WATERLOO, ONT. — OpenText Corp. is raising its fiscal 2022 guidance after swinging to a US$88.3 million profit attributable to shareholders in its latest quarter on a 2.5 per cent increase in revenues.
The Waterloo, Ont.-based tech company says it earned 32 cents per diluted share in its second quarter, compared with a loss of 24 cents per share or US$65.5 million a year earlier.
The company, which keeps its books in U.S. dollars, says adjusted profits dropped seven per cent to US$242 million or 89 cents per share, from US$260.5 million or 95 cents per share in the second quarter of 2020.
Revenues for the three months ended Dec. 31 rose to US$876.8 million, from US$855.6 million, with cloud revenues increasing 4.1 per cent to US$364.9 million.
OpenText was expected to earn 88 cents per share in adjusted profits on US$871.3 million in revenues, according to financial data firm Refinitiv.
The company expects fiscal 2022 results will include cloud growth of up to 10 per cent and total revenue growth of up to four per cent.
"The first half of fiscal 2022 provides demonstrable progress toward our fiscal 2024 aspirations to include up to four per cent organic growth," CEO Mark Barrenechea said in a news release.
Novartis Pharmaceuticals, Kimberly-Clark, Volkswagen AG, Hyundai Motor Company, and CNX Resources Corp. were among the companies that became OpenText customers in the quarter.
This report by The Canadian Press was first published Feb. 3, 2022.
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