OpenText Hits Record Revenue, Touts New Clients
Enterprise information management (EIM) software firm OpenText enjoyed a record fiscal second quarter (ended Dec. 31), posting revenue of $543 million, up 17% year over year, with a profit of $45 million. The company touted several milestone Feb. 2 while discussing the results, including the recent completion of its acquisition of Dell-EMC’s Enterprise Content Division (“ECD Business”), including the enterprise content management platform Documentum.
“OpenText, with great enthusiasm, welcomes our new Documentum and ECD employees, customers, and partners,” said OpenText CEO and CTO Mark Barrenechea, in a statement. “This acquisition adds a world-class team of content management experts … while expanding our cloud services offerings and increasing our geographical reach into new countries.
“Businesses in all industries are transforming into software and analytic companies and Enterprise Information Management (EIM) is a key platform in enabling that transformation. The very nature of work has changed, and customers are seeking new platforms for content services, customer experience, supply chains, with discovery and analytics.”
During the quarter OpenText has more than two dozen customer transactions over the $1 million mark, with an additional eight clients added for its OpenText Cloud business. New customers included Philips, CenturyLink and Siemens AG.
“OpenText generated significant operating cash flow in our second quarter, up approximately 46% from the first quarter of this fiscal year and down 14% compared to the same period last year,” said OpenText CFO John Doolittle. “With the acquisition of the ECD business, OpenText will onboard a significant cash flow generating business. The company’s financial position remains strong and we expect to benefit from synergies as we integrate our recently acquired assets into our business model.”