October 27, 2009 / 8:29 PM / 9 years ago

UPDATE 2-Open Text reports weaker profit on charges

* Adj EPS $0.58/shr vs estimate $0.59/shr

* Revenue up 16 pct to $211.4 million (Adds details. In U.S. dollars unless noted)

TORONTO, Oct 27 (Reuters) - Business software maker Open Text Corp OTC.TO(OTEX.O) posted an 88 percent drop in quarterly profit on Tuesday as $18.6 million ($17.5 million) in unspecified charges offset the impact of stronger revenue.

Profit fell to $1.7 million, or 3 cents a share, in the three months ended Sept. 30. It was $14.7 million, or 28 cents a share, in the same quarter a year earlier.

The company took $18.6 million in “special charges”, compared with none in the year-before quarter.

Total revenue rose to $211.4 million from $182.6 million. Of that, license revenue fell 6 percent to $47.3 million, which the company blamed on “deferred purchase decisions” for its Web Content Management products.

Adjusted profit was 58 cents a share, up from a profit of 53 cents a share.

Analysts were expecting the company to earn 59 cents a share on revenue of $233.4 million, according to Thomson Reuters I/B/E/S.

“We met our profit and revenue goals in what has seasonally been our toughest quarter,” Open Text Chief Executive John Shackleton said in a statement.

The company also said it plans to renew its normal course issuer bid, which would allow it to buy back as much as 5 percent of the company’s outstanding shares on Nasdaq.

Open Text reported results after markets closed. Its shares rose 52 Canadian cents to close at C$42.50 on the Toronto Stock Exchange on Tuesday, and climbed 25 cents to $39.65 on Nasdaq.

$1=$1.06 Canadian Reporting by Wojtek Dabrowski and Cameron French; editing by Peter Galloway

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