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Open Text Reports Earnings, Shares Leap

Open Text, the largest independent provider of Enterprise CMS software, has released the data for their unaudited financial results for their second fiscal quarter of 2007 (ended December 31, 2006).

With their total revenues for the quarter at US$ 163.3 million, as compared to US$ 110.8 million for the same period in the year prior, we’d have to say that 2007 is getting started with a decent sized bang. And the market seems to be agreeing with us.

“We achieved our profit targets and generated strong cash flow from operations this quarter,” said John Shackleton, President and Chief Executive Officer of Open Text. “We are pleased with how the Hummingbird integration is progressing and we are on track to meet our operating goals.”

Open Text worked on integrating Hummingbird, and most of we can call the organizational integration was completed during this second quarter. By doing so and as expected, it allowed Open Text to reduce their worldwide workforce by about 15% — they will also be closing and/or consolidating offices in keeping with their strategic focus.

“We are pleased that the acquisition was accretive in the first quarter of combined operations and have been successful in our efforts to rationalize staff levels and consolidate facilities to meet our operating goals. Based on the run-rate in our second quarter, we continue to believe our actions will result in savings of approximately US$ 50 million for the current fiscal year and on an annualized basis, approximately US$ 80 million beginning in fiscal 2008,” said Paul McFeeters, Chief Financial Officer of Open Text.