Open Text Trounces Estimates

SAN FRANCISCO - Open Text(OTEX Quote) nearly doubled first-quarter profit Monday and announced new share buybacks.

Net income at the Waterloo, Ont.-based company jumped 88% to $14.7 million, or 28 cents a share, from $7.8 million, or 15 cents a share, in the same period of last year.

Excluding charges, EPS was 53 cents. Analysts were looking for earnings, less items, 50 cents a share.

Revenue at the Canadian business software developer rose 11% to $182.6 million, from $164 million in the same quarter of last year. Analysts were expecting a top line of $179.4 million, according to Thomson Reuters.

Deferred revenue grew 12% year over year to $161.2 million.

Open Text also announced its intention to repurchase up to 2.6 million shares, or 5% of outstanding shares, over the coming four quarters.

Following its acquisition of Captaris, Open Text said it would cut about 10% of the combined work force and take a $20 million restructuring charge.

The company's software competes with products from IBM(IBM Quote) and EMC(EMC Quote).