Open Text Corp (OTEX) Q1 2018 10-Q Quarterly Earnings

Short answer

Open Text Corp (OTEX) filed its Q1 2018 10-Q quarterly report on May 9, 2018 for the quarter ended Mar 31, 2018.

AI summary of MD&A and risk factor updates

Revenue $685.9M, up 15.6% YoY from $593.1M, with cloud services and subscriptions up 18.1% to $209.1M
GAAP operating margin 14.9% vs 11.0%; non-GAAP operating margin 29.8% vs 29.1% YoY
Best performer: customer support revenue $312.3M, up $48.8M, gross margin 89.2% vs 86.9%
Worst performer: license revenue $84.1M, down 3.6%; EMEA declined $8.3M
Cash $605.5M vs $443.4M; nine-month operating cash flow $504.4M, up 49.8%; acquisitions deployed $363.8M
Outlook: continued strategic acquisitions and R&D spending of approximately $84M, or 12% of revenue; cloud margin 54.9% vs 56.4% linked to acquisition-related labor costs

Newly triggered tax risk: Tax Cuts and Jobs Act created provisional $20.0 million charge and SAB 118 reassessment through December 22, 2018
Most material legal update: IRS examinations estimate approximately $605 million aggregate liability, including penalties and accrued interest
Regulatory risk: CRA transfer-pricing reassessment proposes approximately $90 million taxable-income increase and 10% penalty
Operational risk: Fiscal 2018 restructuring plan tied to Covisint, Guidance and Hightail acquisitions, with approximately $12.0 million expected costs
Liquidity risk: $275 million Revolver balance classified current, expected repayment within the next 12 months

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

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