Financial Statement Analysis of Open Text Corporation

Open Text Corporation (Open Text), one of the leading providers of Enterprise Information Management (EIM) services, was incorporated in the year 1991. In keeping with the evolving trends, Open Text started offering EIM on cloud in 2012. Over the past three years (2012-2015), the revenues generated from cloud-based services increased to 30% of its total revenues . Open Text acquired various technology firms as a part of its growth strategy. This quick acquisition strategy received a mixed response from market analysts. An analyst, Mark Schappel (Schappel), expressed the view that the strategy would not be beneficial in the long run for the company. “Open Text is really good at buying companies dirt cheap. The problem is, they’re buying them cheap because they’re cheap for a reason. They’re not growing, they need to execute on what they have,” he said ...