Software company Open Text's results beat estimates

Thu Jan 23, 2014 5:24pm EST
 
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By Sneha Banerjee

(Reuters) - Canadian business software maker Open Text Corp's OTC.TO (OTEX.O: Quote) second-quarter results beat analysts' estimates, driven by higher license sales and customer service revenue.

Open Text, which has a market value of nearly $5.40 billion, will spend about $3.4 billion in the next five years on acquisitions, Chief Executive Mark Barrenechea told Reuters.

The projected amount was the same the company spent on 48 acquisitions in the last 20 years, Barrenechea said.

U.S.-listed shares of Open Text were up 4 percent in extended trading after closing at $90.62 on Thursday.

On an adjusted basis, the company earned $1.58 per share in the quarter ended December 31, above the average analyst estimate of $1.50 per share.

Total revenue rose 3 percent to $363.5 million from a year earlier. Analysts on average had expected $352.2 million, according to Thomson Reuters I/B/E/S.

Revenue from the high-margin license business, which remained almost flat in the last two quarters, rose 7 percent to $81.2 million.

Revenue from its customer support business rose 6 percent to $174.4 million.   Continued...