Canada's OpenText misses profit estimates as costs weigh

Mon May 8, 2017 4:53pm EDT
 
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(Reuters) - Canadian business software maker OpenText Corp OTEX.TO (OTEX.O: Quote) reported a lower-than-expected quarterly profit on Monday as expenses rose over 50 percent, offsetting gains across all its businesses.

The company's U.S.-listed shares were down 9.5 percent at $31.51 in after-hours trading. It was the biggest percentage loser among Nasdaq-listed stocks.

OpenText, which makes products used by enterprises to manage large volumes of content, said its total operating expenses rose to $317.38 million in the third quarter ended March 31, from $210.54 million a year earlier.

Net income attributable to OpenText plunged 68.7 percent to $21.62 million, or 8 cents per share.

Excluding items, it earned 45 cents per share, missing the average analyst estimate of 50 cents, according to Thomson Reuters I/B/E/S.

The Waterloo, Ontario-based company's revenue rose 34.6 percent to $593.13 million, also missing analysts' estimate of $601.70 million.

Revenue from cloud services and subscriptions rose nearly 20.1 percent, while licensing revenue soared 35.4 percent.

(Reporting by Ahmed Farhatha in Bengaluru; Editing by Maju Samuel)