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Press Release: OpenText Reports Second Quarter -9-

· 02/04/2021 16:01
rate of approximately 28% and a Non-GAAP-based tax rate of approximately 14%; these rate differences are due to the income tax effects of items that are excluded for the purpose of calculating Non-GAAP-based adjusted net income. Such excluded items include amortization, share-based compensation, special charges (recoveries) and other income (expense), net. Also excluded are tax benefits/expense items unrelated to current period income such as changes in reserves for tax uncertainties and valuation allowance reserves, and "book to return" adjustments for tax return filings and tax assessments. Included is the amount of net tax benefits arising from the internal reorganization that occurred in Fiscal 2017 assumed to be allocable to the current period based on the forecasted utilization period. In arriving at our Non-GAAP-based tax rate of approximately 14%, we analyzed the individual adjusted expenses and took into consideration the impact of statutory tax rates from local jurisdictions incurring the expense. (8) Reconciliation of GAAP-based net income to Non-GAAP-based net income: Six Months Ended December 31, 2019 Per share diluted GAAP-based net income, attributable to OpenText $ 181,868 $ 0.67 Add: Amortization 183,215 0.68 Share-based compensation 14,674 0.05 Special charges (recoveries) 15,173 0.06 Other (income) expense, net 813 -- GAAP-based provision for (recovery of) income taxes 69,909 0.26 Non-GAAP-based provision for income taxes (65,202) (0.24) Non-GAAP-based net income, attributable to OpenText $ 400,450 $ 1.48 Reconciliation of Adjusted EBITDA Six Months Ended December 31, 2019 GAAP-based net income, attributable to OpenText $ 181,868 Add: Provision for (recovery of) income taxes 69,909 Interest and other related expense, net 64,586 Amortization of acquired technology-based intangible assets 82,597 Amortization of acquired customer-based intangible assets 100,618 Depreciation 40,989 Share-based compensation 14,674 Special charges (recoveries) 15,173 Other (income) expense, net 813 Adjusted EBITDA $ 571,227 GAAP-based net income margin 12.4 % Adjusted EBITDA margin 38.9 % Reconciliation of Free cash flows Six Months Ended December 31, 2019 GAAP-based cash flows provided by operating activities $ 344,685 Add: Capital expenditures (1) (38,212) Free cash flows $ 306,473 (1) Defined as "Additions of property and equipment" in the Condensed Consolidated Statements of Cash Flows. (3) The following tables provide a composition of our major currencies for revenue and expenses, expressed as a percentage, for the three and six months ended December 31, 2020 and 2019: Three Months Ended December 31, Three Months Ended December 31, 2020 2019 Currencies % of Revenue % of Expenses* % of Revenue % of Expenses* EURO 24 % 14 % 25 % 15 % GBP 5 % 5 % 5 % 6 % CAD 3 % 10 % 3 % 10 % USD 60 % 54 % 58 % 51 % Other 8 % 17 % 9 % 18 % Total 100 % 100 % 100 % 100 % Six Months Ended December 31, 2020 Six Months Ended December 31, 2019 Currencies % of Revenue % of Expenses* % of Revenue % of Expenses* EURO 23 % 14 % 23 % 14 % GBP 5 % 5 % 5 % 6 % CAD 3 % 10 % 3 % 10 % USD 61 % 55 % 59 % 52 % Other 8 % 16 % 10 % 18 % Total 100 % 100 % 100 % 100 % *Expenses include all cost of revenues and operating expenses included within the Condensed Consolidated Statements of Income (Loss), except for amortization of intangible assets, share-based compensation and special charges (recoveries).

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SOURCE Open Text Corporation

/Web site: https://www.opentext.com/

(END) Dow Jones Newswires

February 04, 2021 16:01 ET (21:01 GMT)