May 6, 2009 / 8:27 PM / 8 years ago

UPDATE 1-Open Text profit rises, revenue up 7 pct

* Q3 EPS 41 cents vs 14 cents a year earlier

* Revenue up 7 pct to $192 million

* Buying Vignette Corp for about $310 mln (In U.S. dollars unless noted)

TORONTO, May 6 (Reuters) - Open Text Corp’s OTC.TOOTEX.O third-quarter profit rose as revenue jumped 7 percent, the business software maker said on Wednesday.

Open Text, which earlier announced it is buying Web media firm Vignette Corp VIGN.O for about $310 million, said it earned $22 million, or 41 cents a share, in the three months ended March 31. That was up from a profit of $7.3 million, or 14 cents a share, a year earlier.

Revenue jumped to $192 million from $178.8 million a year earlier, the company said.

The closely watched adjusted income figure was 59 cents a share, up from 48 cents a share a year before.

“In the current economic environment we are focused on the bottom line and remain committed to meeting our profitability targets while generating strong cash flow from operations,” chief executive John Shackleton said in a statement.

Vignette is based in Texas and employs about 700 people. Open Text said the cash-and-stock deal is expected to close in the second half of this year.

Open Text shares fell C$1.94 to close at C$36.29 on the Toronto Stock Exchange as investors reacted to the Vignette deal. It released its results after market closed.

$1=$1.17 Canadian Reporting by Wojtek Dabrowski; editing by Jeffrey Jones

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