OPEN TEXT CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

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

(unaudited)

Three Months Ended December 31,

Six Months Ended December 31,

2017

2016

2017

Revenues:

License

$

135,244

$

97,764

$

213,475

$

158,420

Cloud services and subscriptions

208,121

175,061

401,974

344,748

Customer support

308,070

219,656

603,474

429,862

Professional service and other

82,970

50,228

156,169

101,343

Total revenues

734,405

542,709

1,375,092

1,034,373

Cost of revenues:

License

4,587

2,391

7,547

6,236

Cloud services and subscriptions

90,418

73,150

174,748

143,442

Customer support

33,194

27,349

65,985

53,087

Professional service and other

64,985

40,295

124,444

81,638

Amortization of acquired technology-based intangible assets

47,128

24,848

91,088

47,983

Total cost of revenues

240,312

168,033

463,812

332,386

Gross profit

494,093

374,676

911,280

701,987

Operating expenses:

Research and development

80,304

64,721

157,933

123,293

Sales and marketing

129,142

102,651

251,964

197,799

General and administrative

48,985

39,914

97,900

78,111

Depreciation

22,071

15,301

40,949

30,571

Amortization of acquired customer-based intangible assets

46,268

33,815

90,057

67,423

Special charges

715

11,117

18,746

23,571

Total operating expenses

327,485

267,519

657,549

520,768

Income from operations

166,608

107,157

253,731

181,219

Other income (expense), net

5,547

(3,558)

15,771

3,141

Interest and other related expense, net

(34,092)

(27,743)

(67,380)

(55,018)

Income before income taxes

138,063

75,856

202,122

129,342

Provision for (recovery of) income taxes

53,146

30,822

80,515

(828,603)

Net income for the period

$

84,917

$

45,034

$

121,607

$

957,945

Net (income) loss attributable to non-controlling interests

194

(12)

100

(39)

Net income attributable to OpenText

$

85,111

$

45,022

$

121,707

$

957,906

Earnings per share—basic attributable to OpenText

$

0.32

$

0.18

$

0.46

$

3.92

Earnings per share—diluted attributable to OpenText

$

0.32

$

0.18

$

0.46

$

3.89

Weighted average number of Common Shares outstanding—basic

265,504

245,653

265,153

244,282

Weighted average number of Common Shares outstanding—diluted

266,857

247,501

266,549

246,123

Dividends declared per Common Share

$

0.1320

$

0.1150

$

0.2640

$

0.2300