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Financial Statement Analysis of Open Text Corporation
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EXCERPTS
INDUSTRY SCENARIO
The changing environment and the impact of changing consumer preferences increased the demand for new kinds of products and services. Organizations, institutions, business firms, etc., needed different kinds of information management systems. As estimated by a marketing research firm, Kable, the market demand for information management systems was expected to grow at the rate of 10.6% per annum from the year 2014 to 2018 . Of all categories of organizations, the spending of government organizations on information management systems was expected to grow at the rate of 15.7% per annum between the years 2014 and 2018... |
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FINANCIAL REVIEW
At Open Text, the organization’s long-term operational performance was mainly evaluated in terms of recurring revenue sources. The recurring sources of revenue at Open Text were cloud services & subscriptions, customer support & professional services, and other incomes. The revenues generated from the recurring sources increased by 18.1% in the fiscal year 2015 from the fiscal year 2014. Also, the revenues generated from cloud services and subscriptions increased by 62%...
STATEGIC AND FINANCIAL OUTLOOK: 2015-16
The strategic focus of Open Text was to be a leader in the Enterprise Information Management (EIM) market and the financial focus was to maximize shareholders’ value while being a value-based acquirer. The management of Open Text believed that they enjoyed a strong position in the EIM market and could lead the market through acquisitions and innovations and by providing flexible pricing options ...
EXHIBITS
Exhibit I:Open Text Corporation’s Consolidated Income Statement for the Year Ended on June 30, 2015
Exhibit II:Open Text Corporation’s Consolidated Balance Sheet (as on June 30, 2015)
Exhibit III:Open Text Corporation’s Cash Flow Statement for the Year Ended June 30, 2015
Exhibit IV:Open Text Corporation External Target Model Fiscal Year-2016
