Author Topic: OTEX - Open Text  (Read 21089 times)

Liberty

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Re: OTEX - Open Text
« Reply #40 on: July 28, 2016, 06:58:11 AM »
Speaking of OTC, stock down 6% on earnings:

http://files.shareholder.com/downloads/AMDA-267TY1/2370027920x0x901721/EBEE3204-9C98-47E4-A077-F343ED45D6BC/OTEX_News_2016_7_27_Financial_Releases.pdf

Quote
Fiscal 2016
- Total revenue of $1.8 billion, down 1%; up 3% Y/Y in CC*
- Recurring revenue of $1.5 billion, down 1%; up 3% Y/Y in CC
- Cloud services and subscription revenue of $601 million, down 1%; up 2% Y/Y in CC - License revenue of $284 million, down 4%; up 2% Y/Y in CC
- GAAP EPS, diluted was $2.33, up 22% Y/Y
- Non-GAAP-based EPS of $3.54, up 2% Y/Y
Q4 Fiscal 2016
- Total revenue of $484 million, up 0.2%; up 0.2% Y/Y in CC
- Recurring revenue of $398 million, up 3%; up 3% Y/Y in CC
- Cloud services and subscription revenue of $157 million, up 5%; up 5% Y/Y in CC
- License revenue of $86 million, down 11%; down 12% Y/Y in CC
- GAAP EPS, diluted was $0.71, up 27% Y/Y
- Non-GAAP-based EPS of $0.89, up 2% Y/Y


KCLarkin

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Re: OTEX - Open Text
« Reply #41 on: July 28, 2016, 07:06:10 AM »
Speaking of OTC, stock down 6% on earnings

I'm out.

ratiman

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Re: OTEX - Open Text
« Reply #42 on: July 28, 2016, 07:57:33 AM »
 
Quote

There is some weakness in Box's value proposition that forces them to pay so much to acquire revenue. So when you say that Box is disrupting ECM, are they really disrupting ECM? Or are they just picking up the crumbs?
 

It's hard to say what's going on in enterprise software. I used to work in enterprise sales (for SAP) and I can say this, nobody really understands the technology or what it does, at least not the sales people, and certainly not very many people on WS. We do know that Box spends 10% of revenues offering free storage, and that's listed as a marketing and sales expense, but if it's recharacterized as COGS, then the S&M looks much more efficient, or at least less inefficient. And over time that expense will go down as the cost of storage goes down and competition declines (Microsoft recently reduced free storage from unlimited to 1TB to 5G).  I might write up Box in a few days but it can be bought for about 2.5x sales, which is a good margin of safety.
« Last Edit: July 28, 2016, 08:00:51 AM by ratiman »

Liberty

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Re: OTEX - Open Text
« Reply #43 on: September 12, 2016, 06:47:11 AM »
"Open Text Corp said Monday that it will buy Dell EMC's enterprise content division for $1.62 billion."