https://seekingalpha.com/article/4819715-open-text-corporation-otex-presents-at-citis-2025-global-technology-media-and
So if you look at our business units, effectively, when you're doing something like training bots, you're talking to the CIO of General Motors or Coca-Cola or whatever. At the same time, it's probably not a good idea to also be selling software to mom and dad at Best Buy, right?
We can fool mom and dad but not c-level execs.
@15n AMC retained most employees from MF and OT. They seem to be having a great time at rocket, better pay and benefits probably.
What will happen to the BUs that get sold off? Will they lay everyone off and then sell? Or will you be imprisoned and laid off at the new company instead?
So does this mean we are still moving forward with how to save $1B, OT trusts OT campaign if BUs will be sold off?
"We did sell a mainframe unit several years ago that had like 85% margin.”
OOPS!
Pay attention to the timelines Mr. Jenkins shares throughout the interview. 1. The board had a plan in place to change the CEO after the FY ended. So they were already well into identifying Mark's replacement. Apparently, then, something happened whereby Mark who would have been aware there would be a transition, needed to be fired immediately. 2. The new CEO is a couple months out. That aligns with OpenText World. Expect them to be announced then. 3. Selling of business units is to be one each quarter, Jenkins expecting 2 this year. He is speaking in "fiscal year". This means the board is well underway in the selling off of non core businesses. They are working with buyers already. If you recall, several months ago a new board member was named, a woman, someone with M&A expertise. 3. Mr. Jenkins made it clear that the board is running the company. He pointed this out several times by underscoring that they named James M as interim because he is steady and that the interim CFO is a placeholder. Same for current "management" which for Jenkins refers to the senior leadership team. They are all placeholders following Jenkins directions. None of them other than Savinay who was named the official CTO, are who the board wants running the company. Most will be managed out when the new CEO and CFO take over.
An interview like this is deliberate. The board wants the market and analysts and employees to know the timelines for selling off parts of the non core company and that there is a new set of sheriffs who are in the final stages of selection coming in.
Also, internally, based on directions from the board, there is already positioning for these divestitures. Leaders have been quietly moved out of Micro Focus orgs into legacy OT roles. Expect more if that in the coming weeks and months.
AI ki-led the Cyberhype star.
To me, this sounds like all of Cyber (SMBC and enterprise) will be sold. Enterprise Cyber operated as a separate BU before the acquisition, so I can’t think it’s now core for OT. Like everyone, I just wonder when and what the terms will be.
From Grok, goodbye heritage MF products.
Analysis of the Article: OpenText's Presentation at Citi's 2025 Global Technology, Media and Communications Conference
The Seeking Alpha article covers OpenText Corporation's (OTEX) session at Citi's conference on September 4, 2025, moderated by Citi analyst Steven Enders. The presentation was led by P. Thomas Jenkins, OpenText's Executive Chair and Chief Strategy Officer (and former CEO). Due to the transitional nature of the discussion, the content is limited, focusing primarily on leadership changes rather than deep dives into financials, products, or strategy. Key excerpts from the transcript include Jenkins clarifying his role ("I actually used to be [CEO] about 10 years ago") and addressing the company's ongoing search for a permanent CEO and CFO. The session opens with Enders noting it has been a "transition time" for OpenText, prompting Jenkins to explain the planned CEO handover at fiscal year-end but an unexpected CFO departure tied to external circumstances (former CFO Chadwick Westlake's prior boss suffering a health issue, leading Westlake to return to Equitable Bank as CEO in July 2025).
No specific financial highlights, product updates, market outlooks, or forward-looking statements were detailed in the available transcript excerpt. Analyst reactions were minimal, with Enders probing on leadership expectations but no deeper Q&A insights provided. Overall, the article portrays OpenText in a period of flux, emphasizing stability under Jenkins' interim oversight rather than bold strategic announcements. This aligns with broader context: OpenText's FY2025 (ended June 30, 2025) saw total revenues decline 10.4% YoY to $5.17B, driven partly by the divestiture of its Application Modernization and Connectivity (AMC) business in May 2025, though cloud revenues grew modestly to $1.86B (up ~2% organic). ARR stood at $4.19B, with adjusted EBITDA margins at ~34%, reflecting cost discipline amid macroeconomic headwinds like delayed enterprise spending and tariffs.
The presentation underscores OpenText's challenges post its aggressive acquisition spree (e.g., $6B Micro Focus deal in 2023), which expanded its portfolio but strained integration and organic growth (near-flat at ~0%). Stock performance has lagged peers like Box (down 27% over five years vs. Box's 85% gain), prompting board scrutiny. However, the tone remains optimistic, with Jenkins highlighting the search for leaders to "enhance shareholder value."
### Predicted Go-Forward Strategy for OpenText
Based on the article's leadership focus, combined with OpenText's recent announcements, FY2025 results, and ongoing initiatives (e.g., from Q3 FY2025 earnings in May and the August 2025 leadership transition), OpenText's strategy will likely pivot toward simplification, AI-centric growth, and financial optimization. The company is in the midst of its three-year "OpenText 3.0" plan (launched FY2025), emphasizing "Information Reimagined" via cloud, AI, and security. Here's a breakdown of the predicted direction:
#### 1. Leadership Stabilization and Portfolio Streamlining
#### 2. AI-First Focus in Core Information Management
#### 3. Cloud and Recurring Revenue Growth
#### 4. Shareholder Returns and Risk Management
In summary, OpenText's strategy post-Citi presentation will center on "core refocus": divest non-essentials, double down on AI/cloud for 5–10% annual growth, and deliver 35%+ margins by FY2027. This addresses FY2025's revenue stall while leveraging its $5B+ scale and 120K+ customers. Success hinges on swift CEO hire and divestiture execution; expect updates at Q1 FY2026 earnings (October 2025).