Rosy Outlook Spurs Open Text

The company attributes strong cross-selling.
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Open Text

(OTEX) - Get Report

surged after the close Wednesday following the company's release of better-than-expected fiscal second-quarter results.

Shares of Open Text recently jumped $1.81, or 9.2%, to $19.71 in after-hours trading. Shares closed up 9 cents, or 0.5%, at $19.71, in the regular session.

Under generally accepted accounting principles, Waterloo, Ontario-based Open Text said it expects to earn $9 million to $11 million, or 17 cents to 21 cents a share, on $110 million to $113 million in revenue in the fiscal second quarter, which ended Dec. 31.

Adjusted net income is expected to range from $14 million to $16 million, or 26 cents to 30 cents a share.

Those preliminary results from Open Text's December quarter shot considerably higher than the consensus estimate gathered by Thomson First Call, which pegged earnings at 23 cents a share on $103.4 million in revenue.

Open Text attributed the quarter's strength to cross-selling of its products and those of IXOS, which it acquired last year.

Open Text said license revenue is expected to range from $40 million to $43 million. Analysts estimates for license revenue hover between $34 million and $42 million.