OpenText Reports First Quarter Fiscal Year 2015 Financial Results
Strongest First Quarter Results in the history of OpenText
Open Text Corporation announced today its financial results for the first quarter ended September 30, 2014.
Financial Highlights for Q1 FY15
- Total revenue was $453.8 million, up 40% Y/Y
- License revenue was $58.6 million, up 6% Y/Y
- Cloud services revenue was $150.0 million, up 260% Y/Y
- Customer support revenue was $183.9 million, up 9% Y/Y
- Non-GAAP-based EPS, diluted was $0.97 compared to $0.69 Y/Y, up 41%; GAAP-based EPS, diluted was $0.53 compared to $0.26 Y/Y up 104%, on a post stock-split basis.
- Non-GAAP-based income from operations was $155.7 million and 34% of revenues, up 57% Y/Y; GAAP-based income from operations was $103.0 million and 23% of revenues, up 98% Y/Y.
- Operating cash flow was $138.5 million, up 73% Y/Y, with an ending cash balance of $492.5 million.
“We delivered the strongest first quarter results in the history of OpenText, with total revenues of $453.8 million, up 40% year-over-year and non-GAAP-based operating income of $155.7 million, up 57% year-over-year, despite a toughening economy” said Mark J. Barrenechea OpenText CEO. “Our focus on enabling a digital-first world is resonating with customers as they deploy projects to reduce costs, grow revenues or scale with greater efficiency.”
“In November we will be hosting our annual Enterprise World user conference where we will unveil important new innovations such as: Service Pack 1 (SP1) for our EIM suites, our next-generation cloud offerings and our future plans for project Blue Carbon.”
Business Highlights
- Services, technology and public sector industries saw the most demand
- 3 license transactions over $1 million and 9 license transactions between $500K and $1 million
- On-premise customer successes in the quarter include Voith Turbo, Government of Alberta (Canada) – Ministry of Justice, Salt River, Goodman, Talisman Energy, Forest City Enterprises, Inc., Canadian Mortgage and Housing Corporation and LUKOIL Overseas Holding
- Cloud customer successes in the quarter include Toyota Digital, Michelin, PNC Bank and Agavo Technologies
- John Doolittle joins OpenText as its new chief financial officer
- OpenText launches European data zone for on-demand cloud fax services
- OpenText Content Suite was awarded SÄHKE2 certification for storage and enterprise content management solutions
- OpenText’s 2014 Enterprise World user conference to be held November 9-14, 2014 at Walt Disney World Swan and Dolphin Resort in Lake Buena Vista, FL, features exciting product announcements focused on the cloud, highlighting customers’ total cost of ownership
- Comedian and actor Martin Short headlines OpenText’s Enterprise World 2014
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 November 21, 2014 and the payment date is December 12, 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 |
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Q1 FY15 |
Q4 FY14 |
Q1 FY14 |
% Change (Q/Q) |
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% Change (Y/Y) |
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| Revenue (million) |
$453.8 |
$494.0 |
$324.5 |
(8.1)% |
|
39.9% |
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| GAAP-based gross margin |
67.4% |
69.1% |
67.2 |
(170) |
bps |
20 |
bps | ||||
| GAAP-based operating margin |
22.7% |
21.8% |
16.0 |
90 |
bps |
670 |
bps | ||||
| GAAP-based EPS, diluted |
$0.53 |
$0.72 |
$0.26 |
(26.4)% |
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103.8% |
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| Non-GAAP-based gross margin |
71.6% |
72.9% |
73.9 |
(130) |
bps |
(230) |
bps | ||||
| Non-GAAP-based operating margin |
34.3% |
32.8% |
30.6 |
150 |
bps |
370 |
bps | ||||
| Non-GAAP-based EPS, diluted |
$0.97 |
$1.05 |
$0.69 |
(7.6)% |
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40.6% |
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