Open Text Q2 2004 Earnings Conference Call Transcript

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

Question: Scott Penner - TD Newcrest - Analyst : Thank you. Tom, do have an update on the percentage of the IXOS shares tendered, and just anything you know about the residual. Is there much of an institutional component, or is this mainly retail?

Question: Howard Lis - GMP Securities - Analyst : Thank you, good afternoon. Can you just disclose how much the Gaus (ph) and SAR (ph) acquisitions contributed in the quarter? And also just in terms of cash flow, you had said last quarter you expected it to probably be around $10 million, and it came in closer to 5 -- maybe you could comment on that. 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.

Question: Tom Liston - - Analyst : Thank you and good afternoon. On your indirect channel, can you update us on the percentage of revenue that was in the channel and comment on what you may see or what we may see going forward, in terms of expanding that network? Obviously, IXOS would accelerate the expansion of the partner ,channel but just in terms of Open Text specifically?

Question: Steven Li - Raymond James - Analyst : Hi. In terms of increasing G&A, for modeling purposes, should it be flat for the second half or does it trend down? Thanks.

Question: Paul Steep - Orion Securities - Analyst : Tom or John, maybe you can discuss which of the product lines are driving this strong maintenance renewal rates, and what steps you took that got these numbers up? Thanks.

Question: Blair Abernethy - Paradigm Capital - Analyst : John, you touched on sales and marketing investments for putting some more effort in here. Could you elaborate on that a bit -- what you see going forward in the sales and marketing side?

Question: Scott Kessler - Standard & Poor's - Analyst : Thank you very much. I have two questions. The first is -- what percentage of revenue in the quarter was derived from new customers? And the second question I have relates to -- once the IXOS transaction is closed, is it fair to say that you will be focusing on operations, as opposed to acquisitions over say the near to intermediate term? Thanks a lot.

Question: Brad Whitt - Southwest Securities - Analyst : Could you comment on the DOD certification for meeting zone (ph), how tough a process that was and whether or not some of your competitors are -- have the similar certification?

Question: Mike Abramsky - Canacord Capital - Analyst : Hi, gentlemen. When in Q1 you did provide '04 guidance excluding the impact of IXOS, do you see the sustainability of the strong Q2 license growth through the end of the year, or do you consider some things anomalous (ph) to the quarter?

Question: Byron Berry - National Bank Financial - Analyst : Congratulations on the numbers. We've seen a lot of consolidation in this space, and I'm wondering if you're seeing any new competitors? With 74 percent of your license revenues coming from new customers, are you bumping up into Documentum (ph) primarily, or are we seeing some new guys, like (indiscernible) perhaps with Introspect (ph) and so forth?

Question: Richard Tse - Merrill Lynch & Co. - Analyst : Hi, guys. Question on the acquisitions of the last year. (indiscernible) change -- how well is this stuff installing, and how has that impacted the pricing? Are you selling this as a suite now? And if so, have you increased the price of Livelink as a result of that? 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.

Question: Mark Schappel - McDonald Investments - Analyst : One question for Alan. Alan, could you update us on the currency benefits or the loss in the quarter?

Question: David Wright - BMO Nesbitt Burns - Analyst : Thank you very much. Just a question on your large size deals. How many deals were over $1 million, and do you break out -- I don't know if you break it down -- 200,000 or over 200,000, so if there's any other way to look at it, that would be helpful too. 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.

Question: Brad Whitt - Southwest Securities - Analyst : Any thoughts to the tax rate? When I plugged the number into my pro forma model, it jumps around a lot. And I was wondering since it is a made-up number, any thoughts to just given a consistent percentage, like most of -- or all of the other software companies I follow -- just a pro forma tax rate?