OpenText Reports Third Quarter Fiscal Year 2017 Financial Results

WATERLOO, Ontario, May 8, 2017

Total revenue of $593 million, up 35% Y/Y; or $600 million, up 36% in CC; Quarterly cash dividend increased by 15%

Open Text Corporation (NASDAQ: OTEX, TSX: OTEX) announced today its financial results for the third quarter ended March 31, 2017.

"It was a milestone quarter for OpenText as revenues reached $600 million with 36% year-over-year growth (in CC) and operating cash flow grew 46% quarter-over-quarter," said OpenText CEO and CTO, Mark J. Barrenechea. "We are a market leader in Enterprise Software for Digital Transformation and customers are responding favorably to our expanded portfolio of customer experience management, vertical content solutions, and discovery offerings.  We have invested approximately $2.4 billion in acquisitions over the last twelve months, and while the financial benefits are evident in our quarterly results, they are yet to be fully realized."

Barrenechea further added, "Our first principle is long-term growth in intrinsic value.  Over the past four years, we have returned over $400 million to shareholders via dividends and cash used for share buybacks. Our ability to deploy capital continues to expand, our financial position is strong and our outlook is positive. Today we are announcing a 15% increase to our quarterly cash dividend to $0.132 per share."

On January 23, 2017, OpenText completed the acquisition of Dell-EMC's Enterprise Content Division ("ECD Business"), including Documentum. "We are on our business case and while we expect the ECD Business revenue contribution in Q4 Fiscal 2017 to increase approximately 30% quarter over quarter, performance is expected to scale throughout Fiscal 2018," said Barrenechea.

Barrenechea concluded, "Our strategic market thesis is centered on Enterprise Information Management and we are investing for the next decade. We are also seeing growth opportunities in Artificial Intelligence ("AI"). Our customers manage the world's largest content archives, and they are looking to turn these archives into active data lakes to drive greater business insight.  We plan on showcasing Magellan, our next generation Analytics and AI platform at our upcoming Enterprise World."