Mr. Mark Barrenechea reports

OPENTEXT REPORTS FIRST QUARTER FISCAL YEAR 2020 FINANCIAL RESULTS

Open Text Corp. has released its financial results for the first quarter ended Sept. 30, 2019. All financial amounts are in U.S. dollars, unless otherwise indicated.

"I am pleased with our start to fiscal 2020. In constant currency, total revenues of $706.6-million were up 5.9 per cent year over year, and we delivered the highest Q1 revenues in the company's history. Annual recurring revenues (ARR) of $556.6-million were up 7.1 per cent year over year, representing 79 per cent of total revenues, driven by cloud services and subscriptions revenues of $239.3-million, which increased significantly by 15 per cent year over year," commented Mark J. Barrenechea, Open Text's chief executive officer and chief technology officer. "The OpenText Cloud creates a modern platform for innovation, and our leadership with the strongest enterprise information management (EIM) offering in the industry positions Open Text to gain share in a shifting economic environment. With a durable business and high recurring revenues, we are tracking to our fiscal 2020 target model."

"With the continued strengthening of our balance sheet, fiscal 2020 is off to a strong start. Open Text ended the quarter with approximately $1-billion of cash and a 1.5-multiple consolidated net leverage ratio. We are renewing our base shelf and expanding our revolving credit facility to $750-million to ensure Open Text has ample capacity to support our total growth strategy," commented Open Text's executive vice-president and chief financial officer, Madhu Ranganathan. "We delivered adjusted EBITDA [earnings before interest, taxes, depreciation and amortization] of $254-million in the quarter, and we continue to invest in product innovation, go to market and strategic acquisitions. Open Text remains focused on productivity enhancements within all aspects of our business."

Dividend program

As part of the company's quarterly, non-cumulative cash dividend program, the board declared on Oct. 30, 2019, a cash dividend of 17.46 cents per common share. The record date for this dividend is Nov. 29, 2019, and the payment date is Dec. 19, 2019. Future declarations of dividends and the establishment of future record and payment dates are subject to the final determination and discretion of the board of directors.

Quarterly business highlights:

• Key customer wins in the quarter included Deutsche Bank AG, Daiichi Jitsugyo Co. Ltd., International Committee of the Red Cross, Samsung R&D Institute, Auto Club Group, the United Kingdom Department for Work and Pensions, the Public Utilities Board Singapore, Electricity Generating Authority of Thailand, Baltimore County Public Schools and CUHK Medical Centre;
• OpenText Core Experience Insights delivers end-to-end customer journey mapping for data-driven marketers;
• OpenText Core Share and Core Signature streamline secure document collaboration;
• Open Text announces Cloud Summit, a global 24-city tour to help customers transform with enterprise information management;
• Open Text hosts 2019 investor day in New York;
• Open Text elects directors at its annual general meeting of shareholders;
• OpenText Enfuse 2019 to showcase the future of secure information management.

Shelf renewal

The company is filing a renewed preliminary short form base shelf prospectus with the securities regulatory authorities in each of the provinces of Canada. A final shelf prospectus, once a receipt has been issued by the Canadian securities regulatory authorities, will allow offers and sales, from time to time, of an aggregate of up to $1.5-billion of equity and debt securities, or any combination thereof, during the 25-month period that the shelf prospectus remains effective. The company expects to file a corresponding automatic shelf registration statement on Form S-3 with the U.S. Securities and Exchange Commission (SEC) concurrently with the filing of the final shelf prospectus in Canada. The specific terms of any future offering will be established in a prospectus supplement to the shelf prospectus, which supplement will be filed with the applicable Canadian securities regulatory authorities and the SEC.

Conference call information

The public is invited to listen to the earnings conference call today at 5 p.m. ET (2 p.m. PT) by dialling 1-800-319-4610 (toll-free) or 1-604-638-5340 (international). Please dial 10 minutes ahead of time to ensure proper connection. Alternatively, a live webcast of the earnings conference call will be available at the company's website.

A replay of the call will be available beginning Oct. 31, 2019, at 7 p.m. ET through 11:59 p.m. ET on Nov. 14, 2019, and can be accessed by dialling 1-855-669-9658 (toll-free) or 1-604-674-8052 (international) and using passcode 3664 followed by the pound key.

About Open Text Corp.

Open Text is a market leader in enterprise information management software and solutions, enabling companies to manage, leverage, secure and gain insight into their enterprise information on premises or in the cloud.

We seek Safe Harbor.