Open Text Corp Stock Price, News & Analysis

OpenText (NASDAQ: OTEX) announced new features for its Axcelerate platform during Legalweek New York 2022, aimed at enhancing legal discovery and compliance processes. Key innovations include RegEx Search Enrichment for personal data protection and improved chat review functionalities. These enhancements are designed to optimize efficiency and reduce costs in eDiscovery projects, with reported time savings of over 45%. The upcoming integration with Insight Predict will further streamline review timelines and promote better document relevance identification.

OpenText (OTEX) announced Cloud Editions 22.1, enhancing tools for digital transformation. The update supports over 3,000 private cloud customers and 11 million public cloud subscribers, focusing on resilience in information management. Key features include the OpenText Supplier Portal for secure access to information and integrations with Microsoft Teams to improve collaboration. CE 22.1 aims to optimize supply chains, enhance productivity, and provide personalized customer experiences.

OpenText (NASDAQ: OTEX) announced that MSIG Singapore and MSIG Malaysia have implemented its information management solutions to enhance customer experiences and operational efficiencies.

MSIG Asia is leveraging various OpenText solutions, including Extended ECM, Intelligent Capture, Exstream, and AppWorks, to support its digital transformation strategy. The collaboration aims to empower modern work environments and increase self-service capabilities for customers. This initiative marks a significant step in MSIG's ongoing investment in digital capabilities.

OpenText announces a deepened partnership with Google Cloud to launch OpenText Core Content on Google Cloud, enhancing access to its enterprise productivity suite. This collaboration aims to utilize Google Cloud's capabilities for secure software supply chains and DevOps practices, facilitating low-latency access for distributed teams. The partnership will also explore integrations with Google Workspace, ensuring secure data access and enhancing productivity. This initiative aligns with the shift towards hybrid work environments, addressing organizational needs for technology and information management.

OpenText reported Q2 FY2022 revenues of $876.8 million, up 2.5% year-over-year, with cloud revenues at $364.9 million, an increase of 4.1%. Annual recurring revenues reached $699.8 million, representing 80% of total revenues. GAAP net income was $88.3 million, a 234.9% increase year-over-year. The company also acquired Zix Corporation for $896 million and issued $1.5 billion in senior notes to refinance existing debt. Operating cash flows were $216.6 million, and free cash flows were $206 million.

OpenText (NASDAQ: OTEX, TSX: OTEX) announced strategic appointments to enhance its executive leadership. Sandy Ono joins as Chief Marketing Officer, bringing experience from Hewlett Packard Enterprise, while Michael Acedo has been promoted to Chief Legal Officer, previously serving as General Counsel. Doug Parker takes on the role of Executive Vice President, Corporate Development, with over ten years at OpenText. Gordon Davies will retire in September 2022 after 13 years. CEO Mark Barrenechea expressed confidence in the team's capability to drive profitable growth.

OpenText (NASDAQ: OTEX, TSX: OTEX) has announced the implementation of its Vendor Invoice Management (VIM) for SAP Solutions by Faurecia, a global leader in automotive technology. This solution enhances financial processes amid pandemic challenges, streamlining document-centric processes and increasing cash visibility. Faurecia digitized 80% of its 2 million annual financial operations, optimizing procurement operations. OpenText's VIM allows companies to ensure accurate and timely payments to vendors, thus improving efficiency and collaboration across the organization.

Open Text Corporation (NASDAQ: OTEX) will announce its second quarter fiscal year 2022 financial results on February 3, 2022, at approximately 4:00 p.m. ET. A teleconference will follow at 5:00 p.m. ET, hosted by CEO Mark J. Barrenechea and CFO Madhu Ranganathan. Investors can join the call at 1-800-319-4610 (toll-free). A replay will be available starting the same day at 7:00 p.m. ET until February 17, 2022. Open Text will also hold a virtual Investor Day on March 1, 2022.

OpenText has successfully acquired Zix Corporation, a leader in SaaS-based email encryption and compliance solutions, for approximately $860 million. Zix will enhance OpenText's distribution capabilities and strengthen its focus on small and medium-sized businesses (SMBs). The acquisition is expected to be accretive to OpenText's organic growth within 12-18 months. Zix reported annual recurring revenues of 90% and the total purchase price translates to about 3.5x TTM revenues as of September 30, 2021. No material revenue or operating expenses from Zix are expected during the holiday season.