Cloud services power OpenText's revenue beat
(Reuters) - Canadian business software maker Open Text Corp OTC.TO reported a better-than-expected 42 percent jump in quarterly revenue, largely driven by higher demand for its cloud services.
OpenText's U.S.-listed shares (OTEX.O: Quote) were up about 10 percent at $53.40 in after-market trading on the Nasdaq.
The company said it appointed John Doolittle as Chief Financial Officer, effective Sept. 8. He will replace Paul McFeeters, who will retire by Sept. 30.
OpenText's revenue rose to $494 million in the fourth quarter ended June 30 from $347.3 million a year earlier.
Revenue from its high-margin license business rose 27 percent to $99.7 million. The GXS acquisition contributed $1.5 million of licensed revenue.
Open Text, which makes software that helps companies manage documents and workflow, bought privately held cloud services provider GXS Group Inc for $1.17 billion in November.
Cloud services revenue more than tripled to $149.9 million.
Net income rose to $88.1 million, or 72 cents per share, in the fourth quarter ended June 30 from $42.1 million, or 36 cents per share, a year earlier.
The company reported an adjusted profit of $1.05 per share. Continued...