OpenText is making a move that many enterprises may be making as it permanently shutters offices to opt for a hybrid model for work.
Mark Barrenechea, OpenText CEO and CTO, outlined theCOVID-19inspired hybrid work model as the company reported itsthird quarter earnings. Barrenechea said:
Barrenechea is saying out loud what a lot of C-level executives are thinking. The new normal will require less commercial real estate as the capital expenses required can be deployed elsewhere.PwC's CFO surveys have found executives are increasingly eyeing remote work as a permanent fixture.
OpenText's real estate plan is part of a larger restructuring. The company said it will spend about $80 million to $100 million on streamlining operations, cutting an undermined number of positions and consolidating functions. The restructuring moves should save $65 million to $75 million annually.
The company ended the quarter with $1.45 billion in cash but drew down on its $600 million credit revolver. OpenText also raised $1.8 billion to refinance existing debt at low interest rates. OpenText haslargely grown via acquisitions and growing its cloud portfolio.
OpenText reported third quarter earnings of 10 cents a share on revenue of $814.7 million with cloud services and subscriptions representing $339.5 million of sales. Non-GAAP earnings were 61 cents a share.
In addition,OpenText outlined a partnership with Amazon Web Services.
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