OpenText reports US$65.5 million loss, 10 per cent revenue spike in Q2

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WATERLOO, Ont. — OpenText Corp. says it incurred a US$65.5 million net loss in its latest quarter despite revenues climbing by more than 10 per cent when compared with a year ago.

The Waterloo, Ont.-based tech company says the net loss in its second quarter was a 161 per cent drop from the US$107.5 million net income it reported a year ago.

Revenue for the period ended Dec. 31 totalled US$855.6 million, up from US$771.6 million in the year prior.

The company's basic and diluted earnings per share in the quarter both amounted to a loss 24 cents per share, down from a profit of 40 cents per share a year ago.

Excluding a US$299-million IRS settlement, Open Text earned 95 cents per share in adjusted profits, up from 84 cents per share a year earlier.

Analysts on average had expected OpenText to report adjusted earnings per share of 85 cents per share and $814.5 million in revenue, according to financial data firm Refinitiv.

Work from home orders prompted by the COVID-19 pandemic have helped OpenText drum up interest in its cloud-based offerings and land clients like McCain Foods, Nestle, SaskPower and the City of San Diego.

This report by The Canadian Press was first published Feb. 4, 2021.

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The Canadian Press

Note to readers: This is a corrected story. An earlier version failed to say earnings were in U.S. dollars and omitted adjusted profits.