From the Open Text (OTEX) Q1 2012 Earnings Call October 26, 2011:
- Total revenue: $288 million, (+32%).
- License revenue: $65 million, (+53%).
- Maintenance revenue: $162 million (+25%)
- Services and other revenue: $61 million (+36%)
- +17% increase in adjusted earnings per share
North America is responsible for 51% of revenue, Europe fo 41%, with the remaining 8% primarily coming from Asia Pac. The emerging markets has pretty much grown about 300%.
In Q1, OpenText saw license revenue broken down at:
- 19% from business services,
- 19% from technology,
- 14% from public sector,
- 12% from financial services,
- 10% from base materials,
- 7% from consumer goods,
- 7% from healthcare,
- 4% from industrial goods,
- 4% from utilities
- 4% from conglomerates.
License revenue came:
- 47% from new customers
- 53% from our installed base.
- 15 transactions over $500,000 (just 3 transactions in the same period last year),
- 7 transactions over $1 million (just 2 transactions in the same period last year)
- Global engineering firm Hatch,
- The EADS Group, a global leader in aerospace and defense, purchased Open Text Extended ECM for SAP Solutions and Employee File Management for SAP Solutions.
- Kloeckner, European’s largest independent distributor of steel, purchased several Open Text solutions, including Email Management from Microsoft Exchange, Application Governance & Archiving for Microsoft SharePoint, Open Text Extended ECM for SAP Solutions and Vendor Invoice Management. The main objective for the purchase were to increase efficiency in the centralized architecture and to fulfill international compliance requirements.
License revenue from partners and resellers was approximately 44% in the quarter. SAP continues to track at just over 10% of OpenText annual license revenue
Turning to OpenText outlook for FY ’12. The industry analysts continue to tell that they expect ECM license revenue to grow in the 7% to 11.5% range over the next few years. Overall, OpenText remain confident in their pipeline and they are happy with current operating model.
Regarding OpenText market, the Germany looks to be very strong, as does Scandinavia. U.K. government, a little weak, but OpenText have actually seen some good move in the commercial side of the U.K. And then kind of within the Southern Europe, France, is looking okay. Spain, Portugal, a little weak. But Italy is also doing okay. So the strong German and Nordic upsets the kind of weakness in the U.K. government.
On the government side, OpenText particularly did very well on the U.S. government, which is for the first time in a while been strong. On the Financial Services, was down a little bit, but OpenText are still seeing good pipeline in that space on a global basis.
Quotes from the conference call:
I would doubt as much, because as we said, Autonomy beyond their search engine which most — we didn’t really compete with them in that area. They only really had Interwoven. Their other stuff that they had was fairly small and insignificant. So other than Interwoven, I wouldn’t see a lot of competitive uptake.
The mobility end is really new anyway, but we’re seeing quite a bit of pickup in that, but it’s still fairly small from a revenue standpoint. But we’re seeing lots of interest in that area. So the actual — the bulk of the revenues are still in the compliance/productivity of our core product. (…) But I would say in that 55% to 60% range would be compliance. The rest will be productivity.
So and obviously it varies a little bit based on whether it’s web content management or DCM, but also a little bit geographically where we might see some small locals compete. But it’s still the traditional EMC, Documentum, FileNet, IBM would be the — I would say the majority of the key competitors. And then whether — if it were something like web content management, you might see the old Interwoven folks.
We’re seeing a shift in interest, but there’s a lot more interest in our cloud offerings. From our customers, we’re seeing a lot of hybrid where they’re looking at both public cloud tied to private cloud tied to in-house products that they’ve already got. So often an example I use is Hoffman La Roche where in-house their R&D, of drugs R&D, is all done in the private cloud in-house, and then their clinical trials are tied to a public service. And the 2 obviously are connected together. And we’re seeing a lot of people interested in that. Governments that are interested in clouds, it’s always usually security is the key issue. So multi-tenancy, they keep — they’re kind of steering away from.