Byrne Tony Byrne

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Open Text's Stock Dip

13-Jul-2005

Tags: Document Management (ECM), Selecting Technology, Vendor Viability & Financials,

Financial analysts and amateur stock watchers alike are abuzz about Open Text's pre-announcement of lower-than-expected earnings, its second quarterly hiccup in a row and harbinger of a 3-day stock dip. In general, we counsel prospective technology buyers not to pay too much attention to stock price movements. OpenText, for example, apparently suffered from some negative foreign currency exposures. And as ECM vendors strike more big license deals, they are going to see quarterly volatility (Interwoven pre-announced a forthcoming earnings dip as well). In this case, however, it seems increasingly clear that Open Text is having trouble digesting the various overlapping technologies it acquired, and that does impact its customers. So a final piece of advice: if you want the real story on how various acquired products are going to mesh together, be sure to talk to real engineers at the vendor.

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