Fiscal 2010 Numbers
- Total revenue: US$ 912.0 million, up 16% compared to $785.7 million in the prior fiscal year (although, lower than expected due to currency fluctuations, yet still with Vignette contributions)
- License revenue: US$ 238.1 million, up 4% compared to $229.8 million in the prior fiscal year
- Adjusted net income: $178.0 million compared to $132.8 million in the prior fiscal year
- Adjusted earnings per share: US$ 3.10 per share on a diluted basis, up 24%
- Net income: US $87.6 million compared to $56.9 million
- Operating cash flow: US$ 180.2 million compared to US$ 176.2 million in fiscal 2009.
Even though the numbers are up compared to prior year results, some of them are lower than Open Text's own forecasts and are lower than expectations of the street and financial analysts.
When SAP Is Just Not Enough
SAP and Open Text have a long history together on the reseller channel front. Oracle now steps in as well in this duo. An interesting triangle, isn't it?
During the earnings call yesterday, Open Text announced that they signed an agreement with Oracle. In a very similar manner to the relationship they have now with SAP, OTEX plans to leverage Oracle to "deliver a new suite of ECM solutions." Areas of concentration include eDiscovery and risk mitigation.
Just like SAP and Microsoft, Oracle is to be used in Open Text's go-to-market strategies. "So, between new products, cross-selling and our partners, we feel very comfortable," said John Shackleton, Open Text's CEO.
The OTEX/MSFT Love Story
We talk about Microsoft and SharePoint quite a bit. For those of you who have considered SharePoint as an imminent danger to Open Text Enterprise CMS offering might be surprised to hear that, according to OTEX, Microsoft is actually helping and not hurting them.
Open Text is "seeing a closer relationship" here. Especially, in the light of Web CMS and DAM sales -- that has been slow lately -- picking up, said Open Text.
All Is Well that Ends Well?
Three acquisitions this year later, Open Text did show decent financial results. But unless they are (way along) on the next acquisition hunt, it will be hard to show organic growth.
In Q4, Open Text spent about US$ 2 million in restructuring charges on the recent acquisitions. Cutting costs may not be enough to compensate for potentially bigger declining revenues.
Or will Open Text sell to someone instead?