Open Text revenue hit by strong US dollar, weak emerging markets
By Shubhankar Chakravorty
(Reuters) - Canadian business-software maker Open Text Corp's OTC.TO OTEX.O quarterly revenue fell short of market expectations, hit by a strong U.S. dollar and weaker-than-expected revenue from its emerging markets business.
U.S.-listed shares of Open Text, whose software helps companies manage documents and workflows, fell 11 percent in extended trading on Tuesday.
Revenue from markets including the Middle East, Latin America, China and India was "lower than planned," Chief Financial Officer John Doolittle said on a call with analysts.
Total revenue rose 29 percent to $467.8 million in the second quarter ended Dec. 31, but fell short of the average analyst estimate of $486.7 million, according to Thomson Reuters I/B/E/S.
The company, which gets about half its revenue in currencies other than the U.S. dollar, said revenue in the quarter was hit by a foreign exchange charge of $15 million.
"We can expect the (currency) volatility to continue," Chief Executive Mark Barrenechea told Reuters.
However, net profit rose 39 percent from a year earlier, helped by a more-than threefold jump in revenue in the company's rapidly growing cloud services business.
Net income attributable to the company rose to $74.3 million, or 60 cents per share, from $53.5 million, or 45 cents per share. Continued...