Canada | 0-27544 | 98-0154400 |
(State or Other Jurisdiction of Incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
Item 2.02 | Results of Operations and Financial Condition |
Item 8.01 | Other Events |
Item 9.01 | Financial Statements and Exhibits |
(d) | Exhibits |
Exhibit No. | Description | |
99.1 | Press release of financial results issued by Open Text Corporation on May 9, 2018 |
OPEN TEXT CORPORATION | ||||
May 9, 2018 | By: | /s/ Madhu Ranganathan | ||
Madhu Ranganathan Executive Vice President and Chief Financial Officer |
Exhibit No. | Description | |
99.1 |
Summary of Quarterly Results | ||||||||||||||||||
(in millions except per share data) | Q3 FY18 | Q3 FY17 | $ Change | % Change (Y/Y) | Q3 FY18 in CC* | % Change in CC* | ||||||||||||
Revenues: | ||||||||||||||||||
Cloud services and subscriptions | $209.1 | $177.1 | $32.0 | 18.1 | % | $204.0 | 15.2 | % | ||||||||||
Customer support | 312.3 | 263.4 | 48.8 | 18.5 | % | 297.9 | 13.1 | % | ||||||||||
Total annual recurring revenues** | $521.4 | $440.5 | $80.8 | 18.3 | % | $501.8 | 13.9 | % | ||||||||||
License | 84.1 | 87.2 | (3.1 | ) | (3.6 | )% | 80.0 | (8.3 | )% | |||||||||
Professional service and other | 80.4 | 65.4 | 15.0 | 23.0 | % | 75.3 | 15.3 | % | ||||||||||
Total revenues | $685.9 | $593.1 | $92.7 | 15.6 | % | $657.1 | 10.8 | % | ||||||||||
GAAP-based operating income | $102.3 | $65.3 | $37.1 | 56.8 | % | |||||||||||||
Non-GAAP-based operating income (1) | $204.1 | $172.6 | $31.5 | 18.2 | % | $193.4 | 12.1 | % | ||||||||||
GAAP-based operating margin | 14.9 | % | 11.0 | % | n/a | 390 | bps | |||||||||||
Non-GAAP-based operating margin (1) | 29.8 | % | 29.1 | % | n/a | 70 | bps | 29.4 | % | 30 | bps | |||||||
GAAP-based EPS, diluted | $0.22 | $0.08 | $0.14 | 175.0 | % | |||||||||||||
Non-GAAP-based EPS, diluted (1)(3) | $0.54 | $0.45 | $0.09 | 20.0 | % | $0.51 | 13.3 | % | ||||||||||
GAAP-based net income attributable to OpenText | $58.8 | $21.6 | $37.2 | 172.0 | % | |||||||||||||
Adjusted EBITDA (1) | $227.2 | $189.1 | $38.1 | 20.2 | % | |||||||||||||
Operating cash flows | $270.7 | $156.3 | $114.4 | 73.2 | % |
Summary of YTD Results | ||||||||||||||||||
(in millions except per share data) | FY18 YTD | FY17 YTD | $ Change | % Change (Y/Y) | FY18 YTD in CC* | % Change in CC* | ||||||||||||
Revenues: | ||||||||||||||||||
Cloud services and subscriptions | $611.1 | $521.9 | $89.2 | 17.1 | % | $606.1 | 16.1 | % | ||||||||||
Customer support | 915.8 | 693.3 | 222.5 | 32.1 | % | 891.3 | 28.6 | % | ||||||||||
Total annual recurring revenues** | $1,526.8 | $1,215.2 | $311.7 | 25.6 | % | $1,497.4 | 23.2 | % | ||||||||||
License | 297.6 | 245.6 | 51.9 | 21.1 | % | 287.8 | 17.1 | % | ||||||||||
Professional service and other | 236.6 | 166.7 | 69.9 | 41.9 | % | 227.7 | 36.6 | % | ||||||||||
Total revenues | $2,061.0 | $1,627.5 | $433.5 | 26.6 | % | $2,012.9 | 23.7 | % | ||||||||||
GAAP-based operating income | $356.1 | $246.5 | $109.6 | 44.5 | % | |||||||||||||
Non-GAAP-based operating income (1) | $673.1 | $508.5 | $164.6 | 32.4 | % | $654.3 | 28.7 | % | ||||||||||
GAAP-based operating margin | 17.3 | % | 15.1 | % | n/a | 220 | bps | |||||||||||
Non-GAAP-based operating margin (1) | 32.7 | % | 31.2 | % | n/a | 150 | bps | 32.5 | % | 130 | bps | |||||||
GAAP-based EPS, diluted (2) | $0.68 | $3.88 | ($3.20 | ) | (82.5 | )% | ||||||||||||
Non-GAAP-based EPS, diluted (1)(3) | $1.84 | $1.42 | $0.42 | 29.6 | % | $1.78 | 25.4 | % | ||||||||||
GAAP-based net income attributable to OpenText (2) | $180.5 | $979.5 | ($799.0 | ) | (81.6 | )% | ||||||||||||
Adjusted EBITDA (1) | $737.3 | $555.5 | $181.7 | 32.7 | % | |||||||||||||
Operating cash flows | $504.4 | $336.8 | $167.7 | 49.8 | % |
• | 22 customer transactions over $1 million, 10 OpenText Cloud and 12 on-premise |
• | Financial, Consumer Goods, Services, Technology and Public Sector industries saw the most demand in cloud and license |
• | Key customer wins in the quarter included All InBox, City of Philadelphia, Corsair, PFU Limited, Central Provident Fund Board, Airports of Thailand, Progressive Insurance, ADP, Massachusetts Bay Transportation Authority, Nidec Automotive, Blue Shield of California, MUFG Union Bank, Bank Mandiri, West Bend Mutual Insurance Company, National Grid UK, SwissLife, Tieto, McGill University, and United States Census Bureau |
• | Madhu Ranganathan Joins OpenText as Chief Financial Officer |
• | OpenText acquires Hightail, a leading cloud service for file sharing and creative collaboration |
• | OpenText Release 16 EP4 extends security, artificial intelligence (AI), the internet of things (IoT), and cloud support into the market-leading OpenText EIM platform |
• | OpenText Enfuse 2018 to showcase the future of cybersecurity and digital investigations |
• | OpenText Enterprise World 2018 to Showcase the Intelligent and Connected Enterprise |
Summary of Quarterly Results | |||||||||||||||
Q3 FY18 | Q2 FY18 | Q3 FY17 | % Change (Q3 FY18 vs Q2 FY18) | % Change (Q3 FY18 vs Q3 FY17) | |||||||||||
Revenue (million) | $685.9 | $734.4 | $593.1 | (6.6 | )% | 15.6 | % | ||||||||
GAAP-based gross margin | 64.6 | % | 67.3 | % | 64.5 | % | (270 | ) | bps | 10 | bps | ||||
GAAP-based operating margin | 14.9 | % | 22.7 | % | 11.0 | % | (780 | ) | bps | 390 | bps | ||||
GAAP-based EPS, diluted | $0.22 | $0.32 | $0.08 | (31.3 | )% | 175.0 | % | ||||||||
Non-GAAP-based gross margin (1) | 71.6 | % | 73.9 | % | 71.2 | % | (230 | ) | bps | 40 | bps | ||||
Non-GAAP-based operating margin (1) | 29.8 | % | 36.5 | % | 29.1 | % | (670 | ) | bps | 70 | bps | ||||
Non-GAAP-based EPS, diluted (1)(3) | $0.54 | $0.76 | $0.45 | (28.9 | )% | 20.0 | % |
Summary of Year to Date Results | |||||||||
Q3 FY18 YTD | Q3 FY17 YTD | % Change | |||||||
Revenue (million) | $2,061.0 | $1,627.5 | 26.6 | % | |||||
GAAP-based gross margin | 65.7 | % | 66.6 | % | (90 | ) | bps | ||
GAAP-based operating margin | 17.3 | % | 15.1 | % | 220 | bps | |||
GAAP-based EPS, diluted(2) | $0.68 | $3.88 | (82.5 | )% | |||||
Non-GAAP-based gross margin (1) | 72.6 | % | 72.2 | % | 40 | bps | |||
Non-GAAP-based operating margin (1) | 32.7 | % | 31.2 | % | 150 | bps | |||
Non-GAAP-based EPS, diluted (1)(3) | $1.84 | $1.42 | 29.6 | % |
March 31, 2018 | June 30, 2017 | ||||||
ASSETS | (unaudited) | ||||||
Cash and cash equivalents | $ | 605,497 | $ | 443,357 | |||
Accounts receivable trade, net of allowance for doubtful accounts of $9,007 as of March 31, 2018 and $6,319 as of June 30, 2017 | 515,012 | 445,812 | |||||
Income taxes recoverable | 42,880 | 32,683 | |||||
Prepaid expenses and other current assets | 105,657 | 81,625 | |||||
Total current assets | 1,269,046 | 1,003,477 | |||||
Property and equipment | 264,859 | 227,418 | |||||
Goodwill | 3,592,598 | 3,416,749 | |||||
Acquired intangible assets | 1,391,413 | 1,472,542 | |||||
Deferred tax assets | 1,142,385 | 1,215,712 | |||||
Other assets | 99,732 | 93,763 | |||||
Deferred charges | 39,148 | 42,344 | |||||
Long-term income taxes recoverable | 21,696 | 8,557 | |||||
Total assets | $ | 7,820,877 | $ | 7,480,562 | |||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||
Current liabilities: | |||||||
Accounts payable and accrued liabilities | $ | 295,165 | $ | 342,120 | |||
Current portion of long-term debt | 282,760 | 182,760 | |||||
Deferred revenues | 689,189 | 570,328 | |||||
Income taxes payable | 33,685 | 31,835 | |||||
Total current liabilities | 1,300,799 | 1,127,043 | |||||
Long-term liabilities: | |||||||
Accrued liabilities | 52,688 | 50,338 | |||||
Deferred credits | 3,366 | 5,283 | |||||
Pension liability | 62,996 | 58,627 | |||||
Long-term debt | 2,385,322 | 2,387,057 | |||||
Deferred revenues | 72,176 | 61,678 | |||||
Long-term income taxes payable | 171,174 | 162,493 | |||||
Deferred tax liabilities | 75,376 | 94,724 | |||||
Total long-term liabilities | 2,823,098 | 2,820,200 | |||||
Shareholders' equity: | |||||||
Share capital and additional paid-in capital | |||||||
267,266,442 and 264,059,567 Common Shares issued and outstanding at March 31, 2018 and June 30, 2017, respectively; authorized Common Shares: unlimited | 1,689,997 | 1,613,454 | |||||
Accumulated other comprehensive income | 51,810 | 48,800 | |||||
Retained earnings | 1,973,129 | 1,897,624 | |||||
Treasury stock, at cost (694,169 shares at March 31, 2018 and 1,101,612 at June 30, 2017, respectively) | (18,823 | ) | (27,520 | ) | |||
Total OpenText shareholders' equity | 3,696,113 | 3,532,358 | |||||
Non-controlling interests | 867 | 961 | |||||
Total shareholders' equity | 3,696,980 | 3,533,319 | |||||
Total liabilities and shareholders' equity | $ | 7,820,877 | $ | 7,480,562 |
Three Months Ended March 31, | Nine Months Ended March 31, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Revenues: | |||||||||||||||
License | $ | 84,113 | $ | 87,227 | $ | 297,588 | $ | 245,647 | |||||||
Cloud services and subscriptions | 209,102 | 177,109 | 611,076 | 521,857 | |||||||||||
Customer support | 312,279 | 263,436 | 915,753 | 693,298 | |||||||||||
Professional service and other | 80,385 | 65,358 | 236,554 | 166,701 | |||||||||||
Total revenues | 685,879 | 593,130 | 2,060,971 | 1,627,503 | |||||||||||
Cost of revenues: | |||||||||||||||
License | 3,098 | 4,008 | 10,645 | 10,244 | |||||||||||
Cloud services and subscriptions | 94,264 | 77,225 | 269,012 | 220,667 | |||||||||||
Customer support | 33,820 | 34,442 | 99,805 | 87,529 | |||||||||||
Professional service and other | 64,246 | 55,529 | 188,690 | 137,167 | |||||||||||
Amortization of acquired technology-based intangible assets | 47,303 | 39,285 | 138,391 | 87,268 | |||||||||||
Total cost of revenues | 242,731 | 210,489 | 706,543 | 542,875 | |||||||||||
Gross profit | 443,148 | 382,641 | 1,354,428 | 1,084,628 | |||||||||||
Operating expenses: | |||||||||||||||
Research and development | 83,522 | 77,086 | 241,455 | 200,379 | |||||||||||
Sales and marketing | 129,987 | 117,498 | 381,951 | 315,297 | |||||||||||
General and administrative | 54,817 | 44,828 | 152,717 | 122,939 | |||||||||||
Depreciation | 23,093 | 16,557 | 64,042 | 47,128 | |||||||||||
Amortization of acquired customer-based intangible assets | 46,762 | 40,825 | 136,819 | 108,248 | |||||||||||
Special charges | 2,644 | 20,586 | 21,390 | 44,157 | |||||||||||
Total operating expenses | 340,825 | 317,380 | 998,374 | 838,148 | |||||||||||
Income from operations | 102,323 | 65,261 | 356,054 | 246,480 | |||||||||||
Other income (expense), net | 11,140 | 1,424 | 26,911 | 4,565 | |||||||||||
Interest and other related expense, net | (34,534 | ) | (31,734 | ) | (101,914 | ) | (86,752 | ) | |||||||
Income before income taxes | 78,929 | 34,951 | 281,051 | 164,293 | |||||||||||
Provision for (recovery of) income taxes | 20,129 | 13,239 | 100,644 | (815,364 | ) | ||||||||||
Net income for the period | $ | 58,800 | $ | 21,712 | $ | 180,407 | $ | 979,657 | |||||||
Net (income) loss attributable to non-controlling interests | (6 | ) | (96 | ) | 94 | (135 | ) | ||||||||
Net income attributable to OpenText | $ | 58,794 | $ | 21,616 | $ | 180,501 | $ | 979,522 | |||||||
Earnings per share—basic attributable to OpenText | $ | 0.22 | $ | 0.08 | $ | 0.68 | $ | 3.91 | |||||||
Earnings per share—diluted attributable to OpenText | $ | 0.22 | $ | 0.08 | $ | 0.68 | $ | 3.88 | |||||||
Weighted average number of Common Shares outstanding—basic | 266,572 | 263,329 | 265,619 | 250,538 | |||||||||||
Weighted average number of Common Shares outstanding—diluted | 267,764 | 265,440 | 266,954 | 252,469 | |||||||||||
Dividends declared per Common Share | $ | 0.1320 | $ | 0.1150 | $ | 0.3960 | $ | 0.3450 |
Three Months Ended March 31, | Nine Months Ended March 31, | |||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||
Net income for the period | $ | 58,800 | $ | 21,712 | $ | 180,407 | $ | 979,657 | ||||||||
Other comprehensive income (loss) —net of tax: | ||||||||||||||||
Net foreign currency translation adjustments | 3,823 | 2,725 | 3,283 | (7,582 | ) | |||||||||||
Unrealized gain (loss) on cash flow hedges: | ||||||||||||||||
Unrealized gain (loss) - net of tax expense (recovery) effect of ($338) and $125 for the three months ended March 31, 2018 and 2017, respectively; $65 and ($254) for the nine months ended March 31, 2018 and 2017, respectively | (935 | ) | 348 | 182 | (705 | ) | ||||||||||
(Gain) loss reclassified into net income - net of tax (expense) recovery effect of ($112) and $14 for the three months ended March 31, 2018 and 2017, respectively; ($540) and ($24) for the nine months ended March 31, 2018 and 2017, respectively | (311 | ) | 40 | (1,499 | ) | (68 | ) | |||||||||
Actuarial gain (loss) relating to defined benefit pension plans: | ||||||||||||||||
Actuarial gain (loss) - net of tax expense (recovery) effect of $413 and ($64) for the three months ended March 31, 2018 and 2017, respectively; $177 and $420 for the nine months ended March 31, 2018 and 2017, respectively | 1,648 | 686 | 1,485 | 5,047 | ||||||||||||
Amortization of actuarial (gain) loss into net income - net of tax (expense) recovery effect of $45 and $59 for the three months ended March 31, 2018 and 2017, respectively; $130 and $178 for the nine months ended March 31, 2018 and 2017, respectively | 64 | 139 | 176 | 420 | ||||||||||||
Unrealized net gain (loss) on marketable securities - net of tax effect of nil for the three and nine months ended March 31, 2018 and 2017, respectively | — | (541 | ) | — | (141 | ) | ||||||||||
Release of unrealized gain on marketable securities - net of tax effect of nil for the three and nine months ended March 31, 2018 and 2017, respectively | — | — | (617 | ) | — | |||||||||||
Total other comprehensive income (loss) net, for the period | 4,289 | 3,397 | 3,010 | (3,029 | ) | |||||||||||
Total comprehensive income | 63,089 | 25,109 | 183,417 | 976,628 | ||||||||||||
Comprehensive (income) loss attributable to non-controlling interests | (6 | ) | (96 | ) | 94 | (135 | ) | |||||||||
Total comprehensive income attributable to OpenText | $ | 63,083 | $ | 25,013 | $ | 183,511 | $ | 976,493 |
Three Months Ended March 31, | Nine Months Ended March 31, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Cash flows from operating activities: | |||||||||||||||
Net income for the period | $ | 58,800 | $ | 21,712 | $ | 180,407 | $ | 979,657 | |||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||||||
Depreciation and amortization of intangible assets | 117,158 | 96,667 | 339,252 | 242,644 | |||||||||||
Share-based compensation expense | 5,080 | 6,661 | 20,473 | 22,373 | |||||||||||
Excess tax expense (benefits) on share-based compensation expense | — | (1,044 | ) | — | (1,586 | ) | |||||||||
Pension expense | 965 | 892 | 2,834 | 2,953 | |||||||||||
Amortization of debt issuance costs | 1,303 | 1,127 | 3,835 | 3,781 | |||||||||||
Amortization of deferred charges and credits | 941 | 2,146 | 3,175 | 6,438 | |||||||||||
Loss on sale and write down of property and equipment | 326 | — | 489 | — | |||||||||||
Release of unrealized gain on marketable securities to income | — | — | (841 | ) | — | ||||||||||
Deferred taxes | 18,266 | (22,011 | ) | 62,640 | (890,244 | ) | |||||||||
Share in net (income) loss of equity investees | 307 | (160 | ) | 503 | (6,153 | ) | |||||||||
Write off of unamortized debt issuance costs | — | 833 | — | 833 | |||||||||||
Other non-cash charges | — | — | — | 1,033 | |||||||||||
Changes in operating assets and liabilities: | |||||||||||||||
Accounts receivable | (6,240 | ) | (37,551 | ) | (55,698 | ) | (37,095 | ) | |||||||
Prepaid expenses and other current assets | (5,152 | ) | (18,119 | ) | (10,535 | ) | (6,234 | ) | |||||||
Income taxes and deferred charges and credits | (23,651 | ) | 11,190 | (22,068 | ) | 1,570 | |||||||||
Accounts payable and accrued liabilities | (19,779 | ) | 40,516 | (92,278 | ) | 16,521 | |||||||||
Deferred revenue | 123,550 | 54,659 | 74,704 | 6,917 | |||||||||||
Other assets | (1,197 | ) | (1,215 | ) | (2,466 | ) | (6,635 | ) | |||||||
Net cash provided by operating activities | 270,677 | 156,303 | 504,426 | 336,773 | |||||||||||
Cash flows from investing activities: | |||||||||||||||
Additions of property and equipment | (27,101 | ) | (17,797 | ) | (83,038 | ) | (50,071 | ) | |||||||
Proceeds from maturity of short-term investments | — | — | — | 9,212 | |||||||||||
Purchase of Hightail Inc. | (20,466 | ) | — | (20,466 | ) | — | |||||||||
Purchase of Guidance Software, net of cash acquired | — | — | (229,275 | ) | — | ||||||||||
Purchase of Covisint Corporation, net of cash acquired | — | — | (71,279 | ) | — | ||||||||||
Purchase of ECD Business | — | (1,622,394 | ) | — | (1,622,394 | ) | |||||||||
Purchase of HP Inc. CCM Business | — | — | — | (315,000 | ) | ||||||||||
Purchase of Recommind, Inc. | — | — | — | (170,107 | ) | ||||||||||
Purchase consideration for acquisitions completed prior to Fiscal 2017 | — | — | — | (7,146 | ) | ||||||||||
Other investing activities | (3,118 | ) | (2,450 | ) | (11,179 | ) | (3,013 | ) | |||||||
Net cash used in investing activities | (50,685 | ) | (1,642,641 | ) | (415,237 | ) | (2,158,519 | ) | |||||||
Cash flows from financing activities: | |||||||||||||||
Excess tax (expense) benefits on share-based compensation expense | — | 1,044 | — | 1,586 | |||||||||||
Proceeds from issuance of long-term debt and revolver | — | 225,000 | 200,000 | 481,875 | |||||||||||
Proceeds from issuance of Common Shares from exercise of stock options and ESPP | 36,442 | 15,967 | 66,064 | 26,668 | |||||||||||
Proceeds from issuance of Common shares under public Equity Offering | — | — | — | 604,223 | |||||||||||
Repayment of long-term debt and revolver | (101,940 | ) | (1,940 | ) | (105,820 | ) | (5,940 | ) | |||||||
Debt issuance costs | — | (2,045 | ) | — | (6,200 | ) | |||||||||
Equity issuance costs | — | (1,345 | ) | — | (19,472 | ) | |||||||||
Purchase of treasury stock | — | (4,245 | ) | — | (4,245 | ) | |||||||||
Payments of dividends to shareholders | (35,168 | ) | (30,303 | ) | (104,996 | ) | (85,953 | ) | |||||||
Net cash provided by (used in) financing activities | (100,666 | ) | 202,133 | 55,248 | 992,542 | ||||||||||
Foreign exchange gain (loss) on cash held in foreign currencies | 10,157 | 10,714 | 17,703 | (5,553 | ) | ||||||||||
Increase (decrease) in cash and cash equivalents during the period | 129,483 | (1,273,491 | ) | 162,140 | (834,757 | ) | |||||||||
Cash and cash equivalents at beginning of the period | 476,014 | 1,722,491 | 443,357 | 1,283,757 | |||||||||||
Cash and cash equivalents at end of the period | $ | 605,497 | $ | 449,000 | $ | 605,497 | $ | 449,000 |
(1) | All dollar amounts in this press release are in U.S. Dollars unless otherwise indicated. |
(2) | Use of Non-GAAP Financial Measures: In addition to reporting financial results in accordance with U.S. GAAP, the Company provides certain financial measures that are not in accordance with U.S. GAAP (Non-GAAP). These Non-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-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 these Non-GAAP financial measures both in its reconciliation to the U.S. GAAP financial measures and its consolidated financial statements, all of which should be considered when evaluating the Company's results. |
Reconciliation of selected GAAP-based measures to Non-GAAP-based measures for the three months ended March 31, 2018. (In thousands except for per share amounts) | ||||||||||||||
Three Months Ended March 31, 2018 | ||||||||||||||
GAAP-based Measures | GAAP-based Measures % of Total Revenue | Adjustments | Note | Non-GAAP-based Measures | Non-GAAP-based Measures % of Total Revenue | |||||||||
Cost of revenues | ||||||||||||||
Cloud services and subscriptions | $ | 94,264 | $ | (135 | ) | (1) | $ | 94,129 | ||||||
Customer support | 33,820 | (277 | ) | (1) | 33,543 | |||||||||
Professional service and other | 64,246 | (122 | ) | (1) | 64,124 | |||||||||
Amortization of acquired technology-based intangible assets | 47,303 | (47,303 | ) | (2) | — | |||||||||
GAAP-based gross profit and gross margin (%) / Non-GAAP-based gross profit and gross margin (%) | 443,148 | 64.6 | % | 47,837 | (3) | 490,985 | 71.6 | % | ||||||
Operating expenses | ||||||||||||||
Research and development | 83,522 | (993 | ) | (1) | 82,529 | |||||||||
Sales and marketing | 129,987 | (1,496 | ) | (1) | 128,491 | |||||||||
General and administrative | 54,817 | (2,057 | ) | (1) | 52,760 | |||||||||
Amortization of acquired customer-based intangible assets | 46,762 | (46,762 | ) | (2) | — | |||||||||
Special charges (recoveries) | 2,644 | (2,644 | ) | (4) | — | |||||||||
GAAP-based income from operations and operating margin (%) / Non-GAAP-based income from operations and operating margin (%) | 102,323 | 14.9 | % | 101,789 | (5) | 204,112 | 29.8 | % | ||||||
Other income (expense), net | 11,140 | (11,140 | ) | (6) | — | |||||||||
Provision for (recovery of) income taxes | 20,129 | 3,612 | (7) | 23,741 | ||||||||||
GAAP-based net income / Non-GAAP-based net income, attributable to OpenText | 58,794 | 87,037 | (8) | 145,831 | ||||||||||
GAAP-based earnings per share / Non-GAAP-based earnings per share-diluted, attributable to OpenText | $ | 0.22 | $ | 0.32 | (8) | $ | 0.54 |
(1) | Adjustment relates to the exclusion of share-based compensation expense from our Non-GAAP-based operating expenses as this expense is excluded from our internal analysis of operating results. |
(2) | Adjustment relates to the exclusion of amortization expense from our Non-GAAP-based operating expenses as the timing and frequency of amortization expense is dependent on our acquisitions and is hence excluded from our internal analysis of operating results. |
(3) | GAAP-based and Non-GAAP-based gross profit stated in dollars, and gross margin stated as a percentage of total revenue. |
(4) | Adjustment relates to the exclusion of Special charges (recoveries) from our Non-GAAP-based operating expenses as Special charges (recoveries) are generally incurred in the periods relevant to an acquisition and include one-time, non-recurring charges or recoveries that are not indicative or related to continuing operations, and are therefore excluded from our internal analysis of operating results. |
(5) | GAAP-based and Non-GAAP-based income from operations stated in dollars, and operating margin stated as a percentage of total revenue. |
(6) | Adjustment relates to the exclusion of Other income (expense) from our Non-GAAP-based operating expenses as Other income (expense) relates primarily to the transactional impact of foreign exchange and is generally not indicative or related to continuing operations and is therefore excluded from our internal analysis of operating results. Other income (expense) also includes our share of income (losses) from our holdings in non-marketable securities investments as a limited partner. We do not actively trade equity securities in these privately held companies nor do we plan our ongoing operations based around any anticipated fundings or distributions from these investments. We exclude gains and losses on these investments as we do not believe they are reflective of our ongoing business and operating results. |
(7) | Adjustment relates to differences between the GAAP-based tax provision rate of approximately 26% and a Non-GAAP-based tax rate of approximately 14%; these rate differences are due to the income tax effects of expenses that are excluded for the purpose of calculating Non-GAAP-based adjusted net income. Such excluded expenses include |
(8) | Reconciliation of GAAP-based net income to Non-GAAP-based net income: |
Three Months Ended March 31, 2018 | ||||||
Per share diluted | ||||||
GAAP-based net income, attributable to OpenText | $ | 58,794 | $ | 0.22 | ||
Add: | ||||||
Amortization | 94,065 | 0.35 | ||||
Share-based compensation | 5,080 | 0.02 | ||||
Special charges (recoveries) | 2,644 | 0.01 | ||||
Other (income) expense, net | (11,140 | ) | (0.04 | ) | ||
GAAP-based provision for (recovery of) income taxes | 20,129 | 0.07 | ||||
Non-GAAP-based provision for income taxes | (23,741 | ) | (0.09 | ) | ||
Non-GAAP-based net income, attributable to OpenText | $ | 145,831 | $ | 0.54 |
Three Months Ended March 31, 2018 | |||
GAAP-based net income, attributable to OpenText | $ | 58,794 | |
Add: | |||
Provision for (recovery of) income taxes | 20,129 | ||
Interest and other related expense, net | 34,534 | ||
Amortization of acquired technology-based intangible assets | 47,303 | ||
Amortization of acquired customer-based intangible assets | 46,762 | ||
Depreciation | 23,093 | ||
Share-based compensation | 5,080 | ||
Special charges (recoveries) | 2,644 | ||
Other (income) expense, net | (11,140 | ) | |
Adjusted EBITDA | $ | 227,199 |
Reconciliation of selected GAAP-based measures to Non-GAAP-based measures for the nine months ended March 31, 2018. (In thousands except for per share amounts) | ||||||||||||||
Nine Months Ended March 31, 2018 | ||||||||||||||
GAAP-based Measures | GAAP-based Measures % of Total Revenue | Adjustments | Note | Non-GAAP-based Measures | Non-GAAP-based Measures % of Total Revenue | |||||||||
Cost of revenues | ||||||||||||||
Cloud services and subscriptions | $ | 269,012 | $ | (1,119 | ) | (1) | $ | 267,893 | ||||||
Customer support | 99,805 | (933 | ) | (1) | 98,872 | |||||||||
Professional service and other | 188,690 | (1,322 | ) | (1) | 187,368 | |||||||||
Amortization of acquired technology-based intangible assets | 138,391 | (138,391 | ) | (2) | — | |||||||||
GAAP-based gross profit and gross margin (%) / Non-GAAP-based gross profit and gross margin (%) | 1,354,428 | 65.7 | % | 141,765 | (3) | 1,496,193 | 72.6 | % | ||||||
Operating expenses | ||||||||||||||
Research and development | 241,455 | (4,206 | ) | (1) | 237,249 | |||||||||
Sales and marketing | 381,951 | (6,679 | ) | (1) | 375,272 | |||||||||
General and administrative | 152,717 | (6,214 | ) | (1) | 146,503 | |||||||||
Amortization of acquired customer-based intangible assets | 136,819 | (136,819 | ) | (2) | — | |||||||||
Special charges (recoveries) | 21,390 | (21,390 | ) | (4) | — | |||||||||
GAAP-based income from operations and operating margin (%) / Non-GAAP-based income from operations and operating margin (%) | 356,054 | 17.3 | % | 317,073 | (5) | 673,127 | 32.7 | % | ||||||
Other income (expense), net | 26,911 | (26,911 | ) | (6) | — | |||||||||
Provision for (recovery of) income taxes | 100,644 | (20,674 | ) | (7) | 79,970 | |||||||||
GAAP-based net income / Non-GAAP-based net income, attributable to OpenText | 180,501 | 310,836 | (8) | 491,337 | ||||||||||
GAAP-based earnings per share / Non GAAP-based earnings per share-diluted, attributable to OpenText | $ | 0.68 | $ | 1.16 | (8) | $ | 1.84 |
(1) | Adjustment relates to the exclusion of share-based compensation expense from our Non-GAAP-based operating expenses as this expense is excluded from our internal analysis of operating results. |
(2) | Adjustment relates to the exclusion of amortization expense from our Non-GAAP-based operating expenses as the timing and frequency of amortization expense is dependent on our acquisitions and is hence excluded from our internal analysis of operating results. |
(3) | GAAP-based and Non-GAAP-based gross profit stated in dollars, and gross margin stated as a percentage of total revenue. |
(4) | Adjustment relates to the exclusion of Special charges (recoveries) from our Non-GAAP-based operating expenses as Special charges (recoveries) are generally incurred in the periods relevant to an acquisition and include one-time, non-recurring charges or recoveries that are not indicative or related to continuing operations, and are therefore excluded from our internal analysis of operating results. |
(5) | GAAP-based and Non-GAAP-based income from operations stated in dollars, and operating margin stated as a percentage of total revenue. |
(6) | Adjustment relates to the exclusion of Other income (expense) from our Non-GAAP-based operating expenses as Other income (expense) relates primarily to the transactional impact of foreign exchange and is generally not indicative or related to continuing operations and is therefore excluded from our internal analysis of operating results. Other income (expense) also includes our share of income (losses) from our holdings in non-marketable securities investments as a limited partner. We do not actively trade equity securities in these privately held companies nor do we plan our ongoing operations based around any anticipated fundings or distributions from these investments. We exclude gains and losses on these investments as we do not believe they are reflective of our ongoing business and operating results. |
(7) | Adjustment relates to differences between the GAAP-based tax provision rate of approximately 36% and a Non-GAAP-based tax rate of approximately 14%; these rate differences are due to the income tax effects of expenses that are excluded for the purpose of calculating Non-GAAP-based adjusted net income. Such excluded expenses include |
(8) | Reconciliation of GAAP-based net income to Non-GAAP-based net income: |
Nine Months Ended March 31, 2018 | ||||||
Per share diluted | ||||||
GAAP-based net income, attributable to OpenText | $ | 180,501 | $ | 0.68 | ||
Add: | ||||||
Amortization | 275,210 | 1.03 | ||||
Share-based compensation | 20,473 | 0.08 | ||||
Special charges (recoveries) | 21,390 | 0.08 | ||||
Other (income) expense, net | (26,911 | ) | (0.10 | ) | ||
GAAP-based provision for (recovery of) income taxes | 100,644 | 0.37 | ||||
Non-GAAP based provision for income taxes | (79,970 | ) | (0.30 | ) | ||
Non-GAAP-based net income, attributable to OpenText | $ | 491,337 | $ | 1.84 |
Nine Months Ended March 31, 2018 | |||
GAAP-based net income, attributable to OpenText | $ | 180,501 | |
Add: | |||
Provision for (recovery of) income taxes | 100,644 | ||
Interest and other related expense, net | 101,914 | ||
Amortization of acquired technology-based intangible assets | 138,391 | ||
Amortization of acquired customer-based intangible assets | 136,819 | ||
Depreciation | 64,042 | ||
Share-based compensation | 20,473 | ||
Special charges (recoveries) | 21,390 | ||
Other (income) expense, net | (26,911 | ) | |
Adjusted EBITDA | $ | 737,263 |
Reconciliation of selected GAAP-based measures to Non-GAAP-based measures for the three months ended December 31, 2017. (In thousands except for per share amounts) | ||||||||||||||
Three Months Ended December 31, 2017 | ||||||||||||||
GAAP-based Measures | GAAP-based Measures % of Total Revenue | Adjustments | Note | Non-GAAP-based Measures | Non-GAAP-based Measures % of Total Revenue | |||||||||
Cost of revenues | ||||||||||||||
Cloud services and subscriptions | $ | 90,418 | $ | (462 | ) | (1) | $ | 89,956 | ||||||
Customer support | 33,194 | (327 | ) | (1) | 32,867 | |||||||||
Professional service and other | 64,985 | (603 | ) | (1) | 64,382 | |||||||||
Amortization of acquired technology-based intangible assets | 47,128 | (47,128 | ) | (2) | — | |||||||||
GAAP-based gross profit and gross margin (%) / Non-GAAP-based gross profit and gross margin (%) | 494,093 | 67.3 | % | 48,520 | (3) | 542,613 | 73.9 | % | ||||||
Operating expenses | ||||||||||||||
Research and development | 80,304 | (1,587 | ) | (1) | 78,717 | |||||||||
Sales and marketing | 129,142 | (2,095 | ) | (1) | 127,047 | |||||||||
General and administrative | 48,985 | (2,084 | ) | (1) | 46,901 | |||||||||
Amortization of acquired customer-based intangible assets | 46,268 | (46,268 | ) | (2) | — | |||||||||
Special charges (recoveries) | 715 | (715 | ) | (4) | — | |||||||||
GAAP-based income from operations and operating margin (%) / Non-GAAP-based income from operations and operating margin (%) | 166,608 | 22.7 | % | 101,269 | (5) | 267,877 | 36.5 | % | ||||||
Other income (expense), net | 5,547 | (5,547 | ) | (6) | — | |||||||||
Provision for (recovery of) income taxes | 53,146 | (22,095 | ) | (7) | 31,051 | |||||||||
GAAP-based net income / Non-GAAP-based net income, attributable to OpenText | 85,111 | 117,817 | (8) | 202,928 | ||||||||||
GAAP-based earnings per share / Non-GAAP-based earnings per share-diluted, attributable to OpenText | $ | 0.32 | $ | 0.44 | (8) | $ | 0.76 |
(1) | Adjustment relates to the exclusion of share-based compensation expense from our Non-GAAP-based operating expenses as this expense is excluded from our internal analysis of operating results. |
(2) | Adjustment relates to the exclusion of amortization expense from our Non-GAAP-based operating expenses as the timing and frequency of amortization expense is dependent on our acquisitions and is hence excluded from our internal analysis of operating results. |
(3) | GAAP-based and Non-GAAP-based gross profit stated in dollars, and gross margin stated as a percentage of total revenue. |
(4) | Adjustment relates to the exclusion of Special charges (recoveries) from our Non-GAAP-based operating expenses as Special charges (recoveries) are generally incurred in the periods relevant to an acquisition and include one-time, non-recurring charges or recoveries that are not indicative or related to continuing operations, and are therefore excluded from our internal analysis of operating results. |
(5) | GAAP-based and Non-GAAP-based income from operations stated in dollars, and operating margin stated as a percentage of total revenue. |
(6) | Adjustment relates to the exclusion of Other income (expense) from our Non-GAAP-based operating expenses as Other income (expense) relates primarily to the transactional impact of foreign exchange and is generally not indicative or related to continuing operations and is therefore excluded from our internal analysis of operating results. Other income (expense) also includes our share of income (losses) from our holdings in non-marketable securities investments as a limited partner. We do not actively trade equity securities in these privately held companies nor do we plan our ongoing operations based around any anticipated fundings or distributions from these investments. We exclude gains and losses on these investments as we do not believe they are reflective of our ongoing business and operating results. |
(7) | Adjustment relates to differences between the GAAP-based tax provision rate of approximately 38% and a Non-GAAP-based tax rate of approximately 13%; these rate differences are due to the income tax effects of expenses that are excluded for the purpose of calculating Non-GAAP-based adjusted net income. Such excluded expenses include amortization, share-based compensation, Special charges (recoveries) and other income (expense), net. Also excluded are |
(8) | Reconciliation of GAAP-based net income to Non-GAAP-based net income: |
Three Months Ended December 31, 2017 | ||||||
Per share diluted | ||||||
GAAP-based net income, attributable to OpenText | $ | 85,111 | $ | 0.32 | ||
Add: | ||||||
Amortization | 93,396 | 0.35 | ||||
Share-based compensation | 7,158 | 0.03 | ||||
Special charges (recoveries) | 715 | — | ||||
Other (income) expense, net | (5,547 | ) | (0.02 | ) | ||
GAAP-based provision for (recovery of) income taxes | 53,146 | 0.20 | ||||
Non-GAAP-based provision for income taxes | (31,051 | ) | (0.12 | ) | ||
Non-GAAP-based net income, attributable to OpenText | $ | 202,928 | $ | 0.76 |
Three Months Ended December 31, 2017 | |||
GAAP-based net income, attributable to OpenText | $ | 85,111 | |
Add: | |||
Provision for (recovery of) income taxes | 53,146 | ||
Interest and other related expense, net | 34,092 | ||
Amortization of acquired technology-based intangible assets | 47,128 | ||
Amortization of acquired customer-based intangible assets | 46,268 | ||
Depreciation | 22,071 | ||
Share-based compensation | 7,158 | ||
Special charges (recoveries) | 715 | ||
Other (income) expense, net | (5,547 | ) | |
Adjusted EBITDA | $ | 290,142 |
Reconciliation of selected GAAP-based measures to Non-GAAP-based measures for the three months ended March 31, 2017. (In thousands except for per share amounts) | ||||||||||||||
Three Months Ended March 31, 2017 | ||||||||||||||
GAAP-based Measures | GAAP-based Measures % of Total Revenue | Adjustments | Note | Non-GAAP-based Measures | Non-GAAP-based Measures % of Total Revenue | |||||||||
Cost of revenues | ||||||||||||||
Cloud services and subscriptions | $ | 77,225 | $ | (268 | ) | (1) | $ | 76,957 | ||||||
Customer support | 34,442 | (261 | ) | (1) | 34,181 | |||||||||
Professional service and other | 55,529 | (89 | ) | (1) | 55,440 | |||||||||
Amortization of acquired technology-based intangible assets | 39,285 | (39,285 | ) | (2) | — | |||||||||
GAAP-based gross profit and gross margin (%) / Non-GAAP-based gross profit and gross margin (%) | 382,641 | 64.5 | % | 39,903 | (3) | 422,544 | 71.2 | % | ||||||
Operating expenses | ||||||||||||||
Research and development | 77,086 | (1,634 | ) | (1) | 75,452 | |||||||||
Sales and marketing | 117,498 | (2,081 | ) | (1) | 115,417 | |||||||||
General and administrative | 44,828 | (2,328 | ) | (1) | 42,500 | |||||||||
Amortization of acquired customer-based intangible assets | 40,825 | (40,825 | ) | (2) | — | |||||||||
Special charges (recoveries) | 20,586 | (20,586 | ) | (4) | — | |||||||||
GAAP-based income from operations and operating margin (%) / Non-GAAP-based income from operations and operating margin (%) | 65,261 | 11.0 | % | 107,357 | (5) | 172,618 | 29.1 | % | ||||||
Other income (expense), net | 1,424 | (1,424 | ) | (6) | — | |||||||||
Provision for (recovery of) income taxes | 13,239 | 7,798 | (7) | 21,037 | ||||||||||
GAAP-based net income / Non-GAAP-based net income, attributable to OpenText | 21,616 | 98,135 | (8) | 119,751 | ||||||||||
GAAP-based earnings per share / Non-GAAP-based earnings per share-diluted, attributable to OpenText | $ | 0.08 | $ | 0.37 | (8) | $ | 0.45 |
(1) | Adjustment relates to the exclusion of share-based compensation expense from our Non-GAAP-based operating expenses as this expense is excluded from our internal analysis of operating results. |
(2) | Adjustment relates to the exclusion of amortization expense from our Non-GAAP-based operating expenses as the timing and frequency of amortization expense is dependent on our acquisitions and is hence excluded from our internal analysis of operating results. |
(3) | GAAP-based and Non-GAAP-based gross profit stated in dollars, and gross margin stated as a percentage of total revenue. |
(4) | Adjustment relates to the exclusion of Special charges (recoveries) from our Non-GAAP-based operating expenses as Special charges (recoveries) are generally incurred in the periods relevant to an acquisition and include one-time, non-recurring charges or recoveries that are not indicative or related to continuing operations, and are therefore excluded from our internal analysis of operating results. |
(5) | GAAP-based and Non-GAAP-based income from operations stated in dollars, and operating margin stated as a percentage of total revenue. |
(6) | Adjustment relates to the exclusion of Other income (expense) from our Non-GAAP-based operating expenses as Other income (expense) relates primarily to the transactional impact of foreign exchange and is generally not indicative or related to continuing operations and is therefore excluded from our internal analysis of operating results. Other income (expense) also includes our share of income (losses) from our holdings in non-marketable securities investments as a limited partner. We do not actively trade equity securities in these privately held companies nor do we plan our ongoing operations based around any anticipated fundings or distributions from these investments. We exclude gains and losses on these investments as we do not believe they are reflective of our ongoing business and operating results. |
(7) | Adjustment relates to differences between the GAAP-based tax provision rate of approximately 38% and a Non-GAAP-based tax rate of approximately 15%; these rate differences are due to the income tax effects of expenses that are excluded for the purpose of calculating Non-GAAP-based adjusted net income. Such excluded expenses include amortization, share-based compensation, Special charges (recoveries) and other income (expense), net. Also excluded are |
(8) | Reconciliation of GAAP-based net income to Non-GAAP-based net income: |
Three Months Ended March 31, 2017 | ||||||
Per share diluted | ||||||
GAAP-based net income, attributable to OpenText | $ | 21,616 | $ | 0.08 | ||
Add: | ||||||
Amortization | 80,110 | 0.30 | ||||
Share-based compensation | 6,661 | 0.03 | ||||
Special charges (recoveries) | 20,586 | 0.08 | ||||
Other (income) expense, net | (1,424 | ) | (0.01 | ) | ||
GAAP-based provision for (recovery of) income taxes | 13,239 | 0.05 | ||||
Non-GAAP-based provision for income taxes | (21,037 | ) | (0.08 | ) | ||
Non-GAAP-based net income, attributable to OpenText | $ | 119,751 | $ | 0.45 |
Three months ended March 31, 2017 | |||
GAAP-based net income, attributable to OpenText | $ | 21,616 | |
Add: | |||
Provision for (recovery of) income taxes | 13,239 | ||
Interest and other related expense, net | 31,734 | ||
Amortization of acquired technology-based intangible assets | 39,285 | ||
Amortization of acquired customer-based intangible assets | 40,825 | ||
Depreciation | 16,557 | ||
Share-based compensation | 6,661 | ||
Special charges (recoveries) | 20,586 | ||
Other (income) expense, net | (1,424 | ) | |
Adjusted EBITDA | $ | 189,079 |
Reconciliation of selected GAAP-based measures to Non-GAAP-based measures for the nine months ended March 31, 2017. (In thousands except for per share amounts) | ||||||||||||||
Nine Months Ended March 31, 2017 | ||||||||||||||
GAAP-based Measures | GAAP-based Measures % of Total Revenue | Adjustments | Note | Non-GAAP-based Measures | Non-GAAP-based Measures % of Total Revenue | |||||||||
Cost of revenues: | ||||||||||||||
Cloud services and subscriptions | $ | 220,667 | $ | (839 | ) | (1) | $ | 219,828 | ||||||
Customer support | 87,529 | (766 | ) | (1) | 86,763 | |||||||||
Professional service and other | 137,167 | (1,002 | ) | (1) | 136,165 | |||||||||
Amortization of acquired technology-based intangible assets | 87,268 | (87,268 | ) | (2) | — | |||||||||
GAAP-based gross profit and gross margin (%) / Non-GAAP-based gross profit and gross margin (%) | 1,084,628 | 66.6 | % | 89,875 | (3) | 1,174,503 | 72.2 | % | ||||||
Operating expenses | ||||||||||||||
Research and development | 200,379 | (5,372 | ) | (1) | 195,007 | |||||||||
Sales and marketing | 315,297 | (7,230 | ) | (1) | 308,067 | |||||||||
General and administrative | 122,939 | (7,164 | ) | (1) | 115,775 | |||||||||
Amortization of acquired customer-based intangible assets | 108,248 | (108,248 | ) | (2) | — | |||||||||
Special charges (recoveries) | 44,157 | (44,157 | ) | (4) | — | |||||||||
GAAP-based income from operations and operating margin (%) / Non-GAAP-based income from operations and operating margin (%) | 246,480 | 15.1 | % | 262,046 | (5) | 508,526 | 31.2 | % | ||||||
Other income (expense), net | 4,565 | (4,565 | ) | (6) | — | |||||||||
Provision for (recovery of) income taxes | (815,364 | ) | 878,495 | (7) | 63,131 | |||||||||
GAAP-based net income / Non-GAAP-based net income, attributable to OpenText | 979,522 | (621,014 | ) | (8) | 358,508 | |||||||||
GAAP-based earnings per share / Non GAAP-based earnings per share-diluted, attributable to OpenText | $ | 3.88 | $ | (2.46 | ) | (8) | $ | 1.42 |
(1) | Adjustment relates to the exclusion of share-based compensation expense from our Non-GAAP-based operating expenses as this expense is excluded from our internal analysis of operating results. |
(2) | Adjustment relates to the exclusion of amortization expense from our Non-GAAP-based operating expenses as the timing and frequency of amortization expense is dependent on our acquisitions and is hence excluded from our internal analysis of operating results. |
(3) | GAAP-based and Non-GAAP-based gross profit stated in dollars, and gross margin stated as a percentage of total revenue. |
(4) | Adjustment relates to the exclusion of Special charges (recoveries) from our Non-GAAP-based operating expenses as Special charges (recoveries) are generally incurred in the periods relevant to an acquisition and include one-time, non-recurring charges or recoveries that are not indicative or related to continuing operations, and are therefore excluded from our internal analysis of operating results. |
(5) | GAAP-based and Non-GAAP-based income from operations stated in dollars, and operating margin stated as a percentage of total revenue. |
(6) | Adjustment relates to the exclusion of Other income (expense) from our Non-GAAP-based operating expenses as Other income (expense) relates primarily to the transactional impact of foreign exchange and is generally not indicative or related to continuing operations and is therefore excluded from our internal analysis of operating results. Other income (expense) also includes our share of income (losses) from our holdings in non-marketable securities investments as a limited partner. We do not actively trade equity securities in these privately held companies nor do we plan our ongoing operations based around any anticipated fundings or distributions from these investments. We exclude gains and losses on these investments as we do not believe they are reflective of our ongoing business and operating results. |
(7) | Adjustment relates to differences between the GAAP-based tax recovery rate of approximately 496% and a Non-GAAP-based tax rate of approximately 15%; these rate differences are due to the income tax effects of expenses that are excluded for the purpose of calculating Non-GAAP-based adjusted net income. Such excluded expenses include |
(8) | Reconciliation of GAAP-based net income to Non-GAAP-based net income: |
Nine Months Ended March 31, 2017 | ||||||
Per share diluted | ||||||
GAAP-based net income, attributable to OpenText | $ | 979,522 | $ | 3.88 | ||
Add: | ||||||
Amortization | 195,516 | 0.77 | ||||
Share-based compensation | 22,373 | 0.09 | ||||
Special charges (recoveries) | 44,157 | 0.17 | ||||
Other (income) expense, net | (4,565 | ) | (0.02 | ) | ||
GAAP-based provision for (recovery of) income taxes | (815,364 | ) | (3.23 | ) | ||
Non-GAAP based provision for income taxes | (63,131 | ) | (0.24 | ) | ||
Non-GAAP-based net income, attributable to OpenText | $ | 358,508 | $ | 1.42 |
Nine Months Ended March 31, 2017 | |||
GAAP-based net income, attributable to OpenText | $ | 979,522 | |
Add: | |||
Provision for (recovery of) income taxes | (815,364 | ) | |
Interest and other related expense, net | 86,752 | ||
Amortization of acquired technology-based intangible assets | 87,268 | ||
Amortization of acquired customer-based intangible assets | 108,248 | ||
Depreciation | 47,128 | ||
Share-based compensation | 22,373 | ||
Special charges (recoveries) | 44,157 | ||
Other (income) expense, net | (4,565 | ) | |
Adjusted EBITDA | $ | 555,519 |
(3) | The following tables provide a composition of our major currencies for revenue and expenses, expressed as a percentage, for the three and nine months ended March 31, 2018 and 2017: |
Three Months Ended March 31, 2018 | Three Months Ended March 31, 2017 | ||||||||
Currencies | % of Revenue | % of Expenses* | % of Revenue | % of Expenses* | |||||
EURO | 22 | % | 15 | % | 19 | % | 15 | % | |
GBP | 6 | % | 6 | % | 6 | % | 7 | % | |
CAD | 4 | % | 11 | % | 4 | % | 11 | % | |
USD | 58 | % | 50 | % | 62 | % | 52 | % | |
Other | 10 | % | 18 | % | 9 | % | 15 | % | |
Total | 100 | % | 100 | % | 100 | % | 100 | % |
Nine Months Ended March 31, 2018 | Nine Months Ended March 31, 2017 | ||||||||
Currencies | % of Revenue | % of Expenses* | % of Revenue | % of Expenses* | |||||
EURO | 22 | % | 15 | % | 22 | % | 15 | % | |
GBP | 6 | % | 6 | % | 7 | % | 7 | % | |
CAD | 4 | % | 11 | % | 4 | % | 11 | % | |
USD | 58 | % | 51 | % | 58 | % | 52 | % | |
Other | 10 | % | 17 | % | 9 | % | 15 | % | |
Total | 100 | % | 100 | % | 100 | % | 100 | % |