Open Text Corp (OTEX) Q1 2016 10-Q Quarterly Earnings

Short answer

Open Text Corp (OTEX) filed its Q1 2016 10-Q quarterly report on Apr 27, 2016 for the quarter ended Mar 31, 2016.

AI summary of MD&A and risk factor updates

Revenue $440.5M, down 1.6% YoY from $447.6M, or up 1.7% excluding $14.6M foreign exchange impact
GAAP operating margin 20.1% vs 11.8% YoY, gross margin 67.9% vs 66.0%
Best product line: customer support revenue $183.6M, gross margin 87.8% vs 86.9%; weakest: professional services revenue $45.0M, down $7.3M, margin 16.5% vs 18.9%
Operating cash flow $189.9M, up 32.7% YoY; cash and equivalents $877.4M vs $700.0M at June 30, 2015
Outlook: Cloud expansion and Release 16 focus; planned HP assets acquisition $170M and ANX acquisition $104M, both expected to close in fourth quarter

Newly triggered IRS tax exposure: draft NOPA proposes approximately $280 million plus 20% penalties and interest
Most material regulatory update: anticipated IRS adjustment could raise aggregate liability to approximately $550 million
Legal risk: São Paulo tax dispute carries potential loss up to $2.2 million plus future interest or penalties
Operational risk: ERP implementation costs reached $5.9 million for nine months, with completion expected by June 30, 2017
Financial risk: $1.582 billion debt outstanding, including $800 million Senior Notes due 2023 and floating-rate Term Loan B

Generated from the filing text; verify against the original. 10-K vs 10-Q vs 8-K

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