OpenText Intelligent Growth Strategy Drives Record Fourth Quarter and Fiscal Year 2014 Financial Results Appoints John Doolittle Chief Financial Officer - WECT TV6-WECT.com:News, weather & sports Wilmington, NC

OpenText Intelligent Growth Strategy Drives Record Fourth Quarter and Fiscal Year 2014 Financial Results Appoints John Doolittle Chief Financial Officer

Information contained on this page is provided by an independent third-party content provider. WorldNow and this Station make no warranties or representations in connection therewith. If you have any questions or comments about this page please contact pressreleases@worldnow.com.

SOURCE Open Text Corporation

WATERLOO, Ontario, July 30, 2014 /PRNewswire/ -- Open Text Corporation (NASDAQ: OTEX) (TSX: OTC) announced today its financial results for the fourth quarter and fiscal year ended June 30, 2014, and the appointment of John Doolittle as Chief Financial Officer.

Financial Highlights for Q4 FY14 (1)

  • Total revenue was $494.0 million, up 42% Y/Y
  • License revenue was $99.7 million, up 27% Y/Y
  • Cloud services revenue was $148.9 million, up 255% Y/Y
  • Customer support revenue was $183.9 million, up 12% Y/Y
  • Non-GAAP-based EPS, diluted was $1.05 compared to $0.72 Y/Y, up 48%; GAAP-based EPS, diluted was $0.72 compared to $0.36 Y/Y up 100%, on a post stock-split basis.(2)  
  • Non-GAAP-based income from operations was $162.2 million and 33% of revenues up 58% Y/Y; GAAP-based income from operations was $107.7 million and 22% of revenues, up 118% Y/Y.(2)
  • Operating cash flow was $134.9 million, up 107%Y/Y, with an ending cash balance of $427.9 million.

Financial Highlights for FY14 (1)

  • Total revenue for the period was $1,624.7 million, up 19% Y/Y
  • License revenue was $309.2 million, up 11% Y/Y
  • Cloud services revenue was $361.1 million, up 108% Y/Y
  • Customer support revenue was $707.0 million, up 7% Y/Y
  • Non-GAAP-based EPS, diluted was $3.37 compared to $2.79 Y/Y, up 21%; GAAP-based EPS, diluted was $1.81 compared to $1.26 Y/Y up 44%, on a post stock-split basis.(2)
  • Non-GAAP-based income from operations was $502.7 million and 31% of revenues, up 26% Y/Y; GAAP-based income from operations was $300.5 million and 18% of revenues, up 52% Y/Y.(2)
  • Operating cash flow was $417.1 million,  up 31%Y/Y, with an ending cash balance of $427.9 million.

"Our focus on Enterprise Information Management is well aligned to the strategic priorities of our customers.  We delivered record quarterly and full fiscal year results, including full fiscal year total revenues of $1.625 billion, up 19%, license of $309 million, up 11%, and operating cash flows of $417 million, up 31% year over year," said Mark J. Barrenechea OpenText CEO. "For Fiscal 2015, we are committed to unlocking further value, growth and leadership for our customers, partners and shareholders through focused execution utilizing our Intelligent Growth Business System (OTIGS)."

Appoints John Doolittle as Chief Financial Officer

Mr. Doolittle is a senior executive with more than 20 years of financial experience, including most recently as Chief Financial Officer (CFO) of Mattamy Homes Limited, Canada's largest new home builder, and with Nortel Networks Corporation, where he held senior global finance roles.

"John brings tremendous experience as a seasoned global executive," said Mark J. Barrenechea OpenText CEO. "He has the breadth of financial skills, experience and leadership to take our finance organization and our company to the next level of scale, efficiency and growth."

Commenting on his appointment, Mr. Doolittle said, "OpenText's strategy of Enterprise Information Management is placing OpenText in a winning market position. I look forward to joining Mark's world-class executive team and contributing to the company's exciting next phase of growth and execution."

Effective September 8, 2014, Mr. Doolittle will replace Paul McFeeters who previously announced his intention to retire from his position as CFO by no later than September 30, 2014. Mr. Doolittle will work with Mr. McFeeters to ensure a seamless transition of financial leadership responsibilities.

Barrenechea further added, "I would like to take this opportunity again to thank Paul McFeeters.  Paul has served as our CFO for 8 years, his career spans nearly 40 years and I thank him for his extraordinary service to the company.  John and Paul will work together to ensure a textbook transition."

Business Highlights

  • Basic materials, technology, services and financial industries saw the most demand
  • 16 license transactions over $1 million and 11 license transactions between $500K and $1 million
  • Customer successes in the quarter include Banco Original, The City of Calgary, FMC Technologies, Joy Global, Del Monte Foods Inc, Tata Motors Limited, Superior Tribunal de Justica, AbbVie and Eisenmann AG
  • OpenText launches Discovery Suite to capture and create value in big content
  • SAP and OpenText to accelerate global adoption of enterprise content management
  • OpenText receives SAP® Pinnacle Award for the seventh consecutive year
  • OpenText announces free enterprise file synchronization and sharing for content management customers

Dividend Program Highlights

Cash Dividend

As part of our quarterly, non cumulative cash dividend program the Board declared a quarterly cash dividend to holders of the Company's Common Shares of $0.1725. The record date for this dividend is August 29, 2014 and the payment date is September 19, 2014. Future declarations of dividends and the establishment of future record and payment dates are subject to the final determination and discretion of our Board of Directors.

Summary of Quarterly Results


Q4 FY14

Q3 FY14

Q4 FY13

% Change

(Q/Q)


% Change

(Y/Y)


Revenue (million)

$494.0


$442.8


$347.3


11.6

%


42.2

%


GAAP-based gross margin

69.1

%

67.3

%

66.0

%

180


bps

310


bps

GAAP-based operating margin

21.8

%

15.1

%

14.2

%

670


bps

760


bps

GAAP-based EPS, diluted

$0.72


$0.38


$0.36


89.5

%


100.0

%


Non-GAAP-based gross margin (2)

72.9

%

71.3

%

72.9

%

160


bps

-


bps

Non-GAAP-based operating margin (2)

32.8

%

29.1

%

29.5

%

370


bps

330


bps

Non-GAAP-based EPS, diluted (2)

$1.05


$0.84


$0.72


25.0

%


45.8

%


 

 

Summary of Year to Date Results


FY14

Q3 FY14 YTD

FY13

% Change

(Y/Y)


Revenue (million)

$1,624.7


$1,130.7


$1,363.3


19.2

%


GAAP-based gross margin

68.5

%

68.3

%

64.4

%

410


bps

GAAP-based operating margin

18.5

%

17.1

%

14.5

%

400


bps

GAAP-based EPS, diluted

$1.81


$1.08


$1.26


43.7

%


Non-GAAP-based gross margin (2)

72.9

%

73.0

%

71.3

%

160


bps

Non-GAAP-based operating margin (2)

30.9

%

30.1

%

29.3

%

160


bps

Non-GAAP-based EPS, diluted (2)

$3.37


$2.32


$2.79


20.8

%


Conference Call Information

The public is invited to listen to the earnings conference call today at 5:00 p.m. ET (2:00 p.m. PT) by dialing 866-530-1553 (toll-free) or 416-847-6330 (international). Please dial-in 15 minutes ahead of time to ensure proper connection. Alternatively, a live webcast of the earnings conference call will be available on the Investor Relations section of the Company's website at http://investors.opentext.com/events.cfm .

An audio replay of the conference call will also be made available approximately two hours after the conclusion of the call. The audio replay will remain available until 8:00 p.m. on August 14, 2014 and can be accessed by dialing 888-203-1112 (toll-free) or 647-436-0148 (international) and entering the confirmation code: 6995981 followed by the number sign.

Please see below note (2) for a reconciliation of non-U.S. GAAP-based financial measures used in this press release, to U.S. GAAP-based financial measures.

About OpenText

OpenText is the largest independent software provider of Enterprise Information Management (EIM). For more information please visit www.opentext.com.

Cautionary Statement Regarding Forward-Looking Statements

Certain statements in this press release, including statements about the focus of Open Text Corporation ("OpenText" or "the Company") in Fiscal 2014 on growth in earnings and cash flows, creating value through investments in broader Enterprise Information Management (EIM) capabilities, distribution, the Company's presence in the cloud and in growth markets, its financial condition, results of operations and earnings, declaration of quarterly dividends, and other matters, may contain words such as "anticipates", "expects", "intends", "plans", "believes", "seeks", "estimates", "may", "could", "would", "might", "will" and variations of these words or similar expressions are considered forward-looking statements or information under applicable securities laws. In addition, any information or statements that refer to expectations, beliefs, plans, projections, objectives, performance or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking, and based on our current expectations, forecasts and projections about the operating environment, economies and markets in which we operate.  Forward-looking statements reflect our current estimates, beliefs and assumptions, which are based on management's perception of historic trends, current conditions and expected future developments, as well as other factors it believes are appropriate in the circumstances, such as certain assumptions about the economy, as well as market, financial and operational assumptions. Management's estimates, beliefs and assumptions are inherently subject to significant business, economic, competitive and other uncertainties and contingencies regarding future events and, as such, are subject to change. We can give no assurance that such estimates, beliefs and assumptions will prove to be correct. Such forward-looking statements involve known and unknown risks, uncertainties and other factors and assumptions that may cause the actual results, performance or achievements to differ materially. Such factors include, but are not limited to: (i) the future performance, financial and otherwise, of OpenText; (ii) the ability of OpenText to bring new products and services to market and to increase sales; (iii) the strength of the Company's product development pipeline; (iv) the Company's growth and profitability prospects; (v) the estimated size and growth prospects of the EIM market; (vi) the Company's competitive position in the EIM market and its ability to take advantage of future opportunities in this market; (vii) the benefits of the Company's products and services to be realized by customers; (viii) the demand for the Company's products and services and the extent of deployment of the Company's products and services in the EIM marketplace; and (ix) the Company's financial condition and capital requirements. The risks and uncertainties that may affect forward-looking statements include, but are not limited to: (i) integration of acquisitions and related restructuring efforts, including the quantum of restructuring charges and the timing thereof;  (ii) the possibility that the Company may be unable to meet its future reporting requirements under the Securities Exchange Act of 1934, as amended, and the rules promulgated thereunder; (iii) the risks associated with bringing new products and services to market; (iv) fluctuations in currency exchange rates; (v) delays in the purchasing decisions of the Company's customers; (vi) the competition the Company faces in its industry and/or marketplace; (vii) the final determination of litigation, tax audits and other legal proceedings; (viii) the possibility of technical, logistical or planning issues in connection with the deployment of the Company's products or services; (ix) the continuous commitment of the Company's customers; and (x) demand for the Company's products. For additional information with respect to risks and other factors which could occur, see the Company's Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and other securities filings with the Securities and Exchange Commission (SEC) and other securities regulators. Readers are cautioned not to place undue reliance upon any such forward-looking statements, which speak only as of the date made. Unless otherwise required by applicable securities laws, the Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

OTEX-F

For more information, please contact:

United States:

Greg Secord
Vice President, Investor Relations
Open Text Corporation
San Francisco: 415-963-0825
gsecord@opentext.com

Canada:

Sonya Mehan
Senior Manager, Investor Relations
Open Text Corporation
Waterloo: 519-888-7111 ext. 2446
smehan@opentext.com

Copyright ©2014 Open Text Corporation. OpenText is a trademark or registered trademark of Open Text SA and/or Open Text ULC. The list of trademarks is not exhaustive of other trademarks, registered trademarks, product names, company names, brands and service names mentioned herein are property of Open Text SA or other respective owners. All rights reserved. For more information, visit: http://www.opentext.com/2/global/site-copyright.html_SKU.

 


 

OPEN TEXT CORPORATION

CONSOLIDATED BALANCE SHEETS

(In thousands of U.S. dollars, except share data)

 


June 30, 2014


June 30, 2013







ASSETS






Cash and cash equivalents

$

427,890



$

470,445


Accounts receivable trade, net of allowance for doubtful accounts of $4,499 as of June 30, 2014 and $4,871 as of June 30, 2013

292,929



174,927


Income taxes recoverable

24,648



17,173


Prepaid expenses and other current assets

42,053



43,464


Deferred tax assets

28,215



11,082


Total current assets

815,735



717,091


Property and equipment

142,261



88,364


Goodwill

1,963,557



1,246,872


Acquired intangible assets

725,318



363,615


Deferred tax assets

156,712



135,695


Other assets

52,041



25,082


Deferred charges

52,376



67,633


Long-term income taxes recoverable

10,638



10,465


Total assets

$

3,918,638



$

2,654,817


LIABILITIES AND SHAREHOLDERS' EQUITY






Current liabilities:






Accounts payable and accrued liabilities

$

231,954



$

188,443


Current portion of long-term debt

62,582



51,742


Deferred revenues

332,664



282,387


Income taxes payable

31,630



4,184


Deferred tax liabilities

1,053



1,127


Total current liabilities

659,883



527,883


Long-term liabilities:






Accrued liabilities

41,999



17,849


Deferred credits

17,529



11,608


Pension liability

60,300



24,509


Long-term debt

1,256,750



513,750


Deferred revenues

17,248



11,830


Long-term income taxes payable

162,131



140,508


Deferred tax liabilities

60,631



69,672


Total long-term liabilities

1,616,588



789,726


Shareholders' equity:






Share capital






121,758,432 and 118,057,772 Common Shares issued and outstanding at June 30, 2014 and June 30, 2013, respectively; Authorized Common Shares: unlimited

792,834



651,642


Additional paid-in capital

112,398



101,865


Accumulated other comprehensive income

39,449



39,890


Retained earnings

716,317



572,885


Treasury stock, at cost (763,278 shares at June 30, 2014 and 1,221,756 at June 30, 2013, respectively)

(19,132)



(29,074)


Total OpenText shareholders' equity

1,641,866



1,337,208


Non-controlling interests

301



-


Total shareholders' equity

1,642,167



1,337,208


Total liabilities and shareholders' equity

$

3,918,638



$

2,654,817


 

 

OPEN TEXT CORPORATION

CONSOLIDATED STATEMENTS OF INCOME

(In thousands of U.S. dollars, except share and per share data)

 



Year Ended June 30,



2014



2013



2012


Revenues:










License


$

309,217



$

279,598



293,719


Cloud services


361,069



173,799



-


Customer support


707,024



658,216



656,568


Professional service and other


247,389



251,723



257,186


Total revenues


1,624,699



1,363,336



1,207,473


Cost of revenues:










License


13,362



16,107



18,033


Cloud services


135,472



72,365



-


Customer support


95,980



106,948



110,504


Professional service and other


196,939



196,874



204,909


Amortization of acquired technology-based intangible assets


69,917



93,610



84,572


Total cost of revenues


511,670



485,904



418,018


Gross profit


1,113,029



877,432



789,455


Operating expenses:










Research and development


176,834



164,010



169,043


Sales and marketing


345,643



289,157



274,544


General and administrative


142,450



109,325



97,072


Depreciation


35,237



24,496



21,587


Amortization of acquired customer-based intangible assets


81,023



68,745



53,326


Special charges


31,314



24,034



24,523


Total operating expenses


812,501



679,767



640,095


Income from operations


300,528



197,665



149,360


Other income (expense), net


3,941



(2,473)



3,549


Interest and other related expense, net


(27,934)



(16,982)



(15,564)


Income before income taxes


276,535



178,210



137,345


Provision for income taxes


58,461



29,690



12,171


Net income for the period


$

218,074



$

148,520



$

125,174


Net loss attributable to non-controlling interests


51



-



$

-


Net income attributable to OpenText


$

218,125



$

148,520



$

125,174


Earnings per share-basic attributable to OpenText


$

1.82



$

1.27



$

1.08


Earnings per share-diluted attributable to OpenText


$

1.81



$

1.26



$

1.07


Weighted average number of Common Shares outstanding-basic


119,674



117,208



115,780


Weighted average number of Common Shares outstanding-diluted


120,576



118,124



117,468


Dividends declared per Common Share


$

0.6225



$

0.15



$

-


 

 

OPEN TEXT CORPORATION

CONSOLIDATED STATEMENTS OF INCOME

(In thousands of U.S. dollars, except share and per share data)

 



Three Months Ended
June 30,



2014



2013


Revenues:







License


$

99,664



$

78,782


Cloud services


148,891



41,890


Customer support


183,869



164,889


Professional service and other


61,554



61,706


Total revenues


493,978



347,267


Cost of revenues:







License


3,495



3,529


Cloud services


55,780



17,696


Customer support


24,195



25,351


Professional service and other


51,041



47,879


Amortization of acquired technology-based intangible assets


18,205



23,579


Total cost of revenues


152,716



118,034


Gross profit


341,262



229,233


Operating expenses:







Research and development


47,502



42,383


Sales and marketing


101,240



79,338


General and administrative


41,413



27,857


Depreciation


11,354



6,218


Amortization of acquired customer-based intangible assets


26,635



17,197


Special charges


5,413



6,767


Total operating expenses


233,557



179,760


Income from operations


107,705



49,473


Other income (expense), net


1,103



(4,180)


Interest and other related expense, net


(10,775)



(3,990)


Income before income taxes


98,033



41,303


Provision for (recovery of) income taxes


9,885



(869)


Net income for the period


$

88,148



$

42,172


Net gain attributable to non-controlling interests


(37)



-


Net income attributable to OpenText


$

88,111



$

42,172


Earnings per share-basic attributable to OpenText


$

0.72



$

0.36


Earnings per share-diluted attributable to OpenText


$

0.72



$

0.36


Weighted average number of Common Shares outstanding-basic


121,692



117,750


Weighted average number of Common Shares outstanding-diluted


122,511



118,476


Dividends declared per Common Share


$

0.1725



$

0.15


 

 

 

OPEN TEXT CORPORATION

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(In thousands of U.S. dollars)

 


Year Ended June 30,


2014



2013



2012


Net income for the period

$

218,074



$

148,520



$

125,174


Other comprehensive income-net of tax:









Net foreign currency translation adjustments

(2,779)



(1,879)



(9,197)


Unrealized gain (loss) on cash flow hedges









Unrealized loss

(357)



(1,054)



(1,403)


(Gain) loss reclassified into net income

3,242



(1,482)



334


Actuarial gain (loss) relating to defined benefit pension plans, net of tax









Actuarial loss

(841)



(351)



(5,840)


Amortization of actuarial loss into net income

294



292



-


Total other comprehensive loss, net, for the period

(441)



(4,474)



(16,106)


Total comprehensive income

217,633



144,046



109,068


Comprehensive loss attributable to non-controlling interests

51



-



-


Total comprehensive income attributable to OpenText

$

217,684



$

144,046



$

109,068


 


Three Months Ended
June 30,


2014



2013


Net income for the period

$

88,148



$

42,172


Other comprehensive income-net of tax:






Net foreign currency translation adjustments

(2,046)



2,911


Unrealized gain (loss) on cash flow hedges






Unrealized loss

1,160



(2,151)


(Gain) loss reclassified into net income

832



(43)


Actuarial gain (loss) relating to defined benefit pension plans, net of tax






Actuarial loss

(60)



401


Amortization of actuarial loss into net income

74



73


Total other comprehensive loss, net, for the period

(40)



1,191


Total comprehensive income

88,108



43,363


Comprehensive gain attributable to non-controlling interests

(37)



-


Total comprehensive income attributable to OpenText

$

88,071



$

43,363


 


OPEN TEXT CORPORATION

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands of U.S. dollars)

 


Year Ended June 30,


2014



2013



2012


Cash flows from operating activities:









Net income for the period

$

218,074



$

148,520



$

125,174


Adjustments to reconcile net income to net cash provided by operating activities:









Depreciation and amortization of intangible assets

186,177



186,851



159,485


Share-based compensation expense

19,906



15,575



18,097


Excess tax benefits on share-based compensation expense

(1,844)



(915)



(2,723)


Pension expense

3,232



1,448



1,125


Amortization of debt issuance costs

3,191



2,123



1,703


Amortization of deferred charges and credits

11,307



11,815



11,579


Loss on sale and write down of property and equipment

15



24



203


Deferred taxes

(31,016)



(5,796)



(78,792)


Impairment and other non cash charges

-



-



1,389


Changes in operating assets and liabilities:









Accounts receivable

(17,186)



17,965



5,319


Prepaid expenses and other current assets

11,146



4,242



(2,079)


Income taxes

29,990



(17,053)



68,601


Deferred charges and credits

9,870



(9,274)



(22,035)


Accounts payable and accrued liabilities

(36,478)



(41,947)



(18,394)


Deferred revenue

16,601



5,418



(4,581)


Other assets

(5,858)



(494)



2,419


Net cash provided by operating activities

417,127



318,502



266,490


Cash flows from investing activities:









Additions of property and equipment

(42,268)



(23,107)



(25,828)


Purchase of patents

(192)



(192)



(193)


Purchase of GXS Group, Inc., net of cash acquired

(1,076,886)



-



-


Purchase of Cordys Holding B.V., net of cash acquired

(30,588)



-



-


Purchase of EasyLink Services International Corporation, net of cash acquired

-



(315,331)



-


Purchase of Resonate KT Limited, net of cash acquired

-



(19,366)



-


Purchase of ICCM Professional Services Limited, net of cash acquired

-



(11,257)



-


Purchase of System Solutions Australia Pty Limited (MessageManager), net of cash acquired

-



(516)



(1,738)


Purchase of Global 360 Holding Corp., net of cash acquired

-



-



(245,653)


Purchase of Operitel Corporation, net of cash acquired

-



-



(7,014)


Purchase consideration for prior period acquisitions

(887)



(875)



(1,113)


Other investing activities

(2,547)



(3,750)



-


Net cash used in investing activities

(1,153,368)



(374,394)



(281,539)


Cash flows from financing activities:









Excess tax benefits on share-based compensation expense

1,844



915



2,723


Proceeds from issuance of Common Shares

24,808



16,347



21,270


Equity issuance costs

(144)



-



-


Purchase of Treasury Stock

(1,275)



-



(10,888)


Proceeds from long-term debt and revolver

800,000



-



648,500


Repayment of long-term debt

(45,911)



(30,677)



(349,187)


Debt issuance costs

(16,685)



-



(9,834)


Payments of dividends to shareholders

(74,693)



(17,703)



-


Net cash provided by (used in) financing activities

687,944



(31,118)



302,584


Foreign exchange gain (loss) on cash held in foreign currencies

5,742



(2,292)



(11,928)


Increase (decrease) in cash and cash equivalents during the period

(42,555)



(89,302)



275,607


Cash and cash equivalents at beginning of the period

470,445



559,747



284,140


Cash and cash equivalents at end of the period

$

427,890



$

470,445



$

559,747














 

OPEN TEXT CORPORATION

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands of U.S. dollars)

 


Three Months Ended
June 30,


2014



2013


Cash flows from operating activities:






Net income for the period

$

88,148



$

42,172


Adjustments to reconcile net income to net cash provided by operating activities:






Depreciation and amortization of intangible assets

56,194



46,994


Share-based compensation expense

4,199



5,422


Excess tax benefits on share-based compensation expense

(169)



(303)


Pension expense

1,268



339


Amortization of debt issuance costs

1,131



532


Amortization of deferred charges and credits

2,667



3,195


Loss on sale and write down of property and equipment

-



-


Deferred taxes

(26,813)



1,566


Changes in operating assets and liabilities:






Accounts receivable

(36,315)



2,578


Prepaid expenses and other current assets

29,771



6,303


Income taxes

24,412



(2,146)


Deferred charges and credits

-



(12,854)


Accounts payable and accrued liabilities

(3,600)



(14,354)


Deferred revenue

(3,421)



(12,774)


Other assets

(2,558)



(1,453)


Net cash provided by operating activities

134,914



65,217


Cash flows from investing activities:






Additions of property and equipment

(13,825)



(7,315)


Purchase of patents

-



(192)


Purchase of GXS Group, Inc., net of cash acquired

785



-


Purchase of Cordys Holding B.V., net of cash acquired

-



-


Purchase of EasyLink Services International Corporation, net of cash acquired

-



-


Purchase of Resonate KT Limited, net of cash acquired

-



-


Purchase of ICCM Professional Services Limited, net of cash acquired

-



(11,257)


Purchase of System Solutions Australia Pty Limited (MessageManager), net of cash acquired

-



-


Purchase consideration for prior period acquisitions

(222)



(222)


Other investing activities

-



(3,750)


Net cash used in investing activities

(13,262)



(22,736)


Cash flows from financing activities:






Excess tax benefits on share-based compensation expense

169



303


Proceeds from issuance of Common Shares

5,090



8,817


Equity issuance costs

-



-


Purchase of Treasury Stock

-



-


Proceeds from long-term debt and revolver

-



-


Repayment of long-term debt

(13,412)



(7,669)


Debt issuance costs

(653)



-


Payments of dividends to shareholders

(21,001)



(17,703)


Net cash provided by (used in) financing activities

(29,807)



(16,252)


Foreign exchange gain (loss) on cash held in foreign currencies

(26)



(2,695)


Increase (decrease) in cash and cash equivalents during the period

91,819



23,534


Cash and cash equivalents at beginning of the period

336,071



446,911


Cash and cash equivalents at end of the period

$

427,890



$

470,445


 


Notes


(1)

All dollar amounts in this press release are in U.S. Dollars unless otherwise indicated.

 

(2)

Use of Non-GAAP Financial Measures: In addition to reporting financial results in accordance with U.S. GAAP, the Company provides certain financial measures that are not in accordance with U.S. GAAP (non-GAAP).These non-GAAP financial measures have certain limitations in that they do not have a standardized meaning and thus the Company's definition may be different from similar non-GAAP financial measures used by other companies and/or analysts and may differ from period to period. Thus it may be more difficult to compare the Company's financial performance to that of other companies. However, the Company's management compensates for these limitations by providing the relevant disclosure of the items excluded in the calculation of these non-GAAP financial measures both in its reconciliation to the U.S. GAAP financial measures and its consolidated financial statements, all of which should be considered when evaluating the Company's results.

 


The Company uses these non-GAAP financial measures to supplement the information provided in its consolidated financial statements, which are presented in accordance with U.S. GAAP. The presentation of non-GAAP financial measures are not meant to be a substitute for financial measures presented in accordance with U.S. GAAP, but rather should be evaluated in conjunction with and as a supplement to such U.S. GAAP measures. OpenText strongly encourages investors to review its financial information in its entirety and not to rely on a single financial measure. The Company therefore believes that despite these limitations, it is appropriate to supplement the disclosure of the U.S. GAAP measures with certain non-GAAP measures defined below.

 


Non-GAAP-based net income and non-GAAP-based EPS are calculated as net income or net income per share on a diluted basis, excluding, the amortization of acquired intangible assets, other income (expense), share-based compensation, and special charges, all net of tax. Non-GAAP-based gross profit is the arithmetical sum of GAAP-based gross profit and the amortization of acquired technology-based intangible assets. Non-GAAP-based gross margin is calculated as non-GAAP-based gross profit expressed as a percentage of revenue. Non-GAAP-based income from operations is calculated as income from operations, excluding, the amortization of acquired intangible assets, special charges, and share-based compensation. Non-GAAP-based operating margin is calculated as non-GAAP-based income from operations expressed as a percentage of revenue.

 


The Company's management believes that the presentation, of the above defined non-GAAP financial measures, provides useful information to investors because they portray the financial results of the Company before the impact of certain non-operational charges. The use of the term "non-operational charge" is defined for this purpose as an expense that does not impact the ongoing operating decisions taken by the Company's management and is based upon the way the Company's management evaluates the performance of the Company's business for use in the Company's internal reports. In the course of such evaluation and for the purpose of making operating decisions, the Company's management excludes certain items from its analysis, including amortization of acquired intangible assets, special charges, share-based compensation, other income (expense), and the taxation impact of these items. These items are excluded based upon the manner in which management evaluates the business of the Company and are not excluded in the sense that they may be used under U.S. GAAP.

 


The Company believes the provision of supplemental non-GAAP measures allow investors to evaluate the operational and financial performance of the Company's core business using the same evaluation measures that management uses, and is therefore a useful indication of OpenText's performance or expected performance of future operations and facilitates period-to-period comparison of operating performance (although prior performance is not necessarily indicative of future performance). As a result, the Company considers it appropriate and reasonable to provide, in addition to U.S. GAAP measures, supplementary non-GAAP financial measures that exclude certain items from the presentation of its financial results in this press release.




The following charts provide (unaudited) reconciliations of U.S. GAAP-based financial measures to non-U.S. GAAP-based financial measures for the following periods presented:




Reconciliation of selected GAAP-based measures to Non-GAAP-based measures for the three months ended June 30, 2014.

(In thousands except for per share amounts)


Three Months Ended

June 30, 2014


GAAP-based

Measures

GAAP-based Measures

% of Revenue

Adjustments

Note

Non-GAAP-based

Measures

Non-GAAP-based Measures

% of Revenue

Cost of revenues












Cloud services

$

55,780




$

(197)


(1)

$

55,583




Customer support

24,195




(207)


(1)

23,988




Professional service and other

51,041




(112)


(1)

50,929




Amortization of acquired technology-based intangible assets

18,205




(18,205)


(2)

-




GAAP-based gross profit and gross margin (%) /
Non-GAAP-based gross profit and gross margin (%)

341,262


69.1

%

18,721


(3)

359,983


72.9

%

Operating expenses












Research and development

47,502




(450)


(1)

47,052




Sales and marketing

101,240




(1,112)


(1)

100,128




General and administrative

41,413




(2,121)


(1)

39,292




Amortization of acquired customer-based intangible assets

26,635




(26,635)


(2)

-




Special charges

5,413




(5,413)


(4)

-




GAAP-based income from operations and operating margin (%) / Non-GAAP-based income from operations and operating margin (%)

107,705


21.8

%

54,452


(5)

162,157


32.8

%

Other income (expense), net

1,103




(1,103)


(6)

-




Provision for (recovery of) income taxes

9,885




12,785


(7)

22,670




GAAP-based net income / Non-GAAP-based net income, attributable to OpenText

88,111




40,564


(8)

128,675




GAAP-based earnings per share /
Non GAAP-based earnings per share-diluted, attributable to OpenText

$

0.72




$

0.33


(8)

$

1.05




 

(1)

Adjustment relates to the exclusion of share based compensation expense from our Non-GAAP-based operating expenses as this expense is excluded from our internal analysis of operating results.

(2)

Adjustment relates to the exclusion of amortization expense from our Non-GAAP-based operating expenses as the timing and frequency of amortization expense is dependent on our acquisitions and is hence excluded from our internal analysis of operating results.

(3)

GAAP-based and Non-GAAP-based gross profit stated in dollars, and gross margin stated as a percentage of revenue.

(4)

Adjustment relates to the exclusion of Special charges from our Non-GAAP-based operating expenses as Special charges are generally incurred in the periods following the relevant acquisitions and are not indicative or related to continuing operations and are therefore excluded from our internal analysis of operating results.

(5)

GAAP-based and Non-GAAP-based income from operations stated in dollars, and operating margin stated as a percentage of revenue.

(6)

Adjustment relates to the exclusion of Other income (expense) from our Non-GAAP-based operating expenses as Other income (expense) relates primarily to the transactional impact of foreign exchange and is generally not indicative or related to continuing operations and is therefore excluded from our internal analysis of operating results.

(7)

Adjustment relates to differences between the GAAP-based tax provision of approximately 10% and a Non-GAAP-based tax rate of 15%; these rate differences are due to the income tax effects of expenses that are excluded for the purpose of calculating Non-GAAP-based adjusted net income.

(8)

Reconciliation of Non-GAAP-based adjusted net income to GAAP-based net income:  

 


Three Months Ended
June 30, 2014




Per share diluted

Non-GAAP-based net income, attributable to OpenText

$

128,675


$

1.05


Less:





Amortization

44,840


0.37


Share-based compensation

4,199


0.03


Special charges

5,413


0.04


Other (income) expense, net

(1,103)


(0.01)


GAAP-based provision for (recovery of) income taxes

9,885


0.08


Non-GAAP-based provision for income taxes

(22,670)


(0.18)


GAAP-based net income, attributable to OpenText

$

88,111


$

0.72



 

Reconciliation of selected GAAP-based measures to Non-GAAP-based measures for the year ended June 30, 2014.

(In thousands except for per share amounts)


Year Ended
June 30, 2014


GAAP-based

Measures

GAAP-based Measures

% of Revenue

Adjustments

Note

Non-GAAP-based

Measures

Non-GAAP-based Measures

% of Revenue

Cost of revenues












Cloud services

$

135,472




$

(342)


(1)

$

135,130




Customer support

95,980




(754)


(1)

95,226




Professional service and other

196,939




(855)


(1)

196,084




Amortization of acquired technology-based intangible assets

69,917




(69,917)


(2)

-




GAAP-based gross profit and gross margin (%) /
Non-GAAP-based gross profit and gross margin (%)

1,113,029


68.5

%

71,868


(3)

1,184,897


72.9

%

Operating expenses












Research and development

176,834




(2,356)


(1)

174,478




Sales and marketing

345,643




(7,312)


(1)

338,331




General and administrative

142,450




(8,287)


(1)

134,163




Amortization of acquired customer-based intangible assets

81,023




(81,023)


(2)

-




Special charges

31,314




(31,314)


(4)

-




GAAP-based income from operations and operating margin (%) / Non-GAAP-based income from operations and operating margin (%)

300,528


18.5

%

202,160


(5)

502,688


30.9

%

Other income (expense), net

3,941




(3,941)


(6)

-




Provision for (recovery of) income taxes

58,461




9,569


(7)

68,030




GAAP-based net income / Non-GAAP-based net income, attributable to OpenText

218,125




188,650


(8)

406,775




GAAP-based earnings per share /
Non GAAP-based earnings per share-diluted, attributable to OpenText

$

1.81




$

1.56


(8)

$

3.37




 

(1)

Adjustment relates to the exclusion of share based compensation expense from our Non-GAAP-based operating expenses as this expense is excluded from our internal analysis of operating results.

(2)

Adjustment relates to the exclusion of amortization expense from our Non-GAAP-based operating expenses as the timing and frequency of amortization expense is dependent on our acquisitions and is hence excluded from our internal analysis of operating results.

(3)

GAAP-based and Non-GAAP-based gross profit stated in dollars, and gross margin stated as a percentage of revenue.

(4)

Adjustment relates to the exclusion of Special charges from our Non-GAAP-based operating expenses as Special charges are generally incurred in the periods following the relevant acquisitions and are not indicative or related to continuing operations and are therefore excluded from our internal analysis of operating results.

(5)

GAAP-based and Non-GAAP-based income from operations stated in dollars, and operating margin stated as a percentage of revenue.

(6)

Adjustment relates to the exclusion of Other income (expense) from our Non-GAAP-based operating expenses as Other income (expense) relates primarily to the transactional impact of foreign exchange and is generally not indicative or related to continuing operations and is therefore excluded from our internal analysis of operating results.

(7)

Adjustment relates to differences between the GAAP-based tax provision of approximately 21% and a Non-GAAP-based tax rate of 14.3%; these rate differences are due to the income tax effects of expenses that are excluded for the purpose of calculating Non-GAAP-based adjusted net income.

(8)

Reconciliation of Non-GAAP-based adjusted net income to GAAP-based net income:  

 


Year Ended
June 30, 2014




Per share diluted

Non-GAAP-based net income, attributable to OpenText

$

406,775


$

3.37


Less:





Amortization

150,940


1.25


Share-based compensation

19,906


0.17


Special charges

31,314


0.26


Other (income) expense, net

(3,941)


(0.03)


GAAP-based provision for (recovery of) income taxes

58,461


0.48


Non-GAAP-based provision for income taxes

(68,030)


(0.57)


GAAP-based net income, attributable to OpenText

$

218,125


$

1.81


 


Reconciliation of selected GAAP-based measures to Non-GAAP-based measures for the three months ended March 31, 2014.

(In thousands except for per share amounts)


Three Months Ended
March 31, 2014


GAAP-based

Measures

GAAP-based Measures

% of Revenue

Adjustments

Note

Non-GAAP-based

Measures

Non-GAAP-based Measures

% of Revenue

Cost of revenues












Cloud services

$

49,464




$

(167)


(1)

$

49,297




Customer support

25,206




(138)


(1)

25,068




Professional service and other

49,218




(245)


(1)

48,973




Amortization of acquired technology-based intangible assets

17,147




(17,147)


(2)

-




GAAP-based gross profit and gross margin (%) /
Non-GAAP-based gross profit and gross margin (%)

298,192


67.3

%

17,697


(3)

315,889


71.3

%

Operating expenses












Research and development

47,199




(384)


(1)

46,815




Sales and marketing

93,700




(1,926)


(1)

91,774




General and administrative

39,336




(1,558)


(1)

37,778




Amortization of acquired customer-based intangible assets

24,679




(24,679)


(2)

-




Special charges

15,902




(15,902)


(4)

-




GAAP-based income from operations and operating margin (%) / Non-GAAP-based income from operations and operating margin (%)

66,849


15.1

%

62,146


(5)

128,995


29.1

%

Other income (expense), net

1,652




(1,652)


(6)

-




Provision for (recovery of) income taxes

12,971




3,814


(7)

16,785




GAAP-based net income / Non-GAAP-based net income, attributable to OpenText

45,884




56,680


(8)

102,564




GAAP-based earnings per share /
Non GAAP-based earnings per share-diluted, attributable to OpenText

$

0.38




$

0.46


(8)

$

0.84




 

(1)

Adjustment relates to the exclusion of share based compensation expense from our Non-GAAP-based operating expenses as this expense is excluded from our internal analysis of operating results.

(2)

Adjustment relates to the exclusion of amortization expense from our Non-GAAP-based operating expenses as the timing and frequency of amortization expense is dependent on our acquisitions and is hence excluded from our internal analysis of operating results.

(3)

GAAP-based and Non-GAAP-based gross profit stated in dollars, and gross margin stated as a percentage of revenue.

(4)

Adjustment relates to the exclusion of Special charges from our Non-GAAP-based operating expenses as Special charges are generally incurred in the periods following the relevant acquisitions and are not indicative or related to continuing operations and are therefore excluded from our internal analysis of operating results.

(5)

GAAP-based and Non-GAAP-based income from operations stated in dollars, and operating margin stated as a percentage of revenue.

(6)

Adjustment relates to the exclusion of Other income (expense) from our Non-GAAP-based operating expenses as Other income (expense) relates primarily to the transactional impact of foreign exchange and is generally not indicative or related to continuing operations and is therefore excluded from our internal analysis of operating results.

(7)

Adjustment relates to differences between the GAAP-based tax provision of approximately 22% and a Non-GAAP-based tax rate of 14%; these rate differences are due to the income tax effects of expenses that are excluded for the purpose of calculating Non-GAAP-based adjusted net income.

(8)

Reconciliation of Non-GAAP-based adjusted net income to GAAP-based net income:  

 


Three Months Ended
March 31, 2014




Per share diluted

Non-GAAP-based net income, attributable to OpenText

$

102,564


$

0.84


Less:





Amortization

41,826


0.34


Share-based compensation

4,418


0.04


Special charges

15,902


0.13


Other (income) expense, net

(1,652)


(0.01)


GAAP-based provision for (recovery of) income taxes

12,971


0.11


Non-GAAP-based provision for income taxes

(16,785)


(0.15)


GAAP-based net income, attributable to OpenText

$

45,884


$

0.38



 

Reconciliation of selected GAAP-based measures to Non-GAAP-based measures for the nine months ended March 31, 2014.

(In thousands except for per share amounts)


Nine Months Ended
March 31, 2014


GAAP-based

Measures

GAAP-based Measures

% of Revenue

Adjustments

Note

Non-GAAP-based

Measures

Non-GAAP-based Measures

% of Revenue

Cost of revenues












Cloud services

$

79,692




$

(145)


(1)

$

79,547




Customer support

71,785




(547)


(1)

71,238




Professional service and other

145,898




(743)


(1)

145,155




Amortization of acquired technology-based intangible assets

51,712




(51,712)


(2)

-




GAAP-based gross profit and gross margin (%) /
Non-GAAP-based gross profit and gross margin (%)

771,767


68.3

%

53,147


(3)

824,914


73.0

%

Operating expenses












Research and development

129,332




(1,906)


(1)

127,426




Sales and marketing

244,403




(6,200)


(1)

238,203




General and administrative

101,037




(6,166)


(1)

94,871




Amortization of acquired customer-based intangible assets

54,388




(54,388)


(2)

-




Special charges

25,901




(25,901)


(4)

-




GAAP-based income from operations and operating margin (%) / Non-GAAP-based income from operations and operating margin (%)

192,823


17.1

%

147,708


(5)

340,531


30.1

%

Other income (expense), net

2,838




(2,838)


(6)

-




Provision for (recovery of) income taxes

48,576




(3,216)


(7)

45,360




GAAP-based net income / Non-GAAP-based net income, attributable to OpenText

130,014




148,086


(8)

278,100




GAAP-based earnings per share /
Non GAAP-based earnings per share-diluted, attributable to OpenText

$

1.08




$

1.24


(8)

$

2.32




 

(1)

Adjustment relates to the exclusion of share based compensation expense from our Non-GAAP-based operating expenses as this expense is excluded from our internal analysis of operating results.

(2)

Adjustment relates to the exclusion of amortization expense from our Non-GAAP-based operating expenses as the timing and frequency of amortization expense is dependent on our acquisitions and is hence excluded from our internal analysis of operating results.

(3)

GAAP-based and Non-GAAP-based gross profit stated in dollars, and gross margin stated as a percentage of revenue.

(4)

Adjustment relates to the exclusion of Special charges from our Non-GAAP-based operating expenses as Special charges are generally incurred in the periods following the relevant acquisitions and are not indicative or related to continuing operations and are therefore excluded from our internal analysis of operating results.

(5)

GAAP-based and Non-GAAP-based income from operations stated in dollars, and operating margin stated as a percentage of revenue.

(6)

Adjustment relates to the exclusion of Other income (expense) from our Non-GAAP-based operating expenses as Other income (expense) relates primarily to the transactional impact of foreign exchange and is generally not indicative or related to continuing operations and is therefore excluded from our internal analysis of operating results.

(7)

Adjustment relates to differences between the GAAP-based tax provision of approximately 27% and a Non-GAAP-based tax rate of 14%; these rate differences are due to the income tax effects of expenses that are excluded for the purpose of calculating Non-GAAP-based adjusted net income.

(8)

Reconciliation of Non-GAAP-based adjusted net income to GAAP-based net income:  

 


Nine Months Ended
March 31, 2014




Per share diluted

Non-GAAP-based net income, attributable to OpenText

$

278,100


$

2.32


Less:





Amortization

106,100


0.88


Share-based compensation

15,707


0.13


Special charges

25,901


0.22


Other (income) expense, net

(2,838)


(0.02)


GAAP-based provision for (recovery of) income taxes

48,576


0.40


Non-GAAP-based provision for income taxes

(45,360)


(0.37)


GAAP-based net income, attributable to OpenText

$

130,014


$

1.08


 


Reconciliation of selected GAAP-based measures to Non GAAP-based measures for the three months ended June 30, 2013.

(In thousands except for per share amounts)


Three Months Ended
June 30, 2013


GAAP-based

Measures

GAAP-based Measures

% of Revenue

Adjustments

Note

Non-GAAP-based

Measures

Non-GAAP-based Measures

% of Revenue

Cost of revenues:












Cloud services

$

17,696




$

(48)


(1)

$

17,648




Customer support

25,351




(159)


(1)

25,192




Professional service and other

47,879




(255)


(1)

47,624




Amortization of acquired technology-based intangible assets

23,579




(23,579)


(2)

-




GAAP-based gross profit and gross margin (%) /
Non-GAAP-based gross profit and gross margin (%)

229,233


66.0

%

24,041


(3)

253,274


72.9

%

Operating expenses












Research and development

42,383




(526)


(1)

41,857




Sales and marketing

79,338




(2,476)


(1)

76,862




General and administrative

27,857




(1,958)


(1)

25,899




Amortization of acquired customer-based intangible assets

17,197




(17,197)


(2)

-




Special charges

6,767




(6,767)


(4)

-




GAAP-based income from operations and operating margin (%) / Non-GAAP-based income from operations and operating margin (%)

49,473


14.2

%

52,965


(5)

102,438


29.5

%

Other income (expense), net

(4,180)




4,180


(6)

-




Provision for (recovery of) income taxes

(869)




14,652


(7)

13,783




GAAP-based net income / Non-GAAP-based net income, attributable to OpenText

42,172




42,493


(8)

84,665




GAAP-based earnings per share /
Non GAAP-based earnings per share-diluted, attributable to OpenText

$

0.36




$

0.36


(8)

$

0.72




 

(1)

Adjustment relates to the exclusion of share based compensation expense from our Non-GAAP-based operating expenses as this expense is excluded from our internal analysis of operating results.

(2)

Adjustment relates to the exclusion of amortization expense from our Non-GAAP-based operating expenses as the timing and frequency of amortization expense is dependent on our acquisitions and is hence excluded from our internal analysis of operating results.

(3)

GAAP-based and Non-GAAP-based gross profit stated in dollars, and gross margin stated as a percentage of revenue.

(4)

Adjustment relates to the exclusion of Special charges from our Non-GAAP-based operating expenses as Special charges are generally incurred in the periods following the relevant acquisitions and are not indicative or related to continuing operations and are therefore excluded from our internal analysis of operating results.

(5)

GAAP-based and Non-GAAP-based income from operations stated in dollars, and operating margin stated as a percentage of revenue.

(6)

Adjustment relates to the exclusion of Other income (expense) from our Non-GAAP-based operating expenses as Other income (expense) relates primarily to the transactional impact of foreign exchange and is generally not indicative or related to continuing operations and is therefore excluded from our internal analysis of operating results.

(7)

Adjustment relates to differences between the GAAP-based tax recovery of approximately 2% and a Non-GAAP-based tax rate of 14%; these rate differences are due to the income tax effects of expenses that are excluded for the purpose of calculating Non-GAAP-based adjusted net income.

(8)

Reconciliation of Non-GAAP-based adjusted net income to GAAP-based net income:  

 


Three Months Ended
June 30, 2013




Per share diluted

Non-GAAP-based net income, attributable to OpenText

$

84,665


$

0.72


Less:





Amortization

40,776


0.34


Share-based compensation

5,422


0.05


Special charges

6,767


0.06


Other (income) expense, net

4,180


0.04


GAAP-based provision for (recovery of) income taxes

(869)


(0.01)


Non-GAAP-based provision for income taxes

(13,783)


(0.12)


GAAP-based net income, attributable to OpenText

$

42,172


$

0.36


 


 

Reconciliation of selected GAAP-based measures to Non GAAP-based measures for the year ended June 30, 2013.

(In thousands except for per share amounts)


Year Ended
June 30, 2013


GAAP-based

Measures

GAAP-based Measures

% of Revenue

Adjustments

Note

Non-GAAP-based

Measures

Non-GAAP-based Measures

% of Revenue

Cost of revenues:












Cloud services

$

72,365




$

(128)


(1)

$

72,237




Customer support

106,948




(434)


(1)

106,514




Professional service and other

196,874




(915)


(1)

195,959




Amortization of acquired technology-based intangible assets

93,610




(93,610)


(2)

-




GAAP-based gross profit and gross margin (%) /
Non-GAAP-based gross profit and gross margin (%)

877,432


64.4

%

95,087


(3)

972,519


71.3

%

Operating expenses












Research and development

164,010




(1,693)


(1)

162,317




Sales and marketing

289,157




(8,429)


(1)

280,728




General and administrative

109,325




(3,976)


(1)

105,349




Amortization of acquired customer-based intangible assets

68,745




(68,745)


(2)

-




Special charges

24,034




(24,034)


(4)

-




GAAP-based income from operations and operating margin (%) / Non-GAAP-based income from operations and operating margin (%)

197,665


14.5

%

201,964


(5)

399,629


29.3

%

Other income (expense), net

(2,473)




2,473


(6)

-




Provision for (recovery of) income taxes

29,690




23,881


(7)

53,571




GAAP-based net income / Non-GAAP-based net income, attributable to OpenText

148,520




180,556


(8)

329,076




GAAP-based earnings per share /
Non GAAP-based earnings per share-diluted, attributable to OpenText

$

1.26




$

1.53


(8)

$

2.79




 

(1)

Adjustment relates to the exclusion of share based compensation expense from our Non-GAAP-based operating expenses as this expense is excluded from our internal analysis of operating results.

(2)

Adjustment relates to the exclusion of amortization expense from our Non-GAAP-based operating expenses as the timing and frequency of amortization expense is dependent on our acquisitions and is hence excluded from our internal analysis of operating results.

(3)

GAAP-based and Non-GAAP-based gross profit stated in dollars, and gross margin stated as a percentage of revenue.

(4)

Adjustment relates to the exclusion of Special charges from our Non-GAAP-based operating expenses as Special charges are generally incurred in the periods following the relevant acquisitions and are not indicative or related to continuing operations and are therefore excluded from our internal analysis of operating results.

(5)

GAAP-based and Non-GAAP-based income from operations stated in dollars, and operating margin stated as a percentage of revenue.

(6)

Adjustment relates to the exclusion of Other income (expense) from our Non-GAAP-based operating expenses as Other income (expense) relates primarily to the transactional impact of foreign exchange and is generally not indicative or related to continuing operations and is therefore excluded from our internal analysis of operating results.

(7)

Adjustment relates to differences between the GAAP-based tax provision of approximately 17% and a Non-GAAP-based tax rate of 14%; these rate differences are due to the income tax effects of expenses that are excluded for the purpose of calculating Non-GAAP-based adjusted net income.

(8)

Reconciliation of Non-GAAP-based adjusted net income to GAAP-based net income:  

 


Year Ended
June 30, 2013




Per share diluted

Non-GAAP-based net income, attributable to OpenText

$

329,076


$

2.79


Less:





Amortization

162,355


1.37


Share-based compensation

15,575


0.13


Special charges

24,034


0.20


Other (income) expense, net

2,473


0.02


GAAP-based provision for (recovery of) income taxes

29,690


0.25


Non-GAAP-based provision for income taxes

(53,571)


(0.44)


GAAP-based net income, attributable to OpenText

$

148,520


$

1.26


 

(3)

The following tables provide a composition of our major currencies for revenue and expenses, expressed as a percentage, for the three months and year ended June 30, 2014 and 2013:

 


Three Months Ended
June 30, 2014


Three Months Ended
June 30, 2013

Currencies

% of Revenue

% of Expenses*


% of Revenue

% of Expenses*

EURO

25

%

18

%


26

%

17

%

GBP

9

%

10

%


8

%

8

%

CAD

5

%

12

%


6

%

19

%

USD

49

%

42

%


49

%

42

%

Other

12

%

18

%


11

%

14

%

Total

100

%

100

%


100

%

100

%

 


Year Ended
June 30, 2014


Year Ended
June 30, 2013

Currencies

% of Revenue

% of Expenses*


% of Revenue

% of Expenses*

EURO

27

%

18

%


26

%

17

%

GBP

9

%

9

%


8

%

8

%

CAD

5

%

15

%


6

%

18

%

USD

48

%

42

%


49

%

43

%

Other

11

%

16

%


11

%

14

%

Total

100

%

100

%


100

%

100

%


*Expenses include all cost of revenues and operating expenses included within the Consolidated Statements of Income, except for amortization of intangible assets, share-based compensation and Special charges.

©2012 PR Newswire. All Rights Reserved.

Powered by WorldNow