OPEN TEXT CORPORATION

CONSOLIDATED STATEMENTS OF INCOME

(In thousands of U.S. dollars, except share and per share data)

(unaudited)

Three Months Ended June 30,

2019

2018

Revenues:

License

$

119,728

$

139,924

Cloud services and subscriptions

241,889

217,892

Customer support

315,248

316,751

Professional service and other

70,356

79,703

Total revenues

747,221

754,270

Cost of revenues:

License

4,128

3,048

Cloud services and subscriptions

103,719

95,346

Customer support

30,761

34,232

Professional service and other

55,183

64,896

Amortization of acquired technology-based intangible assets

42,946

47,477

Total cost of revenues

236,737

244,999

Gross profit

510,484

509,271

Operating expenses:

Research and development

83,708

81,816

Sales and marketing

139,416

147,499

General and administrative

52,954

52,577

Depreciation

25,000

22,901

Amortization of acquired customer-based intangible assets

49,200

47,299

Special charges

2,232

7,821

Total operating expenses

352,510

359,913

Income from operations

157,974

149,358

Other income (expense), net

3,191

(8,938)

Interest and other related expense, net

(32,841)

(35,345)

Income before income taxes

128,324

105,075

Provision for (recovery of) income taxes

56,309

43,182

Net income for the period

$

72,015

$

61,893

Net (income) loss attributable to non-controlling interests

(32)

(170)

Net income attributable to OpenText

$

71,983

$

61,723

Earnings per share—basic attributable to OpenText

$

0.27

$

0.23

Earnings per share—diluted attributable to OpenText

$

0.27

$

0.23

Weighted average number of Common Shares outstanding—basic

269,446

267,489

Weighted average number of Common Shares outstanding—diluted

270,652

268,628