Open Text Reports Fourth Quarter and Year-End 2007 Financial Results



    Integration of Hummingbird Contributes to Strong Results

    WATERLOO, ON, Aug. 30 /CNW/ - Open Text(TM) Corporation (NASDAQ:   OTEX)
(TSX: OTC), a leading provider of Enterprise Content Management (ECM)
software, today announced unaudited financial results for its fourth quarter
and fiscal year ended June 30, 2007(1).
    Total revenue for the fourth quarter was $175.2 million, compared to
$105.2 million for the same period in the prior fiscal year. License revenue
in the fourth quarter was $59.2 million, compared to $32.0 million in the
fourth quarter of the prior fiscal year. License revenues grew 38% from
$43.0 million in the previous quarter ended March 31, 2007.
    Adjusted net income in the quarter was $26.6 million or $0.52 per share
on a diluted basis, compared to $15.4 million or $0.31 per share on a diluted
basis for the same period in the prior fiscal year. Net income in accordance
with U.S. generally accepted accounting principles ("US GAAP") was $8.2
million or $0.16 per share on a diluted basis, compared to $7.8 million or
$0.16 per share on a diluted basis for the same period in the prior fiscal
year(2).
    Total revenue for fiscal year 2007 was $595.7 million, compared to
$409.6 million for the previous fiscal year. License revenue for fiscal year
2007 was $182.5 million, compared to $122.5 million in the previous fiscal
year. Adjusted net income for fiscal year 2007 was $74.3 million, or $1.46 per
share on a diluted basis, compared to adjusted net income for the previous
fiscal year of $50.8 million, or $1.01 per share on a diluted basis. This
represents a growth of 45% of adjusted EPS for the year. Net income for fiscal
year 2007 in accordance with US GAAP was $21.7 million, or $0.43 per share on
a diluted basis, compared to the prior fiscal year's net income of
$5.0 million, or $0.10 per share on a diluted basis(2).
    Operating cash flow in the fourth quarter of fiscal 2007 was
$28.5 million, compared to $15.4 million in the fourth quarter of the prior
fiscal year. For the full 2007 fiscal year, Open Text generated $110.9 million
in operating cash flow compared to $60.8 million in fiscal 2006.
    "The Company plans to make an additional debt repayment of $30 million.
This will reduce our debt from $390 million at the time of the Hummingbird
acquisition to approximately $327 million this quarter. We are pleased with
our accelerated repayment of the debt ahead of schedule and planning for
future lump sum debt repayments will continue to be reviewed on a periodic
basis," said Paul McFeeters, Chief Financial Officer of Open Text.
    The cash, cash equivalents and short-term investments balance as of
June 30, 2007 was $150.0 million. Accounts receivable as of June 30, 2007,
totaled $128.8 million, compared to $75.0 million as of June 30, 2006, and
Days Sales Outstanding (DSO) was 66 days in the fourth quarter of fiscal 2007,
compared to 64 days in the fourth quarter of fiscal 2006.
    "I am very pleased with our performance in the quarter and for the full
fiscal year. The integration of Hummingbird has gone well and investments in
our partner strategy are paying off," said John Shackleton, President and
Chief Executive Officer of Open Text. "We will continue to focus on
profitability as we now position the Company for growth in fiscal 2008."
    Please see note (2) below for a reconciliation of non-US GAAP based
financial measures used in this press release, to US GAAP based financial
measures.

    Teleconference Call

    Open Text will host a conference call on August 30, 2007 at 5:00 p.m. ET
to discuss the final financial results of its fourth quarter and fiscal
year-end 2007.

    
    Date:     Thursday, August 30, 2007
    Time:     5:00 p.m. ET/2:00 p.m. PT
    Length:   60 minutes
    Where:    416-640-1907
    

    Please dial-in approximately 10 minutes before the teleconference is
scheduled to begin. A replay of the call will be available beginning
August 30, 2007 at 7:00 p.m. ET through 11:59 p.m. on September 13, 2007 and
can be accessed by dialing 416-640-1917 and using pass code 21238674 followed
by the number sign.
    For more information or to listen to the call via Web cast, please use
the following link:

    http://www.opentext.com/events/event.html?id=5726174

    About Open Text

    Open Text(TM) is the world's largest independent provider of Enterprise
Content Management software. The company's solutions manage information for
all types of business, compliance and industry requirements in the world's
largest companies, government agencies and professional service firms. Open
Text supports approximately 46,000 customers and millions of users in 114
countries and 12 languages. For more information about Open Text, visit
www.opentext.com.

    Safe Harbor Statement under the Private Securities Litigation Reform Act
of 1995 - This press release contains forward-looking statements, including
statements about the financial conditions, results of operations and earnings
and revenue outlook for Open Text Corporation ("Open Text" or "the Company").
Forward-looking statements in this press release are not promises or
guarantees of future performance and are subject to risks and uncertainties
that could cause the Company's actual results to differ materially from those
anticipated. The Company cautions you not to place undue reliance upon any
such forward-looking statements, which speak only as of the date made. The
results included in this press release are unaudited and therefore are deemed
to be forward-looking statements. Factors that may cause actual results or
earnings to differ materially from such forward-looking statements include,
among others, the following: (i) the future performance, financial and
otherwise, of Open Text; (ii) the ability of Open Text to bring new products
to market and to increase sales; (iii) the strength of the Company's product
development pipeline; (iv) the Company's growth and profitability prospects;
(v) the estimated size and growth prospects of the ECM market; (vi) the
Company's competitive position in the ECM market and its ability to take
advantage of future opportunities in this market; (vii) the benefits of the
Company's products to be realized by customers; and (viii) the demand for the
Company's product and the extent of deployment of the Company's products in
the ECM marketplace. Forward-looking statements may also include, without
limitation, any statement relating to future events, conditions or
circumstances. The risks and uncertainties that may affect forward-looking
statements include, but are not limited to: (i) integration of acquisitions
and related restructuring efforts, including the quantum of restructuring
charges and the timing thereof; (ii) the possibility that the Company may be
unable to meet its future reporting requirements under the Securities Exchange
Act of 1934, as amended, and the rules promulgated thereunder; (iii) the risks
associated with bringing new products to market; (iv) fluctuations in currency
exchange rates; (v) delays in the purchasing decisions of the Company's
customers; (vi) the competition the Company faces in its industry and/or
marketplace; (vii) the possibility of technical, logistical or planning issues
in connection with the deployment of the Company's products or services;
(viii) the continuous commitment of the Company's customers; (ix) demand for
the Company's products; and (*) other risks detailed from time to time in the
Company's filings with the Securities and Exchange Commission (SEC), including
the Company's Annual Report on Form 10-K for the year ended June 30, 2006.
Forward-looking statements are based on management's beliefs and opinions at
the time the statements are made, and the Company does not undertake any
obligation to update forward-looking statements should circumstances or
management's beliefs or opinions change.

    
    Notes

    (1) Based on comparison of historic revenue figures publicly disseminated
        by companies in the Enterprise Content Management ("ECM") sector. All
        dollar amounts in this press release are in US Dollars unless
        otherwise indicated.

    (2) In addition to these GAAP and adjusted results the Company has
        provided financial information that adds-back maintenance revenue
        eliminated due to the impact of purchase accounting entries on
        deferred revenue and the impact of interest expense. Management
        believes that the furnishing of these adjustments provide a
        consistent basis for comparison between quarters and help to more
        accurately reflect Open Text's underlying operating results.


                                                          Three months ended
                                                          June 30, 2007
        GAAP Revenue                                                 $ 175.2
        Maintenance revenue adjustment for purchase
         accounting                                                      2.5
                                                          -------------------
        Non-GAAP revenue                                             $ 177.7
                                                          -------------------
                                                          -------------------

        Adjusted Income                                              $  26.6
        Maintenance revenue adjustment for purchase
         accounting                                                      2.5
        Net Interest Expense                                             5.6
        Income tax effect                                               (2.6)
                                                          -------------------
        Non-GAAP net income                                          $  32.1
                                                          -------------------
                                                          -------------------

        Adjusted EPS  Diluted                                           0.52
        Non GAAP Adjustments (net of tax)
          - Maintenance                                                 0.03
          - Interest                                                    0.08
                                                          -------------------
        Non-GAAP EPS                                                 $  0.63
                                                          -------------------
                                                          -------------------


                                                         Twelve months ended
                                                               June 30, 2007
        GAAP Revenue                                                 $ 595.7
        Maintenance revenue adjustment for purchase
         accounting                                                     11.1
                                                          -------------------
        Non-GAAP revenue                                             $ 606.8
                                                          -------------------
                                                          -------------------

        Adjusted Income                                              $  74.3
        Maintenance revenue adjustment for purchase
         accounting                                                     11.1
        Net Interest Expense                                            20.3
        Income tax effect                                              (10.0)
                                                          -------------------
        Non-GAAP net income                                          $  95.7
                                                          -------------------
                                                          -------------------

        Adjusted EPS  Diluted                                        $  1.46
        Non GAAP Adjustments (net of tax)
          - Maintenance                                                 0.15
          - Interest                                                    0.27
                                                          -------------------
        Non-GAAP EPS                                                 $  1.88
                                                          -------------------
                                                          -------------------


    (3) Use of US Non-GAAP financial measures

        In addition to reporting financial results in accordance with US
        GAAP, the Company provides certain non-US GAAP financial measures
        that are not in accordance with US GAAP. These non-US GAAP financial
        measures have certain limitations in that they do not have a
        standardized meaning and thus the Company's definition may be
        different from similar non-US GAAP financial measures used by other
        companies and/or analysts and may differ from period to period. Thus
        it may be more difficult to compare the Company's financial
        performance to that of other companies. However, the Company's
        management compensates for these limitations by providing the
        relevant disclosure of the items excluded in the calculation of
        adjusted net income and adjusted EPS both in its reconciliation to
        the US GAAP financial measures of net income and EPS and its
        consolidated financial statements, all of which should be considered
        when evaluating the Company's results. The Company uses the financial
        measures adjusted EPS and adjusted net income to supplement the
        information provided in its consolidated financial statements, which
        are presented in accordance with US GAAP. The presentation of
        adjusted net income and adjusted EPS is not meant to be a substitute
        for net income or net income per share presented in accordance with
        US GAAP, but rather should be evaluated in conjunction with and as a
        supplement to such US GAAP measures. Open Text strongly encourages
        investors to review its financial information in its entirety and not
        to rely on a single financial measure. The Company therefore believes
        that despite these limitations, it is appropriate to supplement the
        disclosure of the US GAAP measures with certain non-US GAAP measures
        for the reasons set forth below. Adjusted net income and adjusted EPS
        are calculated as net income or net income per share on a diluted
        basis, excluding, where applicable, the amortization of acquired
        intangible assets, other income (loss), share-based compensation, and
        restructuring, all net of tax. The Company's management believes that
        the presentation of adjusted net income and adjusted EPS provides
        useful information to investors because it excludes non-operational
        charges. The use of the term "non-operational charge" is defined by
        the Company as those that do not impact operating decisions taken by
        the Company's management and is based upon the way the Company's
        management evaluates the performance of the Company's business for
        use in the Company's internal reports. In the course of such
        evaluation and for the purpose of making operating decisions, the
        Company's management excludes certain items from its analysis, such
        as amortization of acquired intangibles, restructuring costs, other
        income/expense and the taxation impact of these items. These items
        are excluded based upon the manner in which management evaluates the
        business of the Company and are not excluded in the sense that they
        may be used under US GAAP. The Company believes the provision of
        supplemental non-US GAAP measures allows investors to evaluate the
        operational and financial performance of the Company's core business
        using the same evaluation measures that management uses, and is
        therefore a useful indication of Open Text's performance or expected
        performance of recurring operations and facilitates period-to-period
        comparison of operating performance. As a result, the Company
        considers it appropriate and reasonable to provide, in addition to US
        GAAP measures, supplementary non-US GAAP financial measures that
        exclude certain items from the presentation of its financial results
        in this press release. The following charts provide reconciliation
        (unaudited) of US GAAP based financial measures to non-US GAAP based
        financial measures referred to in this press release:

        Reconciliation (unaudited) of US GAAP based Net Income to Adjusted
        ------------------------------------------------------------------
        Net Income (in millions of US dollars) for the quarters ended
        -------------------------------------------------------------
        June 30, 2007 and 2006:
        -----------------------

                                      Three months ended  Three months ended
                                           June 30, 2007       June 30, 2006
        GAAP based "Net Income"                  $   8.2             $   7.8
        Special Charges/(recovery)                   7.7                (0.2)
        Amortization of intangibles                 18.0                 7.3
        Other (Income)/Expense                      (1.1)                1.5
        Share-based compensation                     1.5                 1.3
        Tax Impact on Above                         (7.7)               (2.3)
        Non-GAAP based "Adjusted Net Income"     $  26.6             $  15.4


        Reconciliation (unaudited) of US GAAP based EPS to non-US GAAP based
        --------------------------------------------------------------------
        EPS (calculated on a diluted basis) for the quarters ended
        ----------------------------------------------------------
        June 30, 2007 and 2006:
        -----------------------

                                      Three months ended  Three months ended
                                           June 30, 2007       June 30, 2006
        GAAP based "Net Income"                  $  0.16             $  0.16
        Special Charges/(recovery)                  0.15                0.00
        Amortization of intangibles                 0.35                0.14
        Other (Income)/Expense                     (0.02)               0.03
        Share-based compensation                    0.03                0.03
        Tax Impact on Above                        (0.15)              (0.05)
        Non-GAAP based "Adjusted Net Income"     $  0.52             $  0.31


        Reconciliation (unaudited) of US GAAP based Net Income to Adjusted
        ------------------------------------------------------------------
        Net Income (in millions of US dollars) for the fiscal years ended
        -----------------------------------------------------------------
        June 30, 2007 and 2006:
        -----------------------

                                                  Twelve              Twelve
                                            months ended        months ended
                                           June 30, 2007       June 30, 2006
        GAAP based "Net Income"                  $  21.7             $   5.0
        Special Charges/(recovery)                  12.9                26.2
        Amortization of intangibles                 60.8                28.1
        Other (Income)/Expense                      (1.7)                4.8
        Share-based compensation                     5.4                 5.2
        Tax Impact on Above                        (24.8)              (18.5)
        Non-GAAP based "Adjusted Net Income"     $  74.3             $  50.8


        Reconciliation (unaudited) of US GAAP based EPS to non-US GAAP based
        --------------------------------------------------------------------
        EPS (calculated on a diluted basis) for the fiscal years ended
        --------------------------------------------------------------
        June 30, 2007 and 2006:
        -----------------------

                                                  Twelve              Twelve
                                            months ended        months ended
                                           June 30, 2007       June 30, 2006

        GAAP based "Net Income"                  $  0.43             $  0.10
        Special Charges/(recovery)                  0.25                0.52
        Amortization of intangibles                 1.19                0.56
        Other (Income)/Expense                     (0.03)               0.10
        Share-based compensation                    0.11                0.10
        Tax Impact on Above                        (0.49)              (0.37)
        Non-GAAP based "Adjusted Net Income"     $  1.46             $  1.01



                            OPEN TEXT CORPORATION
                         CONSOLIDATED BALANCE SHEETS
              (In thousands of U.S. Dollars, except share data)

                                                             June 30,
                                                    -------------------------
                                                          2007         2006
                                                    ------------ ------------
                                                     (unaudited)
                         ASSETS

    Current assets:
      Cash and cash equivalents...................   $  149,979   $  107,354
      Accounts receivable trade,
       net of allowance for doubtful
       accounts of $2,089 as of
       June 30, 2007 and $2,736 as of
       June 30, 2006..............................      128,781       75,016
      Income taxes recoverable....................            -       12,473
      Prepaid expenses and other current assets...       10,368        7,879
      Deferred tax assets.........................       25,743       28,724
                                                    ------------ ------------
        Total current assets......................      314,871      231,446
    Investments in marketable securities..........            -       21,025
    Capital assets................................       43,614       41,262
    Goodwill......................................      534,635      235,523
    Acquired intangible assets....................      343,324      102,326
    Deferred tax assets...........................       56,893       37,185
    Other assets..................................        9,524        2,326
                                                    ------------ ------------
                                                    $ 1,302,861  $   671,093
                                                    ------------ ------------
                                                    ------------ ------------


                     LIABILITIES AND SHAREHOLDERS' EQUITY

    Current liabilities:
      Accounts payable and accrued liabilities...., $   100,211  $    62,535
      Current portion of long-term debt............       4,048          405
      Deferred revenues............................     143,097       74,687
      Income taxes payable.........................      10,663            -
      Deferred tax liabilities.....................       6,761       12,183
                                                    ------------ ------------

        Total current liabilities....................   264,780      149,810
    Long-term liabilities:
      Accrued liabilities..........................      22,516       21,121
      Long-term debt...............................     366,765       12,963
      Deferred revenues............................       3,840        3,534
      Deferred tax liabilities.....................     116,405       19,490
                                                    ------------ ------------

    Total long-term liabilities..................       509,526       57,108
    Minority interest............................         6,975        5,804
    Shareholders' equity:........................
      Share capital
        50,180,118 and 48,935,042 Common Shares
        issued and outstanding at June 30, 2007
        and June 30, 2006, respectively;
        Authorized
     Common Shares: unlimited....................       426,188      414,475
      Additional paid-in capital...................      35,311       28,367
      Accumulated other comprehensive income.......      65,546       42,654
      Accumulated deficit..........................      (5,465)     (27,125)
                                                    ------------ ------------

    Total shareholders' equity...................       521,580      458,371
                                                    ------------ ------------

                                                    $ 1,302,861  $   671,093
                                                    ------------ ------------
                                                    ------------ ------------



                            OPEN TEXT CORPORATION
                      CONSOLIDATED STATEMENTS OF INCOME
       (In thousands of U.S. Dollars, except share and per share data)

                                                  Year ended June 30,
                                       --------------------------------------
                                           2007         2006         2005
                                       ------------ ------------ ------------
                                        (unaudited)
    Revenues:
      License........................  $   182,507  $   122,520  $   136,522
      Customer support...............      287,570      183,878      179,178
      Service........................      125,587      103,164       99,128
                                       ------------ ------------ ------------
        Total revenues...............      595,664      409,562      414,828
                                       ------------ ------------ ------------
    Cost of revenues:
      License........................       13,652       11,196       11,540
      Customer support...............       46,177       28,908       33,086
      Service........................      105,517       83,469       81,367
      Amortization of acquired
       technology intangible
       assets........................       36,206       18,900       16,175
                                       ------------ ------------ ------------
        Total cost of revenues.......      201,552      142,473      142,168
                                       ------------ ------------ ------------
                                           394,112      267,089      272,660
                                       ------------ ------------ ------------
    Operating expenses:
      Research and development.......       79,063       58,469       65,139
      Sales and marketing............      150,643      104,225      114,553
      General and administrative.....       62,140       44,960       46,110
      Depreciation...................       13,846       11,103       11,040
      Amortization of acquired
       intangible assets.............       24,586        9,199        8,234
      Special charges
       (recoveries)..................       12,908       26,182       (1,724)
                                       ------------ ------------ ------------
        Total operating expenses.....      343,186      254,138      243,352
                                       ------------ ------------ ------------
    Income from operations...........       50,926       12,951       29,308
                                       ------------ ------------ ------------
    Other income (expense)...........        1,742       (4,788)      (3,116)
    Interest income (expense), net...      (20,282)       1,487        1,377
                                       ------------ ------------ ------------
    Income before income taxes.......       32,386        9,650       27,569
    Provision for income taxes.......       10,334        4,093        6,958
                                       ------------ ------------ ------------
    Net income before minority
     interest........................       22,052        5,557       20,611
    Minority interest................          392          579          252
                                       ------------ ------------ ------------
    Net income for the year..........  $    21,660  $     4,978  $    20,359
                                       ------------ ------------ ------------
                                       ------------ ------------ ------------
    Net income per share-basic.......  $      0.44  $      0.10  $      0.41
                                       ------------ ------------ ------------
                                       ------------ ------------ ------------
    Net income per share-diluted.....  $      0.43  $      0.10  $      0.39
                                       ------------ ------------ ------------
                                       ------------ ------------ ------------
    Weighted average number of
     Common Shares
     outstanding-basic...............   49,392,845   48,666,139   49,918,541
                                       ------------ ------------ ------------
                                       ------------ ------------ ------------
    Weighted average number of
     Common Shares
     outstanding-diluted.............   50,907,897   49,949,593   52,091,860
                                       ------------ ------------ ------------
                                       ------------ ------------ ------------



                            OPEN TEXT CORPORATION
                      CONSOLIDATED STATEMENTS OF INCOME
       (In thousands of U.S. Dollars, except share and per share data)


                                                  Three months ended June 30,
                                                        2007         2006
                                                    -------------------------
                                                     (unaudited)  (unaudited)
    Revenues:
      License....................................   $    59,225  $    32,031
      Customer support...........................        82,218       47,222
      Service....................................        33,753       25,982
                                                    ------------ ------------
        Total revenues...........................       175,196      105,235
                                                    ------------ ------------

    Cost of revenues:
      License....................................         4,015        3,097
      Customer support...........................        14,356        7,313
      Service....................................        28,505       21,621
      Amortization of acquired technology
       intangible assets.........................        10,531        4,887
                                                    ------------ ------------

        Total cost of revenues...................        57,407       36,918
                                                    ------------ ------------

                                                        117,789       68,317
                                                    ------------ ------------
    Operating expenses:
      Research and development...................        21,113       13,645
      Sales and marketing........................        43,193       25,663
      General and administrative.................        18,452       11,662
      Depreciation...............................         3,321        3,069
      Amortization of acquired
       intangible assets.........................         7,439        2,374
      Special charges (recoveries)...............         7,655         (165)
                                                    ------------ ------------
    Total operating expenses.....................       101,173       56,248
                                                    ------------ ------------

    Income from operations.......................        16,616       12,069
                                                    ------------ ------------
    Other income (expense).......................         1,138       (1,470)
    Interest income (expense), net...............        (5,612)         486
                                                    ------------ ------------
    Income before income taxes...................        12,142       11,085
    Provision for income taxes...................         3,913        3,165
                                                    ------------ ------------
    Net income before minority interest..........         8,229        7,920
    Minority interest............................             -          117
                                                    ------------ ------------
    Net income for the year......................   $     8,229  $     7,803
                                                    ------------ ------------
                                                    ------------ ------------
    Net income per share-basic...................   $      0.16  $      0.16
                                                    ------------ ------------
                                                    ------------ ------------
    Net income per share-diluted.................   $      0.16  $      0.16
                                                    ------------ ------------
                                                    ------------ ------------
    Weighted average number of Common Shares
     outstanding-basic...........................    49,963,876   48,895,966
                                                    ------------ ------------
                                                    ------------ ------------

    Weighted average number of Common Shares
     outstanding-diluted.........................    51,571,062   50,178,906
                                                    ------------ ------------
                                                    ------------ ------------



                            OPEN TEXT CORPORATION
                    CONSOLIDATED STATEMENTS OF CASH FLOWS
                       (In thousands of U.S. Dollars)

                                                 Year ended June 30,
                                       --------------------------------------
                                            2007         2006        2005
                                       ------------ ------------ ------------
                                        (unaudited)
    Cash flows from operating
     activities:
      Net income for the year......... $    21,660  $     4,978  $    20,359
      Adjustments to reconcile net
       income to net cash provided
       by operating activities:
        Depreciation and
         amortization.................      74,638       39,202       35,449
        Share-based compensation
         expense......................       5,376        5,196            -
        Undistributed earnings
         related to minority
         interest.....................         392          579          252
        Amortization of debt
         issuance costs...............         805            -            -
        Unrealized (gain) loss on
         financial instruments........        (380)           -            -
        Deferred taxes................     (16,660)      (4,314)      (1,168)
        Impairment of capital assets..           -        3,819            -
        Impairment of intangible
         assets.......................         697        1,046            -
      Changes in operating assets
       and liabilities:
        Accounts receivable...........      11,841        9,406        6,452
        Prepaid expenses and other
         current assets...............       1,485          (65)      (1,327)
        Income taxes..................     (14,289)      (3,818)      (3,902)
        Accounts payable and
         accrued liabilities..........       6,780       (3,204)      (4,489)
        Deferred revenue..............      14,603        5,228        7,224
        Other assets..................       3,916        2,745       (1,586)
                                       ------------ ------------ ------------
    Net cash provided by operating
     activities.......................     110,864       60,798       57,264

    Cash flows from investing
     activities:
      Acquisition of capital
       assets.........................      (5,260)     (19,278)     (17,909)
      Purchase of Optura, net of
       cash acquired..................           -            -       (3,347)
      Purchase of Vista, net of
       cash acquired..................           -            -      (23,690)
      Purchase of Artesia, net of
       cash acquired..................           -            -       (4,475)
      Purchase of IXOS, net of
       cash acquired..................      (1,427)      (5,126)     (13,779)
      Purchase of Hummingbird, net
       of cash acquired...............    (384,761)           -            -
      Purchase of Momentum, net
       of cash acquired...............      (4,076)           -            -
      Additional purchase
       consideration for prior
       period acquisitions............        (856)      (3,284)      (1,669)
      Investments in marketable
       securities.....................        (829)     (20,241)           -
      Acquisition related costs.......     (39,061)      (6,798)     (12,514)
                                       ------------ ------------ ------------
    Net cash used in investment
     activities.......................    (436,270)     (54,727)     (77,383)

    Cash flow from financing
     activities:
      Payment of obligations under
       capital leases.................           -            -          (68)
      Excess tax benefits on
       share-based compensation
       expense........................       1,285          865            -
      Repurchase of Common Shares.....           -            -      (63,835)
      Proceeds from issuance of
       Common Shares..................      11,734        4,569        6,399
      Proceeds from exercise
       of warrants....................           -            -          773
      Proceeds from long-term debt....     390,000       12,928            -
      Repayment of short-term bank
       loan...........................           -            -       (2,189)
      Repayment of long-term debt.....     (33,247)        (160)           -
      Debt issuance costs.............      (7,433)           -            -
                                       ------------ ------------ ------------
    Net cash provided by (used in)
     financing activities.............     362,339       18,202      (58,920)

    Foreign exchange gain on cash
     held in foreign currencies.......       5,692        3,183        1,950

    Increase (decrease) in cash and
     cash equivalents during
     the year.........................      42,625       27,456      (77,089)
      Cash and cash equivalents at
       beginning of the year..........     107,354       79,898      156,987
                                       ------------ ------------ ------------
      Cash and cash equivalents at
       end of the year................ $   149,979  $   107,354  $    79,898
                                       ------------ ------------ ------------
                                       ------------ ------------ ------------



                           OPEN TEXT CORPORATION
                    CONSOLIDATED STATEMENTS OF CASH FLOWS
                       (In thousands of U.S. Dollars)


                                                  Three months ended June 30,
                                                        2007          2006
                                                   ------------  ------------
                                                    (unaudited)   (unaudited)

    Cash flows from operating activities:
      Net income for the year....................   $    8,229    $    7,803
      Adjustments to reconcile net income to
       net cash provided by operating
       activities:
        Depreciation and amortization............       21,291        10,330
        Share-based compensation expense.........        1,515         1,310
        Undistributed earnings related to
         minority interest.......................            -           117
        Amortization of debt issuance costs                274             -
        Unrealized (gain) loss on financial
         instruments                                      (956)            -
        Deferred taxes...........................        6,534          (541)
        Impairment of capital assets.............            -             2
        Impairment of intangible assets..........          697         1,046
      Changes in operating assets and
       liabilities:
        Accounts receivable......................      (15,206)          580
        Prepaid expenses and other current
         assets..................................          803           484
        Income taxes.............................      (10,908)       (1,995)
        Accounts payable and accrued
         liabilities.............................       16,470        (1,904)
        Deferred revenue.........................         (286)       (2,122)
        Other assets.............................            -           317
                                                   ------------  ------------
    Net cash provided by operating activities....       28,457        15,427

    Cash flows from investing activities:
      Acquisition of capital assets..............         (640)       (2,452)
      Purchase of IXOS, net of cash acquired.....         (341)         (475)
      Additional purchase consideration for
       prior period acquisitions.................            -            85
      Investments in marketable securities.......            -       (20,241)
      Acquisition related costs..................      (10,812)       (3,204)
                                                   ------------  ------------
    Net cash used in investment activities.......      (11,793)      (26,287)

    Cash flow from financing activities:
      Excess tax benefits on share-based
       compensation expense......................          163            62
      Proceeds from issuance of Common Shares....        2,905         1,117
      Repayment of long-term debt................      (31,003)          (99)
                                                   ------------  ------------
    Net cash provided by (used in) financing
     activities..................................      (27,935)        1,080

    Foreign exchange gain on cash held in
     foreign currencies..........................        1,567         3,646

    Decrease in cash and cash equivalents
     during the period...........................       (9,704)       (6,134)
      Cash and cash equivalents at beginning
       of the period.............................      159,683       113,488
                                                   ------------  ------------

      Cash and cash equivalents at end of the
       period....................................   $  149,979    $  107,354
                                                   ------------  ------------
                                                   ------------  ------------
    




For further information:

For further information: Paul McFeeters, Chief Financial Officer, Open
Text Corporation, (905) 762-6121, pmcfeeters@opentext.com; Greg Secord,
Director, Investor Relations, Open Text Corporation, (519) 888-7111 ext. 2408,
gsecord@opentext.com


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