Open Text Rises as Profit Tops EstimatesChristina Pellegrini
Open Text Corp., Canada’s largest software maker, surged to a record after the company posted quarterly profit that topped analysts’ estimates.
Fiscal fourth-quarter earnings of $1.05 a share, excluding some items, beat the 94 cents that analysts forecast, according to the average estimate compiled by Bloomberg.
Open Text jumped 15 percent to $55.65 today in New York, the highest price since the company’s initial public offering in
1996. It was the biggest gain since August 2010.
Revenue rose 42 percent to a record $494 million, the Waterloo, Ontario-based company said yesterday in a statement. Analysts had projected $478 million. Revenue from remote data storage, or cloud computing, more than tripled to $149 million, adding to earnings for the quarter ended June 30.
“We absolutely expect cloud to be a major contributor in fiscal ’15 and we expect cloud to grow year-over-year,” Chief Executive Officer Mark Barrenechea said in a telephone interview after the results were released.