Open Text Corp (USA) (NASDAQ: OTEX) stock fell over 9.8% in the pre market session of May 10th, 2018 after missing the analysts’ expectation for the third quarter 2018. The company has reported fiscal third-quarter net income of $58.8 million, compared with $21.7 million, in the year-ago period. During the third quarter 2018, the company has delivered 18% growth in the Annual Recurring Revenues (ARR) to $521 million and the Operating Cash Flows (OCF) increased 73% to $271 million. The company has set an annual Operating Cash Flow target of $1 Billion by FY 21.
OTEX in the third quarter of FY 18 has reported the adjusted earnings per share of 54 cents, missing the analysts’ estimates for the adjusted earnings per share of 62 cents as per analysts surveyed by FactSet. The company had reported the adjusted revenue growth of 16 percent to $685.9 million in the third quarter of FY 18, missing the analysts’ estimates for revenue of $691.9 million.
Meanwhile, during the third quarter 2018, OTEX did 22 customer transactions over $1 million, that includes 10 OpenText Cloud and 12 on-premise. Financial, Consumer Goods, Services, Technology and Public Sector industries saw the most demand in cloud and license. OTEX’s 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. Further during the third quarter 2018, Madhu Ranganathan joined the company as Chief Financial Officer.
Furthermore, in the third quarter, OTEX has acquired Hightail, a leading cloud service for file sharing and creative collaboration. The company released 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 and OpenText Enterprise World 2018 to Showcase the Intelligent and Connected Enterprise.*
Additionally, OTEX has declared on May 8, 2018 a cash dividend of $0.1518 per common share. The record date for this dividend is June 8, 2018 and the payment date is June 29, 2018. The company had announced 15% increase in the quarterly cash dividend.