Open Text at Deutsche Bank Technology Conference Transcript

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

Question: Nandan Amladi - Deutsche Bank - Analyst : Thank you. That was a great intro. In fact, I was going to go back to one of your slides to ask the opening question. We have a little clicker, maybe go back to slide number five.

Question: Nandan Amladi - Deutsche Bank - Analyst : So the question [at this, right], you've obviously grown through a combination of organic as well as quite a few acquisitions. As you enter these new segments where you already have reasonably strong competitive positions, is your approach going to continue to be a mix of internal and acquisitions? And how will you balance that? Because to get from a number five to a number one position in any of these segments, you have a choice either to make an investment, try to displace the incumbents, or to buy them.

Question: Nandan Amladi - Deutsche Bank - Analyst : And how about the competition? Does each segment have a completely disparate set of competitors, or do you see the same people in two or three categories?

Question: Nandan Amladi - Deutsche Bank - Analyst : So in terms of your sales approach and incentivizing your salespeople, are they focused more on -- are they incentivized higher for selling a suite versus point solutions?

Question: Nandan Amladi - Deutsche Bank - Analyst : Let me pause here and see if there's any questions from the audience. There's a microphone. Unidentified Participant Yes, hi. On that slide there, you talked about 10% growth overall, but your organic revenue growth has been negative recently. What's the delta there?

Question: Nandan Amladi - Deutsche Bank - Analyst : Okay, any other questions? There's one there. Unidentified Participant Thank you, hi. I had a quick question about -- I guess around the acquisitions. Are you guys sort of architecture agnostic as you're out there sort of finding these companies, or is it sort of dotnet dominant within some of these product lines, or is it a mix of everything? And I guess the second question, could you talk a little bit about some of the categories of interest that you may have on the M&A side?

Question: Nandan Amladi - Deutsche Bank - Analyst : Any more? All right, I'll [pinch-hit] here. So next couple of questions are on your partnerships and your expansion strategy geographically. How do you see a partnership with, like, Microsoft, for example? Do you think you compete, or are they partners? And also similarly with SAP and Oracle, you have a reseller agreement with SAP. And second part of the question is you made a statement about the expansion in Latin America and Japan, South Africa and so on, how will those expansion opportunities be addressed, via direct sales, via partnerships?

Question: Nandan Amladi - Deutsche Bank - Analyst : So is this likely to change your operating profiles in any way?

Question: Nandan Amladi - Deutsche Bank - Analyst : Okay. We'll pause for another moment. Any questions from the audience? So then, moving onto sort of upstart competitors, companies like Box, (inaudible) and Dropbox, they're providing a content sharing [perhaps] platform effectively. How do you see them today, and how do you expect that competitive dynamic? 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. SEPTEMBER 11, 2012 / 10:10PM, OTEX.TO - Open Text at Deutsche Bank Technology Conference

Question: Nandan Amladi - Deutsche Bank - Analyst : So speaking of products in the cloud, EasyLink is also a cloud-based solution. How does your revenue mix and cash flow, more importantly, evolve over time as potentially these new businesses become a larger share of your total?

Question: Nandan Amladi - Deutsche Bank - Analyst : Okay, another sort of big-picture question on your acquisitions growth. How do you view your success, your track record so far over the past six years? Clearly you've tripled earnings, you've grown revenue significantly. But in terms of -- financial metrics are obviously there, but how about on the strategic side? How do you think you've made progress -- how well do you think you managed to turn those acquisitions into success?

Question: Nandan Amladi - Deutsche Bank - Analyst : Okay, let me pause here for a moment, see if anyone has a question. I really have only one more question. On your verticals, public sector is clearly your biggest vertical. What other verticals are you strong in, say approaching 10% of revenue? And with this strategic approach to expanding your portfolio, where do you expect to be in, say, two to three years, maybe five years, in terms of your diversification of revenue across certain verticals?

Question: Nandan Amladi - Deutsche Bank - Analyst : And where are you today in terms of--?

Question: Nandan Amladi - Deutsche Bank - Analyst : Yes, but how much below? I mean, are they low single digits, mid single digits?

Question: Nandan Amladi - Deutsche Bank - Analyst : All right. Anything else I haven't asked you that you'd like to share with the audience?

Question: Nandan Amladi - Deutsche Bank - Analyst : okay. Well, thank you. Unless there's more questions from the audience, we have two minutes left. 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. SEPTEMBER 11, 2012 / 10:10PM, OTEX.TO - Open Text at Deutsche Bank Technology Conference

Question: Nandan Amladi - Deutsche Bank - Analyst : Thank you.