This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

OpenText CEO Mark Barrenechea Looks Ahead

NEW YORK (TheStreet) ––For OpenText (OTEX - Get Report) CEO Mark J. Barrenechea, (AMZN) presents a cautionary tale.

In an interview with TheStreet, Barrenechea contrasted OpenText's record revenue growth in its quarterly results and annual, released yesterday, with Amazon's disappointing results this quarter. He argued that OpenText's quarter "really stands in contrast to other companies. You look at Amazon, it's not sustainable. You can't be losing $800 million, and customers have to be very worried about moving their workload into a company that's losing $800 million."

In January, OpenText bought GXS, a leading provider of B2B integration services, to expand its enterprise information management business. Barrenechea said in the press release announcing that acquisition, "Our combined cloud will now manage over 16 billion transactions per year, approximately 600,000 trading partners and 40,000 customers." The purchase price was $1.065 billion in cash and 1,297,521 OpenText common shares. OpenText sells its Semantic Navigation software, which "enables organizations to engage online audiences with contextually relevant content and connect them to targeted products and ads," on the Amazon Web Services marketplace, where it competes with Amazon's own information management products. 

For its fourth quarter in the 2014 fiscal year, OpenText’s revenue grew a record 42% year-over-year to $494.0 million. The company earned $1.05 per share, up from 72 cents a year ago. Analysts polled by Thomson Reuters expected revenues of $480.02 million and earnings of 94 cents per share. 

For the 2014 fiscal year, which ended June 30, total revenue was $1.624 billion, up 19% year-over-year, as cloud services revenue, license revenue, and customer support revenue grew 108%, 11%, and 7% year-over-year, respectively. OpenText earned $3.37 per share in fiscal 2014, up 21% from fiscal 2013. Analysts expected earnings of $3.26 per share on revenues of $1.611 for the full year.

Shares were gaining 16.2% to $56.30 this morning.

“The results are the results and they’re very good. We stepped up to larger, more transformative transactions. We did 26 transactions greater than 1 million. It was a very solid performance,” Barrenechea said in the interview. “But looking beyond the numbers, we have really strong momentum coming into our new fiscal year. We’re aligned, we do three things really well—information management, B2B integration, and compliance. We’ve laid out a growth agenda for the year, and we’re ready to look at more acquisitions.” He plans to spend $3 billion in acquisitions over the next five years.

OpenText also appointed a new CFO, John Doolittle, formerly CEO of Mattamy Homes Limited, Canada's largest new home builder.

Barrenechea declined to name potential areas of expansion, but said that the company has strong momentum going into its new fiscal year. "We're in the middle of a strong product cycle. We're transitioning our customers. We're very profitable in the cloud. We've got a lot of market initiative."

OpenText, Canada’s largest software company, makes enterprise information management software. It has over 8,000 employees with offices in forty countries and serves 100,000 customers.

--Written by Laura Berman in New York

>Contact by Email.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
OTEX $47.86 2.37%
AAPL $93.99 0.31%
FB $102.01 0.10%
GOOG $682.40 -0.10%
TSLA $151.04 0.38%


Chart of I:DJI
DOW 15,973.84 +313.66 2.00%
S&P 500 1,864.78 +35.70 1.95%
NASDAQ 4,337.5120 +70.6750 1.66%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs