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Open Text Corp. - Analyst/Investor Day

Stocks in this article: OTEX

I'm going to start with consistency and growth. Consistency and growth. When we look back over the last 6 years, 6 fiscal years, we have doubled our revenue and 3x our earnings, doubled our revenues and 3x our adjusted earnings over 6 years. We've taken the company -- the company has grown from $596 million to $1.2 billion in fiscal year '12. We've gone from generating $1.48 in adjusted EPS to $4.60 last fiscal year. This is a fantastic baseline for us to build on for the next decade within OpenText.

So I want to start with consistency and growth. Over a 6-year period, we've 2x-ed our revenue and near 3x our adjusted earnings over the previous 6 years, and nothing is changing in our approach to leading the company. On top of that, we've applied $2 billion in capital and acquisitions over the last decade. We've put $2 billion of capital to work, most recently with EasyLink, EasyLink Services. EasyLink will add a fourth revenue line to the company in fiscal '13. It will add a Cloud Services revenue line, where obviously we have license today. Our maintenance business, our Professional Services business will be adding a Cloud Services revenue line here in fiscal '13, and that's our most recent.

Global 360 and Metastorm, most of you are familiar with, I'm sure, really built out our BPM category. Nstein is sort of an anchor offering within our Discovery product line. IXOS, certainly within our ECM category. Hummingbird as well as Captaris, with our Information Exchange category. Vignette within our Customer Experience Management category. And StreamServe, also within our CEM category.

And I want to start with consistency and growth as well as acquisitions because this really leads me to sort of my observations of the business prior to joining and my day 1 observations of the business and my updated sense of priorities, 9 months in. It's been 9 months since I've been at OpenText. When I think of my day 1 observations in our addressable market, the company was very focused on enterprise content management. A fantastic market, it's our heritage, it's our foundation. It's not unlike in the ERP space, where financials is sort of the anchor category of ERP. But we've moved -- we've expanded our aperture, and then expanded our view of the market. Our customers were asking us to expand that aperture from ECM to Enterprise Information Management. $5 billion TAM in 2012 to a $19 billion TAM in 2016.

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