OpenText’s Net Income Rises Nearly 200% On Micro Focus Acquisition

Canadian software company OpenText (OTEX) reported that its revenues rose 2.4% in the fourth and final quarter of 2022.

The Waterloo, Ontario-based company reported that its year-over-year cloud computing revenue gained 12% in the October through December period.

Net income amounted to $258.5 million U.S., up 192.7% from a year earlier.

Earnings per share came in at $0.96 U.S., up 200% from $0.32 U.S. a year earlier.

The Q4 net income included $172 million U.S. of pre-tax unrealized gains related to OpenText’s acquisition of British software firm Micro Focus.

OpenText announced in recent days that it has officially closed its $6 billion U.S. acquisition of Micro Focus.

Immediately following the close of the Micro Focus deal, OpenText announced that it is laying off 8% of its workforce.

OpenText’s stock has declined 25% in the last year to trade at $44.27 per share.