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New words:
admission, Advocate, alliance, altogether, AMC, ancillary, annette, annul, Apple, authorship, Axiom, Baylor, Bell, bench, biased, binding, BlackRock, BSS, buyer, Calgary, Canonical, CDO, chose, CHRO, Cione, Circular, CISO, Clark, clawback, clearer, composed, contendere, ControlWithin, CRO, decertification, denied, diplomatic, discrimination, divested, encompassed, England, erroneously, exceptionally, excise, extortion, fault, formatted, Goldy, greatly, Hampshire, Hankamer, Honourable, Hyder, IEC, incorrect, INSEAD, invention, inventorship, Island, Jarislowsky, Jersey, Joe, Kentucky, KineMatik, leave, Maryland, MetaSolv, Midcap, Minister, native, Nebraska, NEO, neutral, Newbridge, NewStep, NIST, Northwestern, Novacoast, opposed, OTI, outdated, overbroad, overwhelming, Parliament, penalized, permissibility, permissible, perspective, Pillr, PIVOT, pivoting, placeholder, posture, prepay, Prime, procurement, Rackspace, RANDY, reset, Rhode, rippert, ROBERT, Rocket, rTSR, scrutiny, seller, skewed, smallest, solidify, spearheaded, STI, stretch, Subtopic, Surrey, SVP, therefrom, thought, Todd, TSA, undrawn, upholding, voluntarily, widespread, xxix
Removed:
ABR, affinity, al, Alto, arranger, asserted, Assistant, augment, Autodesk, BA, back, Biology, bookrunner, Brazil, Broadridge, Cadence, caliber, Catalyst, Check, Citrix, commissionable, compensated, constant, construe, consultation, contender, criterion, Dalhousie, delegate, delegated, Donohue, dynamic, Eastern, finality, floor, fundamental, Gordon, Halifax, hearing, illustrated, improving, injunctive, instituted, interpolated, invalid, invalidated, Liaison, likewise, London, longstanding, McKenzie, mid, NetApp, Nortel, Nova, OCI, oriented, overnight, Palo, Parker, positive, powerfully, Prince, Psychology, Quarterhill, rarely, Realtime, refinanced, removed, repaid, represented, resolving, restoration, Richard, Scotia, Selectively, Singh, sought, Sponsor, stipulated, Summit, Sun, terrorism, Tie, trial, Trinity, unintended, verifiable
Financial report summary
?Competition
HP • International Business Machines • Microsoft • EMC • Adobe • Gen Digital • Synopsys • Pegasystems • SPS Commerce • SplunkRisks
- If we do not continue to develop technologically advanced products that successfully integrate with the software products and enhancements used by our customers, future revenues and our operating results may be negatively affected
- Product development is a long, expensive and uncertain process, and we may terminate one or more of our development programs
- Our investment in our current research and development efforts may not provide a sufficient or timely return
- If our software products and services do not gain market acceptance, our operating results may be negatively affected
- Failure to protect our intellectual property could harm our ability to compete effectively
- Other companies may claim that we infringe their intellectual property, which could materially increase costs and materially harm our ability to generate future revenues and profits
- Our software products and services may contain defects that could harm our reputation, be costly to correct, delay revenues and expose us to litigation
- Our software products rely on the stability of infrastructure software that, if not stable, could negatively impact the effectiveness of our products, resulting in harm to our reputation and business
- Risks associated with the evolving use of the Internet, including changing standards, competition and regulation and associated compliance efforts, may adversely impact our business
- Business disruptions, including those arising from disasters, pandemics or catastrophic events, may adversely affect our operations
- Unauthorized disclosures, cyber-attacks, breaches of data security and other information technology risks may adversely affect our operations
- Our success depends on our relationships with strategic partners, distributors and third-party service providers and any reduction in the sales efforts by distributors, cooperative efforts from our partners or service from third party providers could materially impact our revenues
- The loss of licenses to resell or use third-party software or the lack of support or enhancement of such software could adversely affect our business
- Current and future competitors could have a significant impact on our ability to generate future revenues and profits
- The length of our sales cycle can fluctuate significantly which could result in significant fluctuations in revenues being recognized from quarter to quarter
- Our existing customers might cancel contracts with us, fail to renew contracts on their renewal dates and/or fail to purchase additional services and products, and we may be unable to attract new customers, which could adversely affect our operating results
- Consolidation in the industry, particularly by large, well-capitalized companies, could place pressure on our operating margins which could, in turn, have a material adverse effect on our business
- We may be unable to maintain or expand our base of SMB and consumer customers, which could adversely affect our anticipated future growth and operating results
- Our sales to government clients expose us to business volatility and risks, including government budgeting cycles and appropriations, early termination, audits, investigations, sanctions and penalties
- Geopolitical instability, political unrest, war and other global conflicts, including the Russia-Ukraine and Israel-Hamas conflicts, have affected and may continue to affect our business
- The restructuring of certain of our operations may be ineffective, may adversely affect our business and our finances, and we may incur additional restructuring charges in connection with such actions
- We must continue to manage our internal resources during periods of company growth, or our operating results could be adversely affected
- If we lose the services of our executive officers or other key employees or if we are not able to attract or retain top employees, our business could be significantly harmed
- Our compensation structure may hinder our efforts to attract and retain vital employees
- Increased attention from shareholders, customers and other key relationships regarding our CSR and ESG practices and increased regulatory scrutiny of CSR and ESG practices and related disclosures could impact our business activities, financial performance and reputation
- We have a Flex-Office program, which subjects us to certain operational challenges and risks
- Acquisitions, investments, joint ventures and other business initiatives may negatively affect our operating results
- We may fail to realize all of the anticipated benefits of our acquisitions and divestitures, including the Micro Focus Acquisition and AMC Divestiture, or those benefits may take longer to realize than expected
- We may be unable to successfully integrate acquired businesses or do so within the intended timeframes, which could have an adverse effect on our financial condition, results of operations and business prospects
- As a result of the Micro Focus Acquisition, the scope and size of our operations and business has substantially changed and will result in certain incremental risks to us. We cannot provide assurance that our expansion in scope and size will be successful
- We incurred significant transaction costs in connection with the Micro Focus Acquisition, and could incur unanticipated costs during the integration of Micro Focus that could adversely affect our results of operations
- Loss of key personnel could impair the integration of acquired businesses, lead to loss of customers and a decline in revenues, or otherwise could have an adverse effect on our operations
- Businesses we acquire may have disclosure controls and procedures and internal controls over financial reporting, cybersecurity and compliance with data privacy laws that are weaker than or otherwise not in conformity with ours
- The AMC Divestiture may result in disruptions in our remaining business and to relationships with customers and other business partners
- Our provision for income taxes and effective income tax rate may vary significantly and may adversely affect our results of operations and cash resources
- As part of the ongoing audit of our Canadian tax returns by the Canada Revenue Agency (CRA), we have received notices of, and are appealing, reassessments for Fiscal 2012, Fiscal 2013, Fiscal 2014, Fiscal 2015 and Fiscal 2016, and the CRA has audited Fiscal 2017, Fiscal 2018 and Fiscal 2019. An adverse outcome of these ongoing audits could have a material adverse effect on our financial position and results of operations
- Risks associated with data privacy issues, including evolving laws and regulations and associated compliance efforts, may adversely impact our business
- Certain of our products may be perceived as, or determined by the courts to be, a violation of privacy rights and related laws. Any such perception or determination could adversely affect our revenues and results of operations
- AI and other machine learning technology is being integrated into some of our products, systems or solutions, which could present risks and challenges to our business
- We may not generate sufficient cash flow to satisfy our unfunded pension obligations
- Fluctuations in foreign currency exchange rates could materially affect our financial results
- Our indebtedness could limit our operations and opportunities
- Our revenues and operating results are likely to fluctuate, which could materially impact the market price of our Common Shares
- Changes in the market price of our Common Shares and credit ratings of our outstanding debt securities could lead to losses for shareholders and debt holders
- Unexpected events may materially harm our ability to align when we incur expenses with when we recognize revenues
- We may fail to achieve our financial forecasts due to inaccurate sales forecasts or other factors
- Our international operations expose us to business, political and economic risks that could cause our operating results to suffer
- We may become involved in litigation that may materially adversely affect us
- The declaration, payment and amount of dividends will be made at the discretion of our Board of Directors and will depend on a number of factors
- Our operating results could be adversely affected by any weakening of economic conditions
- Stress in the global financial system may adversely affect our finances and operations in ways that may be hard to predict or to defend against
Management Discussion
- Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations
- This Annual Report on Form 10-K, including this Management’s Discussion and Analysis of Financial Condition and Results of Operations (MD&A), contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 21E of the U.S. Securities Exchange Act of 1934, as amended (the Exchange Act), and Section 27A of the U.S. Securities Act of 1933, as amended (the Securities Act), and is subject to the safe harbors created by those sections. All statements other than statements of historical facts are statements that could be deemed forward-looking statements.
- When used in this report, the words “anticipates”, “expects”, “intends”, “plans”, “believes”, “seeks”, “estimates”, “may”, “could”, “would”, “might”, “will” and other similar language, as they relate to Open Text Corporation (OpenText or the Company), are intended to identify forward-looking statements under applicable securities laws. Specific forward-looking statements in this report include, but are not limited to, statements regarding: (i) our focus in the fiscal years beginning July 1, 2024 and ending June 30, 2025 (Fiscal 2025) and July 1, 2025 and ending June 30, 2026 (Fiscal 2026) on growth in earnings and cash flows; (ii) creating value through investments in broader Information Management capabilities; (iii) our future business plans and operations, strategic goals and business planning process, including the Company’s business optimization plan announced in July 2024; (iv) business trends; (v) distribution; (vi) the Company’s presence in the cloud and in growth markets; (vii) product and solution developments, enhancements and releases, the timing thereof and the customers targeted; (viii) the Company’s financial condition, results of operations and earnings; (ix) the basis for any future growth and for our financial performance; (x) declaration of quarterly dividends; (xi) future tax rates; (xii) the changing regulatory environment; (xiii) annual recurring revenues; (xiv) research and development and related expenditures; (xv) our building, development and consolidation of our network infrastructure; (xvi) competition and changes in the competitive landscape; (xvii) our management and protection of intellectual property and other proprietary rights; (xviii) existing and foreign sales and exchange rate fluctuations; (xix) cyclical or seasonal aspects of our business; (xx) capital expenditures; (xxi) potential legal and/or regulatory proceedings; (xxii) acquisitions and their expected impact, including our ability to realize the benefits expected from the acquisitions and to successfully integrate the assets we acquire or utilize such assets to their full capacity, including in connection with the acquisition of Micro Focus International Limited, formerly Micro Focus International plc, and its subsidiaries (Micro Focus) (see Note 19 “Acquisitions and Divestitures” to our Consolidated Financial Statements for more details); (xxiii) tax audits; (xxiv) the expected impact of the Russia-Ukraine and Israel-Hamas conflicts on our business;(xxv) expected costs of the restructuring and business optimization plans; (xxvi) targets regarding greenhouse gas emissions, waste diversion, energy consumption and Equity, Diversity and Inclusion (ED&I) initiatives; (xvii) integration of Micro Focus, resulting synergies and timing thereof; (xxviii) divestitures and their expected impact, including in connection with the AMC Divestiture (as defined below) (see Note 19 “Acquisitions and Divestitures” to our Consolidated Financial Statements for more details); and (xxix) other matters.