Open Text Corp at Morgan Stanley Technology, Media & Telecom Conference Transcript

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

Question: Sandeep Singh - Morgan Stanley - Analyst : Thank you.

Question: Sandeep Singh - Morgan Stanley - Analyst : A major theme in the conference, as far as sort of getting a pulse on the spending environment as a macro issue, why don't we just start off there before we get into a deeper discussion? So, what are you seeing in terms of the economic climate for you guys? Do you see any signs of weakness or pure delays, or --

Question: Sandeep Singh - Morgan Stanley - Analyst : Typically, how much visibility do you have into the forward quarter? Historically, is there any way to sort of gauge that?

Question: Sandeep Singh - Morgan Stanley - Analyst : Let's talk about the competitive environment a little bit, whether it's IBM FileNet, EMC's Documentum, HP Intwerwoven -- how would you characterize the current competitive environment? And, who do you think you have the most opportunity to take share from?

Question: Sandeep Singh - Morgan Stanley - Analyst : So, talk about Release 16. What is it in this release that you think they're going to get customers excited, both old and new? Where do you see, Release 16 on the way of making inroads versus an IBM FileNet? 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. MARCH 02, 2016 / 11:05PM, OTEX.TO - Open Text Corp at Morgan Stanley Technology, Media & Telecom Conference

Question: Sandeep Singh - Morgan Stanley - Analyst : I guess the question then, would be, how much are price and discounting going to be a factor in some of those target markets that you're looking to?

Question: Sandeep Singh - Morgan Stanley - Analyst : And what does an IBM do? Typically they're known for their infamous bundling practices. Are they sort of being rational out in the market, in terms of what you're seeing on pricing?

Question: Sandeep Singh - Morgan Stanley - Analyst : Fair enough. Fair enough. So, M&A has been a core piece of your growth strategy. With the acquisitions that you've done, how would you assess the effectiveness of cross-selling some of the products that you've acquired across the customer base? And any sort of color you can give us on that?

Question: Sandeep Singh - Morgan Stanley - Analyst : Great. I think it's been a year since the anniversary of the Actuate acquisition.

Question: Sandeep Singh - Morgan Stanley - Analyst : How would you gauge the progress on Actuate, so far?

Question: Sandeep Singh - Morgan Stanley - Analyst : So actually going up against, in terms of competition, is it the Qliks of the world, is it Power BI, is it from the platform analytics plays?

Question: Sandeep Singh - Morgan Stanley - Analyst : Makes sense. 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. MARCH 02, 2016 / 11:05PM, OTEX.TO - Open Text Corp at Morgan Stanley Technology, Media & Telecom Conference

Question: Sandeep Singh - Morgan Stanley - Analyst : More and more Tableau. Interesting. Okay. In terms of the future M&A pipeline, what are sort of the areas that you think you need to address? Valuations have come down a bit, on tech. Does that provide an opportunity to sort of keep the pace up on M&A, and what sort of areas are you looking at?

Question: Sandeep Singh - Morgan Stanley - Analyst : Fair enough. You discussed a new target model for 2020, which includes the M&A piece. Can you talk a little bit about those targets, and how OpenText Intelligence growth will help drive sustained growth?

Question: Sandeep Singh - Morgan Stanley - Analyst : And that mix between license and subscription, how are you able to manage that transition? What was the playbook that you used to get to a third, and does that playbook stay the same to get to 50/50?

Question: Sandeep Singh - Morgan Stanley - Analyst : On the managed services side, have you disclosed contract lengths? What's the average contract length on the managed service side?

Question: Sandeep Singh - Morgan Stanley - Analyst : And do they get, do you invoice customers up front, or is it on a annual basis? 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. MARCH 02, 2016 / 11:05PM, OTEX.TO - Open Text Corp at Morgan Stanley Technology, Media & Telecom Conference

Question: Sandeep Singh - Morgan Stanley - Analyst : Perfect.

Question: Sandeep Singh - Morgan Stanley - Analyst : Great. I'll stop to see if there's any questions from the audience? Just wait for the microphone. Unidentified Audience Member As it relates to that MCV, can you give us any idea in terms of growth rate, and how do you think about bookings because you've got a different models in there, and try to equalize them for all the different contract terms, etc.? Can you give us a feeling for the rate of bookings relative to your revenue growth? Thanks.

Question: Sandeep Singh - Morgan Stanley - Analyst : Any other questions from the audience? I wanted to talk, before I get to a margin and financial discussion, you did make a number of -- you brought on some executive leadership including Steve Murphy from Oracle. Can you discuss what -- what have you tasked him with, what's his mission over the next 12 months to grow the Company? What's he going to focus on?

Question: Sandeep Singh - Morgan Stanley - Analyst : And he's from Oracle, right?

Question: Sandeep Singh - Morgan Stanley - Analyst : Got it. Given how much M&A plays in terms of your overall growth strategy, what are you thinking in terms of shareholder return and capital allocation? Are you targeting any -- what's in the mix between share repurchases, M&A, any total return metrics that you've sort of communicated to investors?

Question: Sandeep Singh - Morgan Stanley - Analyst : Okay, and with that, we're all out of time. Thank you so much.