Open Text Corp. beat analysts' estimates in terms of revenue and adjusted earnings in its most recent quarter but the software company saw its net income fall 92 per cent to $800,000 (U.S.).
The net income, under generally accepted accounting principals, was the equivalent of one cent per share for quarter ended Dec. 31, down from $10.7-million or 20 cents a share a year earlier.
However adjusted net income, which is more closely tracked by analysts, was $34-million or 64 cents a share on a diluted basis, up 30 per cent compared to $26.2-million or 50 cents a share.
The adjusted EPS excluded $11.4-million in special charges that weren't present in the second quarter of fiscal 2008. In addition, amortization of intangibles increased to $21.9-million from $17.8-million and other charges nearly quadrupled to $12.5-million from $3.7-million.
Those were partially offset by a $13.7-million tax item in the company's favour, about double the $6.7-million tax item a year before.
Revenue for the three months ended Dec. 31, which was the second quarter of Open Text's 2009 financial year, was $207.7-million, up 14 per cent to $182.5-million for the year-earlier period.
The company, the leading supplier of enterprise content management software, said revenue from licence sales in the second quarter was $64.9-million, up 18 per cent compared to $55.2-million for the same period in the prior fiscal year.
Analysts had estimated, on average, that Open Text revenue would be slightly lower at $206-million and that adjusted EPS would be just 57 cents a share, rather than 64 cents as reported.
