Enterprise content management software provider Open Text Corp. (OTEX,OTC.TO), on Thursday reported a drop in profit for the fourth quarter, even as revenues increased from last year. Excluding certain one-time items, quarterly earnings per share grew 18%, and topped market projections.
The Waterloo, Canada-based company's net income for the fourth quarter decreased to US$19.5 million or US$0.36 per share from US$27.3 million or US$0.51 per share in the prior-year quarter.
Excluding items, net income for the quarter increased to US$39.2 million or US$0.73 per share from US$33.3 million or US$0.63 per share in the same period last year.
On average, 15 analysts polled by Thomson Reuters expected the company to earn US$0.69 per share for the quarter. Analysts' estimates typically exclude one-time charges and gains.
Quarterly revenue climbed 2% to US$203.4 million from US$200.3 million last year, shy of analysts estimates of US$213.22 million for the quarter.
License revenues for the quarter were US$63.0 million, down 8% from US$68.2 million in the year-ago quarter. Customer revenues for the quarter increased to US$104.5 million from US$95.1 million last year, while service and other revenues declined modestly to US$36.0 million from US$37.1 million in the same quarter last year.
Total operating expenses for the quarter declined to US$104.10 million from US$108.10 million in the prior-year quarter. Operating cash flow was US$38.6 million, compared to US$44.6 million in the year-earlier quarter.
John Shackleton, President and Chief Executive Officer, Open Text said, "I am pleased that we achieved our bottom line target in this quarter and grew adjusted earnings by 24% for the year in this difficult economic environment. Driven by demand for compliance based solutions I remain confident on our future prospects."
For the fiscal year 2009, net income rose to US$56.9 million or US$1.07 per share from US$53.0 million or US$1.01 per share in fiscal year 2008. Excluding items, net income for 2009 increased 24% to US$132.8 million or US$2.49 per share from US$107.0 million or US$2.03 per share last year.
Total revenue for fiscal year 2009 was US$785.7 million, up 8% from US$725.5 million in the previous fiscal year.
Analysts expected the company to earn US$2.45 per share on revenues of US$795.13 million for the full year.
Earlier on July 21, 2009 Open Text announced that it had completed the acquisition of all of the issued and outstanding shares of Vignette Corp.(VIGN), for a purchase price of about US$317 million in a mix of cash and Open Text common stock.
The company indicated that with the acquisition of Vignette it gained a great customer base and enterprise-level technology that enhances its ECM suite, and to date the integration is tracking to plan.
OTEX closed Thursday's trading at US$37.63, down US$0.67 or 1.75%, on a volume of 0.58 million shares on the Nasdaq. In after hours, the stock gained US$1.17 or 1.17%, trading at US$38.07.
OTC.TO closed Thursday's regular trading at C$41.30, down C$0.45 or 1.08%, on a volume of 0.11 million shares on the TSX.
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