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Press Release: OpenText Reports Second Quarter -2-

· 02/04/2021 16:01
OPEN TEXT CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands of U.S. dollars, except share data) December 31, 2020 June 30, 2020 ASSETS (unaudited) Cash and cash equivalents $ 1,500,561 $ 1,692,850 Accounts receivable trade, net of allowance for credit losses of $22,845 as of December 31, 2020 and $20,906 as of June 30, 2020 445,841 466,357 Contract assets 27,460 29,570 Income taxes recoverable 24,517 61,186 Prepaid expenses and other current assets 130,177 136,436 Total current assets 2,128,556 2,386,399 Property and equipment 227,434 244,555 Operating lease right of use assets 235,142 207,869 Long-term contract assets 18,175 15,427 Goodwill 4,696,349 4,672,356 Acquired intangible assets 1,402,928 1,612,564 Deferred tax assets 866,788 911,565 Other assets 164,238 154,467 Long-term income taxes recoverable 29,488 29,620 Total assets $ 9,769,098 $ 10,234,822 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Accounts payable and accrued liabilities $ 348,080 $ 373,314 Current portion of long-term debt 10,000 610,000 Operating lease liabilities 59,874 64,071 Deferred revenues 798,340 812,218 Income taxes payable 320,084 44,630 Total current liabilities 1,536,378 1,904,233 Long-term liabilities: Accrued liabilities 28,334 34,955 Pension liability 83,271 73,129 Long-term debt 3,581,565 3,584,311 Long-term operating lease liabilities 227,265 217,165 Long-term deferred revenues 97,083 94,382 Long-term income taxes payable 32,794 171,200 Deferred tax liabilities 179,161 148,738 Total long-term liabilities 4,229,473 4,323,880 Shareholders' equity: Share capital and additional paid-in capital 272,588,542 and 271,863,354 Common Shares issued and outstanding at December 31, 2020 and June 30, 2020, respectively; authorized Common Shares: unlimited 1,889,857 1,851,777 Accumulated other comprehensive income 66,476 17,825 Retained earnings 2,093,076 2,159,396 Treasury stock, at cost (1,101,370 and 622,297 shares at December 31, 2020 and June 30, 2020, respectively) (47,555) (23,608) Total OpenText shareholders' equity 4,001,854 4,005,390 Non-controlling interests 1,393 1,319 Total shareholders' equity 4,003,247 4,006,709 Total liabilities and shareholders' equity $ 9,769,098 $ 10,234,822 OPEN TEXT CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS) (In thousands of U.S. dollars, except share and per share data) (unaudited) Three Months Ended Six Months Ended December 31, December 31, 2020 2019 2020 2019 Revenues: Cloud services and subscriptions $ 350,454 $248,340 $ 691,440 $ 485,605 Customer support 334,492 315,508 663,891 627,806 License 107,348 138,095 175,871 215,993 Professional service and other 63,350 69,614 128,455 139,041

The public is invited to listen to the earnings conference call today at 5:00 p.m. ET (2:00 p.m. PT) by dialing 1-800-319-4610 (toll-free) or +1-604-638-5340 (international). Please dial-in 10 minutes ahead of time to ensure proper connection. Alternatively, a live webcast of the earnings conference call will be available on the Investor Relations section of the Company's website at http://investors.opentext.com/investor-events-and-presentations.

A replay of the call will be available beginning February 4, 2021 at 7:00 p.m. ET through 11:59 p.m. on February 18, 2021 and can be accessed by dialing 1-855-669-9658 (toll-free) or +1-604-674-8052 (international) and using passcode 5838 followed by the number sign.

Please see below note (2) for a reconciliation of U.S. GAAP-based financial measures used in this press release, to Non-GAAP-based financial measures. Additionally, "off-cloud" is a term we use to describe license transactions.

About OpenText

OpenText, The Information Company(TM), enables organizations to gain insight through market leading information management solutions, on-premises or in the cloud. For more information about OpenText (NASDAQ: OTEX, TSX: OTEX) visit opentext.com.

Cautionary Statement Regarding Forward-Looking Statements

Certain statements in this press release, including statements about the focus of Open Text Corporation ("OpenText" or "the Company") in our fiscal year ending June 30, 2021 (Fiscal 2021) on growth, future cloud growth and market share gains, generating substantial long-term value for shareholders, the financial and operational impact of the COVID-19 pandemic, anticipated benefits of our partnerships and next generation product lines, the strength of our operating framework and balance sheet flexibility, continued investments in product innovation, go-to-market and strategic acquisitions, M&A continuing to be our leading growth contributor, our capital allocation strategy, creating value through investments in broader Information Management capabilities, the Company's presence in the cloud and in growth markets, expected growth in our revenue lines, total growth from acquisitions, innovation and organic initiatives, the focus on recurring revenues, improving operational efficiency, expanding cash flow and strengthening the business, adjusted operating income and cash flow, its financial condition, the adjusted operating margin target range, results of operations and earnings, announced acquisitions, ongoing tax matters, the integration of the acquired businesses, declaration of quarterly dividends, potential share repurchases pursuant to its Repurchase Plan, future tax rates, new platform and product offerings, scaling OpenText to new levels in Fiscal 2021 and beyond, and other matters, may contain words such as "anticipates", "expects", "intends", "plans", "believes", "seeks", "estimates", "may", "could", "would", "might", "will" and variations of these words or similar expressions are considered forward-looking statements or information under applicable securities laws. In addition, any information or statements that refer to expectations, beliefs, plans, projections, objectives, performance or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking, and based on our current expectations, forecasts and projections about the operating environment, economies and markets in which we operate. Forward-looking statements reflect our current estimates, beliefs and assumptions, which are based on management's perception of historic trends, current conditions and expected future developments, as well as other factors it believes are appropriate in the circumstances, such as certain assumptions about the economy, as well as market, financial and operational assumptions. Management's estimates, beliefs and assumptions are inherently subject to significant business, economic, competitive and other uncertainties and contingencies regarding future events and, as such, are subject to change. We can give no assurance that such estimates, beliefs and assumptions will prove to be correct. Such forward-looking statements involve known and unknown risks, uncertainties and other factors and assumptions that may cause the actual results, performance or achievements to differ materially which include, but are not limited to, actual and potential risks and uncertainties relating to the ultimate spread of COVID-19, the severity of the disease and the duration of the COVID-19 pandemic. For additional information with respect to risks and other factors which could occur, see the Company's Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and other securities filings with the Securities and Exchange Commission (SEC) and other securities regulators. Readers are cautioned not to place undue reliance upon any such forward-looking statements, which speak only as of the date made. Unless otherwise required by applicable securities laws, the Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.


For more information, please contact:

Harry E. Blount

Senior Vice President, Global Head of Investor Relations

Open Text Corporation



Copyright (c)2021 Open Text. OpenText is a trademark or registered trademark of Open Text. The list of trademarks is not exhaustive of other trademarks. Registered trademarks, product names, company names, brands and service names mentioned herein are property of Open Text. All rights reserved. For more information, visit: http://www.opentext.com/who-we-are/copyright-information.

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