Oct 22 (Reuters) - Canadian business software maker Open Text Corp’s quarterly profit more than doubled, driven by demand for its cloud computing services.
The cloud services business, which help customers make use of software, services and content over the Internet, accounted for $150 million in the first quarter ended Sept. 30 - notching up its best ever growth rate of 260 percent.
Open Text, whose customers include Oracle Corp and Microsoft, has focused on cloud as businesses increasingly turn to cheaper services hosted online over proprietary software.
The business was the second-best contributor to the company’s total revenue of $453.8 million - a growth of 40 percent. The company gets more than half of its revenue from the United States.
Open Text, known to make frequent acquisitions, bolstered the business by buying GXS Group Inc for $1.17 billion last year.
Revenue from the company’s high-margin license business rose 6 percent to $58.6 million.
Net income rose to $64.6 million, or 53 cents per share, from $30.6 million, or 26 cents per share, a year earlier.
The Waterloo, Ontario-based company earned 97 cents per share on an adjusted basis.
Open Text’s U.S.- and Canada-listed shares have risen 20 percent this year, up to Wednesday’s close. The Canadian information technology index rose 16 percent in the same period. . (Reporting By Tanvi Mehta in Bangalore; Editing by Joyjeet Das)