OpenText CEO and CTO Mark Barrenechea speaks at a summit in Ottawa, on May 29, 2019.Justin Tang/The Canadian Press
OpenText Corp. is raising its fiscal 2022 guidance after swinging to a US$88.3-million profit attributable to shareholders in its latest quarter on a 2.5-per-cent increase in revenues.
The Waterloo, Ont.-based tech company says it earned US32 cents per diluted share in its second quarter, compared with a loss of US24 cents per share or US$65.5-million a year earlier.
The company, which keeps its books in U.S. dollars, says adjusted profits dropped seven per cent to US$242-million or 89 cents per share, from US$260.5-million or 95 cents per share in the second quarter of 2020.
Revenues for the three months ended Dec. 31 rose to US$876.8-million, from US$855.6-million, with cloud revenues increasing 4.1 per cent to US$364.9-million.
OpenText was expected to earn US88 cents per share in adjusted profits on US$871.3-million in revenues, according to financial data firm Refinitiv.
The company expects fiscal 2022 results will include cloud growth of up to 10 per cent and total revenue growth of up to four per cent.
“The first half of fiscal 2022 provides demonstrable progress toward our fiscal 2024 aspirations to include up to four per cent organic growth,” CEO Mark Barrenechea said in a news release.
Novartis Pharmaceuticals, Kimberly-Clark, Volkswagen AG, Hyundai Motor Company, and CNX Resources Corp. were among the companies that became OpenText customers in the quarter.
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