Open Text's Profit Soars on Higher Sales
SAN FRANCISCO - Open Text's (OTEX) - Get Open Text Corporation Report bottom line benefited from a healthy increase in the sales of its business software in the third quarter.
The Waterloo, Ont. software company reported Tuesday a top line of $178.8 million, up 15% from $156 million in the same quarter of last year. Analysts were looking for revenue of $175 million, according to Thomson Financial.
Net income jumped 87% to $7.3 million, or 14 cents a share, from $3.9 million, or 8 cents a share, in the year-ago period.
Excluding items, EPS was 48 cents, a penny greater than analysts' expectations.
The stock was down 25 cents, or 0.7%, to $33.73 in after-hours trading.
Deferred revenue at the developer of enterprise content management (ECM) software rose 24%, to $181.9 million.
Competing public-company providers of ECM software include
Oracle
(ORCL) - Get Oracle Corporation Report
,
EMC
TheStreet Recommends
(EMC)
,
IBM
(IBM) - Get International Business Machines Corporation Report
and
Microsoft
(MSFT) - Get Microsoft Corporation Report
.
Open Text has strategic alliances with Oracle, Microsoft and
SAP
.
