Open Text continues streak of revenue gains

Open Text (Nasdaq: OTEXF) posts Q4 and YE '98 financial results. Q4 revenue of $16.0 million is up 36% from Q4 '97. A net income of $2.4 million (excluding charges relating to the June acquisition of Information Dimensions) compares with a Q4 '97 net loss of $2.3 million. License revenues were up 127% over Q4 '97. For the year, Open Text reports revenue of $45.3 million and a net loss of $23.5 million, compared with YE '97 revenue of $22.6 million and a net loss of $13.2 million. Open Text also realized a 138% growth in annual gross profit; half of overall revenue came from from existing customers. Thanks to acquisitions and internal growth, Open Text increased its customer base tenfold in fiscal 1998 ­ from 240,000 users in 120 organizations to 2.5 million users in 3,500 organizations. The company was also recognized as a market leader in document management by both IDC and the Delphi Group. New customers during the quarter include Bell Atlantic, CVS, First USA Bank, F. Hoffman LaRoche, HJ Heinz, Silicon Graphics and the UK House of Commons; over the year Open Text signed new deals with John Hancock, ISO, Newbridge Networks, Nissan, Nationsbanc, and Steelcase. "Our strong corporate performance again proves that a white-collar or networker productivity application is much more than document management or search alone," said president Brett Newbold.