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In Q1 2011 financial results for Open Text (news, site), we see license revenue hurting. Yet again, there’s an acquisition in place to offset organic declines and, perhaps, propel OTEX into the universe of Customer Experience Management (CEM).

Open Text Q1 2011 Financial Highlights

  • Total revenue: US$ 217.4 million, up 3% compared to US$ 211.4 million for the same period in the prior fiscal year
  • License revenue: US$ 42.6 million, down 10% compared to US$ 47.3 million for the same period in the prior fiscal year
  • Adjusted net income: US$ 50.0 million or US$ 0.86 per share on a diluted basis, up 52% compared to US$ 32.8 million or US$ 0.58 per share on a diluted basis for the same period in the prior fiscal year
  • GAAP net income: US$ 21.7 million compared to US$ 1.7 million for the same period in the prior fiscal year
  • Operating cash flow: US$ 48.9 million compared to US$ 4.5 million for the same period in the prior fiscal year
  • Cash and cash equivalents: US$ 384.7 million.

Europe brought 41% of total global revenue, NA contributed 51%, APAC and other regions – 7%.

In regards to the big license miss for Open Text this quarter, John Shackleton, President and Chief Executive Officer, commented:

I am disappointed with our license revenue this quarter. Europe was especially impacted, with current economic challenges slowing the pace of our customers' IT spending cycles…

StreamServe Acquisition

And it’s time to welcome another company to the Open Text quilt of technologies.

As in the past, Open Text has a recent acquisition in order to keep offsetting organic declines. The new acquiree is StreamServe – a Burlington, Mass.-based provider of “Enterprise Document Presentment” products. The transaction is valued at approximately US$ 71 million.

StreamServe is likely to fall into the Open Text ECM Suite’s automated business processes management fold, while also opening the door for OTEX to the Scandinavian market.

SAP is another angle in this story. Open Text and SAP go way back. StreamServe and SAP have integrations with SAP’s ERP.

On top of that, another possibility is to utilize StreamServe’s Composition Center software application for greater content re-use, CCM (Component Content Management), all things DITA, data extraction and multiple formats of content ooutput.

An Unfolding CEM Story?

Remember our talks about CEM (customer experience management)? Some call it the big huha technology/direction of the future, some brush it off as yet the next acronym.

But if you look at CEM at OTEX, they don’t have much to offer really. StreamServe not only does BPM automations, but cal also personalize customer communication processes in document-based environments.

The StreamServe Persuasion Environment is one of the most interesting products they have in their bag of tricks:

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The StreamServe Persuasion Environment
 

CEM is neighboring (better yet, umbrelling) WEM (Web Engagement Management). StreamServe with its entire experience and persuasion management theme in technology (engagement management, persuasive document and content management) fits the bill.