OpenText reports mixed results as it finalizes purchase of Micro Focus

Enterprise software program supplier OpenText Corp. has reported blended quarterly outcomes following the finalization of its buy of Micro Focus Worldwide plc.

For its fiscal 2023 second quarter, OpenText reported non-generally accepted accounting rules earnings per share of 89 cents, the identical determine as in the identical quarter of final yr. Income got here in at $897.4 million, up 2.4% year-over-year. Analysts had expected earnings per share of $1.05.

OpenText’s cloud providers and subscriptions had been up 12% year-over-year within the quarter to $408.7 million, whereas buyer assist income was down 18.4% to $316.5 million. Complete annual recurring income was up 3.6% to $725.2 million.

Adjusted earnings earlier than curiosity, taxes, depreciation and amortization had been down 3.3% year-over-year to $645 million. Free money stream dropped 29.9% to $258.6 million.

Highlights within the quarter included OpenText partnering with Allstate Id Safety to supply identification safety providers to Webroot prospects. OpenText additionally achieved a FedRAMP “In Course of” designation for its OpenText Cloud for Authorities providing.

“OpenText delivered an excellent second quarter with robust cloud bookings and revenues, establishing our eighth consecutive quarter of cloud natural and ARR natural development in fixed forex,” Mark J. Barrenechea, chief government officer and chief know-how officer of OpenText, stated in a statement.

The corporate didn’t present an outlook with its launch. A transcript of OpenText’s investor name, the place an outlook could have been given, was unavailable on the time of writing.

The largest story over the interval was OpenText’s acquisition of Micro Focus for $6 billion. The element was introduced in August and was stated to allow OpenText to achieve a presence in components of the enterprise know-how market the place it isn’t a longtime participant. The deal additionally expands OpenText’s core portfolio of merchandise for managing enterprise information.

The deal closed on Jan. 31, with Barrenechea saying in a blog post that with the acquisition, “OpenText’s company mission expands to assist enterprise professionals safe their operations, acquire extra perception into their info and higher handle an more and more hybrid and complicated digital cloth with a brand new technology of instruments.”

Expanded choices coming to OpenText by way of the acquisition embrace instruments protecting cybersecurity, digital operations administration, utility automation, superior analytics and synthetic intelligence.

Picture: OpenText