Open Text to split stock two-for-one, Q2 profit down from year ago

WATERLOO, Ont. - Business software company Open Text Corp. (TSX:OTC) said Thursday that it will split its stock two-for-one next month.

The company said the move is aimed at making its shares more accessible to individual shareholders, increase and broaden its shareholder base and improve liquidity.

Open Text shares closed down 39 cents at $100.19 on the Toronto Stock Exchange.

The company said the record date for the split will be Feb. 7, and the payment date will be Feb. 18. Open Text's shares are expected to begin trading on a post-stock dividend basis on Feb. 19.

The announcement of the split came as the company, which keeps its books in U.S. dollars, said it earned a quarterly profit of US$53.5 million, down from $61.1 million a year ago.

On a per share basis, the company said it earned 90 cents for the quarter ended Dec. 31, down from $1.04 per share in the last three months of 2012.

Revenue in what was Open Text's second quarter increased to US$363.5 million from $352.2 million.

In November, Open Text announced a $1.17-billion cash-and-stock deal to acquire cloud-technology provider GXS Group.

Open Text will pay about $1.07 billion in cash and $100 million of its stock.