OPEN TEXT CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

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

(unaudited)

Three Months Ended September 30,

2018

2017

Revenues:

License

$

76,887

$

78,231

Cloud services and subscriptions

208,083

193,853

Customer support

311,551

295,404

Professional service and other

70,636

73,199

Total revenues

667,157

640,687

Cost of revenues:

License

3,872

2,960

Cloud services and subscriptions

87,703

84,134

Customer support

30,465

32,770

Professional service and other

56,796

59,428

Amortization of acquired technology-based intangible assets

47,477

43,960

Total cost of revenues

226,313

223,252

Gross profit

440,844

417,435

Operating expenses:

Research and development

77,470

77,574

Sales and marketing

120,182

122,615

General and administrative

50,924

48,902

Depreciation

23,854

18,878

Amortization of acquired customer-based intangible assets

45,876

43,789

Special charges

23,311

18,031

Total operating expenses

341,617

329,789

Income from operations

99,227

87,646

Other income (expense), net

1,522

10,224

Interest and other related expense, net

(34,531)

(33,811)

Income before income taxes

66,218

64,059

Provision for (recovery of) income taxes

29,850

27,369

Net income for the period

$

36,368

$

36,690

Net (income) loss attributable to non-controlling interests

(44)

(94)

Net income attributable to OpenText

$

36,324

$

36,596

Earnings per share—basic attributable to OpenText

$

0.14

$

0.14

Earnings per share—diluted attributable to OpenText

$

0.13

$

0.14

Weighted average number of Common Shares outstanding—basic

268,028

264,802

Weighted average number of Common Shares outstanding—diluted

269,387

266,235

Dividends declared per Common Share

$

0.1518

$

0.1320