Short answer
Open Text Corp (OTEX) filed its fiscal 2016 10-K annual report with the SEC on Jul 27, 2016.
- Top risk flagged: IRS examinations: draft NOPA proposes $280 million tax increase, with estimated aggregate liability approximately $550 million
Open Text Corp FY2016 10-K analysis
AI summary of each section, grounded in the filing text
Business Overview
- EIM platform and services managing enterprise information across content, processes, customer experiences, business networks, analytics and discovery
- OpenText Release 16 introduced as integrated digital information platform, with virtually all products available through OpenText Cloud
- Fiscal 2016 acquisitions expanded information governance, cloud-based B2B exchange, marketing optimization, mobile marketing and customer feedback capabilities
- Recurring revenue $1,541 million, representing 84% of total revenue, down 1.1% year over year
- Approximately 8,900 employees as of June 30, 2016, including 2,300 in cloud services and 2,200 in product development
Management Discussion & Analysis
- Revenue $1.824B, down $27.7M or 1.5% YoY, with foreign exchange impact of $79.7M
- GAAP operating margin 20.2% vs 18.8%, gross margin 68.5% vs 67.7%
- Best segment Customer support revenue $746.4M, up $14.6M, margin 88.0% vs 87.1%
- Worst segment Professional services and other revenue $193.1M, down $27.5M, margin 19.4% vs 21.7%
- Operating cash flow $525.7M, capex down $7.0M, buybacks $65.5M, dividends $99.3M; IRS dispute potential liability approximately $550M
Risk Factors
- IRS examinations: draft NOPA proposes $280 million tax increase, with estimated aggregate liability approximately $550 million
- Brexit exposure: United Kingdom and EU operations face regulatory changes, exchange-rate volatility and potential customer spending reductions
- Cloud operations: cyberattacks or data-center disruptions could cause unauthorized access, data loss or denial of service
- Market disruption: cloud, mobility, social media and SaaS shifts could render existing EIM products obsolete
- Leverage: $800 million Term Loan B plus $1.4 billion senior notes restrict acquisitions, dividends and other corporate actions
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
- 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
- FY2006 10-KFiled Sep 12, 2006
- FY2005 10-KFiled Sep 27, 2005
- FY2004 10-KFiled Sep 13, 2004
- FY2003 10-KFiled Sep 29, 2003
- FY2002 10-KFiled Sep 30, 2002
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