Open Text Swings to a Profit

The business software vendor posts a first-quarter profit and increases revenue.
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Driven by strong sales of software licenses,

Open Text

(OTEX) - Get Report

reversed a year-ago loss and grew total revenue by 9% in the first fiscal quarter.

The business software vendor posted a profit of $7.3 million, or 15 cents a share, compared with a loss of $12.9 million, or 27 cents a share in the same quarter last year.

Total revenue increased to $101.2 million, and license revenue increased by nearly 16% to $28.8 million.

Excluding items, Open Text posted a profit of $12.2 million, or 24 cents a share, up sharply from $6.3 million, or 13 cents a share, in the year-ago quarter

Analysts polled by Thomson First Call were looking for an EPS of 24 cents on revenue of $98.8 million.

Open Text sells content management software, a category that has drawn increasing interest from larger technology companies.

Oracle

(ORCL) - Get Report

announced the acquisition

Stellent

(STEL)

, an Open Text rival, last week, in a transaction valued at $440 million, or $13.50 a share.

Open Text itself bought rival

Hummingbird

for $489 million earlier this year, and storage giant

EMC

(EMC)

purchased

Documentum

in late 2003 for $1.7 billion.

Open Text has been viewed as a takeover candidate, although the Stellent deal may have made that less likely.

Shares of Open Text dropped 13 cents in recent after-hours trade to $18.