Short answer
Open Text Corp (OTEX) filed its fiscal 2006 10-K annual report with the SEC on Sep 12, 2006.
- Top risk flagged: Hummingbird acquisition: $489.0 million cash purchase requiring new borrowing and materially higher interest expense
Open Text Corp FY2006 10-K analysis
AI summary of each section, grounded in the filing text
Business Overview
- ECM software model, managing enterprise information across creation, workflow, compliance, archiving and retrieval
- Proposed $489.0 million Hummingbird acquisition, adding a Toronto-based global ECM provider
- Microsoft alliance emphasis, deeper Outlook and SharePoint integration plus expanded Microsoft database support
- Competitive pressure intensifying, especially IBM’s announced FileNet acquisition and infrastructure vendors Oracle and Microsoft
- 1,894 employees as of June 30, 2006, including 426 in product development and 482 in professional services
Management Discussion & Analysis
- Revenue $409.6M, down 1.3% YoY, with customer support up 5.7% to $189.4M
- Net income $5.0M, down 75.5%; operating margin 3.2% vs 7.1%, gross margin 65.5% vs 65.7%
- Best segment North America: revenue $197.9M, adjusted operating margin 19.5%; worst Europe: revenue $189.3M, down $26.1M
- Operating cash flow $60.8M; capital spending increased $1.4M, Hummingbird investment $20.2M, no share repurchases versus $63.8M
- Fiscal 2007 outlook: partner sales at least 20% vs approximately 15%; Hummingbird acquisition and ECM competition remain key risks
Risk Factors
- Hummingbird acquisition: $489.0 million cash purchase requiring new borrowing and materially higher interest expense
- International operations: significant European exposure following IXOS acquisition, with currency losses and political, trade, and tax risks
- Third-party software: loss of licenses or vendor support could delay shipments until replacement technology is integrated
- Competitive disruption: Microsoft SharePoint offers comparable ECM functionality at lower customer cost
- Regulatory compliance: Sarbanes-Oxley Section 404 increased internal, accounting-firm, and consultant costs
Generated from the filing text; verify against the original. How to read a 10-K
Other Open Text Corp annual reports
- FY2019 10-KFiled Aug 1, 2019
- FY2018 10-KFiled Aug 2, 2018
- FY2017 10-KFiled Aug 3, 2017
- FY2016 10-KFiled Jul 27, 2016
- FY2015 10-KFiled Jul 29, 2015
- FY2014 10-KFiled Jul 31, 2014
- FY2013 10-KFiled Aug 1, 2013
- FY2012 10-KFiled Aug 10, 2012
- FY2011 10-KFiled Aug 15, 2011
- FY2010 10-KFiled Aug 20, 2010
- FY2009 10-KFiled Aug 21, 2009
- FY2008 10-KFiled Aug 26, 2008
- FY2007 10-KFiled Sep 13, 2007
- FY2005 10-KFiled Sep 27, 2005
- FY2004 10-KFiled Sep 13, 2004
- FY2003 10-KFiled Sep 29, 2003
- FY2002 10-KFiled Sep 30, 2002
Ask about this 10-K
Compare years, dig into a risk factor or check the numbers against insider trades and fund holders.