Hummingbird Updates Second Quarter FY2005 Financial Outlook Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Paul Steep - Scotia Capital - Analyst : Barry, can you just talk a little bit on the slippage on conductivity, you said it just slid from one quarter to another. I know historically when we have talked about this it was more related to the economy employment growth overall. Could you talk a little more specifically where there a couple of large deals in that area that slid or what you have seen thus far in the analysis?

Question: Paul Steep - Scotia Capital - Analyst : Any specific sector or was it just sort of broadbased?

Question: Paul Steep - Scotia Capital - Analyst : On the earnings guidance that you gave, is there a restructuring charge or a special charge in any shape or form that is going to show up in this quarter?

Question: Paul Steep - Scotia Capital - Analyst : And that restructuring did it relate at all to any of the sales management changes or any -- what changes did it relate to maybe in the quarter?

Question: Paul Steep - Scotia Capital - Analyst : Great, I will turn it over. Thank you. without the prior written consent of Thomson Reuters. 'Thomson Reuters' and the Thomson Reuters logo are registered trademarks of Thomson Reuters and its affiliated companies. APRIL 11, 2005 / 12:30PM, OTEX.TO - Hummingbird Updates Second Quarter FY2005 Financial Outlook

Question: Scott Penner - TD Newcrest - Analyst : Just actually further on Paul's question, is that restructuring charge, is that included in the $0.20 to $0.22 of guidance?

Question: Scott Penner - TD Newcrest - Analyst : Okay. In the connectivity business my understanding historically is that it breaks down about 60% product or license and 40% support. Is that still about the range and then does a shortfall like this normally occur just on the product side?

Question: Scott Penner - TD Newcrest - Analyst : So it would be premature to comment that support renewals are becoming a little bit more difficult?

Question: Scott Penner - TD Newcrest - Analyst : Okay. On the earnings side it looks like the pretax shortfall from your previous guidance is potentially more than the revenue deficit. Just wondering whether you are consciously spending more money on the enterprise side?

Question: Scott Penner - TD Newcrest - Analyst : Just one last one on your last comment, any idea whether there was any revenue contribution from summit and what that number was?

Question: Scott Penner - TD Newcrest - Analyst : Thank you.

Question: David Wright - BMO Nesbitt Burns - Analyst : Has anything happened with these slipped sales since the end of the quarter? So have you either signed some of them or have they gone to competition? And it would seem to me that you need two sets of answers, one for connectivity and one for the enterprise.

Question: David Wright - BMO Nesbitt Burns - Analyst : No, I was wondering if the deals that have slipped, have you been able to sign them since the quarter ended.

Question: David Wright - BMO Nesbitt Burns - Analyst : Okay, so I could understand that in the connectivity side; where I guess there isn't a lot of competition there because you are so dominant.

Question: David Wright - BMO Nesbitt Burns - Analyst : Okay, so there is competition there but do you, I am trying to understand how a deal like that slips. Is somebody using a competitive product and you are trying to get them to switch to you or vice versa?

Question: David Wright - BMO Nesbitt Burns - Analyst : And are there any different dynamics on the enterprise side?

Question: David Wright - BMO Nesbitt Burns - Analyst : Okay, so you still feel they are there. Just following up on a question Scott had on the connectivity side was the revenue shortfall product or support services?

Question: David Wright - BMO Nesbitt Burns - Analyst : Okay, thank you very much.

Question: David Shore - Desjardins Securities - Analyst : Just to clarify is there going to be an additional charges beyond what you talked about already in first quarter based on the slippage?

Question: David Shore - Desjardins Securities - Analyst : Relating to the revenue shortfall now. I assume when you had the first-quarter results you didn't know about this shortfall so you had already talked about charges then that you were going to charge through as they occurred. Is there any additional charges now related to the shortfall now?

Question: David Shore - Desjardins Securities - Analyst : But no new charges for the shortfall?

Question: David Shore - Desjardins Securities - Analyst : And the second question is you have said that the revenue for ECM is about 70% and based on what the somewhat the shortfall from the connectivity side looks like it would like your ECM revenue maybe grew kind of mid-single digits, in that range. Is that correct?

Question: David Shore - Desjardins Securities - Analyst : You had previously talked about a 10, 11, maybe 12% growth rate on the ECM side. Is there something -- is it just some deals slipping on the ECM side also and you still expect those rates going forward? Or do you think there is a little bit of a slowdown there maybe going forward as well.

Question: David Shore - Desjardins Securities - Analyst : Thank you very much. without the prior written consent of Thomson Reuters. 'Thomson Reuters' and the Thomson Reuters logo are registered trademarks of Thomson Reuters and its affiliated companies. APRIL 11, 2005 / 12:30PM, OTEX.TO - Hummingbird Updates Second Quarter FY2005 Financial Outlook

Question: Ralph Garcea - CSFB - Analyst : On the enterprise side have you seen the competitive dynamics change at all either from Documentum or FileNet in the quarter that would have delayed some of these deals or was it also on the pricing and negotiating side that they were delayed?

Question: Ralph Garcea - CSFB - Analyst : Do you have any customers waiting for the new products to come out or was there any --?

Question: Ralph Garcea - CSFB - Analyst : And then on the content management side any comments on Europe, either UK and then continental Europe, what you guys saw in the quarter?

Question: Ralph Garcea - CSFB - Analyst : Thank you.

Question: Steven Li - Raymond James - Analyst : Barry, do you see $70 to $80 million still as a good quarterly run rate for connectivity? without the prior written consent of Thomson Reuters. 'Thomson Reuters' and the Thomson Reuters logo are registered trademarks of Thomson Reuters and its affiliated companies. APRIL 11, 2005 / 12:30PM, OTEX.TO - Hummingbird Updates Second Quarter FY2005 Financial Outlook

Question: Steven Li - Raymond James - Analyst : Yes.

Question: Steven Li - Raymond James - Analyst : On the cash position can you say how much it was at the end of the quarter?

Question: Steven Li - Raymond James - Analyst : Okay, all right, thanks.

Question: Blair Abernethy - Paradigm Capital - Analyst : Just following on the last question given that you are not seeing any change in the connectivity environment at this time, are we correct in assuming you're not changing the expense structure of that side of the business?

Question: Blair Abernethy - Paradigm Capital - Analyst : Okay, great, thank you.

Question: Scott Penner - TD Newcrest - Analyst : Just wondering, Barry, is there any way with I guess now 54 to 54.5 million in guidance from prior 56 to 58, is there any way to split that shortfall between the connectivity and enterprise side?

Question: Scott Penner - TD Newcrest - Analyst : Okay. And just on that connectivity business was the deal profile this quarter different than it usually is?

Question: Scott Penner - TD Newcrest - Analyst : It seems like a fairly dramatic percentage shortfall in what has historically been a very stable business.

Question: Scott Penner - TD Newcrest - Analyst : I guess I'm just trying to get a sense whether normally at the end of a quarter on the connectivity side you are always counting on a number of large transactions. It doesn't seem like that has historically been the case.

Question: Scott Penner - TD Newcrest - Analyst : Okay, fair enough. And to clarify when you talk about mid-single digit growth on the ECM business is that a year-over-year or sequentially?

Question: Scott Penner - TD Newcrest - Analyst : Okay, thanks.

Question: Robert Moses - RGM Capital - Analyst : Question just again on the connectivity business to understand the typical size of deals; I think these are relatively small per C (ph) transactions. I think historically you have talked about deals of certain sizes over 100,000. Are these deals typically on the connectivity side in the low thousands of dollars and has that changed at all?

Question: Robert Moses - RGM Capital - Analyst : Right, and pricing on the connectivity side as well given its relatively mature business, have you seen some efforts by customers and indeed have prices come down over the past say couple of years or even more recently? without the prior written consent of Thomson Reuters. 'Thomson Reuters' and the Thomson Reuters logo are registered trademarks of Thomson Reuters and its affiliated companies. APRIL 11, 2005 / 12:30PM, OTEX.TO - Hummingbird Updates Second Quarter FY2005 Financial Outlook

Question: Robert Moses - RGM Capital - Analyst : All things being equal then you put out one new release a year in connectivity; have your average prices actually stayed you'd say flat then over the past five years, have they grown?

Question: Robert Moses - RGM Capital - Analyst : If I remember correctly, you don't have a lot of cost in this business so if you get a shortfall of a couple million dollars in that business does the profit profile change much? In other words is there a lot of fixed cost in that business?

Question: Robert Moses - RGM Capital - Analyst : Thank you.