Open Text reports fourth quarter and fiscal year-end 2010 financial results

Issued by Global Research Partners for Open Text

Johannesburg, 24 Aug 2010

Open Text Corporation, the pre-eminent provider of enterprise content management (ECM) software, today announced financial results for its fourth quarter and fiscal year ended 30 June 2010.

Total revenue for the fourth quarter of fiscal 2010 was $240 million, up 18% compared to $203.4 million for the same period in the prior fiscal year. Licence revenue in the fourth quarter of fiscal 2010 was $68.5 million, up 9% compared to $63 million for the same period in the prior fiscal year.

Adjusted net income in the fourth quarter of fiscal 2010 was $54.9 million, up 40% compared to $39.2 million for the same period in the prior fiscal year.

Adjusted earnings per share for the fourth quarter of fiscal 2010 was $0.95 per share on a diluted basis, up 30% compared to $0.73 per share on a diluted basis, for the same period in the prior fiscal year. Net income in accordance with US generally accepted accounting principles ("US GAAP") was $51.5 million or $0.89 per share on a diluted basis, compared to $19.5 million or $0.36 per share on a diluted basis for the same period in the prior fiscal year.

Total revenue for fiscal 2010 was $912 million, up 16% compared to $785.7 million in the prior fiscal year. Licence revenue for fiscal 2010 was $238.1 million, up 4% compared to $229.8 million in the prior fiscal year.

Adjusted net income for fiscal 2010 was $178 million compared to $132.8 million in the prior fiscal year. Adjusted earnings per share for fiscal 2010 was $3.10 per share on a diluted basis, up 24% compared to $2.49 per share on a diluted basis, in the prior fiscal year. Net income for fiscal 2010 in accordance with US GAAP was $87.6 million, or $1.53 per share on a diluted basis, compared to $56.9 million, or $1.07 per share on a diluted basis, in the prior fiscal year.

Operating cash flow in the fourth quarter of fiscal 2010 was $65.2 million, compared to $38.6 million for the same period in prior fiscal year. For the full 2010 fiscal year, Open Text generated $180.2 million in operating cash flow compared to $176.2 million in fiscal 2009.

The cash and cash equivalents balance as of 30 June 2010 was $326.2 million. Accounts receivable as of 30 June 2010 totalled $132.1 million, compared to $115.8 million as of 30 June 2009, and Days Sales Outstanding (DSO) was 50 days in the fourth quarter of fiscal 2010, compared to 51 days in the fourth quarter of fiscal 2009.

"Our focus for the year has been on profitability and I am pleased that in this difficult economic environment, we have exceeded our profitability targets with disciplined cost control," commented John Shackleton, President and CEO of Open Text. "Demand for vertical solutions, as well as customer need for compliance and back office efficiencies, continue to contribute to our strong pipeline."

For further information, please contact Rob Shaw: tel +27 83 626-3811, fax +27 86 646 4178, e-mail rshaw@opentext.com.

Open Text

Open Text, an enterprise software company and leader in enterprise content management, helps organisations manage and gain the true value of their business content. Open Text brings two decades of expertise supporting 50 million users in 114 countries. Working with our customers and partners, we bring together leading Content Experts to help organisations capture and preserve corporate memory, increase brand equity, automate processes, mitigate risk, manage compliance and improve competitiveness.

In southern Africa, Open Text's business partners are Accenture, Business Connexion, Datacentrix, IA Systems and SAP Africa; and, its customer base includes organisations from across both the private and public sectors such as Alexander Forbes, Anglo Platinum, BMW, Department of Environmental Affairs and Tourism, Distell, Engen, Exxaro Resources, Mittal Steel, Office of the President, Provincial Government of the Western Cape, SABMiller, Sasol, Telkom SA and Toyota.

Safe harbour statement under the Private Securities Litigation Reform Act of 1995

This news release may contain forward-looking statements relating to the success of any of the company's strategic initiatives, the company's growth and profitability prospects, the benefits of the company's products to be realised by customers, the company's position in the market and future opportunities therein, the deployment of Open Text ECM Suite and our other products by customers, and future performance of Open Text Corporation. Forward-looking statements may also include, without limitation, any statement relating to future events, conditions or circumstances. Forward-looking statements in this release are not promises or guarantees and are subject to certain risks and uncertainties, and actual results may differ materially. The risks and uncertainties that may affect forward-looking statements include, among others, the failure to develop new products, risks involved in fluctuations in currency exchange rates, delays in purchasing decisions of customers, the completion and integration of acquisitions, the possibility of technical, logistical or planning issues in connection with deployments, the continuous commitment of the company's customers, demand for the company's products and other risks detailed from time to time in the company's filings with the Securities and Exchange Commission (SEC), including the Form 10-K for the year ended June 30, 2009. You should not place undue reliance upon any such forward-looking statements, which are based on management's beliefs and opinions at the time the statements are made, and the company does not undertake any obligations to update forward-looking statements should circumstances or management's beliefs or opinions change.

Copyright (c) 2010 by Open Text Corporation. OPEN TEXT, OPEN TEXT EVERYWHERE and the OPEN TEXT ECM SUITE are trademarks or registered trademarks of Open Text Corporation in the United States of America, Canada, the European Union and/or other countries. SAP and all SAP logos are trademarks or registered trademarks of SAP AG in Germany and in several other countries. This list of trademarks is not exhaustive. Other trademarks, registered trademarks, product names, company names, brands and service names mentioned herein are property of Open Text Corporation or other respective owners.

For more information on Open Text, go to: http://www.opentext.com.

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