Business
OpenText Sees Higher Revenue, Profit (HITS)
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Enterprise information management software firm OpenText posted both higher revenues and profits for the fiscal fourth quarter, with the company touting expanded support, cloud, business networks and security product lines.
“We have created the information platform, the intelligent and connected core and we are now adding to that platform via our own engineering and acquisitions,” said Mark Barrenechea, OpenText’s CEO and CTO, during a call with investors. “We’ve got a proven track record of acquiring and integrating companies. We have a meaningful capacity to execute on that strategy, when the right opportunity presents itself. Our business system is focused on growing shareholder value and is a strategy that has proven successful over the long-term.”
OpenText posted a profit of $62 million for the quarter, up from $46 million the same quarter a year ago, on revenue of $754 million, up 14% from last year’s $730 million quarterly revenue.
Barrenechea pointed to partnerships with Nestlé, GM, BMW, Daimler and Siemens as key to the company’s continued growth, and noted that OpenText is now operating in 40 countries worldwide.
During OpenText’s fiscal 2018, the company closed three acquisitions, including Covisint, Guidance Software and Hightail, and during the fiscal fourth quarter, announced a new public SaaS platform, OpenText OT2.
“Looking at Fiscal 2019 and beyond, today we are also announcing a restructuring plan to further streamline our operations and increase our agility as we look to execute on our total growth strategy,” said OpenText EVP and CFO Madhu Ranganathan.”
