Reconciliation of selected GAAP-based measures to Non-GAAP-based measures
for the three months ended June 30, 2018.
(In thousands except for per share amounts)

Three Months Ended June 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

$

95,346

$

(310)

(1)

$

95,036

Customer support

34,232

(300)

(1)

33,932

Professional service and other

64,896

(516)

(1)

64,380

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 (%)

509,271

67.5

%

48,603

(3)

557,874

74.0

%

Operating expenses

Research and development

81,816

(1,453)

(1)

80,363

Sales and marketing

147,499

(2,552)

(1)

144,947

General and administrative

52,577

(1,990)

(1)

50,587

Amortization of acquired customer-based intangible assets

47,299

(47,299)

(2)

—

Special charges (recoveries)

7,821

(7,821)

(4)

—

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

149,358

109,718

(5)

259,076

Other income (expense), net

(8,938)

8,938

(6)

—

Provision for (recovery of) income taxes

43,182

(11,860)

(7)

31,322

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

61,723

130,516

(8)

192,239

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

$

0.23

$

0.49

(8)

$

0.72