Open Text on Q4 and FY2009 Financials, Vignette's Fate

By Irina Guseva (@irina_guseva) Aug 26, 2009 Comments

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Enterprise CMS provider Open Text (news, site) announced unaudited financial results for Q4 and FY2009.

Despite the current economic climate, OTEX reports achieving bottom line target, although net income for fiscal year 2009, and license revenue and operating cash flow in the fourth quarter have dipped.

Conversations on Vignette's fate and product integration strategies are ongoing.

More on the Dollar Figures

Total revenue for the fourth quarter was US$ 203.4 million, up 2% compared to US$ 200.3 million for the same period in 2008. Total revenue for fiscal year 2009 was US$ 785.7 million, up 8% compared to US$ 725.5 million for the previous fiscal year.

License revenue in the fourth quarter was US$ 63.0 million, down 8% compared to US$ 68.2 million in the fourth quarter of the prior fiscal year. License revenue for fiscal year 2009 was US$ 229.8 million, up 5% compared to US$ 219.1 million in the previous fiscal year.

Adjusted net income in the quarter was US$ 39.2 million or US$ 0.73 per share on a diluted basis, up 18% compared to US$ 33.3 million or US$ 0.63 per share on a diluted basis for the same period in the prior fiscal year. Adjusted net income for fiscal year 2009 was US$ 132.8 million, or US$ 2.49 per share on a diluted basis, up 24% compared to adjusted net income for the previous fiscal year of US$ 107.0 million, or US$ 2.03 per share on a diluted basis.

GAAP net income was US$ 19.5 million or US$ 0.36 per share on a diluted basis, down 28% compared to US$ 27.3 million or US$ 0.51 per share on a diluted basis for the same period in the prior fiscal year. GAAP net income for 2009 was US$ 56.9 million, or US$ 1.07 per share on a diluted basis, compared to the prior fiscal year's net income of US$ 53.0 million, or US$ 1.01 per share on a diluted basis.

For more information on Q4 and FY 2009, go straight to the source.

As far as future goes, the company remains optimistic, basing their positive outlook on the demand for compliance-based solutions in the market.

On Vignette’s Future

Acquisitions always seem to be part of any conversation around Open Text. During Q4, the company acquired digital media, 3D applications makers Vizible for an undisclosed sum to expand its portfolio of digital media applications. There are no details yet as to what Open Text plans to really do with the eye candy that Vizible is.

Finalized in July of this year, the acquisition of Web CMS vendor Vignette and its positioning in Open Text is starting to look less nebulous.

John Shackleton, president and CEO of Open Text, said, "We are pleased with how the acquisition is progressing and to date the integration is tracking to plan." While also adding “I am disappointed that we were slightly off on our Q4 revenue targets, mainly due to the WCM delays where customers were waiting to see our new WCM strategy with the announcement of the Vignette acquisition.”

Vignette’s prior (not very promising) financial behavior and miscellaneous struggles are playing a role in Open Text’s balance sheet.