Enterprise content management software vendor Open Text has reported an 88% decline in net income to $1.7m for the first quarter 2010, compared to a net income of $14.7m in the corresponding quarter last year. Revenue increased 16% to $211.4m. Skip related content
Operating income declined 78% to $4.8m, while diluted EPS declined 89% to $0.03. Cash and cash equivalents at the end of the quarter was $212.2m.
The Canada-based company said license revenue fell 6% to $47.3m, customer support revenue grew 26% to $123.7m, and services and other revenue increased 19% to $40.4m.
During the quarter, the company extended its partnership with Logica, with the IT services company joining the Open Text Global Partner Program for SAP Competence.
John Shackleton, president and chief executive at Open Text, said: "We met our profit and revenue goals in what has seasonally been our toughest quarter. License revenue fell short of our expectations, mainly due to deferred purchase decisions for our Web Content Management (WCM) products. We are seeing a continued demand for compliance solutions, as well as companies laying the groundwork for ECM 2.0 solutions. We are focusing on capturing market share by leveraging our strategic partnerships.”
