Enterprise content management software provider Open Text Corp. (OTEX,OTC.TO), on Wednesday reported a profit for the second quarter that soared from last year, aided by a 12% growth in license revenues and synergies from the acquisition of Vignette. Adjusted earnings per share for the quarter topped analysts' consensus estimate.
The Waterloo, Canada-based company's net income for the second quarter rose to US$21.2 million or US$0.37 per share from US$0.8 million or US$0.01 per share, in the prior-year quarter.
The results for the latest quarter include special charges of US$10.4 million and amortization of intangibles of $23.9 million. The year-ago quarter's results include special charges of $11.4 million and amortization of intangibles of $21.9 million.
Excluding items, adjusted net income for the quarter surged to US$50.1 million or US$0.87 per share from US$34.0 million or US$0.64 per share in the same period last year. On average, fourteen analysts polled by Thomson Reuters expected the company to earn US$0.70 per share for the quarter. Analysts' estimates typically exclude one-time charges and gains.
Quarterly revenue climbed 19% to US$247.8 million from US$207.7 million in the same period last year, and beat analysts' consensus estimate of US$228.85 million for the quarter.
John Shackleton, President and Chief Executive Officer of Open Text, said, "We had a very good quarter across the board - in all geographies and verticals. Our strong license revenue growth has brought us to where we expected to be on a year to date basis. We are also pleased with our profitability this quarter, generating a pre-tax adjusted operating margin of 28.8%. The integration of Vignette is progressing well and we are very encouraged by the synergies we see from the combined businesses."
License revenues for the quarter increased 12% to US$72.69 million from US$64.85 million in the year-ago quarter. Meanwhile, customer support revenues for the quarter rose 29.7% to US$130.28 million from US$100.44 million last year. Service and other revenues increased 5.8% to US$44.82 million from US$42.36 million in the same quarter last year.
The company's gross profit for the quarter was US$170.08 million, up from US$141.33 million in the year-ago quarter. Total operating expenses for the quarter rose to US$134.17 million from US$122.08 million in the prior-year quarter. Income from operations rose to US$35.91 million from US$19.26 million a year ago.
For the six months, the company's net income increased to US$22.93 million or US$0.40 per share from US$15.42 million or US$0.29 per share in the same period last year.
Total revenues for the half year rose to US$459.21 million from US$390.27 million in the year-ago period.
During the six months that ended December 31, 2009, the net cash paid for the Vignette acquisition was $90.6 million. In July 2009, Open Text had announced that it had completed the acquisition of all of the issued and outstanding shares of Vignette Corp. for a purchase price of about US$317 million in a mix of cash and Open Text common stock.
OTEX closed Wednesday's regular trading on the Nasdaq at US$40.55, down US$0.04 or 0.10% on a volume of 0.15 million shares.
On the Toronto stock exchange, OTC.TO closed Wednesday's regular trading at C$43.03, down C$0.28 or 0.65% on a volume of 59 thousand shares.
For comments and feedback contact: editorial@rttnews.com
June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.