Skip to main content
Publish date:

Open Text Guides Higher

The company also will trim its workforce.
Author:

Open Text (OTEX) - Get Open Text Corporation Report delivered good news to shareholders and bad news to employees Tuesday, guiding first-quarter estimates above current expectations, but saying it plans to "streamline" workers to integrate the acquisition of Hummingbird.

The business software maker said it expects to earn 24 cents to 27 cents a share before items on revenue of $99 million to $101 million. A Thomson First Call survey had expected the company to earn 23 cents a share on revenue of $96.6 million.

Open Text is "examining global operations to ensure we leverage the best assets of both companies," said John Shackleton, president and CEO. "Streamlining employees and facilities of both Hummingbird and Open Text is necessary to fully capitalize on the economies of scale and synergies that are available from this integration."

The company will issue a press release on Monday to outline the operational details of its restructuring strategy and activities.

TheStreet Recommends

Shares of Open Text gained 39 cents, or 2.1%, to $18.69 in recent after-hours trading.