Total revenues for the quarter increased to $37.8 million, up from $26.7 million, an increase of 42% from the prior year. Open Text reported adjusted net income (See note 2 below) for the second quarter of $4.7 million, or $0.22 per diluted share, up from a loss of $0.17 in the previous year. During the quarter, the Company continued to grow its Application Service Provider (ASP) programs and b2bScene Division businesses with net costs (after revenue generated) of approximately $1.0 million, equivalent to $0.05 per share. Prior to this investment, adjusted net income (See note 2 below) was $5.7 million or $0.27 per share (diluted) for the quarter.
Our strong license growth is an indication of the success of our collaborative commerce strategy, said Tom Jenkins, CEO of Open Text. Open Text is one of the leading vendors in this new and exciting space and we believe that the overall sector is poised for strong growth in the future. In accordance with US generally accepted accounting principles, the Company reported net income of $3.2 million and earnings per diluted share of $0.15 for the quarter ended December 31, 2000.
Cable & Wireless becomes enterprise wide Livelink user. The company today announced that Cable & Wireless purchased Livelink® for enterprise-wide use. During the quarter, Open Text announced that 16 of the 20 largest telecommunications companies in the world are customers and that the number of telecommunications users has now exceeded 1 million.
Livelink continues to enjoy strong momentum as companies implement collaborative commerce solutions to enhance their CRM, SCM and ERP applications. During the second quarter, Open Text’s largest customers drove the results by continued enterprise-wide adoptions. Customers contributing to revenues included British Telecom, Cable & Wireless, Clearnet, IBM, Merrill Lynch, Nissho Iwai, Sun Microsystems, Siemens, Shell Corporation, and Texaco. Revenue results were broadly based across North America, Europe and Asia. For the quarter, 55% of the Company’s revenue originated from North American sales, 39% from Europe and the remaining 6% from Asia. New customers contributed to 65% of license revenue and strong repeat orders from existing customers accounted for 35% of license revenue.
During the quarter, Open Text purchased the shares of Bluebird Systems and certain product assets of LeadingSide. With these acquisitions, Open Text has extended its collaborative commerce solutions to SCM, CRM and ERP applications from vendors such as PeopleSoft and added features to retrieval capabilities. Senior management of Bluebird will remain with Open Text. Open Text paid $6.5 million cash for Bluebird and has provided for additional cash payments depending on future performance. Open Text paid $3 million cash for LeadingSide. Both acquisitions have been accounted for during this second quarter and were accretive to profits.
During the quarter, the Company delivered its next major product release, Livelink 9.0, which features increased functionality, and expanded enterprise integration capabilities. This product was launched on October 30th at the Open Text Annual Users’ Conference.
SOURCE: COMPANY PRESS RELEASE
