November 3, 2008 / 9:26 PM / 10 years ago

UPDATE 2-Open Text to cut jobs after Captaris deal closes

* Open Text profit rises in first quarter

* Likely to cut 10 pct of jobs after Captaris deal

* Job cuts will mean $20 mln restructuring charge (Adds details, after-hours stock price. In U.S. dollars unless noted)

TORONTO, Nov 3 (Reuters) - Business software maker Open Text Corp OTC.TO(OTEX.O) posted a higher quarterly profit on Monday, but said it will likely cut jobs once it completes its purchase of software firm Captaris Inc CAPA.O.

Open Text, which is buying U.S.-based Captaris for $131 million, said the combined company expects to shed about 10 percent of its jobs. The move will result in a $20 million restructuring charge.

“Functions impacted by the cuts include redundant positions or areas of the business that are not consistent with the company’s strategic focus,” it said in a statement.

Open Text said that Captaris shareholders voted in favor of the takeover on Oct. 31.

The company reported results after markets closed, but in after-hours trade on Nasdaq, the stock fell to $25, down about 5 percent from its regular-session close of $26.30.

The Waterloo, Ontario-based company said it earned $14.7 million, or 28 cents a share, in the three months ended Sept. 30. That was up from a profit of $7.8 million, or 15 cents a share, in the same period a year earlier.

Revenue rose to $182.6 million from $164 million a year earlier.

The company said its cash and cash equivalents at the end of September were $250.1 million, up from $150.3 million a year earlier.

On the Toronto Stock Exchange, its shares rose C$1.44, or 4.7 percent, to close at C$32 on Monday.

$1=$1.18 Canadian Reporting by Wojtek Dabrowski; editing by Peter Galloway

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