Open Text Corporation develops, markets, licenses and supports collaboration and knowledge management software for use on intranets, extranets and the Internet, enabling users to find electronically stored information, work together in creative and collaborative processes, perform group calendaring and scheduling and distribute or make available to users across networks or the Internet the resulting work product and other information.

Total revenue for the third quarter of fiscal 2006 was $100.9 million (1), compared to $105.2 million for the same period last year. License revenue in the third quarter of fiscal 2006 was $28.4 million, compared to $33.0 million for the same period last year. After normalizing the impact of foreign exchange, revenue in the quarter was up 1% from the same period last year. Revenue in the third quarter was broadly based with 46% from North America, 49% from Europe and 5% from the Middle East and Asia.

Adjusted net income in the third quarter of fiscal 2006 was $13.7 million or $0.27 per share on a diluted basis, compared to $10.7 million or $0.21 per share on a diluted basis for the same period last year. (2) 

Net income in accordance with US generally accepted accounting principles (“US GAAP”) for the third quarter of fiscal 2006 was $7.3 million or $0.15 per share on a diluted basis, compared to net income of $5.3 million or $0.10 per share on a diluted basis in the same period last year.

In the third quarter of fiscal 2006, operating cash flow was $33.4 million before the restructuring impact of $4.7 million, which reduced overall operating cash flow to $28.7 million. This compares to operating cash flow of $29.9 million in the same period last year. Accounts receivable as of March 31, 2006 was $74.7 million, compared to $79.0 million at the same time last year. Days Sales Outstanding (DSO) was 67 days in the third quarter of fiscal 2006, compared to 68 days in the same period last year. Deferred revenue was $81.3 million as of March 31, 2006 compared to $80.0 million at the same time last year. At the end of the third quarter of fiscal 2006, the Company had $114.2 million in cash, cash equivalents, and short-term investments. 

"Our main objective for this fiscal year has been to meet our profitability goals. With this quarter’s 28 percent increase in adjusted net income, I am satisfied with the achievements we have made," said John Shackleton, President and CEO of Open Text. "Now that we have our profitability in line, we are turning our attention towards revenue growth, and we see our strategic partnerships as a catalyst for achieving this growth."