OpenText Reports First Quarter Fiscal Year 2016 Financial Results
Non-GAAP-based Operating Margin was 34%; Total Revenue Was $434.5 Million, Down 4%; in CC*, Up 3%
Waterloo -- Open Text Corporation announced its financial results for the first quarter ended September 30, 2015. "Fiscal 2016 will be a transformative year for OpenText. Digitalization enables customers to create a better way to work, and project Blue Carbon is the enabling platform. I am pleased to confirm project Blue Carbon will be available in Beta this quarter and unveiled at our annual user conference Enterprise World, taking place November 8 to 13, 2015," said OpenText CEO Mark J. Barrenechea.
Barrenechea further added, "As for Fiscal Q1 results, due to the strength of the US Dollar, foreign currency volatility continued to have a significant impact on our results in the quarter, negatively impacting total revenue by $34M. In constant currency, total revenue grew 3%, and recurring revenue grew 4%. We remain confident in our 2020 target model of adjusted operating margins between 34% to 38%."
"I am really pleased with our adjusted operating margin performance this quarter. The results reflect the execution of the restructuring actions announced in May and our ongoing focus on cost containment. It is a positive start and provides a solid base to deliver on our annual operating plan," said OpenText CFO John Doolittle.
*CC: Constant currency for this purpose is defined as the current period reported revenues/expenses/earnings represented at the prior comparative period's foreign exchange rate.
Quarterly Business Highlights
• 11 customer transactions over $1 million, 6 cloud contract signings in the OpenText Cloud and 5 on-premises
• Financial, technology and services industries saw the most demand
• Cloud customer successes in the quarter include Bestop Inc, Molson Coo
rs Brewing Company and PayFlex
• On-premises customer successes in the quarter include R-pharm, CTAC, Tata Steel Nederland B.V., United States Department Of State, Thomson Reuters Corporation, EDM Group and Solenis
• OpenText signs definitive agreement to acquire Daegis Inc.
• OpenText Enterprise World 2015 enables the next generation of digital companies; Mark J. Barrenechea and Mike Myers to keynote
• OpenText announces new global partner program to enable the digital world
• OpenText digital asset management integrates with SAP® hybris® solutions to deliver the future of customer experience and engagement
• OpenText delivers Big Data Analytics in the OpenText Cloud
• New report names OpenText as a leader in ECM business content services
• OpenText named a leader in Gartner's Magic Quadrant for Web Content Management
Dividend Program Highlights
As part of our quarterly, non cumulative cash dividend program the Board declared on October 28, 2015 a cash dividend of $0.20 per Common Share. The record date for this dividend is November 27, 2015 and the payment date is December 18, 2015. 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.