the change for both security purposes and cost-effectiveness, and we’re here to help businesses of all sizes work smarter and take this initial step to bring their workplace into the future.” 

“We’re very excited to announce that DSSI has now become part of Konica Minolta,” said Tom Talamantez, Division Vice President, DSSI. “For more than 20 years, DSSI has successfully operated as a division of The ACT-1 Group of Companies, but now with this transition into Konica Minolta comes great synergy as we merge the depth of our experience and expertise with the market leader in Enterprise Content Management. Throughout this process, we have been very impressed with the culture at Konica Minolta and the great value placed on its employees. I’m personally very excited for our team to be joining this world class organization.”