Open Text Corp Q3 2016 Earnings Call Summary

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

Question: Richard Tse - Cormark Securities - Analyst : Thanks. I'm not sure if this is a question for Mark or Steve, I was wondering if you can elaborate a little bit more on the professional services? Did you say that the pull back was due to a pause in customers waiting for Release 16 to come out? Or can you give us a bit more color on that, please?

Question: Richard Tse - Cormark Securities - Analyst : Mark, you talked a lot about M&A and the predictable pace. Is that because you put in a place a process now or are things coming to you given the pricing has gotten better? Maybe give us a bit more color on that please. 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 27, 2016 / 9:00PM, OTEX.TO - Q3 2016 Open Text Corp Earnings Call

Question: Richard Tse - Cormark Securities - Analyst : And just one last one. On the cash flow, there was a big step-up in cash flow. So should we take that as being an increase in your former run rate here? Or was this -- it doesn't sound like it is a one-off, but maybe give us a sense of where that could be?

Question: Richard Tse - Cormark Securities - Analyst : Great. Thanks, guys.

Question: Steven Li - Raymond James & Associates, Inc. - Analyst : Thank you. Maybe I will start with a question for John. So when I look at sequentially Q2 and Q3. So your revenue base is lower in the March quarter, but your operating expenses is higher this quarter. John, are there any non-recurring costs on the expense side or is it the more increasing investments you're making?

Question: Steven Li - Raymond James & Associates, Inc. - Analyst : You expect it to be sustained, John, or does it taper off after some point? 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 27, 2016 / 9:00PM, OTEX.TO - Q3 2016 Open Text Corp Earnings Call

Question: Steven Li - Raymond James & Associates, Inc. - Analyst : The investments for Release 16?

Question: Steven Li - Raymond James & Associates, Inc. - Analyst : Okay. Mark, maybe a question for you. I know it's early days but the customers you highlighted for Release 16 like Bell Canada, any of those customers all have been competitive displacements?

Question: Steven Li - Raymond James & Associates, Inc. - Analyst : All right. Great. Thanks.

Question: Paul Steep - Scotia Capital - Analyst : Great. Mark, thanks very much for the description and the discussion around M&A. I think it articulates what lots of us have known over the years about OpenText. The one part I would be curious about though is, in the context of how you're thinking about deals, particularly large transformational transactions, would you -- do you differentiate the hurdle rates across your deal portfolio? And then I have got a quick follow-up.

Question: Paul Steep - Scotia Capital - Analyst : Great. I guess to follow on and maybe shift to Steve a little bit. We talked already about the PS change you've made. Are there any other changes or realignments in field operations that you've executed at this point? Or is it fair to think that you would wait until sales kick-off towards the end of the year?

Question: Paul Steep - Scotia Capital - Analyst : Great. One last quick clarification, not to leave John out because I know he would be disappointed. On R&D --

Question: Paul Steep - Scotia Capital - Analyst : This would relate to the forward, which would be -- Mark talked lots about R&D investment into next year. Great developments that are going to happen for customers. Is it fair to think that those investments are all going to be within the existing envelope that we have been all thinking about? Thank you.

Question: Paul Steep - Scotia Capital - Analyst : Perfect. Thanks, guys.

Question: Blair Abernethy - Industrial Alliance Securities - Analyst : Two things. Mark, I wonder if you can give us a sense, or Steve, of just what you're seeing with Suite 16 in the marketplace? How many weeks have you really been out there where you're actually selling it and what are the -- what areas of the suite are you seeing the most traction with?

Question: Blair Abernethy - Industrial Alliance Securities - Analyst : Okay. That's great. Thanks for that, Mark. John, I just wonder if you could touch on maintenance renewals in the quarter? Customer support revenue was down a little bit sequentially. I suppose most of that is FX, but just can you talk a little bit about core license renewals, maintenance renewals and pricing? 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 27, 2016 / 9:00PM, OTEX.TO - Q3 2016 Open Text Corp Earnings Call

Question: Blair Abernethy - Industrial Alliance Securities - Analyst : Okay. Great. Thanks, guys.

Question: Paul Treiber - RBC Capital Markets - Analyst : Thanks very much. I just wanted to focus on the go-to-market strategy for Release 16. A couple of years ago, you guys went through a large sales force expansion. How do you look at your sales force at this point and what are some of the investments that you're

Question: Paul Treiber - RBC Capital Markets - Analyst : Have they -- broader go-to-market strategy around Release 16?

Question: Paul Treiber - RBC Capital Markets - Analyst : Secondly, could you speak to the opportunity around Salesforce and your partnership there?

Question: Paul Treiber - RBC Capital Markets - Analyst : Okay. Thank you. I'll pass the line.

Question: Eyal Ofir - Dundee Capital Markets - Analyst : Thanks, I just wanted a quick question on Release 16 here in terms of the early days. Are you guys seeing more demand on the SaaS side or on the license? Maybe you could just talk to what the customer feedback is like and what type of take up you're seeing thus far?

Question: Eyal Ofir - Dundee Capital Markets - Analyst : I appreciate that. Just on the acquisitions as well, you talked about integrations and getting them onboard your operating model. In terms of actually getting them onboard to your platform, how long does that take for each acquisition?

Question: Eyal Ofir - Dundee Capital Markets - Analyst : Just to get them onboard -- I'm assuming that the plan is for both acquisitions is to get them on to your platform, technology as well, not just the financial model? So I was just wondering if it is the same timelines or if it is different and how long it would take?

Question: Eyal Ofir - Dundee Capital Markets - Analyst : I meant technology -- sorry, go ahead.

Question: Eyal Ofir - Dundee Capital Markets - Analyst : Before I pass the line, last question for me on Documentum and rumors of EMC looking to sell it. Just wanted to get your thoughts on it and how are you guys looking at that asset as well?