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31 Oct 19
22 Nov 19
30 Jun 20

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Company financial data Financial data

Quarter (USD) Sep 19 Sep 18 Jun 18 Mar 18
Revenue 696.89M 667.16M 754.27M 685.88M
Net income 74.4M 36.32M 61.72M 58.79M
Diluted EPS 0.27 0.13 0.23 0.22
Net profit margin 10.68% 5.44% 8.18% 8.57%
Operating income 132.51M 99.23M 150.64M 102.32M
Net change in cash 211.38M 104.98M 77.45M 129.48M
Cash on hand 999.3M 787.92M 682.94M 605.5M
Cost of revenue 228.51M 226.31M 244.87M 242.73M
Annual (USD) Jun 19 Jun 18 Jun 17 Jun 16
Revenue 2.87B 2.82B 2.29B 1.82B
Net income 285.5M 242.22M 1.03B 284.48M
Diluted EPS 1.06 0.91 4.01 1.17
Net profit margin 9.95% 8.60% 44.77% 15.59%
Operating income 567.01M 506.69M 354.7M 368.56M
Net change in cash 258.07M 239.59M -840.4M 583.76M
Cash on hand 941.01M 682.94M 443.36M 1.28B
Cost of revenue 930.7M 951.41M 762.39M 574M

Financial data from Open Text earnings reports

Financial report summary

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Risks
  • The length of our sales cycle can fluctuate significantly which could result in significant fluctuations in revenues being recognized from quarter to quarter
  • Our success depends on our relationships with strategic partners, distributors and third party service providers and any reduction in the sales efforts by distributors, cooperative efforts from our partners or service from third party providers could materially impact our revenues
  • If we do not continue to develop technologically advanced products that successfully integrate with the software products and enhancements used by our customers, future revenues and our operating results may be negatively affected
  • If our software products and services do not gain market acceptance, our operating results may be negatively affected
  • Our existing customers might cancel contracts with us, fail to renew contracts on their renewal dates, and/or fail to purchase additional services and products, and we may be unable to attract new customers, which could materially adversely affect our operating results
  • Our investment in our current research and development efforts may not provide a sufficient, timely return
  • Product development is a long, expensive and uncertain process, and we may terminate one or more of our development programs
  • Failure to protect our intellectual property could harm our ability to compete effectively
  • Other companies may claim that we infringe their intellectual property, which could materially increase costs and materially harm our ability to generate future revenues and profits
  • The loss of licenses to use third-party software or the lack of support or enhancement of such software could adversely affect our business
  • Current and future competitors could have a significant impact on our ability to generate future revenues and profits
  • Acquisitions, investments, joint ventures and other business initiatives may negatively affect our operating results
  • Businesses we acquire may have disclosure controls and procedures and internal controls over financial reporting, cybersecurity and compliance with data privacy laws that are weaker than or otherwise not in conformity with ours
  • We may not generate sufficient cash flow to satisfy our unfunded pension obligations
  • Consolidation in the industry, particularly by large, well-capitalized companies, could place pressure on our operating margins which could, in turn, have a material adverse effect on our business
  • We must continue to manage our internal resources during periods of company growth or our operating results could be adversely affected
  • If we lose the services of our executive officers or other key employees or if we are not able to attract or retain top employees, our business could be significantly harmed
  • Loss of key personnel could impair the integration of acquired businesses, lead to loss of customers and a decline in revenues, or otherwise could have an adverse effect on our operations
  • Our compensation structure may hinder our efforts to attract and retain vital employees
  • Unexpected events may materially harm our ability to align when we incur expenses with when we recognize revenues
  • We may fail to achieve our financial forecasts due to inaccurate sales forecasts or other factors
  • The restructuring of our operations may adversely affect our business or our finances and we may incur restructuring charges in connection with such actions
  • Fluctuations in foreign currency exchange rates could materially affect our financial results
  • Our international operations expose us to business, political and economic risks that could cause our operating results to suffer
  • Our software products and services may contain defects that could harm our reputation, be costly to correct, delay revenues, and expose us to litigation
  • Our software products rely on the stability of infrastructure software that, if not stable, could negatively impact the effectiveness of our products, resulting in harm to our reputation and business
  • Risks associated with the evolving use of the Internet, including changing standards, competition, and regulation and associated compliance efforts, may adversely impact our business
  • Business disruptions, including those related to data security breaches, may adversely affect our operations
  • Unauthorized disclosures and breaches of data security may adversely affect our operations
  • Our revenues and operating results are likely to fluctuate, which could materially impact the market price of our Common Shares
  • Our sales to government clients expose us to business volatility and risks, including government budgeting cycles and appropriations, early termination, audits, investigations, sanctions and penalties
  • Changes in the market price of our Common Shares and credit ratings of our outstanding debt securities could lead to losses for shareholders and debt holders
  • Our indebtedness could limit our operations and opportunities.
  • We may become involved in litigation that may materially adversely affect us
  • Our provision for income taxes and effective income tax rate may vary significantly and may adversely affect our results of operations and cash resources
  • As part of a tax examination by the United States Internal Revenue Service (IRS), we have received a Notice of Proposed Adjustment (NOPA) proposing a material increase to our taxes arising from the reorganization in Fiscal 2010 and an additional NOPA proposing a material increase to our taxes arising in connection with our integration of Global 360 in Fiscal 2012 into the structure that resulted from our reorganization. An adverse outcome of these tax examinations could have a material adverse effect on our financial position and results of operations.
  • The declaration, payment and amount of dividends will be made at the discretion of our Board of Directors and will depend on a number of factors
  • Our operating results could be adversely affected by any weakening of economic conditions
  • Risks associated with data privacy issues, including evolving laws and regulations and associated compliance efforts, may adversely impact our business
  • Certain of our products may be perceived as, or determined by the courts to be, a violation of privacy rights and related laws. Any such perception or determination could adversely affect our revenues and results of operations.
  • Stress in the global financial system may adversely affect our finances and operations in ways that may be hard to predict or to defend against
Management Discussion
  • As an organization, our management believes in delivering “Total Growth”, meaning we strive towards delivering value through organic initiatives, innovations and acquisitions, as well as financial performance. This growth is further enhanced through our direct and indirect sales distribution channels. With an emphasis on improving productivity, increasing recurring revenues and expanding our margins, we believe our “Total Growth” strategy will ultimately drive overall cash flow generation, thus helping to fuel our disciplined capital allocation approach and further drive our ability to deepen our account coverage and identify and execute strategic acquisitions. With strategic acquisitions, we are better positioned to expand our product portfolio and improve our ability to innovate and grow organically, which then further helps us to meet our long-term growth targets. We believe this “Total Growth” strategy is a durable model that will create shareholder value over both the near and long-term.
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