Ephesoft Leads the Document Capture Industry to the Cloud with the First High-Performance Processing Hybrid Solution

IRVINE, Calif., Jan. 31, 2019 /PRNewswire-PRWeb/ — Ephesoft, Inc., an industry leader in enterprise content capture and data discovery solutions, today announced the launch of its Ephesoft Cloud HyperExtender, the industry’s first hybrid solution that easily transitions the most resource-intensive processes into the cloud for peak performance, scalability and minimized upfront investment. This first-to-market hybrid offering enables organizations to optimize their existing Ephesoft Transact on-premise solution with improved performance, processing up to 2,500 pages per minute – more than 10 times faster than a strictly on-premise version.

“Ephesoft’s Cloud HyperExtender is bridging the gap for our customers who want to continue using their existing systems while reaping the benefits of ultra-fast processing in the cloud,” said Ike Kavas, Founder and CEO of Ephesoft. “This first-to-market offering provides the best of both worlds. As the world’s first hybrid capture microservice, this product maximizes efficiency and profitability for our customers and epitomizes our vision to lead the market to the cloud.”

The Cloud HyperExtender is an add-on application that leverages high-performance cloud image processing in conjunction with Ephesoft’s latest release of Transact 2019.1, which uses a specialized type of artificial intelligence called supervised machine learning to optimize operational efficiency in document-intensive processes. After documents are captured in the on-premise system, the processing intensive Optical Character Recognition (OCR) task is directed into the cloud for fast processing, and then directed back into the on-premise system for classification, extraction, validation and export.

“Ephesoft Transact Cloud HyperExtender allows us to create solutions for intelligent capture in ways we could not before,” said Pat Myers, Executive Vice President and Co-Founder of Zia Consulting, a platinum-level Ephesoft partner. “Many customers have high peaks that used to require us to architect a tailored solution in order to handle the volume. Now, we can create a base system and offload much of the heavy lifting to the cloud to still meet the required SLA.”

The Cloud HyperExtender is ideal for companies and organizations with demand peaks in their business operations, which stress the infrastructure for document intelligence caused by either unpredictable or predictable seasonal volumes. Examples include retailers’ invoices and credit card applications during Cyber Monday and other shopping holidays; tax firms’ form processing during tax season; mortgage lender applications or loans during prime real estate seasons; and insurance company claims after a natural disaster. Enterprise organizations, from large banks or mortgage lenders to insurance companies with a steady flow of documents can benefit from Ephesoft Cloud HyperExtender to improve Service Level Agreement (SLA) times and expedite customer service responses.

Customers that have volatile workloads will see significant cost reductions using the Cloud HyperExtender and will only have to pay for what they use, in addition to avoiding the need operational complexity associated with managing data center infrastructure. This means customers can use less power to process more documents at a lower cost. Ephesoft worked with multiple beta testers that reported excellent results using the Cloud HyperExtender, including a large customer that processes a high volume of mortgages and loans.

The Cloud HyperExtender will see the best performance with a Transact server deployed on cloud, including Amazon Web Services (AWS) and Microsoft Azure, but it can also be used from an on-premise Transact server with a high-bandwidth Internet connection. Ephesoft has taken the proper security measures to ensure data security, including encrypting data at rest and in transit, providing a secure API key, purging data on a daily basis and completing a Service Organization Control 2 (SOC2) compliance audit.

This is the first of many cloud microservices and applications that Ephesoft will develop to help its customers. Ephesoft Transact with Cloud HyperExtender is available to customers, partners and resellers beginning Jan. 31, 2019 in North America, and expanding globally later this year.

About Ephesoft
Ephesoft, Inc. develops technology that makes meaning out of unstructured data for decision-makers worldwide. Using supervised machine learning and a focus on efficiency and reliability, Ephesoft has crafted the next generation of enterprise content capture and data discovery solutions. Organizations use this power to automate any document-based business processes, improving accuracy, increasing productivity and reducing costs. Ephesoft is headquartered in Irvine, Calif., with regional offices throughout the US, EMEA and Asia Pacific. The company is undergoing rapid growth and has customers in over 50 countries. To learn more, visit http://www.ephesoft.com.

 

SOURCE Ephesoft Inc.

Yandex Introduces the Ilya Segalovich Award in Computer Science

MOSCOW, Jan. 31, 2019 /PRNewswire-PRWeb/ — Yandex is thrilled to announce a new annual award for students and faculty in computer science and related fields, named after Ilya Segalovich, Yandex co-founder and creator of Yandex search. This award honors Ilya’s commitment to supporting education and his philanthropic pursuits and introduces a new Yandex education initiative to encourage the study of computer science.

The Ilya Segalovich Award recognizes academic achievement and research contributing to technological advancements in areas relevant to Yandex. These fields include speech recognition and speech synthesis, information search and data analysis, machine learning, computer vision, and natural language processing and machine translation.

The award is open to graduate or postgraduate students and academic advisors in computer science fields at institutions in Russia, Belarus or Kazakhstan. Students can directly apply for the award, while academic advisors must be nominated. An award committee composed of members of the Yandex management team and top machine learning experts will consider the quality of candidates’ published work to select winners.

“Yandex has always strongly valued education in computer science,” says Arkady Volozh, CEO and co-founder of Yandex. “We believe education in the field will continue to be central to the advancement of AI and delivering intelligent products and services to users everywhere. With this award, we want to support researchers who, like us, are engaged in computer science and are inspired to build the technologies of the future. We named the award after Ilya to honor his commitment to progress and his achievements supporting the IT community.”

The Ilya Segalovich Award follows another Yandex initiative to recognize Ilya’s passion for education, the Ilya Segalovich Scholarship. Established in 2014, this scholarship supports computer science students at the National Research University Higher School of Economics in Moscow. Yandex has also partnered with HSE to establish the Faculty of Computer Science, which trains developers, analysts, and researchers in data analysis and software engineering.

These two academic awards represent just part of Yandex’s commitment to education, a key part of which includes Yandex.Lyceum for secondary students and the Yandex School of Data Analysis (YSDA). YSDA is a Master’s level program in computer science and data analysis that Ilya helped establish in 2007 together with Arkady Volozh, and pattern recognition specialist, Ilya Muchnik. YSDA graduates and Yandex professionals regularly advance the computer science field with their contributions of published articles, and their expertise is key to powering Yandex’s intelligent products and services.

The Ilya Segalovich Award Committee will award a total of up to 15 million rubles (about $230,000) to thirteen winners. Student awardees will receive 350,000 rubles ($5,300), a grant to travel to an international conference on artificial intelligence, and an internship opportunity at Yandex that includes a professional mentorship. Academic advisors will receive 700,000 rubles ($10,600). The application deadline is the end of February, and the award ceremony will take place in Moscow this spring.

 

SOURCE Yandex

WeDo Technologies Named a Vendor to Watch in Gartner Report

WASHINGTON, January 31, 2019 /PRNewswire/ —

WeDo Technologies recognized for its fraud management solutions 

WeDo Technologies – worldwide leader in revenue assurance and fraud management, has been named a Vendor to Watch in Gartner’s “Market Trends: Maximizing the Value of Analytics, Artificial Intelligence and Automation in CSP Fraud Management” report*. This marks the third time in six months that WeDo Technologies has been cited by Gartner in its reports focused on fraud management, revenue assurance in CSP operations.

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According to the Communications Fraud Control Association (CFCA), global telecom fraud losses total $29.2 billion per year, with this number expected to rise with the growth of digital services and the Internet of Things. The Gartner report assesses areas within fraud management where communication service providers (CSPs) can achieve the biggest impact when investing in machine learning. CSPs are increasingly looking to machine learning and AI to help them improve fraud management, particularly as new digital services provide additional opportunities for fraudsters to exploit.

“Artificial intelligence and machine learning capabilities are critical to mitigate the new fraud threats arising as telecom operators transform their business models. WeDo Technologies is pleased to be recognized by Gartner. . For the past five years we have invested heavily in in applying AI and Machine Learning to fraud management and revenue assurance, pioneering breakthroughs in automatic threshold definition and deep learning outlier detection – capabilities that will be vital to reduce fraud in the digital era,” commented Rui Paiva, CEO of WeDo Technologies.

WeDo’s risk management software, spanning fraud management, revenue assurance and business assurance, provide a comprehensive set of tools to support CSP’s digital transformation strategies as they prepare for 5G and IoT. In addition to providing machine learning and AI capabilities, the RAID.Risk Management platform is an on-premise / cloud-based platform that provides CSPs with unrivalled scalability and flexibility.

*Gartner, Market Trends: Maximizing the Value of Analytics, Artificial Intelligence and Automation in CSP Fraud Management, Charlotte Patrick, Norbert Scholz, Johanna Stjerna, Jonathan Care, 21 December 2018.

About WeDo Technologies  

Founded in 2001, WeDo Technologies is the global market leader in Revenue Assurance and Fraud Management software solutions.

WeDo Technologies provides software and expert consulting to Telecom Operators and Communication Service Providers worldwide. Currently we count with over 200 customers, spread across 108 countries, with a network of 600+ highly-skilled professional experts. Our offices are geographically spread in the US, Europe, Asia-Pacific, Middle East, Africa, Central and South America.

WeDo Technologies’ software analyzes large quantities of data allowing to monitor, control, manage and optimize processes, ensuring revenue protection and risk mitigation.

With over 200 customers – including some of the world’s leading blue chip organizations – WeDo Technologies has long been recognized as a constant innovator in assuring the success of its customers along a journey of continuous transformation.

WeDo Technologies. Know The Unknown.

http://www.wedotechnologies.com

Latest news @WeDoNews    

Contacts 

QUEXOR GROUP INC. 

Barbara Henris
bhenris@quexor.com 
Mob.: +1(703)470-9446

Product Marketing and Analyst Relations – WeDo Technologies
Carlos Marques
carlos.marques@wedotechnologies.com    
Mob.: +351-939650124

Public Relations and Corporate Communications – WeDo Technologies
Inez Corrêa de Sá
inez.sa@wedotechnologies.com    
Mob.: +351-939650788

SOURCE WeDo Technologies

Quantum & High Performance Computing (Hybrid Computing): Worldwide Market Report, 2019-2023 – Companies, Solutions, Use Cases and Applications

DUBLIN, Jan. 31, 2019 /PRNewswire/ —

The “Hybrid Computing: Quantum Computing and High Performance Computing” report has been added to ResearchAndMarkets.com’s offering.

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Select Report Findings

  • The global HPC market will reach $49.3 billion by 2023
  • 43% of total the HPC market will be due to HPCaaS by 2023
  • The global market for quantum computing will be more than $6.4B USD by 2023
  • Combined 5G and quantum computing solutions will create a $417M market by 2023
  • Exascale-level computing will account for less than 2.5% of global HPC market by 2023

While quantum computing does not utilize a faster clock-speed than classical computing, it is much faster than traditional computing infrastructure for solving certain problems as quantum computers can handle exponentially larger data sets. Accordingly, quantum computing is well-positioned to support certain industry verticals and solve certain problems such as cybersecurity and cryptocurrencies that rely upon prime factoring. Current classical computing technologies would take an inordinate amount of time to break-down prime factors to support cryptology and blockchain technology.

However, due to the limitations of quantum computing, and the evolution of HPC, Mind Commerce sees the advent of hybrid systems that utilize both quantum and classical CPUs on the same computing platform. These next generation computing systems will provide the best of both worlds – high speed general purpose computing combined with use case specific ultra-performance for certain tasks that will remain outside the range of binary computation for the foreseeable future.

This research evaluates the HPC market including companies, solutions, use cases, and applications. Analysis includes HPC by organizational size, software and system type, server type and price band, and industry verticals. The report also assesses the market for integration of various artificial intelligence technologies in HPC. It also evaluates the exascale-level HPC market including analysis by component, hardware type, service type, and industry vertical.

This research also assesses the technology, companies/organizations, R&D efforts, and potential solutions facilitated by quantum computing. It also evaluates the impact of quantum computing upon other major technologies and solution areas including AI, chipsets, edge computing, blockchain, IoT, big data analytics, and smart cities. It provides global and regional forecasts as well the outlook for quantum computing impact on hardware, software, applications, and services from 2018 to 2023.

Key Topics Covered

High Performance Computing Market 2018 – 2023

1 Executive Summary

2 Introduction
2.1 Next Generation Computing
2.2 High Performance Computing
2.2.1 HPC Technology
2.2.1.1 Supercomputers
2.2.1.2 Computer Clustering
2.2.2 Exascale Computation
2.2.2.1 United States
2.2.2.2 China
2.2.2.3 Europe
2.2.2.4 Japan
2.2.2.5 India
2.2.2.6 Taiwan
2.2.3 High Performance Technical Computing
2.2.4 Market Segmentation Considerations
2.2.5 Use Cases and Application Areas
2.2.5.1 Computer Aided Engineering
2.2.5.2 Government
2.2.5.3 Financial Services
2.2.5.4 Education and Research
2.2.5.5 Manufacturing
2.2.5.6 Media and Entertainment
2.2.5.7 Electronic Design Automation
2.2.5.8 Bio-Sciences and Healthcare
2.2.5.9 Energy Management and Utilities
2.2.5.10 Earth Science
2.2.6 Regulatory Framework
2.2.7 Value Chain Analysis
2.2.8 AI to Drive HPC Performance and Adoption

3 High Performance Computing Market Analysis and Forecast
3.1 Global High Performance Computing Market 2018 – 2023
3.1.1 Total High Performance Computing Market
3.1.2 High Performance Computing Market by Component
3.1.2.1 High Performance Computing Market by Hardware and Infrastructure Type
3.1.2.1.1 High Performance Computing Market by Server Type
3.1.2.2 High Performance Computing Market by Software and System Type
3.1.2.3 High Performance Computing Market by Professional Service Type
3.1.3 High Performance Computing Market by Deployment Type
3.1.4 High Performance Computing Market by Organization Size
3.1.5 High Performance Computing Market by Server Price Band
3.1.6 High Performance Computing Market by Application Type
3.1.6.1 High Performance Technical Computing Market by Industry Vertical
3.1.6.2 Critical High Performance Business Computing Market by Industry Vertical
3.1.1 High Performance Computing Deployment Options: Supercomputer vs. Clustering
3.1.2 High Performance Computing as a Service (HPCaaS)
3.1.3 AI Powered High Performance Computing Market
3.1.3.1 AI Powered High Performance Computing Market by Component
3.1.3.2 AI Powered High Performance Computing Market by AI Technology
3.2 Regional High Performance Computing Market 2018 – 2023
3.2.1 High Performance Computing Market by Region
3.2.2 North America High Performance Computing Market by Component, Deployment, Organization, Server Price Band, Application, Industry Vertical, and Country
3.2.3 Europe High Performance Computing Market by Component, Deployment, Organization, Server Price Band, Application, Industry Vertical, and Country
3.2.4 APAC High Performance Computing Market by Component, Deployment, Organization, Server Price Band, Application, Industry Vertical, and Country
3.2.5 MEA High Performance Computing Market by Component, Deployment, Organization, Server Price Band, Application, Industry Vertical, and Country
3.2.6 Latin America High Performance Computing Market by Component, Deployment, Organization, Server Price Band, Application, Industry Vertical, and Country
3.2.7 High Performance Computing Market by Top Ten Country
3.3 Exascale Computing Market
3.3.1 Exascale Computing Driven HPC Market by Component
3.3.2 Exascale Computing Driven HPC Market by Hardware Type
3.3.3 Exascale Computing Driven HPC Market by Service Type
3.3.4 Exascale Computing Driven HPC Market by Industry Vertical
3.3.1 Exascale Computing as a Service

4 High Performance Computing Company Analysis
4.1 HPC Vendor Ecosystem
4.2 Leading HPC Companies
4.2.1 Amazon Web Services Inc.
4.2.2 Atos SE
1.1.1 Advanced Micro Devices Inc.
1.1.2 Cisco Systems
4.2.3 DELL Technologies Inc.
4.2.4 Fujitsu Ltd
4.2.5 Hewlett Packard Enterprise (HPE)
4.2.6 IBM Corporation
4.2.7 Intel Corporation
4.2.8 Microsoft Corporation
4.2.9 NEC Corporation
4.2.10 NVIDIA
4.2.11 Rackspace Inc.

5 Conclusions and Recommendations

Quantum Computing Market: Companies, Solutions, Market Outlook and Forecasts 2018 – 2023

1 Executive Summary

2 Introduction
2.1 Understanding Quantum Computing
2.2 Quantum Computer Type
2.2.1 Quantum Annealer
2.2.2 Analog Quantum
2.2.3 Universal Quantum
2.3 Quantum Computing vs. Classical Computing
2.3.1 Will Quantum replace Classical Computing?
2.3.2 Physical Qubits vs. Logical Qubits
2.4 Quantum Computing Development Timeline
2.5 Quantum Computing Market Factors
2.6 Quantum Computing Development Progress
2.6.1 Increasing the Number of Qubits
2.6.2 Developing New Types of Qubits
2.7 Quantum Computing Patent Analysis
2.8 Quantum Computing Regulatory Analysis
2.9 Quantum Computing Disruption and Company Readiness Guidelines

3 Technology and Market Analysis
3.1 Quantum Computing Technology Stack
3.2 Quantum Computing and Artificial Intelligence
3.3 Quantum Neurons
3.4 Quantum Computing and Big Data
3.5 Linear Optical Quantum Computing
3.6 Quantum Computing Business Model
3.7 Quantum Software Platform
3.8 Application Areas and Use Cases
3.9 Emerging Revenue Sectors
3.10 Quantum Computing Investment Analysis
3.11 Quantum Computing Initiatives by Country
3.11.1 USA
3.11.2 Canada
3.11.3 Mexico
3.11.4 Brazil
3.11.5 UK
3.11.6 France
3.11.7 Russia
3.11.8 Germany
3.11.9 Netherlands
3.11.10 Denmark
3.11.11 Sweden
3.11.12 Saudi Arabia
3.11.13 UAE
3.11.14 Qatar
3.11.15 Kuwait
3.11.16 Israel
3.11.17 Australia
3.11.18 China
3.11.19 Japan
3.11.20 India
3.11.21 Singapore

4 Quantum Computing Value Chain Analysis
4.1 Quantum Computing Value Chain Structure
4.2 Quantum Computing Competitive Analysis
4.2.1 Leading Vendor Efforts
4.2.2 Start-up Companies
4.2.3 Government Initiatives
4.2.4 University Initiatives
4.2.5 Venture Capital Investments
4.3 Large Scale Computing Systems

5 Company Analysis
5.1 D-Wave Systems Inc.
5.2 Google Inc.
5.3 Microsoft Corporation
5.4 IBM Corporation
5.5 Intel Corporation
5.6 Nokia Corporation
5.7 Toshiba Corporation
5.8 Raytheon Company
5.9 Other Companies
5.9.1 1QB Information Technologies Inc. (IQbit)
5.9.2 Cambridge Quantum Computing Ltd. (CQC)
5.9.3 QC Ware Corp.
5.9.4 MagiQ Technologies Inc.
5.9.5 QxBranch LLC
5.9.6 Rigetti Computing
5.9.7 Anyon Systems Inc.
5.9.8 Quantum Circuits Inc.
5.9.9 Hewlett Packard Enterprise (HPE)
5.9.10 Fujitsu Ltd.
5.9.11 NEC Corporation
5.9.12 SK Telecom
5.9.13 Lockheed Martin Corporation
5.9.14 NTT Docomo Inc.
5.9.15 Alibaba Group Holding Limited
5.9.16 Booz Allen Hamilton Inc.
5.9.17 Airbus Group
5.9.18 Amgen Inc.
5.9.19 Biogen Inc.
5.9.20 BT Group
5.9.21 Mitsubishi Electric Corp.
5.9.22 Volkswagen AG
5.9.23 KPN
5.10 Ecosystem Contributors
5.10.1 Agilent Technologies
5.10.2 Artiste-qb.net
5.10.3 Avago Technologies
5.10.4 Ciena Corporation
5.10.5 CyOptics Inc.
5.10.6 Eagle Power Technologies Inc
5.10.7 Emcore Corporation
5.10.8 Enablence Technologies
5.10.9 Entanglement Partners
5.10.10 Fathom Computing
5.10.11 Alpine Quantum Technologies GmbH
5.10.12 Atom Computing
5.10.13 Black Brane Systems
5.10.14 Delft Circuits
5.10.15 EeroQ
5.10.16 Everettian Technologies
5.10.17 EvolutionQ
5.10.18 H-Bar Consultants
5.10.19 Horizon Quantum Computing
5.10.20 ID Quantique (IDQ)
5.10.21 InfiniQuant
5.10.22 IonQ
5.10.23 ISARA
5.10.24 KETS Quantum Security
5.10.25 Magiq
5.10.26 MDR Corporation
5.10.27 Nordic Quantum Computing Group (NQCG)
5.10.28 Oxford Quantum Circuits
5.10.29 Post-Quantum (PQ Solutions)
5.10.30 ProteinQure
5.10.31 PsiQuantum
5.10.32 Q&I
5.10.33 Qasky
5.10.34 QbitLogic
5.10.35 Q-Ctrl
5.10.36 Qilimanjaro Quantum Hub
5.10.37 Qindom
5.10.38 Qnami
5.10.39 QSpice Labs
5.10.40 Qu & Co
5.10.41 Quandela
5.10.42 Quantika
5.10.43 Quantum Benchmark Inc.
5.10.44 Quantum Circuits Inc. (QCI)
5.10.45 Quantum Factory GmbH
5.10.46 QuantumCTek
5.10.47 Quantum Motion Technologies
5.10.48 QuantumX
5.10.49 Qubitekk
5.10.50 Qubitera LLC
5.10.51 Quintessence Labs
5.10.52 Qulab
5.10.53 Qunnect
5.10.54 QuNu Labs
5.10.55 River Lane Research (RLR)
5.10.56 SeeQC
5.10.57 Silicon Quantum Computing
5.10.58 Sparrow Quantum
5.10.59 Strangeworks
5.10.60 Tokyo Quantum Computing (TQC)
5.10.61 TundraSystems Global Ltd.
5.10.62 Turing
5.10.63 Xanadu
5.10.64 Zapata Computing
5.10.65 Accenture
5.10.66 Atos Quantum
5.10.67 Baidu
5.10.68 Northrup Grumman
5.10.69 Quantum Computing Inc.
5.10.70 Keysight Technologies
5.10.71 Nano-Meta Technologies
5.10.72 Optalysys Ltd.

6 Quantum Computing Market Analysis and Forecasts
6.1 Global Quantum Computing Market Forecasts 2018 – 2023
6.1.1 Total Quantum Computing Market
6.1.2 Quantum Computing Market by Revenue Source
6.1.2.1 Quantum Computing Market by Hardware Type
6.1.2.2 Quantum Computing Market by Application Software Type
6.1.2.3 Quantum Computing Market by Service Type
6.1.2.3.1 Quantum Computing Market by Professional Service Type
6.1.3 Quantum Computing Market by Technology Segment
6.1.4 Quantum Computing Market by Industry Vertical
6.1.5 Quantum Computing Market by Revenue Sector
6.1.6 AI Market in Quantum Computing Software
6.1.6.1 AI Market in Quantum Computing by AI Technology
6.1.7 AI Chipsets Market in Quantum Computing Hardware
6.1.7.1 AI Chipsets Market in Quantum Computing Hardware by Product Type
6.1.8 Quantum Computing in Cloud Market
6.1.8.1 Quantum Computing in Cloud Market by Revenue Source
6.1.9 Quantum Computing Market in 5G
6.1.9.1 Quantum Computing Market in 5G by Revenue Source
6.1.10 Quantum Computing Market in IoT Sector
6.1.10.1 Quantum Computing Market in IoT Sector by Revenue Source
6.1.10.2 Quantum Computing Market in IoT Sector by Deployment Platform
6.1.10.3 Quantum Computing Market in IoT by Sector
6.1.11 Quantum Computing Market in Edge Networks
6.1.11.1 Quantum Computing Market in Edge Network by Revenue Source
6.1.12 Quantum Computing Market in Blockchain Network
6.1.12.1 Quantum Computing Market in Blockchain Network by Revenue Source
6.1.13 Quantum Computing Market in Smart Cities
6.1.13.1 Quantum Computing Market in Smart Cities by Revenue Source
6.1.14 Quantum Computing Market in Big Data Analytics
6.1.14.1 Quantum Computing Market in Big Data Analytics by Revenue Source
6.1.15 Quantum Computing Market in High Performance Technical Computing
6.1.15.1 Quantum Computing Market in High Performance Technical Computing by Revenue Source
6.2 Regional Quantum Computing Market Forecast 2018 – 2023
6.2.1 Quantum Computing Market by Region
6.2.2 North America Quantum Computing Market by Revenue Source, Technology, Industry Vertical, AI and Chipsets, Cloud, 5G, IoT, Edge, Blockchain, Smart City, Big Data, HPC, and Country
6.2.3 Europe Quantum Computing Market by Revenue Source, Technology, Industry Vertical, AI and Chipsets, Cloud, 5G, IoT, Edge, Blockchain, Smart City, Big Data, HPC, and Country
6.2.4 APAC Quantum Computing Market by Revenue Source, Technology, Industry Vertical, AI and Chipsets, Cloud, 5G, IoT, Edge, Blockchain, Smart City, Big Data, HPC, and Country
6.2.5 Middle East and Africa Quantum Computing Market by Revenue Source, Technology, Industry Vertical, AI and Chipsets, Cloud, 5G, IoT, Edge, Blockchain, Smart City, Big Data, HPC, and Country
6.2.6 Latin America Quantum Computing Market by Revenue Source, Technology, Industry Vertical, AI and Chipsets, Cloud, 5G, IoT, Edge, Blockchain, Smart City, Big Data, HPC, and Country

7 Conclusions and Recommendations
7.1 Advertisers and Media Companies
7.2 Artificial Intelligence Providers
7.3 Automotive Companies
7.4 Broadband Infrastructure Providers
7.5 Communication Service Providers
7.6 Quantum Computing Companies
7.7 Data Analytics Providers
7.8 Immersive Technology (AR, VR, and MR) Providers
7.9 Networking Equipment Providers
7.10 Networking Security Providers
7.11 Semiconductor Companies
7.12 IoT Suppliers and Service Providers
7.13 Software Providers
7.14 Smart City System Integrators
7.15 Automation System Providers
7.16 Social Media Companies
7.17 Workplace Solution Providers
7.18 Enterprise and Government

Full List of Companies Featured

  • 1QB Information Technologies Inc. (IQbit)
  • Accenture
  • Advanced Micro Devices Inc.
  • Agilent Technologies
  • Airbus Group
  • Alibaba Group Holding Limited
  • Alpine Quantum Technologies GmbH
  • Amazon Web Services Inc.
  • Amgen Inc.
  • Anyon Systems Inc.
  • Artiste-qb.net
  • Atom Computing
  • Atos Quantum
  • Atos SE
  • Avago Technologies
  • Baidu
  • Biogen Inc.
  • Black Brane Systems
  • Booz Allen Hamilton Inc.
  • BT Group
  • Cambridge Quantum Computing Ltd. (CQC)
  • Ciena Corporation
  • Cisco Systems
  • CyOptics Inc.
  • D-Wave Systems Inc.
  • Delft Circuits
  • DELL Technologies Inc.
  • Eagle Power Technologies Inc
  • Ecosystem Contributors
  • EeroQ
  • Emcore Corporation
  • Enablence Technologies
  • Entanglement Partners
  • Everettian Technologies
  • EvolutionQ
  • Fathom Computing
  • Fujitsu Ltd
  • Fujitsu Ltd.
  • Google Inc.
  • H-Bar Consultants
  • Hewlett Packard Enterprise (HPE)
  • Horizon Quantum Computing
  • HPC Vendor Ecosystem
  • IBM Corporation
  • ID Quantique (IDQ)
  • InfiniQuant
  • Intel Corporation
  • IonQ
  • ISARA
  • KETS Quantum Security
  • Keysight Technologies
  • KPN
  • Leading HPC Companies
  • Lockheed Martin Corporation
  • Magiq
  • MagiQ Technologies Inc.
  • MDR Corporation
  • Microsoft Corporation
  • Mitsubishi Electric Corp.
  • Nano-Meta Technologies
  • NEC Corporation
  • Nokia Corporation
  • Nordic Quantum Computing Group (NQCG)
  • Northrup Grumman
  • NTT Docomo Inc.
  • NVIDIA
  • Optalysys Ltd.
  • Oxford Quantum Circuits
  • Post-Quantum (PQ Solutions)
  • ProteinQure
  • PsiQuantum
  • Q&I
  • Q-Ctrl
  • Qasky
  • QbitLogic
  • QC Ware Corp.
  • Qilimanjaro Quantum Hub
  • Qindom
  • Qnami
  • QSpice Labs
  • Qu & Co
  • Quandela
  • Quantika
  • Quantum Benchmark Inc.
  • Quantum Circuits Inc.
  • Quantum Computing Inc.
  • Quantum Factory GmbH
  • Quantum Motion Technologies
  • QuantumCTek
  • QuantumX
  • Qubitekk
  • Qubitera LLC
  • Quintessence Labs
  • Qulab
  • Qunnect
  • QuNu Labs
  • QxBranch LLC
  • Rackspace Inc.
  • Raytheon Company
  • Rigetti Computing
  • River Lane Research (RLR)
  • SeeQC
  • Silicon Quantum Computing
  • SK Telecom
  • Sparrow Quantum
  • Strangeworks
  • Tokyo Quantum Computing (TQC)
  • Toshiba Corporation
  • TundraSystems Global Ltd.
  • Turing
  • Volkswagen AG
  • Xanadu
  • Zapata Computing

For more information about this report visit https://www.researchandmarkets.com/research/h99gzj/quantum_and_high?w=5

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Cision View original content:http://www.prnewswire.com/news-releases/quantum–high-performance-computing-hybrid-computing-worldwide-market-report-2019-2023—companies-solutions-use-cases-and-applications-300787605.html

SOURCE Research and Markets

Poor Customer Experience (CX) Costs Financial Institutions $10 Billion Per Year

DUBLIN, January 31, 2019 /PRNewswire/ —

Fenergo Report Finds One in Three Financial Institutions Have Lost Customers Due to Inefficient or Slow Onboarding Processes 

Fenergo, the leading provider of digital Client Lifecycle Management (CLM) software solutions for financial institutions, today announced findings from the company’s industry trends report series, which found that “poor customer experience” is costing financial institutions $10 billion in revenue per year.

The report, the first of a three-part series, provides insights from global decision makers within large scale financial institutions towards customer experience within CLM, the end-to-end process management of a client relationship. Touching upon the need to improve the customer experience and obtain an enterprise-wide view of client and counterparty data, the report also highlights how financial organisations are being driven to digitally transform their entire customer journey, from the very first touchpoint to day-to-day trading.

Highlights from the industry trends report include:

  • One in three financial institutions have lost customers due to inefficient or slow onboarding (36%)
  • Improving data and document capture is ranked the highest critical business issue and pain point across the board (31%), as compared to complying with rising number of regulatory requirements (19%) and improving data management (18%)
  • 81% believe poor data management lengthens onboarding and negatively affects customer experience
  • 84% believe the client experience during the onboarding process impacts the lifetime value of the client
  • When it comes to the types of banks that have lost a client or prospect due to inefficient onboarding processes, commercial banking leads the charge (42%) followed by business banking (37%), investment banking (37%) and corporate banking (30%)

“This report clearly shows the impact that client onboarding inefficiencies and a hesitancy to digitalise processes have on the customer experience and how it directly effects financial institutions’ bottom line. With challenger banks disrupting the customer experience, the efficient handling of client data through digital transformation must be achieved by organisations if they are to gain a competitive advantage in today’s digital-first world,” said Marc Murphy, CEO, Fenergo

“2019 will be the year when the financial industry will be challenged to digitalise the entire customer journey end-to-end,” said Greg Watson, Global Head of Sales, Fenergo. “Medium-to-large scale businesses want to be onboarded in days not weeks, while retail consumers expect to open accounts in minutes not hours. Combine this with the global economic environment, it’s never been more important for financial institutions to deliver value to their customers and differentiate themselves from competitors. The adoption of a digital CLM solution will be imperative in achieving this.”  

The three related research reports are based on the findings from a global proprietary market survey commissioned by Fenergo. The survey engaged with 250 C-suite executives across commercial, business, investment/institutional and corporate banking institutions. Respondents were based in financial institutions of varying sizes, from 0-500 employees, to those boasting 10,000+ employees, with their primary location of operation spanning UK & Europe, Middle East and North Africa, Asia Pacific and North America.

Note to the editor: Please let us know if you would like to receive further details on the data.

Fenergo (http://www.fenergo.com)

Fenergo is the digital enabler of client and regulatory technology for financial services. It provides digital Client Lifecycle Management (CLM) software solutions for Financial Institutions including; Corporate & Institutional Banking, Commercial & Retail Banking, Asset Management & Asset Servicing, Private Banking & Wealth Management. Counting 70+ global Financial Institutions as clients, its award-winning CLM suite digitally transforms how Financial Institutions manage clients; from initial onboarding to KYC/AML and regulatory compliance, to data management and ongoing lifecycle KYC reviews and refreshes. Fenergo CLM empowers financial institutions to deliver a faster, compliant and digital customer experience while achieving a single client view across channels, products, business lines and jurisdictions.

Fenergo’s community-based approach to product development allows clients to collaborate on solution design on a global scale. Its rules-driven solution ensures compliance with multiple global and local regulatory frameworks including AML, KYC, SFTR, Tax (CRS, FATCA, 871M), OTC Derivatives (EMIR, Dodd-Frank, MiFID II, Margin Requirements) and data privacy rules (GDPR). It supports the collection, centralization and sharing of client and counterparty data and documentation across the institution and deploys an API-first approach to advanced integration with a host of external KYC, AML and entity data providers, KYC and industry utilities. The solution is underpinned by next generation Artificial Intelligence, Robotics Process Automation and Machine Learning technologies, using advanced OCR and NLP capabilities to extract information, expedite compliance and improve operational efficiencies.

SOURCE Fenergo

OpenText Reports Second Quarter Fiscal Year 2019 Financial Results

Total Revenues of $735 million

Annual Recurring Revenues of $530 million, up 3% Y/Y

Operating Cash Flows of $189 million, up 14% Y/Y

WATERLOO, Ontario, Jan. 31, 2019 /PRNewswire/ — Open Text Corporation (NASDAQ: OTEX), (TSX: OTEX), “The Information Company,” today announced its financial results for the second quarter ended December 31, 2018.

“OpenText delivered another strong quarter in Q2.  Total revenues grew to $735 million, Annual Recurring Revenues grew to $530 million, up 3%, year over year, with record Adjusted EBITDA margin of 42%,” said Mark J. Barrenechea, OpenText CEO & CTO.  “The OpenText Cloud continues to gain momentum as cloud revenues grew 5% and delivered 60% Adjusted Gross Margin. The OpenText Cloud is our greatest opportunity.”

Barrenechea further added, “Our strategy is Total Growth, where M&A will continue to be our largest growth driver, augmented with organic growth. Over the last 60 days, we have deployed approximately $386 million in capital and closed two cloud-based acquisitions.  With a highly talented team and an increasingly strategic position with customers, we are well positioned to scale OpenText to new levels in the coming years.”

“Q2 Fiscal 2019 financial performance continues to demonstrate our commitment to Total Growth, a focus on scaling productivity, solid execution of our acquisition framework, expanding margins and strengthening our balance sheet,” said Madhu Ranganathan, OpenText EVP & CFO. “During Q2 we demonstrated solid margin performance across the company, generating $308 million of Adjusted EBITDA, $189 million in Operating Cash Flows, an increase of 14% over the prior fiscal year, and $595 million of cash on the balance sheet.”

Financial Highlights for Q2 2019 with Year Over Year Comparisons

Summary of Quarterly Results

(in millions except per share data)

Q2 FY19

Q2 FY18

$ Change

% Change

(Y/Y)

Q2 FY19 in CC*

% Change in CC*

Revenues:

Cloud services and subscriptions

$219.2

$208.1

$11.1

5.3

%

$221.3

6.3

%

Customer support

310.4

308.1

2.3

0.7

%

314.9

2.2

%

Total annual recurring revenues**

$529.6

$516.2

$13.4

2.6

%

$536.2

3.9

%

License

132.8

135.2

(2.5)

(1.8)

%

134.8

(0.4)

%

Professional service and other

72.9

83.0

(10.1)

(12.2)

%

74.6

(10.1)

%

Total revenues

$735.2

$734.4

$0.8

0.1

%

$745.5

1.5

%

GAAP-based operating income

$173.9

$166.9

$7.0

4.2

%

Non-GAAP-based operating income (1)

$284.5

$268.2

$16.3

6.1

%

$285.5

6.5

%

GAAP-based EPS, diluted

$0.39

$0.32

$0.07

21.9

%

Non-GAAP-based EPS, diluted (1)(2)

$0.80

$0.76

$0.04

5.3

%

$0.80

5.3

%

GAAP-based net income attributable to OpenText

$104.4

$85.1

$19.3

22.7

%

Adjusted EBITDA (1)

$308.3

$290.5

$17.8

6.1

%

Operating cash flows

$189.1

$166.2

$22.9

13.8

%

 

Summary of YTD Results

(in millions except per share data)

FY19 YTD

FY18 YTD

$ Change

% Change

(Y/Y)

FY19 YTD in CC*

% Change in CC*

Revenues:

Cloud services and subscriptions

$427.3

$402.0

$25.3

6.3

%

$429.5

6.8

%

Customer support

621.9

603.5

18.4

3.1

%

626.3

3.8

%

Total annual recurring revenues**

$1,049.2

$1,005.4

$43.8

4.4

%

$1,055.7

5.0

%

License

209.6

213.5

(3.8)

(1.8)

%

212.4

(0.5)

%

Professional service and other

143.5

156.2

(12.6)

(8.1)

%

146.2

(6.4)

%

Total revenues

$1,402.4

$1,375.1

$27.3

2.0

%

$1,414.3

2.9

%

GAAP-based operating income

$273.2

$254.6

$18.6

7.3

%

Non-GAAP-based operating income (1)

$506.9

$469.9

$37.1

7.9

%

$506.0

7.7

%

GAAP-based EPS, diluted

$0.52

$0.46

$0.06

13.0

%

Non-GAAP-based EPS, diluted (1)(2)

$1.40

$1.30

$0.10

7.7

%

$1.40

7.7

%

GAAP-based net income attributable to OpenText

$140.8

$121.7

$19.0

15.7

%

Adjusted EBITDA (1)

$554.5

$510.9

$43.6

8.5

%

Operating cash flows

$360.5

$233.4

$127.1

54.4

%

(1) Please see note 2 “Use of Non-GAAP Financial Measures” below

(2) Please also see note 14 to the Company’s Fiscal 2018 Consolidated Financial Statements on Form 10-K. Reflective of the amount of net tax benefit arising from the internal reorganization assumed to be allocable to the current period based on the forecasted utilization period.

Note: Individual line items in tables may be adjusted by non-material amounts to enable totals to align to published financial statements.

*CC: Constant currency for this purpose is defined as the current period reported revenues/expenses/earnings represented at the prior comparative period’s foreign exchange rate.

**Annual recurring revenue is defined as the sum of Cloud services and subscriptions revenue and Customer support revenue.

OpenText Quarterly Business Highlights

  • OpenText buys Liaison Technologies, Inc.
  • OpenText buys Catalyst Repository Systems, Inc.
  • 35 customer transactions over $1 million, 16 in the OpenText Cloud and 19 off-cloud
  • Financial, Consumer Goods, Services, Technology and Public Sector industries saw the most demand in cloud and license
  • Key customer wins in the quarter included Cannon Cochran Management Services, Equifax Inc., Hershey Software, Hydro Quebec, International Committee of the Red Cross, MetaSource, Philips Radiation and Oncology Systems, Repsol S.A., Rosneft Deutschland GmbH and Volkswagen Group of America
  • OpenText partners with Google Cloud to deliver Enterprise Information Management (EIM) on Google Cloud Platform
  • OpenText named a leader in IDC MarketScape Vendor Assessment for Multi-Enterprise Supply Chain Commerce Network
  • OpenText software now available on Salesforce AppExchange

Dividend Program Highlights

As part of our quarterly, non-cumulative cash dividend program, the Board declared on January 30, 2019 a cash dividend of $0.1518 per common share. The record date for this dividend is March 1, 2019 and the payment date is March 22, 2019. Future declarations of dividends and the establishment of future record and payment dates are subject to the final determination and discretion of the Board of Directors.

Summary of Quarterly Results

Q2 FY19

Q1 FY19

Q2 FY18

% Change
(Q2 FY19 vs Q1 FY19)

% Change
(Q2 FY19 vs Q2 FY18)

Revenue (million)

$735.2

$667.2

$734.4

10.2

%

0.1

%

GAAP-based gross margin

69.0

%

66.1

%

67.3

%

290

bps

170

bps

GAAP-based EPS, diluted

$0.39

$0.13

$0.32

200.0

%

21.9

%

Non-GAAP-based gross margin (1)

75.7

%

73.4

%

73.9

%

230

bps

180

bps

Non-GAAP-based EPS, diluted (1)(2)

$0.80

$0.60

$0.76

33.3

%

5.3

%

(1) Please see note 2 “Use of Non-GAAP Financial Measures” below

(2) Please also see note 14 to the Company’s Fiscal 2018 Consolidated Financial Statements on Form 10-K. Reflective of the amount of net tax benefit arising from the internal reorganization assumed to be allocable to the current period based on the forecasted utilization period.

Conference Call Information

The public is invited to listen to the earnings conference call today at 5:00 p.m. ET (2:00 p.m. PT) by dialing 1-800-319-4610 (toll-free) or +1-604-638-5340 (international). Please dial-in 10 minutes ahead of time to ensure proper connection. Alternatively, a live webcast of the earnings conference call will be available on the Investor Relations section of the Company’s website at http://investors.opentext.com/investor-events-and-presentations.

A replay of the call will be available beginning January 31, 2019 at 7:00 p.m. ET through 11:59 p.m. on February 14, 2019 and can be accessed by dialing 1-855-669-9658 (toll-free) or +1-604-674-8052 (international) and using passcode 2854 followed by the number sign.

Please see below note (2) for a reconciliation of U.S. GAAP-based financial measures used in this press release, to non-U.S. GAAP-based financial measures.

About OpenText

OpenText, The Information Company™, a market leader in Enterprise Information Management software and solutions, enabling companies to manage, leverage, secure and gain insight into their enterprise information, on premises or in the cloud. For more information about OpenText (NASDAQ/TSX: OTEX) visit www.opentext.com.

Cautionary Statement Regarding Forward-Looking Statements

Certain statements in this press release, including statements about the focus of Open Text Corporation (“OpenText” or “the Company”) in our fiscal year ending June 30, 2019 (Fiscal 2019) on growth in earnings and cash flows, creating value through investments in broader Enterprise Information Management (EIM) capabilities, distribution, the Company’s presence in the cloud and in growth markets, expected growth in our revenue lines, total growth from acquisitions, innovation and organic initiatives, and distribution expansion, the focus on recurring revenues, improving efficiency, expanding cash flow and strengthening the business, adjusted operating income and cash flow, its financial condition, the adjusted operating margin target range, results of operations and earnings, announced acquisitions, ongoing tax matters, the integration of the acquired businesses, expected timing, charges and savings related to restructuring activities, declaration of quarterly dividends, future tax rates, new platform and product offerings, scaling OpenText to new levels in Fiscal 2019 and beyond, the anticipated size, benefits and timing related to our restructuring plan, and other matters, may contain words such as “anticipates”, “expects”, “intends”, “plans”, “believes”, “seeks”, “estimates”, “may”, “could”, “would”, “might”, “will” and variations of these words or similar expressions are considered forward-looking statements or information under applicable securities laws. In addition, any information or statements that refer to expectations, beliefs, plans, projections, objectives, performance or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking, and based on our current expectations, forecasts and projections about the operating environment, economies and markets in which we operate. Forward-looking statements reflect our current estimates, beliefs and assumptions, which are based on management’s perception of historic trends, current conditions and expected future developments, as well as other factors it believes are appropriate in the circumstances, such as certain assumptions about the economy, as well as market, financial and operational assumptions. Management’s estimates, beliefs and assumptions are inherently subject to significant business, economic, competitive and other uncertainties and contingencies regarding future events and, as such, are subject to change. We can give no assurance that such estimates, beliefs and assumptions will prove to be correct. Such forward-looking statements involve known and unknown risks, uncertainties and other factors and assumptions that may cause the actual results, performance or achievements to differ materially. Such factors include, but are not limited to: (i) the future performance, financial and otherwise, of OpenText; (ii) the ability of OpenText to bring new products and services to market and to increase sales; (iii) the strength of the Company’s product development pipeline; (iv) the Company’s growth and profitability prospects; (v) the estimated size and growth prospects of the EIM market including expected growth in the Artificial Intelligence market; (vi) the Company’s competitive position in the EIM market and its ability to take advantage of future opportunities in this market; (vii) the benefits of the Company’s products and services to be realized by customers; (viii) the demand for the Company’s products and services and the extent of deployment of the Company’s products and services in the EIM marketplace; (ix) downward pressure on our share price and dilutive effect of future sales or issuances of equity securities (including in connection with future acquisitions); (x) the Company’s financial condition and capital requirements; and (xi) statements about the impact of product releases. The risks and uncertainties that may affect forward-looking statements include, but are not limited to: (i) integration of acquisitions and related restructuring efforts, including the quantum of restructuring charges and the timing thereof; (ii) the potential for the incurrence of or assumption of debt in connection with acquisitions and the impact on the ratings or outlooks of rating agencies on the Company’s outstanding debt securities; (iii) the possibility that the Company may be unable to meet its future reporting requirements under the U.S. Securities Exchange Act of 1934, as amended, and the rules promulgated thereunder, or applicable Canadian securities regulation; (iv) the risks associated with bringing new products and services to market; (v) failure to comply with privacy laws and regulations that are extensive, open to various interpretations and complex to implement including General Data Protection Regulation (GDPR) and Country by Country Reporting (CBCR); (vi) fluctuations in currency exchange rates; (vii) delays in the purchasing decisions of the Company’s customers; (viii) the competition the Company faces in its industry and/or marketplace; (ix) the final determination of litigation, tax audits (including tax examinations in the United States and elsewhere) and other legal proceedings; (x) potential exposure to greater than anticipated tax liabilities or expenses, including with respect to changes in Canadian, U.S. or international tax regimes including the new tax reform legislation enacted through the Tax Cuts and Jobs Act in the United States; (xi) the possibility of technical, logistical or planning issues in connection with the deployment of the Company’s products or services; (xii) the continuous commitment of the Company’s customers; and (xiii) demand for the Company’s products and services. For additional information with respect to risks and other factors which could occur, see the Company’s Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and other securities filings with the Securities and Exchange Commission (SEC) and other securities regulators. Readers are cautioned not to place undue reliance upon any such forward-looking statements, which speak only as of the date made. Unless otherwise required by applicable securities laws, the Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

OTEX-F

For more information, please contact:

Greg Secord
Vice President, Investor Relations
Open Text Corporation
415-963-0825
investors@opentext.com

Copyright ©2019 Open Text. OpenText is a trademark or registered trademark of Open Text. The list of trademarks is not exhaustive of other trademarks. Registered trademarks, product names, company names, brands and service names mentioned herein are property of Open Text. All rights reserved. For more information, visit: http://www.opentext.com/who-we-are/copyright-information

 

OPEN TEXT CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

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

December 31, 2018

June 30, 2018

ASSETS

(unaudited)

Cash and cash equivalents

$

595,069

$

682,942

Accounts receivable trade, net of allowance for doubtful accounts of $16,256 as of December 31, 2018 and $9,741 as of June 30, 2018

482,289

487,956

Contract assets

13,607

Income taxes recoverable

39,388

55,623

Prepaid expenses and other current assets

82,188

101,059

Total current assets

1,212,541

1,327,580

Property and equipment

246,726

264,205

Long-term contract assets

11,804

Goodwill

3,732,669

3,580,129

Acquired intangible assets

1,284,299

1,296,637

Deferred tax assets

1,085,272

1,122,729

Other assets

124,414

111,267

Deferred charges

38,000

Long-term income taxes recoverable

31,678

24,482

Total assets

$

7,729,403

$

7,765,029

LIABILITIES AND SHAREHOLDERS’ EQUITY

Current liabilities:

Accounts payable and accrued liabilities

$

282,870

$

302,154

Current portion of long-term debt

10,000

10,000

Deferred revenues

572,915

644,211

Income taxes payable

45,680

38,234

Total current liabilities

911,465

994,599

Long-term liabilities:

Accrued liabilities

53,023

52,827

Deferred credits

2,727

Pension liability

65,265

65,719

Long-term debt

2,607,706

2,610,523

Deferred revenues

45,538

69,197

Long-term income taxes payable

172,641

172,241

Deferred tax liabilities

87,753

79,938

Total long-term liabilities

3,031,926

3,053,172

Shareholders’ equity:

Share capital and additional paid-in capital

268,569,471 and 267,651,084 Common Shares issued and outstanding at December 31, 2018 and June 30, 2018, respectively; authorized Common Shares: unlimited

1,731,299

1,707,073

Accumulated other comprehensive income

25,971

33,645

Retained earnings

2,056,831

1,994,235

Treasury stock, at cost (816,704 shares at December 31, 2018 and 690,336 shares at June 30, 2018, respectively)

(29,241)

(18,732)

Total OpenText shareholders’ equity

3,784,860

3,716,221

Non-controlling interests

1,152

1,037

Total shareholders’ equity

3,786,012

3,717,258

Total liabilities and shareholders’ equity

$

7,729,403

$

7,765,029

 

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,

2018

2017

2018

2017

Revenues:

License

$

132,756

$

135,244

$

209,643

$

213,475

Cloud services and subscriptions

219,233

208,121

427,316

401,974

Customer support

310,354

308,070

621,905

603,474

Professional service and other

72,888

82,970

143,524

156,169

Total revenues

735,231

734,405

1,402,388

1,375,092

Cost of revenues:

License

3,655

4,587

7,527

7,547

Cloud services and subscriptions

88,698

90,485

176,401

174,619

Customer support

31,273

33,117

61,738

65,887

Professional service and other

56,030

64,886

112,826

124,314

Amortization of acquired technology-based intangible assets

48,366

47,128

95,843

91,088

Total cost of revenues

228,022

240,203

454,335

463,455

Gross profit

507,209

494,202

948,053

911,637

Operating expenses:

Research and development

75,753

80,123

153,223

157,697

Sales and marketing

126,193

129,151

246,375

251,766

General and administrative

52,198

48,954

103,122

97,856

Depreciation

23,834

22,071

47,688

40,949

Amortization of acquired customer-based intangible assets

45,919

46,268

91,795

90,057

Special charges

9,380

715

32,691

18,746

Total operating expenses

333,277

327,282

674,894

657,071

Income from operations

173,932

166,920

273,159

254,566

Other income (expense), net

378

5,547

1,900

15,771

Interest and other related expense, net

(33,613)

(34,404)

(68,144)

(68,215)

Income before income taxes

140,697

138,063

206,915

202,122

Provision for (recovery of) income taxes

36,236

53,146

66,086

80,515

Net income for the period

$

104,461

$

84,917

$

140,829

$

121,607

Net (income) loss attributable to non-controlling interests

(29)

194

(73)

100

Net income attributable to OpenText

$

104,432

$

85,111

$

140,756

$

121,707

Earnings per share—basic attributable to OpenText

$

0.39

$

0.32

$

0.52

$

0.46

Earnings per share—diluted attributable to OpenText

$

0.39

$

0.32

$

0.52

$

0.46

Weighted average number of Common Shares outstanding—basic

268,524

265,504

268,276

265,153

Weighted average number of Common Shares outstanding—diluted

269,400

266,857

269,396

266,549

 

OPEN TEXT CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(In thousands of U.S. dollars)

(unaudited)

Three Months Ended December 31,

Six Months Ended December 31,

2018

2017

2018

2017

Net income for the period

$

104,461

$

84,917

$

140,829

$

121,607

Other comprehensive income (loss)—net of tax:

Net foreign currency translation adjustments

(3,418)

(1,446)

(6,938)

(540)

Unrealized gain (loss) on cash flow hedges:

Unrealized gain (loss) – net of tax expense (recovery) effect of ($677) and ($60) for the three months ended December 31, 2018 and 2017, respectively; ($496) and $403 for the six months ended December 31, 2018 and 2017, respectively

(1,877)

(168)

(1,375)

1,117

(Gain) loss reclassified into net income – net of tax (expense) recovery effect of $169 and ($141) for the three months ended December 31, 2018 and 2017, respectively; $301 and ($428) for the six months ended December 31, 2018 and 2017, respectively

467

(391)

833

(1,188)

Actuarial gain (loss) relating to defined benefit pension plans:

Actuarial gain (loss) – net of tax expense (recovery) effect of ($519) and ($153) for the three months ended December 31, 2018 and 2017, respectively; ($213) and ($236) for the six months ended December 31, 2018 and 2017, respectively

(1,521)

(48)

(324)

(163)

Amortization of actuarial (gain) loss into net income – net of tax (expense) recovery effect of $72 and $43 for the three months ended December 31, 2018 and 2017, respectively; $145 and $85 for the six months ended December 31, 2018 and 2017, respectively

64

56

130

112

Release of unrealized gain on marketable securities – net of tax effect of nil

(617)

Total other comprehensive income (loss) net, for the period

(6,285)

(1,997)

(7,674)

(1,279)

Total comprehensive income

98,176

82,920

133,155

120,328

Comprehensive (income) loss attributable to non-controlling interests

(29)

194

(73)

100

Total comprehensive income attributable to OpenText

$

98,147

$

83,114

$

133,082

$

120,428

 

OPEN TEXT CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY

(In thousands of U.S. dollars and shares)

(unaudited)

Six Months Ended December 31, 2018

Common Shares and Additional Paid in Capital

Treasury Stock

Retained

Earnings

Accumulated  Other

Comprehensive

Income

Non-Controlling Interests

Total

Shares

Amount

Shares

Amount

Balance as of June 30, 2018

267,651

$

1,707,073

(691)

$

(18,732)

$

1,994,235

$

33,645

$

1,037

$

3,717,258

Adoption of ASU 2016-16 – cumulative effect

(26,780)

(26,780)

Adoption of Topic 606 – cumulative effect

29,786

29,786

Issuance of Common Shares

Under employee stock option plans

494

12,431

12,431

Under employee stock purchase plans

187

5,569

5,569

Share-based compensation

6,555

6,555

Purchase of treasury stock

(304)

(11,719)

(11,719)

Issuance of treasury stock

(70)

3

70

Dividends declared

($0.1518 per Common Share)

(40,466)

(40,466)

Other comprehensive income – net

(1,389)

(1,389)

Non-controlling interest

(625)

42

(583)

Net income for the quarter

36,324

44

36,368

Balance as of September 30, 2018

268,332

$

1,730,933

(992)

$

(30,381)

$

1,993,099

$

32,256

$

1,123

$

3,727,030

Issuance of Common Shares

Under employee stock option plans

62

1,740

1,740

Under employee stock purchase plans

175

5,696

5,696

Share-based compensation

6,885

6,885

Purchase of treasury stock

(370)

(12,815)

(12,815)

Issuance of treasury stock

(13,955)

545

13,955

Dividends declared
($0.1518 per Common Share)

(40,700)

(40,700)

Other comprehensive income – net

(6,285)

(6,285)

Net income for the quarter

104,432

29

104,461

Balance as of December 31, 2018

268,569

$

1,731,299

(817)

$

(29,241)

$

2,056,831

$

25,971

$

1,152

$

3,786,012

Six Months Ended December 31, 2017

Common Shares and Additional Paid in Capital

Treasury Stock

Retained

Earnings

Accumulated  Other

Comprehensive

Income

Non-Controlling Interests

Total

Shares

Amount

Shares

Amount

Balance as of June 30, 2017

264,060

$

1,613,454

(1,102)

$

(27,520)

$

1,897,624

$

48,800

$

961

$

3,533,319

Issuance of Common Shares

Under employee stock option plans

1,048

16,154

16,154

Under employee stock purchase plans

180

4,837

4,837

Share-based compensation

8,235

8,235

Issuance of treasury stock

(178)

9

178

Dividends declared
($0.1320 per Common Share)

(35,017)

(35,017)

Other comprehensive income – net

718

718

Net income for the quarter

36,596

94

36,690

Balance as of September 30, 2017

265,288

$

1,642,502

(1,093)

$

(27,342)

$

1,899,203

$

49,518

$

1,055

$

3,564,936

Issuance of Common Shares

Under employee stock option plans

145

$

3,374

$

$

$

$

$

3,374

Under employee stock purchase plans

193

5,275

5,275

Share-based compensation

7,158

7,158

Issuance of treasury stock

(8,092)

379

8,092

Dividends declared
($0.1320 per Common Share)

(34,811)

(34,811)

Other comprehensive income – net

(1,997)

(1,997)

Net income for the year

85,111

(194)

84,917

Balance as of December 31, 2017

265,626

$

1,650,217

(714)

$

(19,250)

$

1,949,503

$

47,521

$

861

$

3,628,852

 

OPEN TEXT CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands of U.S. dollars)

(unaudited)

Three Months Ended December 31,

Six Months Ended December 31,

2018

2017

2018

2017

Cash flows from operating activities:

Net income for the period

$

104,461

$

84,917

$

140,829

$

121,607

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization of intangible assets

118,119

115,467

235,326

222,094

Share-based compensation expense

6,885

7,158

13,440

15,393

Pension expense

1,109

834

2,254

1,869

Amortization of debt issuance costs

1,079

1,234

2,157

2,532

Amortization of deferred charges and credits

1,117

2,234

Loss on sale and write down of property and equipment

1,639

9,428

163

Release of unrealized gain on marketable securities to income

(841)

Deferred taxes

1,140

38,427

8,909

44,374

Share in net (income) loss of equity investees

(5,491)

(316)

(7,863)

196

Changes in operating assets and liabilities:

Accounts receivable

(40,327)

(54,620)

33,548

(49,458)

Contract assets

(8,054)

(13,400)

Prepaid expenses and other current assets

2,800

(2,575)

12,532

(5,383)

Income taxes and deferred charges and credits

4,763

(7,565)

17,324

1,583

Accounts payable and accrued liabilities

10,253

(8,023)

(29,748)

(72,499)

Deferred revenue

(11,748)

(10,366)

(69,151)

(48,846)

Other assets

2,475

497

4,919

(1,586)

Net cash provided by operating activities

189,103

166,186

360,504

233,432

Cash flows from investing activities:

Additions of property and equipment

(8,969)

(25,488)

(33,464)

(55,937)

Purchase of Liaison Technologies, Inc.

(311,285)

(311,285)

Purchase of Guidance Software net of cash acquired

(8,510)

(2,279)

(229,275)

Purchase of Covisint Corporation, net of cash acquired

(71,279)

Other investing activities

(5,369)

(3,855)

(6,373)

(8,061)

Net cash used in investing activities

(325,623)

(37,853)

(353,401)

(364,552)

Cash flows from financing activities:

Proceeds from issuance of long-term debt and revolver

200,000

Proceeds from issuance of Common Shares from exercise of stock options and ESPP

6,159

7,797

24,286

29,622

Repayment of long-term debt and revolver

(2,500)

(1,940)

(5,000)

(3,880)

Debt issuance costs

(322)

Purchase of treasury stock

(12,815)

(24,534)

Repurchase of non-controlling interest

(583)

Payments of dividends to shareholders

(40,700)

(34,811)

(81,166)

(69,828)

Net cash provided by (used in) financing activities

(49,856)

(28,954)

(87,319)

155,914

Foreign exchange gain (loss) on cash held in foreign currencies

(6,329)

(216)

(5,901)

7,546

Increase (decrease) in cash, cash equivalents and restricted cash during the period

(192,705)

99,163

(86,117)

32,340

Cash, cash equivalents and restricted cash at beginning of the period

790,579

379,387

683,991

446,210

Cash, cash equivalents and restricted cash at end of the period

$

597,874

$

478,550

$

597,874

$

478,550

Reconciliation of cash, cash equivalents and restricted cash:

December 31, 2018

December 31, 2017

Cash and cash equivalents

595,069

476,014

Restricted cash included in Other assets

2,805

2,536

Total Cash, cash equivalents and restricted cash

$

597,874

$

478,550

Notes

(1)

All dollar amounts in this press release are in U.S. Dollars unless otherwise indicated.

(2)

Use of Non-GAAP Financial Measures: In addition to reporting financial results in accordance with U.S. GAAP, the Company provides certain financial measures that are not in accordance with U.S. GAAP (Non-GAAP). These Non-GAAP financial measures have certain limitations in that they do not have a standardized meaning and thus the Company’s definition may be different from similar Non-GAAP financial measures used by other companies and/or analysts and may differ from period to period. Thus it may be more difficult to compare the Company’s financial performance to that of other companies. However, the Company’s management compensates for these limitations by providing the relevant disclosure of the items excluded in the calculation of these Non-GAAP financial measures both in its reconciliation to the U.S. GAAP financial measures and its consolidated financial statements, all of which should be considered when evaluating the Company’s results.

The Company uses these Non-GAAP financial measures to supplement the information provided in its consolidated financial statements, which are presented in accordance with U.S. GAAP. The presentation of Non-GAAP financial measures are not meant to be a substitute for financial measures presented in accordance with U.S. GAAP, but rather should be evaluated in conjunction with and as a supplement to such U.S. GAAP measures. OpenText strongly encourages investors to review its financial information in its entirety and not to rely on a single financial measure. The Company therefore believes that despite these limitations, it is appropriate to supplement the disclosure of the U.S. GAAP measures with certain Non-GAAP measures defined below.

Non-GAAP-based net income and Non-GAAP-based EPS, attributable to OpenText, are calculated as GAAP-based net income or earnings per share, attributable to OpenText, on a diluted basis, after giving effect to the amortization of acquired intangible assets, other income (expense), share-based compensation, and Special charges (recoveries), all net of tax and any tax benefits/expense items unrelated to current period income, as further described in the tables below. Non-GAAP-based gross profit is the arithmetical sum of GAAP-based gross profit and the amortization of acquired technology-based intangible assets and share-based compensation within cost of sales. Non-GAAP-based gross margin is calculated as Non-GAAP-based gross profit expressed as a percentage of total revenue. Non-GAAP-based income from operations is calculated as income from operations, excluding the amortization of acquired intangible assets, Special charges (recoveries), and share-based compensation expense.

Adjusted earnings (loss) before interest, taxes, depreciation and amortization (Adjusted EBITDA) is calculated as GAAP-based net income, attributable to OpenText, excluding interest income (expense), provision for income taxes, depreciation and amortization of acquired intangible assets, other income (expense), share-based compensation and Special charges (recoveries).

The Company’s management believes that the presentation of the above defined Non-GAAP financial measures provides useful information to investors because they portray the financial results of the Company before the impact of certain non-operational charges. The use of the term “non-operational charge” is defined for this purpose as an expense that does not impact the ongoing operating decisions taken by the Company’s management. These items are excluded based upon the way the Company’s management evaluates the performance of the Company’s business for use in the Company’s internal reports and are not excluded in the sense that they may be used under U.S. GAAP.

The Company does not acquire businesses on a predictable cycle, and therefore believes that the presentation of non-GAAP measures, which in certain cases adjust for the impact of amortization of intangible assets and the related tax effects that are primarily related to acquisitions, will provide readers of financial statements with a more consistent basis for comparison across accounting periods and be more useful in helping readers understand the Company’s operating results and underlying operational trends. Additionally, the Company has engaged in various restructuring activities over the past several years that have resulted in costs associated with reductions in headcount, consolidation of leased facilities and related costs, all which are recorded under the Company’s “Special Charges (recoveries)” caption on the Consolidated Statements of Income. Each restructuring activity is a discrete event based on a unique set of business objectives or circumstances, and each differs in terms of its operational implementation, business impact and scope, and the size of each restructuring plan can vary significantly from period to period. Therefore, the Company believes that the exclusion of these special charges (recoveries) will also better aid readers of financial statements in the understanding and comparability of the Company’s operating results and underlying operational trends.

In summary the Company believes the provision of supplemental Non-GAAP measures allow investors to evaluate the operational and financial performance of the Company’s core business using the same evaluation measures that management uses, and is therefore a useful indication of OpenText’s performance or expected performance of future operations and facilitates period-to-period comparison of operating performance (although prior performance is not necessarily indicative of future performance). As a result, the Company considers it appropriate and reasonable to provide, in addition to U.S. GAAP measures, supplementary Non-GAAP financial measures that exclude certain items from the presentation of its financial results.

The following charts provide (unaudited) reconciliations of U.S. GAAP-based financial measures to Non-U.S. GAAP-based financial measures for the following periods presented. Results for reporting periods commencing July 1, 2018 are presented under the new Topic 606 revenue standard, while prior period results continue to be reported under the previous standard. For more details relating to our adoption of Topic 606 please see Note 1 “Basis of Presentation” and Note 3 “Revenues” to our Condensed Consolidated Financial Statements on Form 10-Q.

 

Reconciliation of selected GAAP-based measures to Non-GAAP-based measures

for the three months ended December 31, 2018.

(In thousands except for per share amounts)

Three Months Ended December 31, 2018

GAAP-based

Measures

GAAP-based Measures
% of Total Revenue

Adjustments

Note

Non-GAAP-based

Measures

Non-GAAP-based Measures

% of Total Revenue

Cost of revenues

Cloud services and subscriptions

$

88,698

$

(265)

(1)

$

88,433

Customer support

31,273

(271)

(1)

31,002

Professional service and other

56,030

(358)

(1)

55,672

Amortization of acquired technology-based intangible assets

48,366

(48,366)

(2)

GAAP-based gross profit and gross margin (%) /
Non-GAAP-based gross profit and gross margin (%)

507,209

69.0

%

49,260

(3)

556,469

75.7

%

Operating expenses

Research and development

75,753

(994)

(1)

74,759

Sales and marketing

126,193

(1,615)

(1)

124,578

General and administrative

52,198

(3,382)

(1)

48,816

Amortization of acquired customer-based intangible assets

45,919

(45,919)

(2)

Special charges (recoveries)

9,380

(9,380)

(4)

GAAP-based income from operations / Non-GAAP-based income from operations

173,932

110,550

(5)

284,482

Other income (expense), net

378

(378)

(6)

Provision for (recovery of) income taxes

36,236

(1,114)

(7)

35,122

GAAP-based net income / Non-GAAP-based net income, attributable to OpenText

104,432

111,286

(8)

215,718

GAAP-based earnings per share / Non-GAAP-based earnings per share-diluted, attributable to OpenText

$

0.39

$

0.41

(8)

$

0.80

(1)

Adjustment relates to the exclusion of share-based compensation expense from our Non-GAAP-based operating expenses as this expense is excluded from our internal analysis of operating results.

(2)

Adjustment relates to the exclusion of amortization expense from our Non-GAAP-based operating expenses as the timing and frequency of amortization expense is dependent on our acquisitions and is hence excluded from our internal analysis of operating results.

(3)

GAAP-based and Non-GAAP-based gross profit stated in dollars, and gross margin stated as a percentage of total revenue.

(4)

Adjustment relates to the exclusion of Special charges (recoveries) from our Non-GAAP-based operating expenses as Special charges (recoveries) are generally incurred in the periods relevant to an acquisition and include certain charges or recoveries that are not indicative or related to continuing operations, and are therefore excluded from our internal analysis of operating results.

(5)

GAAP-based and Non-GAAP-based income from operations stated in dollars.

(6)

Adjustment relates to the exclusion of Other income (expense) from our Non-GAAP-based operating expenses as Other income (expense) generally relates to the transactional impact of foreign exchange and is generally not indicative or related to continuing operations and is therefore excluded from our internal analysis of operating results. Other income (expense) also includes our share of income (losses) from our holdings in non-marketable securities investments as a limited partner. We do not actively trade equity securities in these privately held companies nor do we plan our ongoing operations based around any anticipated fundings or distributions from these investments. We exclude gains and losses on these investments as we do not believe they are reflective of our ongoing business and operating results.

(7)

Adjustment relates to differences between the GAAP-based tax provision rate of approximately 26% and a Non-GAAP-based tax rate of approximately 14%; these rate differences are due to the income tax effects of items that are excluded for the purpose of calculating Non-GAAP-based adjusted net income. Such excluded items include amortization, share-based compensation, Special charges (recoveries) and other income (expense), net. Also excluded are tax benefits/expense items unrelated to current period income such as changes in reserves for tax uncertainties and valuation allowance reserves, and “book to return” adjustments for tax return filings and tax assessments. Included is the amount of net tax benefits arising from the internal reorganization that occurred in Fiscal 2017 assumed to be allocable to the current period based on the forecasted utilization period. In arriving at our Non-GAAP-based tax rate of approximately 14%, we analyzed the individual adjusted expenses and took into consideration the impact of statutory tax rates from local jurisdictions incurring the expense.

(8)

Reconciliation of GAAP-based net income to Non-GAAP-based net income:

 

Three Months Ended December 31, 2018

Per share diluted

GAAP-based net income, attributable to OpenText

$

104,432

$

0.39

Add:

Amortization

94,285

0.35

Share-based compensation

6,885

0.03

Special charges (recoveries)

9,380

0.03

Other (income) expense, net

(378)

GAAP-based provision for (recovery of) income taxes

36,236

0.13

Non-GAAP-based provision for income taxes

(35,122)

(0.13)

Non-GAAP-based net income, attributable to OpenText

$

215,718

$

0.80

 

Reconciliation of Adjusted EBITDA

Three Months Ended December 31, 2018

GAAP-based net income, attributable to OpenText

$

104,432

Add:

Provision for (recovery of) income taxes

36,236

Interest and other related expense, net

33,613

Amortization of acquired technology-based intangible assets

48,366

Amortization of acquired customer-based intangible assets

45,919

Depreciation

23,834

Share-based compensation

6,885

Special charges (recoveries)

9,380

Other (income) expense, net

(378)

Adjusted EBITDA

$

308,287

 

Reconciliation of selected GAAP-based measures to Non-GAAP-based measures

for the six months ended December 31, 2018.

(In thousands except for per share amounts)

Six Months Ended December 31, 2018

GAAP-based

Measures

GAAP-based Measures
% of Total Revenue

Adjustments

Note

Non-GAAP-based

Measures

Non-GAAP-based Measures

% of Total Revenue

Cost of revenues

Cloud services and subscriptions

$

176,401

$

(582)

(1)

$

175,819

Customer support

61,738

(571)

(1)

61,167

Professional service and other

112,826

(882)

(1)

111,944

Amortization of acquired technology-based intangible assets

95,843

(95,843)

(2)

GAAP-based gross profit and gross margin (%) /
Non-GAAP-based gross profit and gross margin (%)

948,053

67.6

%

97,878

(3)

1,045,931

74.6

%

Operating expenses

Research and development

153,223

(2,353)

(1)

150,870

Sales and marketing

246,375

(3,416)

(1)

242,959

General and administrative

103,122

(5,636)

(1)

97,486

Amortization of acquired customer-based intangible assets

91,795

(91,795)

(2)

Special charges (recoveries)

32,691

(32,691)

(4)

GAAP-based income from operations / Non-GAAP-based income from operations

273,159

233,769

(5)

506,928

Other income (expense), net

1,900

(1,900)

(6)

Provision for (recovery of) income taxes

66,086

(4,656)

(7)

61,430

GAAP-based net income / Non-GAAP-based net income, attributable to OpenText

140,756

236,525

(8)

377,281

GAAP-based earnings per share / Non GAAP-based earnings per share-diluted, attributable to OpenText

$

0.52

$

0.88

(8)

$

1.40

(1)

Adjustment relates to the exclusion of share-based compensation expense from our Non-GAAP-based operating expenses as this expense is excluded from our internal analysis of operating results.

(2)

Adjustment relates to the exclusion of amortization expense from our Non-GAAP-based operating expenses as the timing and frequency of amortization expense is dependent on our acquisitions and is hence excluded from our internal analysis of operating results.

(3)

GAAP-based and Non-GAAP-based gross profit stated in dollars, and gross margin stated as a percentage of total revenue.

(4)

Adjustment relates to the exclusion of Special charges (recoveries) from our Non-GAAP-based operating expenses as Special charges (recoveries) are generally incurred in the periods relevant to an acquisition and include certain charges or recoveries that are not indicative or related to continuing operations, and are therefore excluded from our internal analysis of operating results.

(5)

GAAP-based and Non-GAAP-based income from operations stated in dollars.

(6)

Adjustment relates to the exclusion of Other income (expense) from our Non-GAAP-based operating expenses as Other income (expense) generally relates to the transactional impact of foreign exchange and is generally not indicative or related to continuing operations and is therefore excluded from our internal analysis of operating results. Other income (expense) also includes our share of income (losses) from our holdings in non-marketable securities investments as a limited partner. We do not actively trade equity securities in these privately held companies nor do we plan our ongoing operations based around any anticipated fundings or distributions from these investments. We exclude gains and losses on these investments as we do not believe they are reflective of our ongoing business and operating results.

(7)

Adjustment relates to differences between the GAAP-based tax provision rate of approximately 32% and a Non-GAAP-based tax rate of approximately 14%; these rate differences are due to the income tax effects of items that are excluded for the purpose of calculating Non-GAAP-based adjusted net income. Such excluded items include amortization, share-based compensation, Special charges (recoveries) and other income (expense), net. Also excluded are tax benefits/expense items unrelated to current period income such as changes in reserves for tax uncertainties and valuation allowance reserves, and “book to return” adjustments for tax return filings and tax assessments. Included is the amount of net tax benefits arising from the internal reorganization that occurred in Fiscal 2017 assumed to be allocable to the current period based on the forecasted utilization period. In arriving at our Non-GAAP-based tax rate of approximately 14%, we analyzed the individual adjusted expenses and took into consideration the impact of statutory tax rates from local jurisdictions incurring the expense.

(8)

Reconciliation of GAAP-based net income to Non-GAAP-based net income:

 

Six Months Ended December 31, 2018

Per share diluted 

GAAP-based net income, attributable to OpenText

$

140,756

$

0.52

Add:

Amortization

187,638

0.70

Share-based compensation

13,440

0.05

Special charges (recoveries)

32,691

0.12

Other (income) expense, net

(1,900)

(0.01)

GAAP-based provision for (recovery of) income taxes

66,086

0.25

Non-GAAP based provision for income taxes

(61,430)

(0.23)

Non-GAAP-based net income, attributable to OpenText

$

377,281

$

1.40

Reconciliation of Adjusted EBITDA

Six Months Ended December 31, 2018

GAAP-based net income, attributable to OpenText

$

140,756

Add:

Provision for (recovery of) income taxes

66,086

Interest and other related expense, net

68,144

Amortization of acquired technology-based intangible assets

95,843

Amortization of acquired customer-based intangible assets

91,795

Depreciation

47,688

Share-based compensation

13,440

Special charges (recoveries)

32,691

Other (income) expense, net

(1,900)

Adjusted EBITDA

$

554,543

 

Reconciliation of selected GAAP-based measures to Non-GAAP-based measures

for the three months ended September 30, 2018.

(In thousands except for per share amounts)

Three Months Ended September 30, 2018

GAAP-based

Measures

GAAP-based Measures
% of Total Revenue

Adjustments

Note

Non-GAAP-based

Measures

Non-GAAP-based Measures

% of Total Revenue

Cost of revenues

Cloud services and subscriptions

$

87,703

$

(317)

(1)

$

87,386

Customer support

30,465

(300)

(1)

30,165

Professional service and other

56,796

(524)

(1)

56,272

Amortization of acquired technology-based intangible assets

47,477

(47,477)

(2)

GAAP-based gross profit and gross margin (%) /
Non-GAAP-based gross profit and gross margin (%)

440,844

66.1

%

48,618

(3)

489,462

73.4

%

Operating expenses

Research and development

77,470

(1,359)

(1)

76,111

Sales and marketing

120,182

(1,801)

(1)

118,381

General and administrative

50,924

(2,254)

(1)

48,670

Amortization of acquired customer-based intangible assets

45,876

(45,876)

(2)

Special charges (recoveries)

23,311

(23,311)

(4)

GAAP-based income from operations / Non-GAAP-based income from operations

99,227

123,219

(5)

222,446

Other income (expense), net

1,522

(1,522)

(6)

Provision for (recovery of) income taxes

29,850

(3,542)

(7)

26,308

GAAP-based net income / Non-GAAP-based net income, attributable to OpenText

36,324

125,239

(8)

161,563

GAAP-based earnings per share / Non-GAAP-based earnings per share-diluted, attributable to OpenText

$

0.13

$

0.47

(8)

$

0.60

(1)

Adjustment relates to the exclusion of share-based compensation expense from our Non-GAAP-based operating expenses as this expense is excluded from our internal analysis of operating results.

(2)

Adjustment relates to the exclusion of amortization expense from our Non-GAAP-based operating expenses as the timing and frequency of amortization expense is dependent on our acquisitions and is hence excluded from our internal analysis of operating results.

(3)

GAAP-based and Non-GAAP-based gross profit stated in dollars, and gross margin stated as a percentage of total revenue.

(4)

Adjustment relates to the exclusion of Special charges (recoveries) from our Non-GAAP-based operating expenses as Special charges (recoveries) are generally incurred in the periods relevant to an acquisition and include certain charges or recoveries that are not indicative or related to continuing operations, and are therefore excluded from our internal analysis of operating results.

(5)

GAAP-based and Non-GAAP-based income from operations stated in dollars.

(6)

Adjustment relates to the exclusion of Other income (expense) from our Non-GAAP-based operating expenses as Other income (expense) generally relates to the transactional impact of foreign exchange and is generally not indicative or related to continuing operations and is therefore excluded from our internal analysis of operating results. Other income (expense) also includes our share of income (losses) from our holdings in non-marketable securities investments as a limited partner. We do not actively trade equity securities in these privately held companies nor do we plan our ongoing operations based around any anticipated fundings or distributions from these investments. We exclude gains and losses on these investments as we do not believe they are reflective of our ongoing business and operating results.

(7)

Adjustment relates to differences between the GAAP-based tax provision rate of approximately 45% and a Non-GAAP-based tax rate of approximately 14%; these rate differences are due to the income tax effects of items that are excluded for the purpose of calculating Non-GAAP-based adjusted net income. Such excluded items include amortization, share-based compensation, Special charges (recoveries) and other income (expense), net. Also excluded are tax benefits/expense items unrelated to current period income such as changes in reserves for tax uncertainties and valuation allowance reserves, and “book to return” adjustments for tax return filings and tax assessments. Included is the amount of net tax benefits arising from the internal reorganization that occurred in Fiscal 2017 assumed to be allocable to the current period based on the forecasted utilization period. In arriving at our Non-GAAP-based tax rate of approximately 14%, we analyzed the individual adjusted expenses and took into consideration the impact of statutory tax rates from local jurisdictions incurring the expense.

(8)

Reconciliation of GAAP-based net income to Non-GAAP-based net income:

 

Three Months Ended September 30, 2018

Per share diluted

GAAP-based net income, attributable to OpenText

$

36,324

$

0.13

Add:

Amortization

93,353

0.35

Share-based compensation

6,555

0.02

Special charges (recoveries)

23,311

0.09

Other (income) expense, net

(1,522)

(0.01)

GAAP-based provision for (recovery of) income taxes

29,850

0.11

Non-GAAP-based provision for income taxes

(26,308)

(0.09)

Non-GAAP-based net income, attributable to OpenText

$

161,563

$

0.60

 

Reconciliation of Adjusted EBITDA

Three Months Ended September 30, 2018

GAAP-based net income, attributable to OpenText

$

36,324

Add:

Provision for (recovery of) income taxes

29,850

Interest and other related expense, net

34,531

Amortization of acquired technology-based intangible assets

47,477

Amortization of acquired customer-based intangible assets

45,876

Depreciation

23,854

Share-based compensation

6,555

Special charges (recoveries)

23,311

Other (income) expense, net

(1,522)

Adjusted EBITDA

$

246,256

 

Reconciliation of selected GAAP-based measures to Non-GAAP-based measures

for the three months ended December 31, 2017.

(In thousands except for per share amounts)

Three Months Ended December 31, 2017

GAAP-based

Measures

GAAP-based Measures
% of Total Revenue

Adjustments

Note

Non-GAAP-based

Measures

Non-GAAP-based Measures

% of Total Revenue

Cost of revenues

Cloud services and subscriptions

$

90,485

$

(462)

(1)

$

90,023

Customer support

33,117

(327)

(1)

32,790

Professional service and other

64,886

(603)

(1)

64,283

Amortization of acquired technology-based intangible assets

47,128

(47,128)

(2)

GAAP-based gross profit and gross margin (%) /
Non-GAAP-based gross profit and gross margin (%)

494,202

67.3

%

48,520

(3)

542,722

73.9

%

Operating expenses

Research and development

80,123

(1,587)

(1)

78,536

Sales and marketing

129,151

(2,095)

(1)

127,056

General and administrative

48,954

(2,084)

(1)

46,870

Amortization of acquired customer-based intangible assets

46,268

(46,268)

(2)

Special charges (recoveries)

715

(715)

(4)

GAAP-based income from operations / Non-GAAP-based income from operations

166,920

101,269

(5)

268,189

Other income (expense), net

5,547

(5,547)

(6)

Provision for (recovery of) income taxes

53,146

(22,095)

(7)

31,051

GAAP-based net income / Non-GAAP-based net income, attributable to OpenText

85,111

117,817

(8)

202,928

GAAP-based earnings per share / Non-GAAP-based earnings per share-diluted, attributable to OpenText

$

0.32

$

0.44

(8)

$

0.76

(1)

Adjustment relates to the exclusion of share-based compensation expense from our Non-GAAP-based operating expenses as this expense is excluded from our internal analysis of operating results.

(2)

Adjustment relates to the exclusion of amortization expense from our Non-GAAP-based operating expenses as the timing and frequency of amortization expense is dependent on our acquisitions and is hence excluded from our internal analysis of operating results.

(3)

GAAP-based and Non-GAAP-based gross profit stated in dollars, and gross margin stated as a percentage of total revenue.

(4)

Adjustment relates to the exclusion of Special charges (recoveries) from our Non-GAAP-based operating expenses as Special charges (recoveries) are generally incurred in the periods relevant to an acquisition and include certain charges or recoveries that are not indicative or related to continuing operations, and are therefore excluded from our internal analysis of operating results.

(5)

GAAP-based and Non-GAAP-based income from operations stated in dollars.

(6)

Adjustment relates to the exclusion of Other income (expense) from our Non-GAAP-based operating expenses as Other income (expense) generally relates to the transactional impact of foreign exchange and is generally not indicative or related to continuing operations and is therefore excluded from our internal analysis of operating results. Other income (expense) also includes our share of income (losses) from our holdings in non-marketable securities investments as a limited partner. We do not actively trade equity securities in these privately held companies nor do we plan our ongoing operations based around any anticipated fundings or distributions from these investments. We exclude gains and losses on these investments as we do not believe they are reflective of our ongoing business and operating results.

(7)

Adjustment relates to differences between the GAAP-based tax provision rate of approximately 38% and a Non-GAAP-based tax rate of approximately 13%; these rate differences are due to the income tax effects of items that are excluded for the purpose of calculating Non-GAAP-based adjusted net income. Such excluded items include amortization, share-based compensation, Special charges (recoveries) and other income (expense), net. Also excluded are tax benefits/expense items unrelated to current period income such as changes in reserves for tax uncertainties and valuation allowance reserves, and “book to return” adjustments for tax return filings and tax assessments. Included is the amount of net tax benefits arising from the internal reorganization that occurred in Fiscal 2017 assumed to be allocable to the current period based on the forecasted utilization period. In arriving at our Non-GAAP-based tax rate of approximately 13%, we analyzed the individual adjusted expenses and took into consideration the impact of statutory tax rates from local jurisdictions incurring the expense. In addition, as a result of the changes in US tax reform legislation that was enacted on December 22, 2017 through the Tax Cuts and Jobs Act, the Company reassessed its Non-GAAP-based tax rate to be approximately 14% for the six months ended December 31, 2017, down from 15%. Pursuant to this, the Non-GAAP-based tax rate of approximately 13% for the three months ended December 31, 2017 includes a one-time cumulative catch up of recoveries and charges, as though the Company’s Non-GAAP-based tax rate was 14% as of July 1, 2017.

(8)

Reconciliation of GAAP-based net income to Non-GAAP-based net income:

 

Three Months Ended December 31, 2017

Per share diluted

GAAP-based net income, attributable to OpenText

$

85,111

$

0.32

Add:

Amortization

93,396

0.35

Share-based compensation

7,158

0.03

Special charges (recoveries)

715

Other (income) expense, net

(5,547)

(0.02)

GAAP-based provision for (recovery of) income taxes

53,146

0.20

Non-GAAP-based provision for income taxes

(31,051)

(0.12)

Non-GAAP-based net income, attributable to OpenText

$

202,928

$

0.76

 

Reconciliation of Adjusted EBITDA

Three months ended December 31, 2017

GAAP-based net income, attributable to OpenText

$

85,111

Add:

Provision for (recovery of) income taxes

53,146

Interest and other related expense, net

34,404

Amortization of acquired technology-based intangible assets

47,128

Amortization of acquired customer-based intangible assets

46,268

Depreciation

22,071

Share-based compensation

7,158

Special charges (recoveries)

715

Other (income) expense, net

(5,547)

Adjusted EBITDA

$

290,454

 

Reconciliation of selected GAAP-based measures to Non-GAAP-based measures

for the six months ended December 31, 2017.

(In thousands except for per share amounts)

Six Months Ended December 31, 2017

GAAP-based

Measures

GAAP-based Measures
% of Total Revenue

Adjustments

Note

Non-GAAP-based

Measures

Non-GAAP-based Measures

% of Total Revenue

Cost of revenues:

Cloud services and subscriptions

$

174,619

$

(984)

(1)

$

173,635

Customer support

65,887

(656)

(1)

65,231

Professional service and other

124,314

(1,200)

(1)

123,114

Amortization of acquired technology-based intangible assets

91,088

(91,088)

(2)

GAAP-based gross profit and gross margin (%) /
Non-GAAP-based gross profit and gross margin (%)

911,637

66.3

%

93,928

(3)

1,005,565

73.1

%

Operating expenses

Research and development

157,697

(3,213)

(1)

154,484

Sales and marketing

251,766

(5,183)

(1)

246,583

General and administrative

97,856

(4,157)

(1)

93,699

Amortization of acquired customer-based intangible assets

90,057

(90,057)

(2)

Special charges (recoveries)

18,746

(18,746)

(4)

GAAP-based income from operations / Non-GAAP-based income from operations

254,566

215,284

(5)

469,850

Other income (expense), net

15,771

(15,771)

(6)

Provision for (recovery of) income taxes

80,515

(24,286)

(7)

56,229

GAAP-based net income / Non-GAAP-based net income, attributable to OpenText

121,707

223,799

(8)

345,506

GAAP-based earnings per share / Non GAAP-based earnings per share-diluted, attributable to OpenText

$

0.46

$

0.84

(8)

$

1.30

(1)

Adjustment relates to the exclusion of share-based compensation expense from our Non-GAAP-based operating expenses as this expense is excluded from our internal analysis of operating results.

(2)

Adjustment relates to the exclusion of amortization expense from our Non-GAAP-based operating expenses as the timing and frequency of amortization expense is dependent on our acquisitions and is hence excluded from our internal analysis of operating results.

(3)

GAAP-based and Non-GAAP-based gross profit stated in dollars, and gross margin stated as a percentage of total revenue.

(4)

Adjustment relates to the exclusion of Special charges (recoveries) from our Non-GAAP-based operating expenses as Special charges (recoveries) are generally incurred in the periods relevant to an acquisition and include certain charges or recoveries that are not indicative or related to continuing operations, and are therefore excluded from our internal analysis of operating results.

(5)

GAAP-based and Non-GAAP-based income from operations stated in dollars, and operating margin stated as a percentage of total revenue.

(6)

Adjustment relates to the exclusion of Other income (expense) from our Non-GAAP-based operating expenses as Other income (expense) generally relates to the transactional impact of foreign exchange and is generally not indicative or related to continuing operations and is therefore excluded from our internal analysis of operating results. Other income (expense) also includes our share of income (losses) from our holdings in non-marketable securities investments as a limited partner. We do not actively trade equity securities in these privately held companies nor do we plan our ongoing operations based around any anticipated fundings or distributions from these investments. We exclude gains and losses on these investments as we do not believe they are reflective of our ongoing business and operating results.

(7)

Adjustment relates to differences between the GAAP-based tax provision rate of approximately 40% and a Non-GAAP-based tax rate of approximately 14%; these rate differences are due to the income tax effects of items that are excluded for the purpose of calculating Non-GAAP-based adjusted net income. Such excluded items include amortization, share-based compensation, Special charges (recoveries) and other income (expense), net. Also excluded are tax benefits/expense items unrelated to current period income such as changes in reserves for tax uncertainties and valuation allowance reserves and “book to return” adjustments for tax return filings and tax assessments. Included is the amount of net tax benefits arising from the internal reorganization that occurred in Fiscal 2017 assumed to be allocable to the current period based on the forecasted utilization period. In arriving at our Non-GAAP-based tax rate of approximately 14%, we analyzed the individual adjusted expenses and took into consideration the impact of statutory tax rates from local jurisdictions incurring the expense. We also took into consideration changes in US tax reform legislation that was enacted on December 22, 2017 through the Tax Cuts and Jobs Act.

(8)

Reconciliation of GAAP-based net income to Non-GAAP-based net income:

 

Six Months Ended December 31, 2017

Per share diluted 

GAAP-based net income, attributable to OpenText

$

121,707

$

0.46

Add:

Amortization

181,145

0.68

Share-based compensation

15,393

0.06

Special charges (recoveries)

18,746

0.07

Other (income) expense, net

(15,771)

(0.06)

GAAP-based provision for (recovery of) income taxes

80,515

0.30

Non-GAAP based provision for income taxes

(56,229)

(0.21)

Non-GAAP-based net income, attributable to OpenText

$

345,506

$

1.30

 

Reconciliation of Adjusted EBITDA

Six Months Ended December 31, 2017

GAAP-based net income, attributable to OpenText

$

121,707

Add:

Provision for (recovery of) income taxes

80,515

Interest and other related expense, net

68,215

Amortization of acquired technology-based intangible assets

91,088

Amortization of acquired customer-based intangible assets

90,057

Depreciation

40,949

Share-based compensation

15,393

Special charges (recoveries)

18,746

Other (income) expense, net

(15,771)

Adjusted EBITDA

$

510,899

(3)

The following tables provide a composition of our major currencies for revenue and expenses, expressed as a percentage, for the three and six months ended December 31, 2018 and 2017:

 

Three Months Ended December 31, 2018

Three Months Ended December 31, 2017

Currencies

% of Revenue 

% of Expenses* 

% of Revenue 

% of Expenses* 

EURO

25

%

15

%

23

%

16

%

GBP

6

%

6

%

6

%

6

%

CAD

4

%

10

%

3

%

10

%

USD

57

%

51

%

58

%

52

%

Other

8

%

18

%

10

%

16

%

Total

100

%

100

%

100

%

100

%

 

Six Months Ended December 31, 2018

Six Months Ended December 31, 2017

Currencies

% of Revenue

% of Expenses* 

% of Revenue 

% of Expenses* 

EURO

24

%

15

%

22

%

15

%

GBP

6

%

6

%

6

%

6

%

CAD

4

%

11

%

4

%

11

%

USD

57

%

51

%

59

%

52

%

Other

9

%

17

%

9

%

16

%

Total

100

%

100

%

100

%

100

%

*

Expenses include all cost of revenues and operating expenses included within the Condensed Consolidated Statements of Income, except for amortization of intangible assets, share-based compensation and Special charges (recoveries).

 

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SOURCE Open Text Corporation

Derek Schoettle, CEO Of ZoomInfo, And John Landry, Serial Tech Entrepreneur And Investor, Named Babson College Entrepreneurs-in-Residence

WELLESLEY, Mass., Jan. 31, 2019 /PRNewswire/ — The Arthur M. Blank Center for Entrepreneurship at Babson College has announced that Derek Schoettle MBA’03, CEO of ZoomInfo, and John Landry 69′ MP’08, serial tech entrepreneur and investor, are new Entrepreneurs-in-Residence that will work with Babson’s emerging entrepreneurs on their ventures.

As CEO of ZoomInfo, Schoettle, whose background is in Artificial Intelligence and data analytics, is motivated to take the company from a leading sales and management product to a highly sophisticated customer engagement platform. He has significant experience with both new technologies and large-scale platforms, holding responsibility for go-to-market strategy, business operations, and customer success in his previous roles at IBM and Cloudant. He is engaged with a number of local startups and recently participated as a judge at the 2018 B.E.T.A. Challenge.

Self-described as a serial CTO, Landry has held numerous roles, including VP of Technology Strategy at IBM, where he developed IBM’s nascent internet strategy in the mid to late 1990s, and CTO at Lotus Development, where he led the Lotus Skunkworks to secretly develop Lotus Domino, the web-based version of Lotus Notes. Parlaying his software background into tech investing and mentoring, Landry has invested extensively as “Lead Dog” investor of Lead Dog Ventures, served on the boards of over 40 start-ups, and mentored teams as a TechStars mentor. As well, he has served as a Babson College Trustee.

“Derek and John bring incredible experience and deep tech industry knowledge to their role as Entrepreneurs-in-Residence. They continually demonstrate their passion and vision for what tech can be and do next,” said Debi Kleiman, Executive Director of the Blank Center for Entrepreneurship. “We are really excited to have these accomplished alums give their time and energy to support the next generation of Babson tech entrepreneurs.”

Schoettle and Landry are the two newest Entrepreneurs-in-Residence to join Babson’s cohort of executives, entrepreneurs, and investors who contribute their expertise to and share their perspectives with the community in varying ways. They will be kicking off their engagement with events and office hours at the Blank Center.

About Schoettle

Schoettle is CEO of ZoomInfo, the leading B2B contact database provider. He has more than 20 years of experience in technology and was the Chief Business Officer and General Manager of the Watson and Cloud Platform business at IBM prior to joining ZoomInfo. Schoettle has also held executive roles at Cloudant, acquired by IBM, Vertica Systems, acquired by HP, and Infocrossing and Intellireach, both acquired by Wipro. He holds an MBA from Babson College’s Olin Graduate School of Business and a B.A. from Dickinson College.

About Landry

Landry is a serial CTO, software entrepreneur, and active investor as Managing Director of Lead Dog Ventures. His past roles include VP of Technology Strategy at IBM, CTO at Lotus Development, acquired by IBM, and Executive VP of Development and CTO of Cullinet Software, acquired by Computer Associates, among many others. He recently was honoured with the 2018 Commonwealth Award for his significant contributions to Massachusetts’s technology ecosystem and holds a B.S. from Babson College.

About Babson College

Babson College is the educator, convener, and thought leader for Entrepreneurship of All Kinds(r). The top-ranked college for entrepreneurship education, Babson is a dynamic living and learning laboratory where students, faculty, and staff work together to address the real-world problems of business and society. We prepare the entrepreneurial leaders our world needs most: those with strong functional knowledge and the skills and vision to navigate change, accommodate ambiguity, surmount complexity, and motivate teams in a common purpose to make a difference in the world, and have an impact on organizations of all sizes and types. As we have for nearly a half-century, Babson continues to advance Entrepreneurial Thought & Action(r) as the most positive force on the planet for generating sustainable economic and social value.

About the Arthur M. Blank Center for Entrepreneurship at Babson College

The Arthur M. Blank Center for Entrepreneurship accelerates the practice of entrepreneurship by providing Babson’s emerging entrepreneurs with access to events, workshops, mentoring and competitions that enable them to test and refine their founder skills. The Butler Launch Pad is the hub of this entrepreneurial ecosystem, connecting our students and alumni with the broader business and entrepreneurial community through a series of programs and learning experiences that support our entrepreneurs along their journey. Included in these programs are two of Babson’s Signature Events: Rocket Pitch and B.E.T.A. Challenge, as well as the highly regarded Summer Venture Program that accelerates the top 15 student ventures at Babson each year.

Media Contacts: Michael Chmura
Public Relations Director 
mchmura@babson.edu 
Phone: 781-239-4549

This news release was issued on behalf of Newswise™. For more information, visit http://www.newswise.com.

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SOURCE Babson College

Zesty.ai wins Silver in Zurich’s Global Insurtech Competition

OAKLAND, Calif., Jan. 31, 2019 /PRNewswire/ — 

  • Zesty.ai has won Silver in the first ever global Zurich Innovation World Championship
  • Zurich is working together with zesty.ai to pilot its Artificial Intelligence enabled Property Risk Analytics services in North America first and potentially expanding around the globe
  • The Championship was launched in August 2018 and attracted more than 450 companies to compete at the country, regional and global levels

Attila Toth, Founder & CEO second from left, and Kumar Dhuvur, Founder & Head of Product third from left, honored during the awards ceremony at Zurich Development Center in Switzerland.

Zesty.ai was selected as the Silver Award winner by Zurich Insurance Group (Zurich) in the first ever Zurich Innovation World Championship for its work leveraging artificial intelligence to revolutionize risk underwriting and customer experience for Property and Casualty insurance. Zurich is a leading multi-line insurer with about 53,000 employees and presence in more than 210 countries. Zurich is the parent company of Zurich North America and Farmers Insurance.

Zesty.ai has developed an AI-based solution that can provide insurers with detailed and accurate property insights to improve underwriting, pricing and post-event response. Using satellite and drone imagery, information collected by aircraft, weather data and other structured data sources, zesty.ai has analyzed more than 115 billion data points on 140 million structures.

Group Chief Executive Officer Mario Greco said: “The Zurich Innovation World Championship underlines our ongoing quest to attract and retain the best and most innovative talent across the globe. We received applications from Argentina to Australia, demonstrating the breadth of talent, ideas and people who recognize the opportunity to work with and learn from Zurich. We are very excited to be working with our winners to develop cutting-edge new services, approaches and capabilities that will help us better meet the evolving needs of our customers, employees and other stakeholders globally.”

Zurich has started to pilot zesty.ai’s solutions in parallel with those offered by Chisel AI, the Gold Awardee, in North America. Upon successful completion of the pilot, Zurich and zesty.ai expect to expand the partnership to other regions around the globe.

“Chisel AI and zesty.ai represent the spirit of innovation that we continue to foster as we look for new ways to better serve our customers,” said Anurag Batta, head of Strategy, Innovation and Business Development for Zurich North America. “We look forward to working with both winners to bring innovative solutions to the market.”

Attila Toth, Founder & Chief Executive Officer of zesty.ai commented: “We are humbled by this award from Zurich, a much admired brand in global insurance.  We firmly believe that Artificial Intelligence will change the world more in the next decade than the Internet has in the past 25 years. We look forward to partnering with Zurich and bringing the power of AI to property insurance.”

The global round of the Zurich Innovation World Championship was judged by Zurich’s executive committee, who together decided on the four winners.  Chisel AI was the Gold winner, and LifeNome and Soldier.ly were named shared Bronze winners.  The companies were honored during an awards ceremony at Zurich’s headquarters in Switzerland.

Further information
Additional information on the Zurich Innovation World Championship, including profiles of the eight finalists and a recording of the awards ceremony is available at: https://www.zurich.com/en/campaigns/ziwc.

About zesty.ai
Zesty.ai leverages Artificial Intelligence to help the trillion-dollar global property insurance industry better assess risk.  We use the latest advancements in computer vision and deep learning on 115+Bn data points on residential and commercial properties to extract key building features to accurately model the potential impact of catastrophic and attritional loss events.  Leading insurance carriers and reinsurers partner with zesty.ai to underwrite risk more accurately, delight customers with a digital purchasing experience and manage inspections more cost-effectively.  Zesty.ai was recognized as the Most Innovative Insurtech Startup by Plug & Play in August 2018 and won the Silver Award from the Zurich Innovation World Championship in January 2019.

Media Contact
hello@zesty.ai
+1.650.999.9900

About Zurich
Zurich Insurance Group (Zurich) is a leading multi-line insurer that serves its customers in global and local markets. With about 53,000 employees, it provides a wide range of property and casualty, and life insurance products and services in more than 210 countries and territories. Zurich’s customers include individuals, small businesses, and mid-sized and large companies, as well as multinational corporations. The Group is headquartered in Zurich, Switzerland, where it was founded in 1872. The holding company, Zurich Insurance Group Ltd (ZURN), is listed on the SIX Swiss Exchange and has a level I American Depositary Receipt (ZURVY) program, which is traded over-the-counter on OTCQX. Further information about Zurich is available at www.zurich.com.

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SOURCE zesty.ai

Rover180 Invests in Artificial Intelligence Through Vemity Acquisition

INDIANAPOLIS, Jan. 31, 2019 /PRNewswire/ — Rover180 announced its acquisition of Vemity, an Indiana-based company specializing in artificial intelligence automation and machine learning.

Rover180

Rover180, a supply chain finance and factoring company, will leverage Vemity’s technology to cut costs associated with invoicing and accelerated payments for the $740 billion annual transportation industry. The integration of scalable machine learning also positions Rover180 to reduce time and effort associated with processes like three-way matching in payment processing.

“We pride ourselves on being at the forefront of innovation in the finance industry. By capitalizing on the advances happening with artificial intelligence, we can add smarts around accelerated payments for our clients,” said Eric Meek, Rover180 board member. “Vemity’s autonomous machine learning model harnesses often overlooked data to reduce manual work, improve invoice accuracy, and increase payment velocity for buyers and vendors along the supply chain. This move aligns so well with the ‘better, faster, more’ mentality of today’s consumers.”

Vemity launched in 2016 to bring the application of artificial intelligence to the masses, a stark contrast to other existing platforms designed for users with advanced machine learning skills. Vemity allows users to create learning models based on data sets optimized through the AI platform. The result creates robust information analyses and predictive automation for human tasks at a low monthly cost.

“The power of artificial intelligence is still widely untapped and undervalued, but the possibilities are limitless. We are thrilled to join Rover180 to become a leader in machine learning within the finance and transportation sectors. From day one we can bring efficiencies to millions of dollars in payables to benefit businesses across the United States. Opportunities like this are why we created Vemity,” said Brandon Boynton, Vemity CEO. 

The Vemity acquisition marks a strategic move for Rover180, which specializes in finance activities generated through supply chain payment technologies. Affiliate partner FreightRover LLC (www.freightrover.com) has signed on to offer Vemity’s AI platform to clients in its supply chain management technology suite.

About Rover180
Rover180 provides alternative supply chain finance and factoring programs that represent a “180 on traditional finance.” Headquartered in Indianapolis, Indiana, Rover180 leverages private capital and advanced technology to create flexible funding models that keep cash moving across today’s evolving supply chain. Learn more at www.rover180.com

About Vemity
Vemity makes artificial intelligence easy. Founded in 2016, Vemity brings accessibility and affordability to machine learning. The company’s platform allows developers to easily integrate AI and deep learning into projects without computer science or neural network theory knowledge. The technology helps businesses use existing developers to build AI, rather than expensive data scientists. The results drive efficiencies, revenue and market competitiveness. Learn more at www.vemity.com

Vemity Logo

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SOURCE Rover180

WIPO’s First "Technology Trends" Study Probes Artificial Intelligence: IBM and Microsoft Are Leaders Amid Recent Global Upsurge in AI Inventive Activity

GENEVA, January 31, 2019 /PRNewswire/ —

A new World Intellectual Property Organization (WIPO) flagship study has documented a massive recent surge in artificial intelligence-based inventions, with U.S.-based companies IBM and Microsoft leading the pack as AI has moved from the theoretical realm toward the global marketplace in recent years.

The first publication in the “WIPO Technology Trends series defines and measures innovations in artificial intelligence (AI), uncovering more than 340,000 AI-related patent applications and 1.6 million scientific papers published since AI first emerged in the 1950s, with the majority of all AI-related patent filings published since 2013.

This inaugural Technology Trends report provides a common information base on AI for policy and decision makers in government and business, as well as concerned citizens across the globe, who are grappling with the ramifications of a new technology that promises to upend many areas of economic, social and cultural activity.

“Patenting activity in the artificial intelligence realm is rising at a rapid pace, meaning we can expect a very significant number of new AI-based products, applications and techniques that will alter our daily lives – and also shape future human interaction with the machines we created,” said WIPO Director General Francis Gurry.

“AI’s ramifications for the future of human development are profound. The first step in maximizing the widespread benefit of AI, while addressing ethical, legal and regulatory challenges, is to create a common factual basis for understanding of artificial intelligence. In unveiling the first in our “WIPO Technology Trends” series, WIPO is pleased to contribute evidence-based projections, thereby informing global policymaking on the future of AI, its governance and the IP framework that supports it,” said Mr. Gurry.

  • AI-related patenting is growing rapidly, with more than half of the identified inventions published since 2013.
  • Companies represent 26 out of the top 30 AI patent applicants, with universities or public research organizations accounting for the remaining four.
  • United States-based IBM had the largest portfolio of AI patent applications with 8,290 inventions at the end of 2016, followed by U.S.-based Microsoft Corp. with 5,930. Rounding out the top five applicants are: Japan-based Toshiba Corp. (5,223), Samsung Group, of Republic of Korea (5,102) and NEC Group, of Japan (4,406).
  • Chinese organizations account for 3 of the 4 academic players featuring in the top 30.

https://www.wipo.int/pressroom/en/articles/2019/article_0001.html

Contact:
Samar Shamoon
samar.shamoon@wipo.int

Edward Harris
Edward.harris@wipo.int

SOURCE World Intellectual Property Organization (WIPO)