April 29, 2008 / 8:29 PM / in 9 years

UPDATE 1-Open Text profit rises, beats expectations

(In U.S. dollars unless noted)

TORONTO, April 29 (Reuters) - Business software maker Open Text Corp OTC.TOOTEX.O reported a higher third-quarter profit that edged out expectations on Tuesday due to solid growth in license and customer support revenue.

Open Text, which provides enterprise content management software, said it earned $7.3 million, or 14 cents a share, for the three months ended March 31. That was up from a profit of $3.9 million, or 8 cents a share, in the same period a year earlier.

The key adjusted profit figure hit 48 cents a share, up from 34 cents a share a year before.

Total revenue was $178.8 million, up 15 percent from $156.1 million a year earlier. License revenue jumped 20 percent to $51.5 million. Customer support revenue rose to $91.6 million from $79 million.

The results beat the expectations of analysts, who had expected the company to earn an adjusted 47 cents per share on revenue of about $175 million, according to Reuters Estimates.

“I am very pleased with our performance in the quarter, generating strong cash flow from operations and meeting our profitability targets,” Chief Executive John Shackleton said in a statement.

“We are experiencing continued strength in our European sales.”

Open Text, which bought Canadian rival Hummingbird Ltd in 2006 for $489 million, released its results after the end of trading on the Toronto Stock Exchange. During the day, its shares rose 65 Canadian cents to finish at C$34.55.

$1=$1.01 Canadian Reporting by Wojtek Dabrowski; Editing by Peter Galloway

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