10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

______________________

FORM 10-Q

______________________

ý QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended December 31, 2012.

OR

¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from                      to                     

Commission file number: 0-27544

______________________

OPEN TEXT CORPORATION

(Exact name of registrant as specified in its charter)

______________________

CANADA	98-0154400
(State or other jurisdiction of incorporation or organization)	(IRS Employer Identification No.)

275 Frank Tompa Drive, Waterloo, Ontario, Canada N2L 0A1

(Address of principal executive offices)

(519) 888-7111

(Registrant’s telephone number, including area code)

______________________

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  ý    No  ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    Yes  ý    No  ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer  ý    Accelerated filer  ¨    Non-accelerated filer  ¨ (Do not check if smaller reporting company) Smaller reporting company  ¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  ¨    No  ý

At January 21, 2013, there were 58,570,575 outstanding Common Shares of the registrant.

1

OPEN TEXT CORPORATION

TABLE OF CONTENTS

	Page No
PART I Financial Information:
Item 1. Financial Statements
Condensed Consolidated Balance Sheets as of December 31, 2012 (unaudited) and June 30, 2012	3
Condensed Consolidated Statements of Income - Three and Six Months Ended December 31, 2012 and 2011 (unaudited)	4
Condensed Consolidated Statements of Comprehensive Income - Three and Six Months Ended December 31, 2012 and 2011 (unaudited)	5
Condensed Consolidated Statements of Cash Flows - Six Months Ended December 31, 2012 and 2011 (unaudited)	6
Unaudited Notes to Condensed Consolidated Financial Statements	7
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	24
Item 3. Quantitative and Qualitative Disclosures about Market Risk	42
Item 4. Controls and Procedures	42
PART II Other Information:
Item 1A. Risk Factors	44
Item 5. Other Information	44
Item 6. Exhibits	45
Signatures	46

2

OPEN TEXT CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

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

	December 31, 2012			June 30, 2012
	(unaudited)
ASSETS
Cash and cash equivalents	$	367,258		$	559,747
Accounts receivable trade, net of allowance for doubtful accounts of $6,031 as of December 31, 2012 and $5,655 as of June 30, 2012 (note 3)	168,073			163,664
Income taxes recoverable (note 13)	19,845			17,849
Prepaid expenses and other current assets	45,157			44,011
Deferred tax assets (note 13)	14,101			4,003
Total current assets	614,434			789,274
Property and equipment (note 4)	83,135			81,157
Goodwill (note 5)	1,212,657			1,040,234
Acquired intangible assets (note 6)	428,361			312,563
Deferred tax assets (note 13)	141,736			115,128
Other assets (note 7)	22,659			23,739
Deferred charges (note 8)	62,095			68,653
Long-term income taxes recoverable (note 13)	12,128			13,545
Total assets	$	2,577,205		$	2,444,293
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable and accrued liabilities (note 9)	$	177,979		$	131,734
Current portion of long-term debt (note 10)	45,136			41,374
Deferred revenues	240,347			273,987
Income taxes payable (note 13)	13,037			27,806
Deferred tax liabilities (note 13)	1,203			1,612
Total current liabilities	477,702			476,513
Long-term liabilities:
Accrued liabilities (note 9)	19,144			14,247
Deferred credits (note 8)	8,950			10,086
Pension liability (note 11)	25,042			22,074
Long-term debt (note 10)	536,250			555,000
Deferred revenues	12,218			12,653
Long-term income taxes payable (note 13)	151,888			147,623
Deferred tax liabilities (note 13)	75,672			26,705
Total long-term liabilities	829,164			788,388
Shareholders’ equity:
Share capital (note 12)
58,570,575 and 58,358,990 Common Shares issued and outstanding at December 31, 2012 and June 30, 2012, respectively; Authorized Common Shares: unlimited	641,684			635,321
Additional paid-in capital	92,463			95,026
Accumulated other comprehensive income	42,661			44,364
Retained earnings	522,605			442,068
Treasury stock, at cost (610,878 and 793,494 shares at December 31, 2012 and at June 30, 2012, respectively)	(29,074		)	(37,387		)
Total shareholders’ equity	1,270,339			1,179,392
Total liabilities and shareholders’ equity	$	2,577,205		$	2,444,293

Guarantees and contingencies (note 18)

Related party transactions (note 21)

See accompanying Notes to Condensed Consolidated Financial Statements

3

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,
	2012			2011			2012			2011
Revenues:
License	$	76,125		$	89,703		$	131,781		$	154,731
Cloud services	46,151			—			91,035			—
Customer support	164,658			165,386			326,754			327,383
Professional service and other	65,246			66,367			128,804			127,388
Total revenues	352,180			321,456			678,374			609,502
Cost of revenues:
License	5,331			5,370			9,499			9,368
Cloud services	18,261			—			36,544			—
Customer support	28,277			28,468			54,100			54,737
Professional service and other	47,664			50,604			96,246			100,955
Amortization of acquired technology-based intangible assets (note 6)	23,191			21,253			46,973			42,043
Total cost of revenues	122,724			105,695			243,362			207,103
Gross profit	229,456			215,761			435,012			402,399
Operating expenses:
Research and development	38,718			42,652			78,624			86,110
Sales and marketing	67,977			68,451			132,492			133,331
General and administrative	30,005			25,126			58,138			50,887
Depreciation	6,105			5,634			12,214			10,892
Amortization of acquired customer-based intangible assets (note 6)	17,147			13,445			34,399			26,486
Special charges (note 16)	2,269			5,221			11,823			12,326
Total operating expenses	162,221			160,529			327,690			320,032
Income from operations	67,235			55,232			107,322			82,367
Other income (expense), net	1,541			2,637			1,470			11,949
Interest expense, net	(4,515		)	(3,607		)	(8,883		)	(6,393		)
Income before income taxes	64,261			54,262			99,909			87,923
Provision for income taxes (note 13)	3,153			6,819			19,372			5,494
Net income for the period	$	61,108		$	47,443		$	80,537		$	82,429
Earnings per share—basic (note 20)	$	1.04		$	0.82		$	1.38		$	1.43
Earnings per share—diluted (note 20)	$	1.04		$	0.81		$	1.37		$	1.41
Weighted average number of Common Shares outstanding—basic	58,503			57,846			58,473			57,642
Weighted average number of Common Shares outstanding—diluted	58,983			58,672			58,961			58,647

See accompanying Notes to Condensed Consolidated Financial Statements

4

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,
	2012			2011			2012			2011
Net income for the period	$	61,108		$	47,443		$	80,537		$	82,429
Other comprehensive income—net of tax:
Net foreign currency translation adjustments	(989		)	(1,354		)	(1,465		)	(11,972		)
Net unrealized gain (loss) on cash flow hedges	(1,453		)	3,132			491			(2,070		)
Net actuarial gain (loss) relating to defined benefit pension plans	(620		)	342			(729		)	(206		)
Total other comprehensive income (loss), net, for the period	$	(3,062	)	$	2,120		$	(1,703	)	$	(14,248	)
Total comprehensive income	$	58,046		$	49,563		$	78,834		$	68,181

5

OPEN TEXT CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands of U.S. dollars)

(unaudited)

	Six Months Ended December 31,
	2012			2011
Cash flows from operating activities:
Net income for the period	$	80,537		$	82,429
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization of intangible assets	93,586			79,421
Share-based compensation expense	6,276			8,241
Excess tax benefits on share-based compensation expense	(611		)	(495		)
Pension expense	470			306
Amortization of debt issuance costs	1,072			578
Amortization of deferred charges and credits	5,858			5,379
Loss on sale and write down of property and equipment	24			203
Deferred taxes	(1,152		)	(6,958		)
Impairment and other non cash charges	—			1,345
Changes in operating assets and liabilities:
Accounts receivable	20,406			(27		)
Prepaid expenses and other current assets	1,384			8,041
Income taxes	(13,888		)	2,883
Deferred charges and credits	(436		)	(14,653		)
Accounts payable and accrued liabilities	(20,620		)	(16,799		)
Deferred revenue	(36,738		)	(57,806		)
Other assets	289			(2,042		)
Net cash provided by operating activities	136,457			90,046
Cash flows from investing activities:
Additions of property and equipment	(9,917		)	(16,687		)
Purchase of patents	—			(193		)
Purchase of System Solutions Australia Pty Limited, net of cash acquired	(516		)	(1,524		)
Purchase of Operitel Corporation, net of cash acquired	—			(6,260		)
Purchase of Global 360 Holding Corp., net of cash acquired	—			(245,653		)
Purchase of EasyLink Services International Corporation, net of cash acquired	(315,331		)	—
Purchase consideration for prior period acquisitions	(431		)	(609		)
Net cash used in investing activities	(326,195		)	(270,926		)
Cash flows from financing activities:
Excess tax benefits on share-based compensation expense	611			495
Proceeds from issuance of Common Shares	6,402			11,261
Purchase of Treasury Stock	—			—
Proceeds from long-term debt and revolver	—			648,500
Repayment of long-term debt and revolver	(15,338		)	(333,856		)
Debt issuance costs	—			(9,309		)
Net cash provided by (used in) financing activities	(8,325		)	317,091
Foreign exchange gain (loss) on cash held in foreign currencies	5,574			(6,440		)
Increase (decrease) in cash and cash equivalents during the period	(192,489		)	129,771
Cash and cash equivalents at beginning of the period	559,747			284,140
Cash and cash equivalents at end of the period	$	367,258		$	413,911

Supplementary cash flow disclosures (note 19)

See accompanying Notes to Condensed Consolidated Financial Statements

6

OPEN TEXT CORPORATION

UNAUDITED NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

For the Three and Six Months Ended December 31, 2012

(Tabular amounts in thousands, except share and per share data)

NOTE 1—BASIS OF PRESENTATION

The accompanying condensed consolidated financial statements include the accounts of Open Text Corporation and our wholly-owned subsidiaries, collectively referred to as “OpenText” or the “Company”. All inter-company balances and transactions have been eliminated.

These condensed consolidated financial statements are expressed in U.S. dollars and are prepared in accordance with United States generally accepted accounting principles (U.S. GAAP). The information furnished reflects all adjustments necessary for a fair presentation of the results for the periods presented and includes the financial results of EasyLink Services International Corporation (EasyLink), with effect from July 2, 2012 (see note 17).

Use of estimates

The preparation of financial statements in conformity with U.S. GAAP requires us to make estimates, judgments and assumptions that affect the amounts reported in the condensed consolidated financial statements. These estimates, judgments and assumptions are evaluated on an ongoing basis. We base our estimates on historical experience and on various other assumptions that we believe are reasonable at that time, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from those estimates. In particular, significant estimates, judgments and assumptions include those related to: (i) revenue recognition, (ii) allowance for doubtful accounts, (iii) testing of goodwill for impairment, (iv) the valuation of acquired intangible assets, (v) the valuation of long-lived assets, (vi) the recognition of contingencies, (vii) restructuring accruals, (viii) acquisition accruals and pre-acquisition contingencies, (ix) asset retirement obligations, (x) the realization of investment tax credits, (xi) the valuation of stock options granted and liabilities related to share-based payments, including the valuation of our long-term incentive plan, (xii) the valuation of financial instruments, (xiii) the valuation of pension assets and obligations, and (xiv) accounting for income taxes.

Reclassifications

Cloud Services

Starting in the first quarter for the year ended June 30, 2013 (Fiscal 2013), in light of our acquisition of EasyLink on July 2, 2012, we adopted a policy to classify revenues and cost of revenues relating to "Cloud Services" as a separate line item within "Revenues" and "Cost of revenues", respectively, on the Condensed Consolidated Statements of Income. No prior period comparative figures have been adjusted to conform to current period presentation since such prior period amounts are not material. For a detailed explanation of  the products that make up our Cloud Services offerings please see our “Management's Discussion and Analysis of Financial Condition and Results of Operations” included under Part I, Item 2 to this Quarterly Report on Form 10-Q.

Research and Development Tax Credits

Non-refundable research and development tax credits are now being reflected as a component of "Income tax" expense on the Condensed Consolidated Statements of Income. Certain prior period comparative figures have been adjusted on the Condensed Consolidated Balance Sheets to conform to current period presentation. As of June 30, 2012, long-term “Deferred tax assets” have been increased from previously reported amounts by approximately $34.9 million, with a corresponding decrease to “Long-term income taxes recoverable”. There was no change to total assets, liabilities, or shareholders' equity as a result of this reclassification. The prior period comparative figures on the Condensed Consolidated Statements of Income have not been adjusted as the amounts are not material.

NOTE 2—NEW ACCOUNTING PRONOUNCEMENTS AND ACCOUNTING POLICY UPDATES

Recently Adopted Accounting Pronouncements

In June 2011, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update No. 2011-05, "Comprehensive Income (Topic 220)—Presentation of Comprehensive Income" (ASU 2011-05), to require an entity to present the total of comprehensive income, the components of net income, and the components of other comprehensive income either in a single continuous statement of comprehensive income or in two separate but consecutive statements. ASU 2011-05 eliminates the option to present the components of other comprehensive income as part of the statement of shareholders' equity.

7

In December 2011, the FASB issued Accounting Standards Update No. 2011-12, "Deferral of the Effective Date for Amendments to the Presentation of Reclassifications of Items Out of Accumulated Other Comprehensive Income (AOCI) in Accounting Standards Update No. 2011-05" (ASU 2011-12), which indefinitely defers the requirement that companies present reclassification adjustments for each component of AOCI in both net income and other comprehensive income (OCI) on the face of the financial statements.

In the first quarter of Fiscal 2013, we adopted ASU 2011-05 and ASU 2011-12. Pursuant to the adoptions, we have presented a separate Condensed Consolidated Statement of Comprehensive Income. There were no other significant or material changes to our reporting as a result of these adoptions.

NOTE 3—ALLOWANCE FOR DOUBTFUL ACCOUNTS

Balance as of June 30, 2012	$	5,655
Bad debt expense	2,268
Write-off /adjustments	(1,892		)
Balance as of December 31, 2012	$	6,031

NOTE 4—PROPERTY AND EQUIPMENT

	As of December 31, 2012
	Cost		Accumulated Depreciation		Net
Furniture and fixtures	$	11,500	$	5,935	$	5,565
Office equipment	1,117		699		418
Computer hardware	55,094		37,858		17,236
Computer software	16,008		9,118		6,890
Leasehold improvements	29,312		16,202		13,110
Buildings	44,027		4,111		39,916
Total	$	157,058	$	73,923	$	83,135

	As of June 30, 2012
	Cost		Accumulated Depreciation		Net
Furniture and fixtures	$	10,828	$	4,577	$	6,251
Office equipment	975		596		379
Computer hardware	48,834		34,799		14,035
Computer software	13,558		7,404		6,154
Leasehold improvements	27,643		13,777		13,866
Buildings	44,034		3,562		40,472
Total	$	145,872	$	64,715	$	81,157

NOTE 5—GOODWILL

Goodwill is recorded when the consideration paid for an acquisition of a business exceeds the fair value of identifiable net tangible and intangible assets. The following table summarizes the changes in goodwill since June 30, 2012:

Balance as of June 30, 2012	$	1,040,234
Acquisition of EasyLink (note 17)	172,222
Adjustments on account of foreign exchange	201
Balance as of December 31, 2012	$	1,212,657

8

NOTE 6—ACQUIRED INTANGIBLE ASSETS

	As of December 31, 2012
	Cost		Accumulated Amortization			Net
Technology Assets	$	543,508	$	(356,490	)	$	187,018
Customer Assets	501,076		(259,733		)	241,343
Total	$	1,044,584	$	(616,223	)	$	428,361
	As of June 30, 2012
	Cost		Accumulated Amortization			Net
Technology Assets	$	473,008	$	(309,517	)	$	163,491
Customer Assets	374,396		(225,324		)	149,072
Total	$	847,404	$	(534,841	)	$	312,563

The weighted average amortization period for acquired technology and customer intangible assets is approximately six years and seven years, respectively.

The following table shows the estimated future amortization expense for the fiscal years indicated below. This calculation assumes no future adjustments to acquired intangible assets:

	Fiscal years ending June  30,
2013 (six months ended June 30)	$	80,088
2014	102,881
2015	79,183
2016	54,233
2017 and beyond	111,976
Total	$	428,361

NOTE 7—OTHER ASSETS

	As of December 31, 2012		As of June 30, 2012
Debt issuance costs	$	7,391	$	8,463
Deposits and restricted cash	8,479		7,515
Long-term prepaid expenses and other long-term assets	6,789		7,761
Total	$	22,659	$	23,739

Debt issuance costs relate primarily to costs incurred for the purpose of obtaining our term loan and are being amortized over the term of the loan (see note 10). Deposits and restricted cash relate to security deposits provided to landlords in accordance with facility lease agreements and cash restricted per the terms of contractual-based agreements. Long-term prepaid expenses and other long-term assets primarily relate to advance payments on long-term licenses that are being amortized over the applicable terms of the licenses.

NOTE 8—DEFERRED CHARGES AND CREDITS

Deferred charges and credits relate to cash taxes payable and the elimination of deferred tax balances relating to legal entity consolidations completed as part of an internal reorganization of our international subsidiaries. Deferred charges and credits are amortized to income tax expense over a period of six years.

9

NOTE 9—ACCOUNTS PAYABLE AND ACCRUED LIABILITIES

Current liabilities

Accounts payable and accrued liabilities are comprised of the following:

	As of December 31, 2012		As of June 30, 2012
Accounts payable—trade	$	3,477	$	7,574
Accrued salaries and commissions	42,782		50,821
Accrued liabilities*	123,953		65,557
Amounts payable in respect of restructuring and other Special charges (note 16)	7,303		7,068
Asset retirement obligations	464		714
Total	$	177,979	$	131,734

Long-term accrued liabilities

	As of December 31, 2012		As of June 30, 2012
Amounts payable in respect of restructuring and other Special charges (note 16)	$	2,924	$	1,803
Other accrued liabilities	11,264		8,819
Asset retirement obligations	4,956		3,625
Total	$	19,144	$	14,247

* The increase in accrued liabilities was primarily due to the acquisition of legacy EasyLink obligations.

Asset retirement obligations

We are required to return certain of our leased facilities to their original state at the conclusion of our lease. We have accounted for such obligations in accordance with ASC Topic 410 “Asset Retirement and Environmental Obligations” (ASC Topic 410). As of December 31, 2012, the present value of this obligation was $5.4 million (June 30, 2012—$4.3 million), with an undiscounted value of $5.8 million (June 30, 2012—$4.8 million).

NOTE 10—LONG-TERM DEBT

Long-term debt

Long-term debt is comprised of the following:

	As of December 31, 2012		As of June 30, 2012
Long-term debt
Term Loan	$	570,000	$	585,000
Mortgage	11,386		11,374
	581,386		596,374
Less:
Current portion of long-term debt
Term Loan	33,750		30,000
Mortgage	11,386		11,374
	45,136		41,374
Non current portion of long-term debt	$	536,250	$	555,000

Term Loan and Revolver

Our credit facility consists of a $600 million term loan facility (the Term Loan) and a $100 million committed revolving credit facility (the Revolver). Borrowings under the credit agreement are secured by a first charge over substantially all of our assets. We entered into and borrowed from this credit agreement on November 9, 2011.

10

The Term Loan has a five year term and repayments made under the Term Loan are equal to 1.25% of the original principal amount at each quarter for the first 2 years, 1.88% for years 3 and 4 and 2.5% for year 5. The Term Loan bears interest at a floating rate of LIBOR plus 2.50%. For the three and six months endedDecember 31, 2012, we recorded interest expense of approximately $4.1 million and $8.2 million, respectively, relating to the Term Loan (three and six months ended December 31, 2011—$2.5 million).

For the three and six months ended December 31, 2011, we recorded interest expense of approximately $0.9 million and $2.7 million, respectively, relating to our previously outstanding term loan.

The Revolver has a five year term with no fixed repayment date prior to the end of the term. As of December 31, 2012, we have not drawn any amounts on the Revolver.

Mortgage

We currently have an "open" mortgage with a bank where we can pay all or a portion of the mortgage on or before August 1, 2013. The original principal amount of the mortgage was Canadian $15.0 million and interest accrues monthly at a variable rate of Canadian prime plus 0.50%. Principal and interest are payable in monthly installments of Canadian $0.1 million with a final lump sum principal payment due on maturity. The mortgage is secured by a lien on our headquarters in Waterloo, Ontario, Canada. We first entered into this mortgage in December 2005.

As of December 31, 2012, the carrying value of the mortgage was $11.4 million (June 30, 2012—$11.4 million).

As of December 31, 2012, the carrying value of the Waterloo building that secures the mortgage was $16.1 million (June 30, 2012—$16.3 million).

For the three and six months endedDecember 31, 2012, we recorded interest expense of $0.1 million and $0.2 million, respectively, relating to the mortgage (three and six months ended December 31, 2011— $0.1 million and $0.2 million, respectively).

NOTE 11—PENSION PLANS AND OTHER POST RETIREMENT BENEFITS

The following table provides details of our defined benefit pension plans and long-term employee benefit obligations for Open Text Document Technologies GmbH (CDT) and Open Text Software GmbH (IXOS) as of December 31, 2012 and June 30, 2012:

	As of December 31, 2012
	Total  benefit obligation		Current portion  of benefit obligation*		Non current portion of benefit obligation
CDT defined benefit plan	$	24,446	$	524	$	23,922
CDT anniversary plan	466		85		381
CDT early retirement plan	—		—		—
IXOS defined benefit plans	739		—		739
Total	$	25,651	$	609	$	25,042

	As of June 30, 2012
	Total  benefit obligation		Current portion  of benefit obligation*		Non current portion of benefit obligation
CDT defined benefit plan	$	21,461	$	475	$	20,986
CDT anniversary plan	457		67		390
CDT early retirement plan	69		69		—
IXOS defined benefit plans	698		—		698
Total	$	22,685	$	611	$	22,074

* The current portion of the benefit obligation has been included within "Accounts payable and accrued liabilities" in the Condensed Consolidated Balance Sheets.

CDT Defined Benefit Plan

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CDT sponsors an unfunded defined benefit pension plan covering substantially all CDT employees (CDT pension plan) which provides for old age, disability and survivors’ benefits. Benefits under the CDT pension plan are generally based on age at retirement, years of service and the employee’s annual earnings. The net periodic cost of this pension plan is determined using the projected unit credit method and several actuarial assumptions, the most significant of which are the discount rate and estimated service costs.

The following are the details of the change in the benefit obligation for the CDT pension plan for the periods indicated:

	As of December 31, 2012			As of June 30, 2012
Benefit obligation as of June 30, 2012	$	21,461		$	18,231
Service cost	230			326
Interest cost	446			873
Benefits paid	(229		)	(441		)
Actuarial (gain) loss	876			5,179
Foreign exchange (gain) loss	1,662			(2,707		)
Benefit obligation as of December 31, 2012	24,446			21,461
Less: Current portion	(524		)	(475		)
Non current portion of benefit obligation	$	23,922		$	20,986

The following are the details of net pension expense for the CDT pension plan for the periods indicated:

	Three Months Ended December 31,				Six Months Ended December 31,
	2012		2011		2012		2011
Pension expense:
Service cost	$	117	$	81	$	230	$	166
Interest cost	226		217		446		444
Amortization of actuarial gains and losses	71		—		139		—
Net pension expense	$	414	$	298	$	815	$	610

The CDT pension plan is an unfunded plan and therefore no contributions have been made since the inception of the plan. Actuarial gains and losses in excess of 10% of the greater of the projected benefit obligation or the market-related value of plan obligations are being amortized and recognized as a component of net periodic benefit costs over the average remaining service period of the plan's active employees. Currently there is approximately $0.1 million in accumulated other comprehensive income related to the CDT pension plan that is expected to be recognized as a component of net periodic benefit costs over the remaining fiscal year.

In determining the fair value of the CDT pension plan benefit obligations as of December 31, 2012 and June 30, 2012, respectively, we used the following weighted-average key assumptions:

	As of December 31, 2012		As of June 30, 2012
Assumptions:
Salary increases	2.50	%	2.50	%
Pension increases	2.00	%	2.00	%
Discount rate	3.60	%	4.00	%
Employee fluctuation rate:
to age 30	1.00	%	1.00	%
to age 35	0.50	%	0.50	%
to age 40	—	%	—	%
to age 45	0.50	%	0.50	%
to age 50	0.50	%	0.50	%
from age 51	1.00	%	1.00	%

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Anticipated pension payments under the CDT pension plan for the fiscal years indicated below are as follows:

	Fiscal years ending June  30,
2013 (six months ended June 30)	$	262
2014	562
2015	620
2016	690
2017	759
2018 to 2022	5,599
Total	$	8,492

CDT Anniversary Plan

CDT’s long-term employee benefit obligations arise under CDT’s “anniversary plan”. The obligation is unfunded and is carried at its fair value.

IXOS Defined Benefit Plans

Included in our pension liability, as of December 31, 2012, is a net amount of $0.7 million (June 30, 2012—$0.7 million) that relates to two IXOS defined benefit pensions plans (IXOS pension plans) in connection with certain former members of the IXOS Board of Directors and certain IXOS employees, respectively. The net periodic pension cost with respect to the IXOS pension plans is determined using the projected unit credit method and several actuarial assumptions, the most significant of which are the discount rate and the expected return on plan assets.

NOTE 12—SHARE CAPITAL, OPTION PLANS AND SHARE-BASED PAYMENTS

Share Capital

Our authorized share capital includes an unlimited number of Common Shares and an unlimited number of Preference Shares. No Preference Shares have been issued.

Treasury Stock

During the three and six months endedDecember 31, 2012 and 2011, we did not repurchase any of our Common Shares for potential future reissuance under our Long Term Incentive Plans (LTIP) or otherwise.

On November 23, 2012, we issued 182,616 Common Shares from treasury stock in connection with the settlement of awards granted under our Fiscal 2012 LTIP (three and six months ended December 31, 2011—nil). See below for more details regarding this settlement.

Share-Based Payments

Total share-based compensation expense for the periods indicated below is detailed as follows:

	Three Months Ended December 31,				Six Months Ended December 31,
	2012		2011		2012		2011
Stock options	$	1,228	$	974	$	2,567	$	1,772
Performance stock units (issued under LTIP)	1,246		2,350		2,660		6,320
Restricted stock units (issued under LTIP)	377		—		377		—
Restricted stock units (other)	151		—		302		—
Deferred stock units (directors)	172		64		360		129
Restricted stock awards (legacy Vignette employees)	—		9		10		20
Total share-based compensation expense	$	3,174	$	3,397	$	6,276	$	8,241

Summary of Outstanding Stock Options

As of December 31, 2012, options to purchase an aggregate of 2,088,946 Common Shares were outstanding and 2,806,000 Common Shares were available for issuance under our stock option plans. Our stock options generally vest over four

13

years and expire between seven and ten years from the date of the grant. The exercise price of the options is set at an amount that is not less than the closing price of our Common Shares on the NASDAQ on the trading day immediately preceding the applicable grant date.

A summary of activity under our stock option plans for the six months endedDecember 31, 2012 is as follows:

	Options		Weighted- Average  Exercise Price		Weighted- Average Remaining Contractual Term (years)	Aggregate Intrinsic  Value ($’000s)
Outstanding at June 30, 2012	2,147,151		$	40.07
Granted	252,545		53.20
Exercised	(190,000	)	28.12
Forfeited or expired	(120,750	)	45.70
Outstanding at December 31, 2012	2,088,946		$	42.42	4.41	$	30,040
Exercisable at December 31, 2012	898,276		$	27.32	2.11	$	25,674

We estimate the fair value of stock options using the Black-Scholes option-pricing model, consistent with the provisions of ASC Topic 718, “Compensation—Stock Compensation” (ASC Topic 718) and SEC Staff Accounting Bulletin No. 107. The option-pricing models require input of subjective assumptions, including the estimated life of the option and the expected volatility of the underlying stock over the estimated life of the option. We use historical volatility as a basis for projecting the expected volatility of the underlying stock and estimate the expected life of our stock options based upon historical data.

We believe that the valuation technique and the approach utilized to develop the underlying assumptions are appropriate in calculating the fair value of our stock option grants. Estimates of fair value are not intended, however, to predict actual future events or the value ultimately realized by employees who receive equity awards.

For the periods indicated, the following weighted-average fair value of options and weighted-average assumptions used were as follows:

	Three Months Ended December 31,						Six Months Ended December 31,
	2012			2011			2012			2011
Weighted–average fair value of options granted	$	16.28		$	17.99		$	16.78		$	17.71
Weighted-average assumptions used:
Expected volatility	37		%	41		%	38		%	41		%
Risk–free interest rate	0.64		%	0.74		%	0.64		%	0.79		%
Expected dividend yield	—		%	—		%	—		%	—		%
Expected life (in years)	4.35			4.30			4.35			4.30
Forfeiture rate (based on historical rates)	5		%	5		%	5		%	5		%

As of December 31, 2012, the total compensation cost related to the unvested stock option awards not yet recognized was $17.5 million, which will be recognized over a weighted-average period of approximately 3.5 years.

No cash was used by us to settle equity instruments granted under share-based compensation arrangements.

We have not capitalized any share-based compensation costs as part of the cost of an asset in any of the periods presented.

For the three and six months endedDecember 31, 2012, cash in the amount of $2.0 million and $5.4 million, respectively, was received as the result of the exercise of options granted under share-based payment arrangements. The tax benefit realized by us during the three and six months endedDecember 31, 2012 from the exercise of options eligible for a tax deduction was nil and $0.8 million, respectively.

For the three and six months endedDecember 31, 2011, cash in the amount of $3.0 million and $10.2 million, respectively, was received as the result of the exercise of options granted under share-based payment arrangements. The tax benefit realized by us during the three and six months endedDecember 31, 2011 from the exercise of options eligible for a tax deduction was $0.4 million and $0.8 million, respectively.

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Long-Term Incentive Plans

On September 10, 2007, our Board of Directors (the Board) approved the implementation of an incentive plan called the “Open Text Corporation Long-Term Incentive Plan” (LTIP). The LTIP is a rolling three year program whereby we make a series of annual grants, each of which covers the respective performance period, to certain of our employees, and which vests upon the employee and/or the Company meeting pre-determined performance and market-based criteria. One criterion we use to measure performance is, if over the three year period the relative cumulative total shareholder return (TSR) of our Company, compared to the cumulative TSR of companies comprising a peer index group, is higher than a pre-determined target percentile (that is set at the date of grant), then a payout will be made. Depending on whether this target is met or exceeded with respect to the stipulations of the individual LTIPs, the amount of payout would be determined. In calculating the TSR achievement we use the average closing price of our Common Stock, as it trades over the last 30 days ending September 15th (following the third year in the LTIPs rolling three year program). LTIPs will be referred to in this document based upon the year in which the grants are expected to be settled.

Grants made in Fiscal 2010 under the LTIP (Fiscal 2012 LTIP) took effect in Fiscal 2010 starting on July 1, 2009. We met some of the performance conditions and settled the Fiscal 2012 LTIP by issuing 182,616 Common Shares from our treasury stock, with a cost of approximately $8.3 million.

Grants made in Fiscal 2011 under the LTIP (Fiscal 2013 LTIP) took effect in Fiscal 2011 starting on July 1, 2010. Vesting of Performance Stock Units (PSUs) granted under the Fiscal 2013 LTIP are based upon market and performance-based conditions and may be equal to 50%, 100% or 150% of the target payment. We expect to settle the Fiscal 2013 LTIP awards in stock.

Grants made in Fiscal 2012 under the LTIP (Fiscal 2014 LTIP) took effect in Fiscal 2012 starting on February 3, 2012. Vesting of PSUs granted under the Fiscal 2014 LTIP are based upon market-based conditions and will be interpolated between 0% and 150% of the target payment. We expect to settle the Fiscal 2014 LTIP awards in stock.

Grants made in Fiscal 2013 under the LTIP (Fiscal 2015 LTIP) took effect in Fiscal 2013 starting on November 2, 2012 for the Restricted Stock Units (RSUs) and December 3, 2012 for the PSUs. Vesting of PSUs granted under the Fiscal 2015 LTIP are based upon market-based conditions and will be interpolated between 0% and 150% of the target payment. RSUs granted are service-based awards and vest over the life of the LTIP. Subject to certain terms and conditions, if an eligible employee remains employed throughout the vesting period, all RSUs shall become vested RSUs at the end of the vesting period. We expect to settle the Fiscal 2015 LTIP awards in stock

PSUs and RSUs granted under the LTIPs have been measured at fair value as of the effective date, consistent with ASC Topic 718, and will be charged to share-based compensation expense over the remaining life of the plan. We estimate the fair value of PSUs using the Monte Carlo pricing model and RSUs have been valued based upon their grant date fair value.

Expected and actual stock compensation expense for each of the above mentioned LTIP plans is as follows:

					Three Months ended December 31,		Six Months ended December 31,
Grants Made Under LTIP	Equity Instrument	Start Date	End Date	Expected Total LTIP Expense	2012	2011	2012	2011
Fiscal 2012 LTIP	PSU	3/31/2010	9/15/2012	17,314	—	1,830	579	5,280
Fiscal 2013 LTIP	PSU	10/29/2010	9/15/2013	4,707	298	520	598	1,040
Fiscal 2014 LTIP	PSU	2/3/2012	9/15/2014	8,898	862	—	1,397	—
Fiscal 2015 LTIP	PSU	12/3/2012	9/15/2015	3,132	86	—	86	—
Fiscal 2015 LTIP	RSU	11/2/2012	9/15/2015	6,699	377	—	377	—
				40,750	1,623	2,350	3,037	6,320

Of the total compensation cost of $40.8 million noted in the table above , $24.8 million has been recognized to date and the remaining expected total compensation cost of $16.0 million is expected to be recognized over a weighted average period of 2.3 years.

15

Employee Share Purchase Plan (ESPP)

During the three and six months endedDecember 31, 2012, cash in the amount of approximately $0.4 million and $1.0 million, respectively, was received from employees that will be used to purchase Common Shares in future periods (three and six months endedDecember 31, 2011— $0.4 million and $1.0 million).

NOTE 13—INCOME TAXES

Our effective tax rate represents the net effect of the mix of income earned in various tax jurisdictions that are subject to a wide range of income tax rates.

We recognize interest expense and penalties related to income tax matters in income tax expense.

For the three and six months endedDecember 31, 2012 and 2011, we recognized the following amounts as income tax-related interest expense and penalties:

	Three Months Ended December 31,				Six Months Ended December 31,
	2012		2011		2012		2011
Interest expense (recovery)	(2,041	)	4,897		(187	)	6,459
Penalties expense (recovery)	(3	)	(7,279	)	36		(7,241	)
Total	(2,044	)	(2,382	)	(151	)	(782	)

As of December 31, 2012 and June 30, 2012, the following amounts have been accrued on account of income tax-related interest expense and penalties:

	As of December 31, 2012		As of June 30, 2012
Interest expense accrued *	$	20,002	$	19,316
Penalties accrued *	$	6,000	$	4,040

* These balances have been included within "Long-term income taxes payable" within the Condensed Consolidated Balance Sheets.

Included in the accrual balances as of December 31, 2012 are accrued interest expense and penalties of $0.4 million and $1.9 million, respectively, relating to the acquisition of EasyLink.

We believe that it is reasonably possible that the gross unrecognized tax benefits, as of December 31, 2012, could decrease tax expense in the next 12 months by $11.9 million, relating primarily to the expiration of competent authority relief and tax years becoming statute barred for purposes of future tax examinations by local taxing jurisdictions.

Our four most significant tax jurisdictions are Canada, the United States, Luxembourg and Germany. Our tax filings remain subject to examination by applicable tax authorities for a certain length of time following the tax year to which those filings relate. Tax years that remain open to examinations by local taxing authorities vary by jurisdiction up to ten years.

We are subject to tax examinations in all major taxing jurisdictions in which we operate and currently have examinations open in Canada, the United States, France, Spain, and India. On a quarterly basis we assess the status of these examinations and the potential for adverse outcomes to determine the adequacy of the provision for income and other taxes.

We believe that we have adequately provided for any reasonably foreseeable outcomes related to our tax examinations and that any settlement will not have a material adverse effect on our consolidated financial position or results of operations. However, we cannot predict with any level of certainty the exact nature of any future possible settlements.

As at December 31, 2012, we have not provided for additional foreign withholding taxes or deferred income tax liabilities for temporary differences related to the undistributed earnings of our non-Canadian subsidiaries other than certain United States subsidiaries, since such earnings are considered permanently invested in those subsidiaries, or are not subject to withholding taxes. It is not practicable to reasonably estimate the amount of additional deferred income tax liabilities or foreign withholding taxes that may be payable should these earnings be distributed in the future. We do plan to make periodic repatriations that will be subject to withholding taxes from certain United States subsidiaries and have accrued additional tax cost attributable to these distributions in the amount of $0.3 million.

16

The decrease in the provision for income taxes from $6.8 million for the three months ended  December 31, 2011 to $3.2 million for the three months ended December 31, 2012 is primarily due to the impact of valuation allowances set up  during the three months ended December  31, 2011.

The net increase in tax expense from $5.5 million for the six months ended December 31, 2011 to $19.4 million for the six months ended December 31, 2012 was primarily due to tax benefits realized in Fiscal 2012 relating to the internal reorganization of the acquired international subsidiaries of Metastorm Inc., in the amount of $4.1 million, and a Canadian election to file tax returns in U.S. dollar functional currency, in the amount of $5.9 million. The Fiscal 2013 tax expense includes an increase of $4.6 million relating to the impact of adjustments in the United States and Australia upon filing of tax returns. The remainder of the differences are due to normal course movements and non-material items.

NOTE 14—FAIR VALUE MEASUREMENTS

ASC Topic 820 “Fair Value Measurements and Disclosures” (ASC Topic 820) defines fair value, establishes a framework for measuring fair value, and addresses disclosure requirements for fair value measurements. Fair value is the price that would be received upon sale of an asset or paid upon transfer of a liability in an orderly transaction between market participants at the measurement date and in the principal or most advantageous market for that asset or liability. The fair value, in this context, should be calculated based on assumptions that market participants would use in pricing the asset or liability, not on assumptions specific to the entity. In addition, the fair value of liabilities should include consideration of non-performance risk, including our own credit risk.

In addition to defining fair value and addressing disclosure requirements, ASC Topic 820 establishes a fair value hierarchy for valuation inputs. The hierarchy prioritizes the inputs into three levels based on the extent to which inputs used in measuring fair value are observable in the market. Each fair value measurement is reported in one of the three levels which are determined by the lowest level input that is significant to the fair value measurement in its entirety. These levels are:

• Level 1—inputs are based upon unadjusted quoted prices for identical instruments traded in active markets.

• Level 2—inputs are based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market or can be corroborated by observable market data for substantially the full term of the assets or liabilities.

• Level 3—inputs are generally unobservable and typically reflect management’s estimates of assumptions that market participants would use in pricing the asset or liability. The fair values are therefore determined using model-based techniques that include option pricing models, discounted cash flow models, and similar techniques.

Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis:

Our financial assets and liabilities measured at fair value on a recurring basis consisted of the following types of instruments as of December 31, 2012 and June 30, 2012:

December 31, 2012

June 30, 2012

Fair Market Measurements using:

Fair Market Measurements using:

December 31, 2012

Quoted prices in active markets  for identical assets/ (liabilities)

Significant other observable inputs

Significant unobservable inputs

June 30, 2012

Quoted prices in active markets  for identical assets/ (liabilities)

Significant other observable inputs

Significant unobservable inputs

(Level 1)

(Level 2)

(Level 3)

(Level 1)

(Level 2)

(Level 3)

Financial Assets:

Derivative financial instrument asset (note 15)

$

948

n/a

$

948

n/a

$

283

n/a

$

283

n/a

$

948

n/a

$

948

n/a

$

283

n/a

$

283

n/a

Our valuation techniques used to measure the fair values of the derivative instruments, the counterparty to which has high credit ratings, were derived from pricing models including discounted cash flow techniques, with all significant inputs derived from or corroborated by observable market data, as no quoted market prices exist for the derivative instruments. Our discounted cash flow techniques use observable market inputs, such as foreign currency spot and forward rates.

17

Our cash and cash equivalents, along with our accounts receivable and accounts payable and accrued liabilities balances, are measured and recognized in our consolidated financial statements at an amount which approximates their fair value (a Level 3 measurement) due to their short maturities.

Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis

We measure certain assets at fair value on a nonrecurring basis. These assets are recognized at fair value when they are deemed to be other-than-temporarily impaired. During the three and six months endedDecember 31, 2012 and 2011, no indications of impairment were identified and therefore no fair value measurements were required.

If applicable, we will recognize transfers into and out of levels within the fair value hierarchy at the end of the reporting period in which the actual event or change in circumstance occurs. During the three and six months endedDecember 31, 2012 and 2011, we did not have any significant transfers in or out of Level 2 or Level 3.

NOTE 15—DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES

Foreign Currency Forward Contracts

In July 2010, we entered into a hedging program with a Canadian chartered bank to limit the potential foreign exchange fluctuations incurred on future cash flows related to a portion of the Canadian dollar payroll expenses. We operate internationally and are therefore exposed to foreign currency exchange rate fluctuations in the normal course of our business, in particular to changes in the Canadian dollar on account of large costs that are incurred from our centralized Canadian operations, and are denominated in Canadian dollars. As part of our risk management strategy, we use derivative instruments to hedge portions of our payroll exposure. We do not use these forward contracts for trading or speculative purposes. These forward contracts typically mature between one and twelve months.

We have designated these transactions as cash flow hedges of forecasted transactions under ASC Topic 815 “Derivatives and Hedging” (ASC Topic 815). As the critical terms of the hedging instrument, and of the entire hedged forecasted transaction, are the same, in accordance with ASC Topic 815 we have been able to conclude that changes in fair value or cash flows attributable to the risk being hedged are expected to completely offset at inception and on an ongoing basis. Accordingly, quarterly unrealized gains or losses on the effective portion of these forward contracts have been included within other comprehensive income. The fair value of the contracts, as of December 31, 2012, is recorded within “Prepaid expenses and other current assets”.

As of December 31, 2012, the notional amount of forward contracts we held to sell U.S. dollars in exchange for Canadian dollars was $49.8 million (June 30, 2012—$99.6 million).

Fair Value of Derivative Instruments and Effect of Derivative Instruments on Financial Performance

The effect of these derivative instruments on our consolidated financial statements for the periods indicated below were as follows (amounts presented do not include any income tax effects).

Fair Value of Derivative Instruments in the Consolidated Balance Sheets (see note 14)

		As of December 31, 2012		As of June 30, 2012
Derivatives	Balance Sheet Location	Fair Value Asset (Liability)		Fair Value Asset (Liability)
Foreign currency forward contracts designated as cash flow hedges	Prepaid expenses and other current assets	$	948	$	283

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Effects of Derivative Instruments on Income and Other Comprehensive Income (OCI)

Three and Six Months Ended December 31, 2012
Derivatives in Cash Flow Hedging Relationship	Amount of Gain or (Loss) Recognized in OCI on Derivatives (Effective Portion)						Location of Gain or  (Loss) Reclassified from Accumulated OCI into Income (Effective Portion)	Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion)					Location of Gain or (Loss) Recognized in Income on Derivatives (Ineffective Portion and Amount Excluded from Effectiveness Testing)	Amount of Gain or (Loss) Recognized in Income on Derivatives (Ineffective Portion and Amount Excluded from Effectiveness Testing)
	Three months ended December 31, 2012			Six months ended December 31, 2012				Three months ended December 31, 2012			Six months ended December 31, 2012			Three months ended December 31, 2012	Six months ended December 31, 2012
Foreign currency forward contracts	$	(673	)	$	2,725		Operating expenses	$	1,304		$	2,060	N/A	—	—
Three and Six Months Ended December 31, 2011
Derivatives in Cash Flow Hedging Relationship	Amount of Gain or (Loss) Recognized in OCI on Derivatives (Effective Portion)						Location of Gain or  (Loss) Reclassified from Accumulated OCI into Income (Effective Portion)	Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion)					Location of Gain or (Loss) Recognized in Income on Derivatives (Ineffective Portion and Amount Excluded from Effectiveness Testing)	Amount of Gain or (Loss) Recognized in Income on Derivatives (Ineffective Portion and Amount Excluded from Effectiveness Testing)
	Three months ended December 31, 2011			Six months ended December 31, 2011				Three months ended December 31, 2011			Six months ended December 31, 2011			Three months ended December 31, 2011	Six months ended December 31, 2011
Foreign currency forward contracts	$	3,403		$	(2,252	)	Operating expenses	$	(902	)	$	643	N/A	—	—

NOTE 16—SPECIAL CHARGES

Special charges include costs that relate to certain restructuring initiatives that we have undertaken from time to time under our various restructuring plans, as well as acquisition related costs and other similar charges.

	Three Months Ended December 31,						Six Months Ended December 31,
	2012			2011			2012			2011
Fiscal 2013 Restructuring Plan	$	684		$	—		$	8,262		$	—
Fiscal 2012 Restructuring Plan	403			1,441			987			8,125
Fiscal 2011 Restructuring Plan	(369		)	(5		)	(384		)	974
Fiscal 2010 Restructuring Plan	—			4			(2		)	(14		)
Acquisition-related costs	808			1,081			1,612			1,896
Other charges	743			2,700			1,348			1,345
Total	$	2,269		$	5,221		$	11,823		$	12,326

Reconciliations of the liability relating to each of our materially outstanding restructuring plans are provided below:

19

Fiscal 2013 Restructuring Plan

In the first quarter of Fiscal 2013, we began to implement restructuring activities to streamline our operations (Fiscal 2013 restructuring plan). These charges relate to workforce reductions and facility consolidations. We expect to incur more charges under the Fiscal 2013 restructuring plan, as we execute the remaining restructuring actions. As of December 31, 2012, we expect total costs to be incurred in conjunction with the Fiscal 2013 restructuring plan to be approximately $15.0 million, of which $8.3 million has already been recorded within Special charges to date.

The recognition of these charges requires management to make certain judgments and estimates regarding the amount and timing of restructuring charges or recoveries. Our estimated liability could change subsequent to its recognition, requiring adjustments to the expense and the liability recorded. On a quarterly basis, we will conduct an evaluation of the related liabilities and expenses and revise our assumptions and estimates as appropriate.

A reconciliation of the beginning and ending liability for the six months endedDecember 31, 2012 is shown below.

Fiscal 2013 Restructuring Plan	Workforce reduction			Facility costs			Total
Balance as of June 30, 2012	$	—		$	—		$	—
Accruals and adjustments	4,759			3,503			8,262
Cash payments	(2,227		)	(495		)	(2,722		)
Foreign exchange	62			10			72
Balance as of December 31, 2012	$	2,594		$	3,018		$	5,612

Fiscal 2012 Restructuring Plan

In the first quarter of Fiscal 2012, we began to implement restructuring activities to streamline our operations (Fiscal 2012 restructuring plan). These charges relate to workforce reductions and facility consolidations. The recognition of these charges requires management to make certain judgments and estimates regarding the amount and timing of restructuring charges or recoveries. On a quarterly basis, we will conduct an evaluation of the related liabilities and expenses and revise our assumptions and estimates as appropriate.

Since the inception of the Fiscal 2012 restructuring plan, $17.9 million of costs have been recorded within Special charges. We do not expect to incur any further significant charges related to the Fiscal 2012 restructuring plan.

A reconciliation of the beginning and ending liability for the six months endedDecember 31, 2012 is shown below.

Fiscal 2012 Restructuring Plan	Workforce reduction			Facility costs			Total
Balance as of June 30, 2012	$	4,422		$	3,355		$	7,777
Accruals and adjustments	1,334			(347		)	987
Cash payments	(3,960		)	(657		)	(4,617		)
Foreign exchange	35			56			91
Balance as of December 31, 2012	$	1,831		$	2,407		$	4,238

Acquisition-related costs

Included within Special charges for the three and six months endedDecember 31, 2012 are costs incurred directly in relation to acquisitions in the amount of $0.5 million and $1.2 million, respectively. Additionally, we incurred costs relating to financial advisory, legal, valuation and audit services and other miscellaneous costs necessary to integrate acquired companies into our organization, for the three and six months endedDecember 31, 2012, in the amount of $0.3 million and $0.4 million, respectively.

Included within Special charges for the three and six months endedDecember 31, 2011 are costs incurred directly in relation to acquisitions in the amount of $0.3 million and $1.1 million, respectively. Additionally, we incurred costs relating to financial advisory, legal, valuation and audit services and other miscellaneous costs necessary to integrate acquired companies into our organization, for the three and six months endedDecember 31, 2011, in the amount of $0.8 million for each of these periods.

Other charges

20

Included within Special charges for the three months ended December 31, 2012 is a charge of approximately $1.0 million relating to interest accrued on certain pre-acquisition sales tax liabilities, offset by a recovery of $0.3 million relating to revised sublease assumptions on a restructured facility acquired in a prior period.

In addition to the charges incurred during the three months ended December 31, 2012, included within Special charges for the six months ended December 31, 2012 is a charge of $0.6 million relating to revised sublease assumptions on a restructured facility acquired in a prior period.

Included within Special charges for the three months ended December 31, 2011 is $2.7 million related to the write-off of debt issuance costs, associated with our old term loan, that was repaid after we entered into our current credit facility on November 9, 2011.

In addition to the charges incurred during the three months ended December 31, 2011, included within Special charges for the six months ended December 31, 2011 is a recovery of $0.8 million relating to a reduction in an asset retirement obligation associated with a leased facility, and a recovery of $0.5 million relating to a new sublease on a restructured facility acquired in a prior period.

NOTE 17—ACQUISITIONS

EasyLink Services International Corporation

On July 2, 2012, we acquired EasyLink Services International Corporation (EasyLink), a global provider of cloud-based electronic messaging and business integration services, based in Atlanta, Georgia. The acquisition extends our product offerings as we continue to evolve in the Enterprise Information Management market category. Total consideration for EasyLink was $342.3 million, paid in cash. In accordance with ASC Topic 805, this acquisition was accounted for as a business combination.

The results of operations of EasyLink have been consolidated with those of OpenText beginning July 2, 2012.

The following tables summarize the consideration paid for EasyLink and the amount of the assets acquired and liabilities assumed, as well as the goodwill recorded as of the acquisition date:

Cash consideration paid	$	342,272
Acquisition related costs (included in Special charges in the Condensed Consolidated Statements of Income):          for the three months ended December 31, 2012	$	466
for the six months ended December 31, 2012	$	1,215

The recognized amounts of identifiable assets acquired and liabilities assumed, based upon their fair values as of July 2, 2012, are set forth below:

Current assets (inclusive of cash acquired of $26,941)	$	64,319
Non-current assets	37,537
Intangible customer assets	126,600
Intangible technology assets	70,500
Total liabilities assumed	(128,906		)
Total identifiable net assets	170,050
Goodwill	172,222
	$	342,272

The finalization of the above purchase price allocation is pending the determination of certain potential unrecorded liabilities relating to legacy EasyLink litigation, onerous contracts, and sales tax-related matters. We expect to finalize this determination on or before June 30, 2013.

No portion of the goodwill recorded upon the acquisition of EasyLink is expected to be deductible for tax purposes.

The fair value of current assets acquired includes accounts receivable with a fair value of $26.2 million. The gross amount receivable was $27.5 million of which $1.3 million of this receivable was expected to be uncollectible.

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The amount of EasyLink’s revenues and net income included in our Condensed Consolidated Statements of Income for the three and six months endedDecember 31, 2012, and the unaudited pro forma revenues and net income of the combined entity, had the acquisition been consummated as of July 1, 2011, are set forth below:

	Revenues		Net Income
Actual from October 1, 2012 to December 31, 2012	$	44,158	$	3,699
Actual from July 2, 2012 to December 31, 2012	$	87,617	$	4,045

	Three Months Ended December 31,		Six Months Ended December 31,
	2011		2011
Supplemental Unaudited Pro forma Information
Total revenues	$	366,998	$	701,524
Net income*	$	48,973	$	97,601

*Included in pro forma net income are estimated amortization charges relating to the allocated values of intangible assets. In addition, for the six months ended December 31, 2011, pro forma net income includes a $13.2 million tax recovery relating to certain one-time tax benefits recognized by EasyLink during the period.

The results of operations of EasyLink were combined with OpenText as of July 2, 2012 and hence there is no "reportable" pro forma impact on revenues and net income for the three and six months endedDecember 31, 2012.

The unaudited pro forma financial information in the table above is presented for informational purposes only and is not indicative of the results of operations that would have been achieved if the acquisition had taken place at the beginning of the period presented or the results that may be realized in the future.

NOTE 18—GUARANTEES AND CONTINGENCIES

We have entered into the following contractual obligations with minimum payments for the indicated fiscal periods as follows:

	Payments due between
	Total		January 1, 2013— June  30, 2013		July 1, 2013— June  30, 2015		July 1, 2015— June  30, 2017		July 1, 2017 and  beyond
Long-term debt obligations	$	632,800	$	34,276	$	114,364	$	484,160	$	—
Operating lease obligations*	150,684		16,974		57,170		36,672		39,868
Purchase obligations	5,527		2,822		2,605		100		—
	$	789,011	$	54,072	$	174,139	$	520,932	$	39,868

*Net of $2.5 million of sublease income to be received from properties which we have subleased to third parties.

Guarantees and Indemnifications

We have entered into agreements with customers which may include provisions for indemnifying our customers for legal claims that our software products infringe certain third party intellectual property rights and for liabilities related to breaches of our confidentiality obligations. We have not made any material payments in relation to such indemnification provisions and have not accrued any liabilities related to these indemnification provisions in our condensed consolidated financial statements.

Litigation

We are currently involved in various claims and legal proceedings. Quarterly, we review the status of each significant legal matter and evaluate such matters to determine how they should be treated for accounting and disclosure purposes in accordance with the requirements of ASC Topic 450-20 "Loss Contingencies" (ASC Topic 450-20). Specifically, this evaluation process includes the centralized tracking and itemization of the status of all our disputes and litigation items, discussing the nature of any litigation and claim, including any dispute or claim that is reasonably likely to result in litigation, with relevant internal and external counsel, and assessing the progress of each matter in light of its merits and our experience with similar proceedings under similar circumstances.

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If the potential loss from any claim or legal proceeding is considered probable and the amount can be reasonably estimated, we accrue a liability for the estimated loss in accordance with ASC Topic 450-20. As of the date of this filing on Form 10-Q for the quarter ended December 31, 2012, any such aggregated losses are not material to our consolidated financial position or result of operations and we do not believe as of the date of this filing that it is reasonably possible that a loss exceeding the amounts already recognized may have been incurred that would be material to our consolidated financial position or results of operations.

j2 Global, Inc. (j2) and its wholly-owned subsidiary Advanced Messaging Technologies, Inc. (AMT) have filed several patent infringement lawsuits alleging that OpenText and its subsidiaries and predecessors-in-interest, Captaris, Inc. and EasyLink, are infringing U.S. Patent Nos. 6,208,638, 6,597,688, 7,020,132, 6,350,066, and 6,020,980 by offering fax-related products.  j2 and AMT are seeking injunctions, royalties and damages. Through the recent acquisition of EasyLink, the Company now has complete carriage of the defense of these cases, which are pending in the United States District Court for the Central District of California.  In each of the cases, OpenText and its subsidiaries or predecessors-in-interest have asserted, or will assert, defenses and counterclaims contending that the patents are invalid and not infringed.  In addition, OpenText and its subsidiaries or predecessors-in-interest have asserted that U.S. Patent Nos. 6,208,638, 6,497,688, and 7,020,132 are unenforceable due to j2's inequitable conduct before the United States Patent and Trademark Office (USPTO), and are seeking to add counterclaims against j2 for tortious interference with prospective business advantage and unfair competition.  Each of the cases is in the discovery, or an earlier, phase.  In addition, j2 has requested that the USPTO open reexamination proceedings regarding U.S. Patent No. 6,020,980. The Company believes j2's patent infringement allegations are without merit and will continue to vigorously defend them.

In addition, one of OpenText's subsidiaries, Xpedite Systems, LLC (Xpedite), has sued j2 for patent infringement, alleging j2 is infringing U.S. Patent Nos. 5,872,640 and 7,804,823 through j2's offering of fax-related products. Xpedite is seeking an injunction, royalties and damages.  j2 has asserted defenses and counterclaims asserting that the patents are invalid and not infringed, and j2 has requested that the USPTO undertake reexamination proceedings related to the patents, and the USPTO has agreed to do so.  The litigation is stayed until the conclusion of the USPTO's reexamination proceedings.   

Based on our assessment of ASC Topic 450-20, no amount has been accrued in connection to these cases referred to above.

Contingencies

EasyLink is currently being assessed by the New York State Department of Taxation and Finance (the Department) for the potential applicability of telecommunications excise and franchise taxes to its New York State revenues for the calendar year ended December 31, 2000 through to calendar year ended December 31, 2009. The potential exposure under this assessment, based upon the notice issued by the Department, is approximately $10.5 million.

In addition, in July 2009 EasyLink was assessed approximately $0.5 million in tax, interest and penalties for sales tax in New York State for the period between March 2001 and May 2004. EasyLink has posted a bond in this amount and is pursuing a judicial appeal of the July 2009 decision with New York State Court of Appeals. New York State sales tax audits are also currently underway for subsequent periods from June 2004 through to February 2011. The results of these audits for subsequent periods, and the potential sales tax exposure for EasyLink, are in significant part contingent upon the outcome of the above referenced sales tax appeal.

OpenText intends to vigorously defend against these claims.

NOTE 19—SUPPLEMENTAL CASH FLOW DISCLOSURES

	Three Months Ended December 31,				Six Months Ended December 31,
	2012		2011		2012		2011
Supplemental disclosure of cash flow information:
Cash paid during the period for interest	$	4,302	$	1,139	$	8,542	$	3,721
Cash received during the period for interest	$	322	$	290	$	731	$	442
Cash paid during the period for income taxes	$	21,280	$	7,891	$	37,561	$	8,657

Cash paid for interest for the three and six months ended December 31, 2012 includes interest payments made on our Term Loan entered into on November 9, 2011, which increased our outstanding debt as compared to the prior year (see note 10 for more details).

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Cash paid for taxes for the three and six months ended December 31, 2012 include payments of $8.8 million and $24.2 million, respectively, relating to taxes exigible on internal reorganizations of our international subsidiaries.

NOTE 20—EARNINGS PER SHARE

Basic earnings per share are computed by dividing net income by the weighted average number of Common Shares outstanding during the period. Diluted earnings per share are computed by dividing net income by the shares used in the calculation of basic earnings per share plus the dilutive effect of Common Share equivalents, such as stock options, using the treasury stock method. Common Share equivalents are excluded from the computation of diluted net income per share if their effect is anti-dilutive.

	Three Months Ended December 31,				Six Months Ended December 31,
	2012		2011		2012		2011
Basic earnings per share
Net income	$	61,108	$	47,443	$	80,537	$	82,429
Basic earnings per share	$	1.04	$	0.82	$	1.38	$	1.43
Diluted earnings per share
Net income	$	61,108	$	47,443	$	80,537	$	82,429
Diluted earnings per share	$	1.04	$	0.81	$	1.37	$	1.41
Weighted-average number of shares outstanding
Basic	58,503		57,846		58,473		57,642
Effect of dilutive securities	480		826		488		1,005
Diluted	58,983		58,672		58,961		58,647
Excluded as anti-dilutive*	1,076		189		1,065		137

* Represents options to purchase Common Shares excluded from the calculation of diluted net income per share because the exercise price of the stock options was greater than or equal to the average price of the Common Shares during the period.

NOTE 21—RELATED PARTY TRANSACTIONS

Our procedure regarding the approval of any related party transaction requires that the material facts of such transaction be reviewed by the independent members of our Board and the transaction approved by a majority of the independent members of the Board. The Board reviews all transactions in which we are, or will be, a participant and any related party has or will have a direct or indirect interest. In determining whether to approve a related party transaction, the Board generally takes into account, among other facts it deems appropriate, whether the transaction is on terms no less favorable than terms generally available to an unaffiliated third party under the same or similar circumstances; the extent and nature of the related person’s interest in the transaction; the benefits to the Company of the proposed transaction; if applicable, the effects on a director’s independence; and if applicable, the availability of other sources of comparable services or products.

During the six months endedDecember 31, 2012, Mr. Stephen Sadler, a director, earned approximately $0.5 million (six months endedDecember 31, 2011—$0.7 million) in consulting fees from OpenText for assistance with acquisition-related business activities. Mr. Sadler abstained from voting on all transactions from which he would potentially derive consulting fees.

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

This Quarterly Report on Form 10-Q, including this Management’s Discussion and Analysis of Financial Condition and Results of Operations (MD&A), contains forward-looking statements regarding future events and our future results that are subject to the safe harbors within the meaning of the Private Securities Litigation Reform Act of 1995, and created under the Securities Act of 1933, as amended, and the Securities Exchange Act of 1934, as amended. All statements other than statements of historical facts are statements that could be deemed forward-looking statements.

Certain statements in this report may contain words such as “anticipates”, “expects”, “intends”, “plans”, “believes”, “seeks”, “estimates”, “may”, “could”, “would” and other similar language and 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

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underlying assumptions, are forward-looking, and based on our current expectations, estimates, forecasts and projections about the operating environment, economies and markets in which we operate. Such forward-looking information or statements are subject to important assumptions, risks and uncertainties that are difficult to predict, and the actual outcome may be materially different. Our assumptions, although considered reasonable by us at the date of this report, may prove to be inaccurate and consequently our actual results could differ materially from the expectations set out herein.

You should not rely too heavily on the forward-looking statements contained in this Quarterly Report on Form 10-Q because these forward-looking statements are relevant only as of the date they were made. We undertake no obligation to revise or publicly release the results of any revisions to these forward-looking information or statements. You should carefully review Part II, Item 1A, “Risk Factors” of this Quarterly Report on Form 10-Q and other documents we file from time to time with the Securities and Exchange Commission and other applicable securities regulators. A number of factors may materially affect our business, financial condition, operating results and prospects. These factors include but are not limited to those set forth in Part II, Item 1A, “Risk Factors” of this Quarterly Report on Form 10-Q and elsewhere in this report and in Part I, Item 1A, “Risk Factors” of our Annual Report on Form 10-K and elsewhere in such Annual Report. Any one of these factors, and other factors that we are unaware of, or currently deem immaterial, may cause our actual results to differ materially from recent results or from our anticipated future results.

The following MD&A is intended to help readers understand our results of operations and financial condition, and is provided as a supplement to, and should be read in conjunction with, our Condensed Consolidated Financial Statements and the accompanying Notes to our Condensed Consolidated Financial Statements (the Notes) under Part I, Item 1 of this Quarterly Report on Form 10-Q.

All comparisons made herein generally refer to the three and six months ended December 31, 2012 compared with the three and six months ended December 31, 2011, unless otherwise noted.

Where we say “we”, “us”, “our”, “OpenText” or “the Company”, we mean Open Text Corporation or Open Text Corporation and its subsidiaries, as applicable.

EXECUTIVE OVERVIEW

We are an independent company providing a comprehensive suite of information management software products that help people in organizations work, interact, and innovate in a secure, engaging, and productive way. We build software that allows companies to organize and manage their content, operate more efficiently and effectively, increase engagement with customers, collaborate with business partners, and address regulatory and business requirements associated with information management. Our products incorporate social and mobile experiences and are delivered for on-premise implementation as well as through cloud and managed hosted services.

Our initial public offering was on the NASDAQ in 1996 and we were subsequently listed on the Toronto Stock Exchange in 1998. We are a multinational company and currently employ approximately 5,000 people worldwide.

Quarterly Summary:

During the quarter we saw the following activity:

• Total revenue was $352.2 million, up 9.6% over the same period in the prior fiscal year.

• License revenue was $76.1 million, down 15.1% over the same period in the prior fiscal year.

• GAAP-based EPS, diluted, was $1.04 compared to $0.81 in the same period of the prior fiscal year.

• Non-GAAP-based EPS, diluted, was $1.58 compared to $1.39 in the same period of the prior fiscal year.

• GAAP-based operating income margin was 19.1% compared to 17.2% in the same period of the prior fiscal year.

• Non-GAAP-based operating income margin was 32.1% compared to 30.7% in the same period of the prior fiscal year.

• Operating cash flow was $74.7 million, up 67.1% over the same period in the prior fiscal year.

• Cash and cash equivalents was $367.3 million as of December 31, 2012, compared to $559.7 million as of June 30, 2012.

See "Use of Non-GAAP Financial Measures" below for a reconciliation of non-GAAP-based measures to GAAP-based measures.

Acquisitions

Our competitive position in the marketplace requires us to maintain a complex and evolving array of technologies, products, services and capabilities. In light of the continually evolving marketplace in which we operate, we regularly evaluate various acquisition opportunities within our traditional Enterprise Content Management (ECM) market and also in the broader

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Enterprise Information Management (EIM) market. We made one acquisition during the first quarter of the fiscal year ending June 30, 2013 (Fiscal 2013).

On July 2, 2012, we acquired EasyLink Services International Corporation (EasyLink), a company based in Georgia, USA and a global provider of cloud-based electronic messaging and business integration services for $342.3 million. See note 17 “Acquisitions” to our Condensed Consolidated Financial Statements for more details.

We believe our acquisitions support our long-term strategic direction, strengthen our competitive position, expand our customer base, provide greater scale to accelerate innovation, grow our earnings and increase shareholder value. We expect to continue to strategically acquire companies, products, services and technologies to augment our existing business.

Outlook for the Remainder of Fiscal 2013

We believe we have a strong position in the EIM market. We continue to have approximately 50% of our revenues from customer support revenues, which are generally a recurring source of income, and we expect this trend will continue. We also believe that our diversified geographic profile helps strengthen our position and helps to reduce our impact from a downturn in the economy that may occur in any one specific region. Our goal is to build on our leadership in ECM, Business Process Management (BPM) and Customer Experience Management (CEM) and to expand our position in Information Exchange (iX) and Discovery, to emerge as the leading vendor in EIM.

CRITICAL ACCOUNTING POLICIES AND ESTIMATES

The preparation of financial statements in conformity with U.S. GAAP requires us to make estimates, judgments and assumptions that affect the amounts reported in the Condensed Consolidated Financial Statements. These estimates, judgments and assumptions are evaluated on an ongoing basis. We base our estimates on historical experience and on various other assumptions that we believe are reasonable at that time, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ materially from those estimates. The accounting policies that reflect our more significant estimates, judgments and assumptions and which we believe are the most critical to aid in fully understanding and evaluating our reported financial results include the following:

(i) Revenue recognition,

(ii) Goodwill,

(iii) Acquired intangibles,

(iv) Restructuring charges,

(v) Business combinations,

(vi) Foreign currency translation, and

(vii) Income taxes.

During the first six months of Fiscal 2013, there were no significant changes to our critical accounting policies and estimates. Management’s Discussion and Analysis of Financial Condition and Results of Operations contained in Part II, Item 7 of our Annual Report on Form 10-K for our fiscal year ended June 30, 2012 provides a more complete discussion of our critical accounting policies and estimates.

RESULTS OF OPERATIONS

The following tables provide a detailed analysis of our results of operations and financial condition. For each of the periods indicated below, we present our revenues by product, revenues by major geography, cost of revenues by product, total gross margin, total operating margin, gross margin by product, and their corresponding percentage of total revenue. In addition, we provide non-GAAP measures for the periods discussed in order to provide additional information to investors that we believe will be useful as this presentation is in line with how our management assesses our Company's performance. See "Use of Non-GAAP Financial Measures" below for a reconciliation of non-GAAP-based measures to GAAP-based measures.

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Summary of Results of Operations

	Three Months Ended December 31,									Six Months Ended December 31,
(In thousands)	2012			Change increase (decrease)			2011			2012			Change increase (decrease)			2011
Total Revenues by Product Type:
License	$	76,125		$	(13,578	)	$	89,703		$	131,781		$	(22,950	)	$	154,731
Cloud services	46,151			46,151			—			91,035			91,035			—
Customer support	164,658			(728		)	165,386			326,754			(629		)	327,383
Professional service and other	65,246			(1,121		)	66,367			128,804			1,416			127,388
Total revenues	352,180			30,724			321,456			678,374			68,872			609,502
Total Cost of Revenues	122,724			17,029			105,695			243,362			36,259			207,103
Total GAAP-based Gross Margin	229,456			13,695			215,761			435,012			32,613			402,399
Total GAAP-based Gross Margin %	65.2		%				67.1		%	64.1		%				66.0		%
Total GAAP-based Operating Expenses	162,221			1,692			160,529			327,690			7,658			320,032
Total GAAP-based Income from Operations	$	67,235		$	12,003		$	55,232		$	107,322		$	24,955		$	82,367
% Revenues by Product Type:
License	21.6		%				27.9		%	19.4		%				25.4		%
Cloud services	13.1		%				—		%	13.4		%				—		%
Customer support	46.8		%				51.4		%	48.2		%				53.7		%
Professional service and other	18.5		%				20.7		%	19.0		%				20.9		%
Total Cost of Revenues by Product Type:
License	$	5,331		$	(39	)	$	5,370		$	9,499		$	131		$	9,368
Cloud services	18,261			18,261			—			36,544			36,544			—
Customer support	28,277			(191		)	28,468			54,100			(637		)	54,737
Professional service and other	47,664			(2,940		)	50,604			96,246			(4,709		)	100,955
Amortization of acquired technology-based intangible assets	23,191			1,938			21,253			46,973			4,930			42,043
Total cost of revenues	$	122,724		$	17,029		$	105,695		$	243,362		$	36,259		$	207,103
% GAAP-based Gross Margin by Product Type:
License	93.0		%				94.0		%	92.8		%				93.9		%
Cloud services	60.4		%				N/A			59.9		%				N/A
Customer support	82.8		%				82.8		%	83.4		%				83.3		%
Professional service and other	26.9		%				23.8		%	25.3		%				20.7		%
Total Revenues by Geography:
Americas*	$	187,380		$	18,336		$	169,044		$	366,307		$	48,087		$	318,220
EMEA**	127,660			(683		)	128,343			242,132			(3,664		)	245,796
Asia Pacific***	37,140			13,071			24,069			69,935			24,449			45,486
Total revenues	$	352,180		$	30,724		$	321,456		$	678,374		$	68,872		$	609,502
% Revenues by Geography:
Americas*	53.2		%				52.6		%	54.0		%				52.2		%
EMEA**	36.2		%				39.9		%	35.7		%				40.3		%
Asia Pacific***	10.6		%				7.5		%	10.3		%				7.5		%

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	Three Months Ended December 31,							Six Months Ended December 31,
(In thousands)	2012			Change increase (decrease)	2011			2012			Change increase (decrease)	2011
GAAP-based gross margin	65.2		%		67.1		%	64.1		%		66.0		%
GAAP-based operating margin	19.1		%		17.2		%	15.8		%		13.5		%
GAAP-based EPS, diluted	$	1.04			$	0.81		$	1.37			$	1.41
Non-GAAP-based gross margin	71.8		%		73.8		%	71.1		%		73.0		%
Non-GAAP-based operating margin	32.1		%		30.7		%	30.5		%		28.1		%
Non-GAAP-based EPS, diluted	$	1.58			$	1.39		$	2.89			$	2.42

*	Americas primarily consists of countries in North America and Latin America.
**	EMEA primarily consists of countries in Europe, Africa and the United Arab Emirates.
***	Asia Pacific primarily consists of the countries Japan, Australia, Hong Kong, Singapore and New Zealand
***	See "Use of Non-GAAP Financial Measures" below for a reconciliation of Non-GAAP based measures to GAAP based measures

Revenues, Cost of Revenues and Gross Margin by Product Type

1) License Revenues:

License Revenues consist of fees earned from the licensing of software products to customers. Our license revenues are impacted by the strength of general economic and industry conditions, the competitive strength of our software products, and our acquisitions. Cost of license revenues consists primarily of royalties payable to third parties.  

	Three Months Ended December 31,								Six Months Ended December 31,
(In thousands)	2012			Change increase (decrease)		2011			2012			Change increase (decrease)			2011
License Revenues :
Americas	$	34,562		(10,060	)	$	44,622		$	62,789		$	(15,003	)	$	77,792
EMEA	31,818			(5,824	)	37,642			54,429			(10,215		)	64,644
Asia Pacific	9,745			2,306		7,439			14,563			2,268			12,295
Total License Revenues	76,125			(13,578	)	89,703			131,781			(22,950		)	154,731
Cost of License Revenues	5,331			(39	)	5,370			9,499			131			9,368
GAAP-based License Margin	$	70,794		(13,539	)	$	84,333		$	122,282		$	(23,081	)	$	145,363
GAAP-based License Margin %	93.0		%			94.0		%	92.8		%				93.9		%
% License Revenues by Geography:
Americas	45.4		%			49.7		%	47.6		%				50.3		%
EMEA	41.8		%			42.0		%	41.3		%				41.8		%
Asia Pacific	12.8		%			8.3		%	11.1		%				7.9		%

License revenues decreased by $13.6 million during the three months ended December 31, 2012, as compared to the same period in the prior fiscal year. This is geographically attributable to a decrease in Americas of $10.1 million, and a decrease in EMEA of $5.8 million, offset by an increase of $2.3 million in Asia Pacific. Overall the decrease in license revenues were attributable to a lower number of deals greater than $0.5 million that closed in the second quarter of Fiscal 2013 compared to the same period in the prior fiscal year (16 deals compared to 29).

License revenues decreased by $23.0 million during the six months ended December 31, 2012, as compared to the same period in the prior fiscal year. This is geographically attributable to a decrease in Americas of $15.0 million, and a decrease of $10.2 million in EMEA, offset by an increase of $2.3 million in Asia Pacific . Overall the decrease in license revenues were attributable to a lower number of deals greater than $0.5 million that closed during the period compared to the same period in the prior fiscal year (27 deals compared to 51).

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Cost of license revenues and margins remained relatively stable during the three and six months ended December 31, 2012, as compared to the same period in the prior fiscal year.

2) Cloud Services:

Cloud services revenues consist of “managed hosting” services arrangements (through dedicated servers)primarily attributable to our acquisition of EasyLink. These arrangements allow our customers to make use of legacy EasyLink and OpenText software, services and content over Internet enabled networks supported by OpenText data centers.  The hosted web applications allow customers to transmit a variety of content between various mediums and to securely manage enterprise information without the commitment of investing in related hardware infrastructure.  Revenues are generated on several transactional usage-based models, are typically billed monthly in arrears, and can therefore fluctuate from period to period.  Certain service fees are occasionally charged to customize hosted software for some customers and are either amortized over the expected economic life of the contract, in the case of setup fees, or recognized in the period they are provided. Cost of cloud services revenues is comprised primarily of third party network usage fees, maintenance of an in-house data hardware center, technical support personnel-related costs and some third party royalty costs.

	Three Months Ended December 31,						Six Months Ended December 31,
(In thousands)	2012			Change increase (decrease)	2011		2012			Change increase (decrease)	2011
Cloud Services:
Americas	$	29,737		29,737	N/A		$	58,461		58,461	N/A
EMEA	6,852			6,852	N/A		13,595			13,595	N/A
Asia Pacific	9,562			9,562	N/A		18,979			18,979	N/A
Total Cloud Services Revenues	46,151			46,151	—		91,035			91,035	—
Cost of Cloud Services Revenues	18,261			18,261	—		36,544			36,544	—
GAAP-based Cloud Services Revenues Margin	$	27,890		27,890	$	—	$	54,491		54,491	$	—
GAAP-based Cloud Services Revenues Margin %	60.4		%		N/A		59.9		%		N/A
% Cloud Services Revenues by Geography:
Americas	64.4		%		N/A		64.2		%		N/A
EMEA	14.9		%		N/A		14.9		%		N/A
Asia Pacific	20.7		%		N/A		20.9		%		N/A

As a result of our EasyLink acquisition on July 2, 2012 during the first quarter of Fiscal 2013, we adopted a policy to classify revenues and cost of revenues relating to "Cloud Services" as separate line items within "Revenues" and "Cost of Revenues", respectively, in our Condensed Consolidated Statements of Income. No prior period comparative figures have been adjusted to conform to current period presentation since such prior period amounts were not material.

3) Customer Support Revenues:

Customer support revenues consist of revenues from our customer support and maintenance agreements. These agreements allow our customers to receive technical support, enhancements and upgrades to new versions of our software products when and if available. Customer support revenues are generated from support and maintenance relating to current year sales of software products and from the renewal of existing maintenance agreements for software licenses sold in prior periods. Therefore, changes in customer support revenues do not always correlate directly to the changes in license revenues from period to period. The terms of support and maintenance agreements are typically twelve months, with customer renewal options. Cost of customer support revenues is comprised primarily of technical support personnel and related costs, as well as third party royalty costs.  

29

	Three Months Ended December 31,								Six Months Ended December 31,
(In thousands)	2012			Change increase (decrease)		2011			2012			Change increase (decrease)		2011
Customer Support Revenues :
Americas	$	88,711		542		$	88,169		$	176,701		4,312		$	172,389
EMEA	63,101			(2,052	)	65,153			124,535			(6,600	)	131,135
Asia Pacific	12,846			782		12,064			25,518			1,659		23,859
Total customer support revenues	164,658			(728	)	165,386			326,754			(629	)	327,383
Cost of Customer Support Revenues	28,277			(191	)	28,468			54,100			(637	)	54,737
GAAP-based Customer Support Margin	$	136,381		(537	)	$	136,918		$	272,654		8		$	272,646
GAAP-based Customer Support Margin %	82.8		%			82.8		%	83.4		%			83.3		%
% Customer Support Revenues by Geography:
Americas	53.9		%			53.3		%	54.1		%			52.7		%
EMEA	38.3		%			39.4		%	38.1		%			40.1		%
Asia Pacific	7.8		%			7.3		%	7.8		%			7.2		%

Customer support revenues decreased by $0.7 million during the three months ended December 31, 2012, as compared to the same period in the prior fiscal year. This was geographically attributable to an increase in Americas of $0.5 million, a decrease in EMEA of $2.1 million and an increase in Asia Pacific of $0.8 million.

Customer support revenues decreased by $0.6 million during the six months ended December 31, 2012, as compared to the same period in the prior fiscal year. This was geographically attributable to an increase in the Americas of $4.3 million, a decrease in EMEA of $6.6 million, and an increase in Asia Pacific of $1.7 million.

Cost of customer support revenues was relatively stable, with margins remaining at approximately 83% during the three and six months ended December 31, 2012, as compared to the same period in the prior fiscal year.

4) Professional Service and Other Revenues:

Professional service and other revenues consist of revenues from consulting contracts and contracts to provide implementation, training and integration services (Professional services). “Other” revenues consist of hardware revenues. These revenues are grouped within the “Professional service and other” category because they are relatively immaterial to our service revenues. Professional services are typically performed after the purchase of new software licenses. Cost of professional service and other revenues consists primarily of the costs of providing integration, configuration and training with respect to our various software products. The most significant components of these costs are personnel-related expenses, travel costs and third party subcontracting.

30

	Three Months Ended December 31,								Six Months Ended December 31,
(In thousands)	2012			Change increase (decrease)		2011			2012			Change increase (decrease)		2011
Professional Service and Other Revenues :
Americas	$	34,369		(1,884	)	$	36,253		$	68,355		315		$	68,040
EMEA	25,890			343		25,547			49,574			(442	)	50,016
Asia Pacific	4,987			420		4,567			10,875			1,543		9,332
Total Professional Service and Other Revenues	65,246			(1,121	)	66,367			128,804			1,416		127,388
Cost of Professional Service and Other Revenues	47,664			(2,940	)	50,604			96,246			(4,709	)	100,955
GAAP-based Professional service and other Revenues Margin	$	17,582		1,819		$	15,763		$	32,558		6,125		$	26,433
GAAP-based Professional service and other Revenues Margin %	26.9		%			23.8		%	25.3		%			20.7		%
% Professional Service and Other Revenues by Geography:
Americas	52.7		%			54.6		%	53.1		%			53.4		%
EMEA	39.7		%			38.5		%	38.5		%			39.3		%
Asia Pacific	7.6		%			6.9		%	8.4		%			7.3		%

Professional service and other revenues decreased by $1.1 million during the three months ended December 31, 2012, as compared to the same period in the prior fiscal year. This was geographically attributable to a decrease in Americas of $1.9 million, an increase in EMEA of $0.3 million, and an increase in Asia Pacific of $0.4 million.

Professional service and other revenues increased by $1.4 million during the six months ended December 31, 2012, as compared to the same period in the prior fiscal year. This was geographically attributable to an increase of $1.5 million in Asia Pacific.

Cost of professional service and other revenues decreased during the three and six months ended December 31, 2012 by $2.9 million and $4.7 million, respectively, as compared to the same period in the prior fiscal year. This is partially due to a reduction in the use of subcontractors resulting in savings of $1.3 million and $2.5 million, respectively, for the three and six months ended December 31, 2012. As a result of efficiencies achieved and improved utilization, we have experienced increased margins in Professional services.

Amortization of Acquired Technology-based Intangible Assets

Amortization of acquired technology-based intangible assets increased during the three and six months ended December 31, 2012 by approximately $1.9 million and $4.9 million, respectively, as compared to the same period in the prior fiscal year. This is due to the acquisition of EasyLink at the beginning of Fiscal 2013.

31

Operating Expenses

	Three Months Ended December 31,								Six Months Ended December 31,
(In thousands)	2012			Change increase (decrease)		2011			2012			Change increase (decrease)		2011
Research and development	$	38,718		(3,934	)	$	42,652		$	78,624		(7,486	)	$	86,110
Sales and marketing	67,977			(474	)	68,451			132,492			(839	)	133,331
General and administrative	30,005			4,879		25,126			58,138			7,251		50,887
Depreciation	6,105			471		5,634			12,214			1,322		10,892
Amortization of acquired customer-based intangible assets	17,147			3,702		13,445			34,399			7,913		26,486
Special charges	2,269			(2,952	)	5,221			11,823			(503	)	12,326
Total operating expenses	$	162,221		1,692		$	160,529		$	327,690		7,658		$	320,032
In % of Total Revenues:
Research and development	11.0		%			13.3		%	11.6		%			14.1		%
Sales and marketing	19.3		%			21.3		%	19.5		%			21.9		%
General and administrative	8.5		%			7.8		%	8.6		%			8.3		%
Depreciation	1.7		%			1.8		%	1.8		%			1.8		%
Amortization of acquired customer-based intangible assets	4.9		%			4.2		%	5.1		%			4.3		%
Special charges	0.6		%			1.6		%	1.7		%			2.0		%

Research and development expenses consist primarily of personnel expenses, contracted research and development expenses, and facility costs. Research and development assists with organic growth, improves product stability and functionality, and as such we dedicate extensive efforts to update and upgrade our product offering. The primary driver is typically budgeted software upgrades and software development.

	Quarter-over-quarter Change between Fiscal			YTD-over-YTD Change between Fiscal
(In thousands)	2013 and 2012			2013 and 2012
Payroll and payroll-related benefits	$	(1,006	)	$	(3,097	)
Contract labour and consulting	(2,094		)	(2,919		)
Share based compensation	(437		)	(1,015		)
Travel and communication	(480		)	(1,183		)
Facilities	(1,194		)	(2,008		)
Other miscellaneous	1,277			2,736
Total year-over-year change in research and development expenses	$	(3,934	)	$	(7,486	)

Research and development expenses decreased by $3.9 million during the three months ended December 31, 2012, as compared to the same period in the prior fiscal year. This was primarily due to a decrease in fees related to contract labour and consulting services of $2.1 million, and a $1.0 million decrease in payroll and payroll-related benefits as a result of the redeployment of development resources as we continue to expand in the EIM market.

Research and development expenses decreased by $7.5 million during the six months ended December 31, 2012, as compared to the same period in the prior fiscal year. This was primarily due to a decrease in fees related to contract labour and consulting services of $2.9 million, and a decrease in payroll and payroll-related benefits of $3.1 million, which was the result of a redeployment of development employees to foster continued expansion in the EIM market. Correspondingly, the change in labour resources resulted in a decrease in travel and communication, in the amount of $1.2 million, and the use of facility and related resources, in the amount of $2.0 million.

32

Sales and marketing expenses consist primarily of personnel expenses and costs associated with advertising, marketing and trade shows.

	Quarter-over-quarter Change between Fiscal			YTD-over-YTD Change between Fiscal
(In thousands)	2013 and 2012			2013 and 2012
Payroll and payroll-related benefits	$	3,175		$	4,774
Commissions	(5,162		)	(9,846		)
Contract labour and consulting	(599		)	(685		)
Share based compensation	(23		)	(127		)
Travel and communication	273			(381		)
Marketing expenses	1,800			4,948
Facilities	453			1,016
Other miscellaneous	(391		)	(538		)
Total year-over-year change in sales and marketing expenses	$	(474	)	$	(839	)

Sales and marketing expenses decreased by $0.5 million during the three months ended December 31, 2012, as compared to the same period in the prior fiscal year. This is primarily due to a decrease in commission benefits of $5.2 million, which was largely the result of lower commission accruals resulting from lower license revenues. This decrease was offset by an increase in marketing expenses of $1.8 million incurred as a result of the acquisition of EasyLink, and an increase in payroll and payroll related benefits of $3.2 million, primarily made up of $2.9 million on account of the acquisition of EasyLink and the remainder of the increase due to miscellaneous items.

Sales and marketing expenses decreased by $0.8 million during the six months ended December 31, 2012, as compared to the same period in the prior fiscal year. This is primarily due to a decrease of $9.8 million in commission benefits, resulting from lower license revenues. This decrease was offset by an increase of $4.9 million in marketing expenses incurred as a result of the acquisition of EasyLink, and a $4.8 million increase in payroll and payroll-related benefits primarily made up of $5.8 million on account of the acquisition of EasyLink, offset by the impact of miscellaneous items.

General and administrative expenses consist primarily of personnel expenses, related overhead, audit fees, other professional fees, consulting expenses and public company costs.

	Quarter-over-quarter Change between Fiscal			YTD-over-YTD Change between Fiscal
(In thousands)	2013 and 2012			2013 and 2012
Payroll and payroll-related benefits	$	880		$	2,050
Contract labour and consulting	(480		)	(535		)
Share based compensation	52			(977		)
Travel and communication	808			1,000
Facilities and Information Technology (IT) costs	(150		)	(379		)
Other miscellaneous	3,769			6,092
Total year-over-year change in general and administrative expenses	$	4,879		$	7,251

General and administrative expenses increased during the three and six months ended December 31, 2012 by $4.9 million and $7.3 million, respectively, as compared to the same period in the prior fiscal year. This is primarily due to an increase in other miscellaneous expenses which was primarily due to the short-term impact of the acquisition of Easy Link.

Depreciation expenses:

	Three Months Ended December 31,						Six Months Ended December 31,
(In thousands)	2012		Change increase (decrease)		2011		2012	Change increase (decrease)	2011
Depreciation	$	6,105	$	471	$	5,634	12,214	1,322	10,892

33

Depreciation expense increased during the three and six months ended December 31, 2012 by $0.5 million and $1.3 million, respectively, as compared to the same period in the prior fiscal year. This is primarily due to the acquisition of EasyLink made during Fiscal 2013.

Amortization of acquired customer-based intangibleassets:

	Three Months Ended December 31,						Six Months Ended December 31,
(In thousands)	2012		Change increase (decrease)		2011		2012	Change increase (decrease)	2011
Amortization of acquired customer-based intangible assets	$	17,147	$	3,702	$	13,445	34,399	7,913	26,486

Acquired customer-based intangible assets amortization expense increased during the three and six months ended by December 31, 2012 by $3.7 million and $7.9 million, respectively, as compared to the same period in the prior fiscal year. This is due to the acquisition of EasyLink made during Fiscal 2013.

Special charges:

Special chargestypically relate to amounts that we expect to pay in connection with restructuring plans relating to employee workforce reduction and abandonment of excess facilities, impairment of long-lived assets, acquisition related costs and other similar charges. Generally, we implement such plans in the context of integrating existing OpenText operations with that of acquired entities. Actions related to such restructuring plans are typically completed within a period of one year. In certain limited situations, if the planned activity does not need to be implemented, or an expense lower than anticipated is paid out, we record a recovery of the originally recorded expense to Special charges.

	Three Months Ended December 31,							Six Months Ended December 31,
(In thousands)	2012		Change increase (decrease)			2011		2012	Change increase (decrease)		2011
Special charges	$	2,269	$	(2,952	)	$	5,221	11,823	(503	)	12,326

Special charges decreased by $3.0 million during the three months ended December 31, 2012, as compared to the same period in the prior fiscal year. This was primarily due to the write-off of debt-issuance costs related to our old term debt in the amount of $2.7 million which was included in the amount for the three months ended December 31, 2011, compared to none in the three months ended December 31, 2012.

Special charges decreased by $0.5 million during the six months ended December 31, 2012, as compared to the same period in the prior fiscal year. This was primarily due to a reduction in acquisition-related costs and other charges.

For more details on Special charges, see note 16 "Special Charges" to our Condensed Consolidated Financial Statements.

Net Other Income (expense)

Net other income (expense) relates to certain non-operational charges consisting primarily of transactional foreign exchange gains (losses). These income (expenses) are dependent upon the change in foreign currency exchange rates vis-à-vis the functional currency of the legal entity and we are unable to predict the impact of these income (expenses) on our net income.

	Three Months Ended December 31,							Six Months Ended December 31,
(In thousands)	2012		Change			2011		2012	Change		2011
Other income (expense), net	$	1,541	$	(1,096	)	$	2,637	1,470	(10,479	)	11,949

34

Net Interest Expense

Net interest expenseis primarily comprised of cash interest paid and accrued on our debt facilities, offset by interest income earned on our cash and cash equivalents.

	Three Months Ended December 31,								Six Months Ended December 31,
(In thousands)	2012			Change		2011			2012		Change		2011
Interest expense, net	$	(4,515	)	(908	)	$	(3,607	)	(8,883	)	(2,490	)	(6,393	)

Net interest expense increased during the three and six months ended December 31, 2012 by $0.9 million and $2.4 million, respectively, as compared to same period in the prior fiscal year. This increase is primarily due to interest incurred on a new financing agreement we entered into on November 9, 2011, which resulted in additional borrowings, as compared to our outstanding debt during the three and six months ended December 31, 2011. For more details see note 10 "Long-Term Debt" to our Condensed Consolidated Financial Statements.

Provision for Income Taxes

We initiated an internal reorganization of our international subsidiaries in Fiscal 2010 and we continue to integrate acquisitions into this new organizational structure for the following reasons: 1) to consolidate our intellectual property within certain jurisdictions, 2) to effect an operational reduction of our global subsidiaries with a view to, eventually, having a single operating legal entity in each jurisdiction, 3) to better safeguard our intellectual property in jurisdictions with well established legal regimes and protections and 4) to simplify the management of our intellectual property ownership.

We operate in several tax jurisdictions and are exposed to various foreign tax rates. We also note that we are subject to tax rate discrepancies between our domestic tax rate and foreign tax rates that are significant and these discrepancies are primarily related to the United States, Luxembourg and Germany.

	Three Months Ended December 31,							Six Months Ended December 31,
(In thousands)	2012		Change increase (decrease)			2011		2012	Change increase (decrease)	2011
Provision for income taxes	$	3,153	$	(3,666	)	$	6,819	19,372	13,878	5,494

The effective tax rate has decreased and is 4.9% for the three months ended December 31, 2012 compared to 12.6% for the three months ended December 31, 2011.

The decrease in the provision for income taxes from $6.8 million for the three months ended  December 31, 2011 to $3.2 million for the three months ended December 31, 2012 is primarily due to the impact of valuation allowances set up  during the three months ended December  31, 2011.

The net increase in tax expense from $5.5 million for the six months ended December 31, 2011 to $19.4 million for the six months ended December 31, 2012 was primarily due to tax benefits realized in Fiscal 2012 relating to the internal reorganization of the acquired international subsidiaries of Metastorm Inc., in the amount of $4.1 million, and a Canadian election to file tax returns in U.S. dollar functional currency, in the amount of $5.9 million. The Fiscal 2013 tax expense includes an increase of $4.6 million relating to the impact of adjustments in the United States and Australia upon filing of tax returns. The remainder of the differences are due to normal course movements and non-material items.

35

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. These non-U.S. 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-U.S. 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-U.S. 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-U.S. 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-U.S. 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-U.S. GAAP measures. Non-U.S. GAAP net income and non-U.S. GAAP EPS are calculated as net income or net income per share on a diluted basis, excluding, where applicable, the amortization of acquired intangible assets, other income (expense), share-based compensation, and restructuring, all net of tax. The Company's management believes that the presentation of non-U.S. GAAP net income and non-U.S. GAAP EPS provides useful information to investors because it excludes non-operational charges. The use of the term “non-operational charge” is defined by the Company as those that do not impact operating decisions taken by the Company's management and is based upon the way the Company's management evaluates the performance of the Company's business for use in the Company's internal reports. In the course of such evaluation and for the purpose of making operating decisions, the Company's management excludes certain items from its analysis, such as amortization of acquired intangible assets, restructuring costs, share-based compensation, other income (expense) and the taxation impact of these items. These items are excluded based upon the manner in which management evaluates the business of the Company and are not excluded in the sense that they may be used under U.S. GAAP. The Company believes the provision of supplemental non-U.S. GAAP measures allows 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. As a result, the Company considers it appropriate and reasonable to provide, in addition to U.S. GAAP measures, supplementary non-U.S. 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:

36

Reconciliation of selected GAAP-based measures to Non-GAAP based measures for the three months ended December 31, 2012, and 2011 respectively.

(in thousands except for per share data)

	Three Months Ended December 31,
	2012									2011
	GAAP-based Measures		Adjust-ments			Note		Non-GAAP-based		GAAP-based Measures		Adjust-ments			Note		Non-GAAP-based
Cost of revenues
Cloud Services	18,261		(30		)	(1	)	18,231		—		—			(1	)	—
Customer Support	28,277		(107		)	(1	)	28,170		28,468		(34		)	(1	)	28,434
Professional Service and Other	47,664		(188		)	(1	)	47,476		50,604		(106		)	(1	)	50,498
Amortization of acquired technology-based intangible assets	23,191		(23,191		)	(2	)	—		21,253		(21,253		)	(2	)	—
GAAP-based gross profit/ Non-GAAP-based gross profit	229,456		23,516					252,972		215,761		21,393					237,154
Operating Expenses
Research and development	38,718		(331		)	(1	)	38,387		42,652		(768		)	(1	)	41,884
Sales and marketing	67,977		(1,653		)	(1	)	66,324		68,451		(1,676		)	(1	)	66,775
General and administrative	30,005		(865		)	(1	)	29,140		25,126		(813		)	(1	)	24,313
Amortization of acquired customer-based intangible assets	17,147		(17,147		)	(2	)	—		13,445		(13,445		)	(2	)	—
Special charges	2,269		(2,269		)	(3	)	—		5,221		(5,221		)	(3	)	—
GAAP-based income from operations/ Non-GAAP-based operating income	67,235		45,781					113,016		55,232		43,316					98,548
Other income (expense), net	1,541		(1,541		)	(4	)	—		2,637		(2,637		)	(4	)	—
Provision for income taxes	3,153		12,037			(5	)	15,190		6,819		6,472			(5	)	13,291
GAAP-based net income for the period/ Non-GAAP-based net income	61,108		32,203			(6	)	93,311		47,443		34,207			(6	)	81,650
GAAP-based earnings per share/ Non GAAP-based earnings per share-diluted	$	1.04	$	0.54		(6	)	$	1.58	$	0.81	$	0.58		(6	)	$	1.39

(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)	Adjustment relates to the exclusion of Special charges from our non-GAAP-based operating expenses as Special charges are generally incurred in the aftermath of acquisitions and are not indicative or related to continuing operations and are therefore excluded from our internal analysis of operating results.
(4)	Adjustment relates to the exclusion of Other income (expense) from our non-GAAP-based operating expenses as Other income (expense) relates primarily 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.
(5)	Adjustment relates to differences between the GAAP-based tax provision (recovery) and a non-GAAP-based tax rate; these rate differences are due to the income tax effects of expenses that are excluded for the purpose of calculating non-GAAP-based adjusted net income.
(6)	Reconciliation of non-GAAP-based adjusted net income to GAAP-based net income:

	Three Months Ended December 31,
	2012						2011
				Per share diluted						Per share diluted
Non-GAAP-based net income	$	93,311		$	1.58		$	81,650		$	1.39
Less:
Amortization	40,338			0.68			34,698			0.59
Share-based compensation	3,174			0.05			3,397			0.06
Special charges	2,269			0.04			5,221			0.09
Other (income) expense, net	(1,541		)	(0.03		)	(2,637		)	(0.04		)
GAAP-based provision for income taxes	3,153			0.05			6,819			0.12
Non-GAAP based provision for income taxes	(15,190		)	(0.25		)	(13,291		)	(0.24		)
GAAP-based net income	$	61,108		$	1.04		$	47,443		$	0.81

37

Reconciliation of selected GAAP-based measures to Non-GAAP based measures for the six months ended December 31, 2012, and 2011 respectively.

(in thousands except for per share data)

	Six Months Ended December 31,
	2012									2011
	GAAP-based Measures		Adjust-ments			Note		Non-GAAP-based		GAAP-based Measures		Adjust-ments			Note		Non-GAAP-based
Cost of revenues
Cloud Services	36,544		(30		)	(1	)	36,514		—		—			(1	)	—
Customer Support	54,100		(145		)	(1	)	53,955		54,737		(58		)	(1	)	54,679
Professional Service and Other	96,246		(365		)	(1	)	95,881		100,955		(205		)	(1	)	100,750
Amortization of acquired technology-based intangible assets	46,973		(46,973		)	(2	)	—		42,043		(42,043		)	(2	)	—
GAAP-based gross profit/ Non-GAAP-based gross profit	435,012		47,513					482,525		402,399		42,306					444,705
Operating Expenses
Research and development	78,624		(669		)	(1	)	77,955		86,110		(1,844		)	(1	)	84,266
Sales and marketing	132,492		(3,319		)	(1	)	129,173		133,331		(3,446		)	(1	)	129,885
General and administrative	58,138		(1,748		)	(1	)	56,390		50,887		(2,687		)	(1	)	48,200
Amortization of acquired customer-based intangible assets	34,399		(34,399		)	(2	)	—		26,486		(26,486		)	(2	)	—
Special charges	11,823		(11,823		)	(3	)	—		12,326		(12,326		)	(3	)	—
GAAP-based income from operations/ Non-GAAP-based operating income	107,322		99,471					206,793		82,367		89,095					171,462
Other income (expense), net	1,470		(1,470		)	(4	)	—		11,949		(11,949		)	(4	)	—
Provision for income taxes	19,372		8,335			(5	)	27,707		5,494		17,615			(5	)	23,109
GAAP-based net income for the period/ Non-GAAP-based net income	80,537		89,666					170,203		82,429		59,531					141,960
GAAP-based earnings per share/ Non GAAP-based earnings per share-diluted	$	1.37	$	1.52				$	2.89	$	1.41	$	1.01				$	2.42

(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)	Adjustment relates to the exclusion of Special charges from our non-GAAP-based operating expenses as Special charges are generally incurred in the aftermath of acquisitions and are not indicative or related to continuing operations and are therefore excluded from our internal analysis of operating results.
(4)	Adjustment relates to the exclusion of Other income (expense) from our non-GAAP-based operating expenses as Other income (expense) relates primarily 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.
(5)	Adjustment relates to differences between the GAAP-based tax provision (recovery) and a non-GAAP-based tax rate; these rate differences are due to the income tax effects of expenses that are excluded for the purpose of calculating non-GAAP-based adjusted net income.
(6)	Reconciliation of non-GAAP-based adjusted net income to GAAP-based net income:

	Six Months Ended December 31,
	2012						2011
				Per share diluted						Per share diluted
Non-GAAP-based net income	$	170,203		$	2.89		$	141,960		$	2.42
Less:
Amortization	81,372			1.38			68,529			1.17
Share-based compensation	6,276			0.11			8,240			0.14
Special charges	11,823			0.20			12,326			0.21
Other (income) expense, net	(1,470		)	(0.02		)	(11,949		)	(0.20		)
GAAP-based provision for income taxes	19,372			0.33			5,494			0.10
Non-GAAP based provision for income taxes	(27,707		)	(0.48		)	(23,109		)	(0.41		)
GAAP-based net income	$	80,537		$	1.37		$	82,429		$	1.41

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LIQUIDITY AND CAPITAL RESOURCES

The following table sets forth changes in cash flow from operating, investing and financing activities for the periods indicated:

	Six Months Ended December 31,
(In thousands)	2012			Change increase (decrease)			2011
Cash and cash equivalents	$	367,258		$	(46,653	)	$	413,911
Cash provided by operating activities	$	136,457		$	46,411		$	90,046
Cash used in investing activities	$	(326,195	)	$	(55,269	)	$	(270,926	)
Cash provided by (used in) financing activities	$	(8,325	)	$	(325,416	)	$	317,091

Cash and cash equivalents

Cash and cash equivalents primarily consist of deposits held at major banks with original maturities of 90 days or less. We do not hold any securities or other investments at this time.

We anticipate that our cash and cash equivalents, as well as available credit facilities and committed loan facilities, will be sufficient to fund our anticipated cash requirements for working capital, contractual commitments, capital expenditures, and operating needs for the next 12 months. However, any material or further acquisition-related activities may require additional sources of financing.

We do not have any restrictions on repatriation of cash from foreign subsidiaries nor do we expect taxes on repatriation of cash held in foreign subsidiaries to have a material effect on our overall liquidity, financial condition or results of operations.

Cash flows provided by operating activities

Cash flows from operating activities increased by $46.4 million during the six months ended December 31, 2012 as compared to the same period in the prior fiscal year due to an increase in net income before the impact of non cash items of $15.6 million and increased working capital changes of $30.8 million.

Cash used in investing activities

Our cash used in investing activities is primarily on account of acquisitions.

Cash flows used in investing activities increased by $55.3 million during the six months ended December 31, 2012 as compared to the same period in the prior fiscal year. This was primarily due to the higher purchase consideration for EasyLink, purchased in the first quarter of Fiscal 2013, over our acquisition of Global 360 Holding Corp, purchased in the first quarter of Fiscal 2012.

Cash flows from financing activities

Our cash flows from financing activities consist of long-term debt financing and amounts received from stock options exercised by our employees. These inflows are typically offset by scheduled and non-scheduled repayments of our long-term debt financing and, when applicable, the repurchases of our Common Shares.

Cash flows provided by financing activities decreased by $325.4 million during the six months ended December 31, 2012 as compared to the same period in the prior fiscal year. In Fiscal 2012 we borrowed $600 million under our new Term Loan and used a portion of the proceeds to repay all of our previously outstanding credit facility debt in the amount of $287.3 million. The remaining difference was due to principal payments on the new Term Loan of $15 million and less cash collected from the issuance of Common Shares in Fiscal 2013.

Long-term Debt and Credit Facilities

Term loan and Revolver

Our credit facility consists of a $600 million term loan facility (the Term Loan) and a $100 million committed revolving credit facility (the Revolver). Borrowings under the credit agreement are secured by a first charge over substantially all of our assets. We entered into and borrowed from this credit agreement on November 9, 2011.

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The Term Loan has a five year term and repayments made under the Term Loan are equal to 1.25% of the original principal amount at each quarter for the first 2 years, 1.88% for years 3 and 4 and 2.5% for year 5. The Term Loan bears interest at a floating rate of LIBOR plus 2.50%.

The Revolver has a five year term with no fixed repayment date prior to the end of the term. As of December 31, 2012, we have not drawn any amounts on the Revolver.

The material financial covenants under the credit facility are that:

• We must maintain a “consolidated leverage” ratio of no more than 3:1 at the end of each financial quarter. Consolidated leverage ratio is defined for this purpose as the proportion of our total debt, including guarantees and letters of credit, over our trailing twelve months net income before interest, taxes, depreciation, amortization, restructuring, share-based compensation and other miscellaneous charges, all defined as “EBITDA” as per the credit agreement; and

• We must maintain a “consolidated interest coverage” ratio of 3:1 or more at the end of each financial quarter. Consolidated interest coverage ratio is defined for this purpose as our consolidated EBITDA over our consolidated interest expense, as defined in the credit agreement.

As of December 31, 2012, we were in compliance with all covenants relating to this credit facility. For more details relating to our Term Loan, please see note 10 "Long-Term Debt" to our Condensed Consolidated Financial Statements.

Mortgage

We currently have an "open" mortgage with a bank where we can pay all or a portion of the mortgage on or before August 1, 2013. The original principal amount of the mortgage was Canadian $15.0 million and interest accrues monthly at a variable rate of Canadian prime plus 0.50%. Principal and interest are payable in monthly installments of Canadian $0.1 million with a final lump sum principal payment due on maturity. The mortgage is secured by a lien on our headquarters in Waterloo, Ontario, Canada. We first entered into this mortgage in December 2005. As of December 31, 2012, the carrying value of the mortgage was $11.4 million.

Pensions

As of December 31, 2012, our total unfunded pension plan obligation was $25.7 million, of which $0.6 million is payable within the next 12 months. We expect to be able to make the long-term and short-term payments related to this obligation in the normal course. For a detailed discussion see note 11 "Pension Plans and Other Post Retirement Benefits" to our Condensed Consolidated Financial Statements.

Commitments and Contractual Obligations

We have entered into the following contractual obligations with minimum annual payments for the indicated fiscal periods as follows:

	Payments due between
	Total		January 1, 2013— June  30, 2013		July 1, 2013— June  30, 2015		July 1, 2015— June  30, 2017		July 1, 2017 and  beyond
Long-term debt obligations	$	632,800	$	34,276	$	114,364	$	484,160	$	—
Operating lease obligations*	150,684		16,974		57,170		36,672		39,868
Purchase obligations	5,527		2,822		2,605		100		—
	$	789,011	$	54,072	$	174,139	$	520,932	$	39,868

*Net of $2.5 million of sublease income to be received from properties which we have subleased to third parties.

The long-term debt obligations are comprised of interest and principal payments on our Term Loan and a mortgage on our headquarters in Waterloo, Ontario, Canada. See note 10 "Long-Term Debt" to our Condensed Consolidated Financial Statements.

Guarantees and Indemnifications

We have entered into agreements with customers which may include provisions for indemnifying our customers for legal claims that our software products infringe certain third party intellectual property rights and for liabilities related to breaches of our confidentiality obligations. We have not made any material payments in relation to such indemnification provisions and

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have not accrued any liabilities related to these indemnification provisions in our Condensed Consolidated Financial Statements.

Litigation

We are currently involved in various claims and legal proceedings. Quarterly, we review the status of each significant legal matter and evaluate such matters to determine how they should be treated for accounting and disclosure purposes in accordance with the requirements of ASC Topic 450-20 "Loss Contingencies" (ASC Topic 450-20). Specifically, this evaluation process includes the centralized tracking and itemization of the status of all our disputes and litigation items, discussing the nature of any litigation and claim, including any dispute or claim that is reasonably likely to result in litigation, with relevant internal and external counsel, and assessing the progress of each matter in light of its merits and our experience with similar proceedings under similar circumstances.

If the potential loss from any claim or legal proceeding is considered probable and the amount can be reasonably estimated, we accrue a liability for the estimated loss in accordance with ASC Topic 450-20. As of the date of this filing on Form 10-Q for the quarter ended December 31, 2012, any such aggregated losses are not material to our consolidated financial position or result of operations and we do not believe as of the date of this filing that it is reasonably possible that a loss exceeding the amounts already recognized may have been incurred that would be material to our consolidated financial position or results of operations.

j2 Global, Inc. (j2) and its wholly-owned subsidiary Advanced Messaging Technologies, Inc. (AMT) have filed several patent infringement lawsuits alleging that OpenText and its subsidiaries and predecessors-in-interest, Captaris, Inc. and EasyLink, are infringing U.S. Patent Nos. 6,208,638, 6,597,688, 7,020,132, 6,350,066, and 6,020,980 by offering fax-related products.  j2 and AMT are seeking injunctions, royalties and damages. Through the recent acquisition of EasyLink, the Company now has complete carriage of the defense of these cases, which are pending in the United States District Court for the Central District of California.  In each of the cases, OpenText and its subsidiaries or predecessors-in-interest have asserted, or will assert, defenses and counterclaims contending that the patents are invalid and not infringed.  In addition, OpenText and its subsidiaries or predecessors-in-interest have asserted that U.S. Patent Nos. 6,208,638, 6,497,688, and 7,020,132 are unenforceable due to j2's inequitable conduct before the United States Patent and Trademark Office (USPTO), and are seeking to add counterclaims against j2 for tortious interference with prospective business advantage and unfair competition.  Each of the cases is in the discovery, or an earlier, phase.  In addition, j2 has requested that the USPTO open reexamination proceedings regarding U.S. Patent No. 6,020,980. The Company believes j2's patent infringement allegations are without merit and will continue to vigorously defend them.

In addition, one of OpenText's subsidiaries, Xpedite Systems, LLC (Xpedite), has sued j2 for patent infringement, alleging j2 is infringing U.S. Patent Nos. 5,872,640 and 7,804,823 through j2's offering of fax-related products. Xpedite is seeking an injunction, royalties and damages.  j2 has asserted defenses and counterclaims asserting that the patents are invalid and not infringed, and j2 has requested that the USPTO undertake reexamination proceedings related to the patents, and the USPTO has agreed to do so.  The litigation is stayed until the conclusion of the USPTO's reexamination proceedings.   

Based on our assessment of ASC Topic 450-20, no amount has been accrued in connection to these cases referred to above.

Contingencies

EasyLink is currently being assessed by the New York State Department of Taxation and Finance (the Department) for the potential applicability of telecommunications excise and franchise taxes to its New York State revenues for the calendar year ended December 31, 2000 through to calendar year ended December 31, 2009. The potential exposure under this assessment, based upon the notice issued by the Department, is approximately $10.5 million.

In addition, in July 2009 EasyLink was assessed approximately $0.5 million in tax, interest and penalties for sales tax in New York State for the period between March 2001 and May 2004. EasyLink has posted a bond in this amount and is pursuing a judicial appeal of the July 2009 decision with New York State Court of Appeals. New York State sales tax audits are also currently underway for subsequent periods from June 2004 through to February 2011. The results of these audits for subsequent periods, and the potential sales tax exposure for EasyLink, are in significant part contingent upon the outcome of the above referenced sales tax appeal.

OpenText intends to vigorously defend against these claims.

Off-Balance Sheet Arrangements

We do not enter into off-balance sheet financing as a matter of practice except for the use of operating leases for office space, computer equipment, and vehicles. None of the operating leases described in the previous sentence has, and we currently do not believe that they potentially may have, a material effect on our financial condition, revenues, expenses, results of operations,

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liquidity, capital expenditures or capital resources. In accordance with U.S. GAAP, neither the lease liability nor the underlying asset is carried on the balance sheet, as the terms of the leases do not meet the criteria for capitalization.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

We are primarily exposed to market risks associated with fluctuations in interest rates on our Term Loan and foreign currency exchange rates.

Interest rate risk

Our exposure to interest rate fluctuations relate primarily to our Term Loan. As of December 31, 2012, we had an outstanding balance of $570.0 million on the Term Loan. The Term Loan bears a floating interest rate of LIBOR plus a fixed rate of 2.5%. As of December 31, 2012, an adverse change in LIBOR of 100 basis points (1.0%) would have the effect of increasing our annual interest payment on the Term Loan by approximately $5.7 million, assuming that the loan balance as of December 31, 2012 is outstanding for the entire period.

Foreign currency risk

Our reporting currency is the U.S. dollar. On account of our international operations, a substantial portion of our cash and cash equivalents is held in currencies other than the U.S. dollar. As of December 31, 2012, this balance represented approximately 46% of our total cash and cash equivalents. A 10% adverse change in foreign exchange rates versus the U.S. dollar would have decreased our reported cash and cash equivalents by approximately 5%. Additionally, we have hedged certain of our Canadian dollar foreign currency exposures relating to our payroll expenses in Canada. Based on the foreign exchange forward contracts outstanding as at December 31, 2012, a one cent change in the Canadian dollar to U.S. dollar exchange rates would cause a change of approximately $0.5 million in the mark to market on our existing foreign exchange forward contracts.

Our international operations expose us to foreign currency fluctuations. Revenues and related expenses generated from subsidiaries, other than those located in the U.S., are generally denominated in the functional currencies of the local countries. These functional currencies include Euros, Canadian dollars, Australian dollars and British pounds. The income statements of our international operations are translated into U.S. dollars at the average exchange rates in each applicable period. To the extent the U.S. dollar strengthens against foreign currencies, the foreign currency conversion of these foreign currency denominated transactions into U.S. dollars results in reduced revenues, operating expenses and net income (loss) for our international operations. Similarly, our revenues, operating expenses and net income (loss) will increase for our international operations if the U.S. dollar weakens against foreign currencies. We cannot predict the effect foreign exchange fluctuations will have on our results of operations going forward. However, if there is a change in foreign exchange rates versus the U.S. dollar, it could have a material effect on our results of operations.

Item 4. Controls and Procedures

Evaluation of Disclosure Controls and Procedures

As of the end of the period covered by this Quarterly Report on Form 10-Q, our management, with the participation of the Chief Executive Officer and Chief Financial Officer, performed an evaluation of the effectiveness of the design and operation of our disclosure controls and procedures as defined in Rule 13a-15(e) promulgated under the Securities Exchange Act of 1934, as amended (the Exchange Act). Based upon that evaluation, the Chief Executive Officer and Chief Financial Officer concluded that as of December 31, 2012, our disclosure controls and procedures were effective to provide reasonable assurance that information required to be disclosed in our reports filed or submitted under the Exchange Act were recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms, and that information required to be disclosed by us in the reports we file under the Exchange Act (according to Rule 13(a)-15(e)) is accumulated and communicated to our management, including the Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure.

Changes in Internal Control over Financial Reporting

Based on the evaluation completed by our management, in which our Chief Executive Officer and Chief Financial Officer participated, our management has concluded that there were no changes in our internal control over financial reporting (as defined in Rule 13a-15(f) under the Exchange Act) during the fiscal quarter ended December 31, 2012 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

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PART II OTHER INFORMATION

Item 1A. Risk Factors

Risk Factors

In addition to the information set forth below, you should carefully consider the factors discussed in Part I, Item 1A, “Risk Factors” in our Annual Report on Form 10-K for our fiscal year ended June 30, 2012. These are not the only risks and uncertainties facing us. Our business is also subject to general risks and uncertainties that affect many other companies.

We may have exposure to greater than anticipated state tax liabilities in the United States, as a result of our acquisition of EasyLink

Certain EasyLink cloud service offerings may be subject to telecommunications excise, franchise and sales taxes in states where EasyLink may not have collected and remitted such taxes from customers. We believe that the delivery of such cloud services are not “telecommunication services”, and therefore, we believe that such cloud service offerings are not subject to various telecommunication taxes, including telecommunications excise, franchise and sales tax. However, certain state taxing authorities may disagree with this position and may continue to audit our cloud service offerings and may subject us to payments (including interest and penalties) on account of such taxes. In the event that actual results differ from our reserves set up in this regard, we may need to record additional expense that could have a material impact on our financial condition and results of operations.

Item 5. Other Information

Revised Employment Agreements

On January 22, 2013 the Company entered into a revised employment agreement with Mr. Greg Corgan, the Company's Executive Vice President, Worldwide Field Operations. A copy of the employment agreement between Mr. Corgan and the Company is attached as an exhibit to this Quarterly Report on Form 10-Q. 

On January 24, 2013 the Company entered into Amendment no. 1 to the employment agreement with Mr. Mark Barrenechea, the Company's President and Chief Executive Officer, amending the Employment Agreement dated October 30,  2012. A copy of the amendment between Mr. Barrenechea and the Company is attached as an exhibit to this Quarterly Report on Form 10-Q. 

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Item 6.    Exhibits and Financial Statement Schedules

The following documents are filed as a part of this report:

Exhibit Number	Description of Exhibit
10.1*	2004 Stock Option Plan, as amended September 27, 2012 (1)
10.2*	Employment Agreement, dated January 22, 2013 between Greg Corgan and the Company
10.3*	Amendment No. 1 to the Employment Agreement between Mark J. Barrenechea and the Company dated January 24, 2013 (amending the Employment Agreement between Mark J. Barrenechea and the Company dated October 30,  2012)
31.1	Certification of the Chief Executive Officer, pursuant to Rule 13a-14(a) of the Exchange Act, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2	Certification of the Chief Financial Officer pursuant to Rule 13a-14(a) of the Exchange Act, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1	Certification of the Chief Executive Officer pursuant to 18 U.S.C Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2	Certification of the Chief Financial Officer pursuant to 18 U.S.C Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101.INS	XBRL instance document
101.SCH	XBRL taxonomy extension schema
101.CAL	XBRL taxonomy extension calculation linkbase
101.DEF	XBRL taxonomy extension definition linkbase
101.LAB	XBRL taxonomy extension label linkbase
101.PRE	XBRL taxonomy extension presentation

*    Indicates management contract relating to compensatory plans or arrangements

(1) Filed as an Exhibit to the Company’s Report on Form 8-K, as filed with the SEC on October 2, 2012 and incorporated herein by reference

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

OPEN TEXT CORPORATION

Date: January 25, 2013

By:	/s/    MARK BARRENECHEA
	Mark Barrenechea President and Chief Executive Officer (Principal Executive Officer)
	/s/    PAUL MCFEETERS
	Paul McFeeters Chief Financial Officer and Chief Administrative Officer (Principal Financial Officer)
	/s/    SUJEET KINI
	Sujeet Kini Vice President, Controller (Principal Accounting Officer)

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EX-10.2

Exhibit 10.2

EMPLOYMENT AGREEMENT

AGREEMENT, dated as of January 22, 2013 (including any schedules hereto the “Agreement”), among Open Text Corporation, a corporation incorporated under the laws of Canada (the “Parent Corporation”), Open Text Inc., a wholly-owned subsidiary of the Parent Corporation incorporated under the laws of the State of Delaware (the “Corporation”), and Greg Corgan (the “Executive”).

WHEREAS, the Executive has been serving the Corporation as Executive Vice President, WW Field Operations;

WHEREAS, the Corporation has determined to enter into a new employment agreement with the Executive; and

WHEREAS, the Corporation and the Executive mutually desire that the Executive continue to serve the Corporation as Executive Vice President, WW Field Operations of the Corporation on the terms and conditions set forth herein and the parties hereto shall contemporaneously execute the Restrictive Covenants Agreement (as defined below) set forth in Schedule “C”.

NOW, THEREFORE, in consideration of the premises and mutual covenants herein and for other good and valuable consideration, the parties agree as follows:

1.Position and Duties

(a)The Corporation hereby agrees to continue to employ the Executive as Executive Vice President, WW Field Operations, and the Executive hereby accepts such position and agrees to serve the Corporation in such capacity during the Term, as defined in Section 3 hereof. The Executive shall have such duties and responsibilities as are consistent with the Executive's position as set forth herein and as may be assigned by the Corporation from time to time in accordance with the terms hereof. The Executive shall be subject to, and shall act in accordance with, all reasonable instructions and directions of the President and Chief Executive Officer of the Parent Corporation (the “Reporting Manager”) and all policies and rules of the Corporation and the Parent Corporation applicable to executive officers.

(b)During the Term, excluding any periods of vacation and sick leave to which the Executive is entitled, the Executive shall devote his full working time, energy and attention to the performance of his duties and responsibilities hereunder and shall diligently endeavor to promote the business and best interests of the Corporation. Notwithstanding the foregoing, to the extent that it does not interfere with the performance of Executive's duties hereunder, Executive may (i) with the prior consent of the Board of Directors of the Parent Corporation (the “Board”), serve on the board of directors or equivalent body of up to one other company that is not a competitor of the Corporation or the Parent Corporation; (ii) serve on the boards of directors or equivalent bodies of trade associations and/or charitable organizations; (iii) engage in charitable activities and community affairs; and (iv) manage his personal, financial and legal affairs.

2.Compensation

(a)Base Salary

As compensation for the agreements made by the Executive herein and the performance by the Executive of his obligations hereunder, during the Term, the Corporation shall pay the Executive a base salary at the rate of US$400,000 per annum (the “Base Salary”), payable in accordance with the Corporation's payroll practice as in effect from time to time, except to the extent that the Executive has previously elected to defer the receipt of such Base Salary pursuant to an arrangement that meets the requirements of Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”).

(b)Variable Compensation

In addition to the Base Salary, with respect to each fiscal year of the Parent Corporation during the Term, the Executive shall be eligible to earn a bonus (the “Variable Compensation”), with an annual target amount of US$400,000 (the “Target Bonus”), paid per the incentive plan as issued each fiscal year, and based on the achievement of performance objectives established by the Corporation, subject to the Executive's employment with the Corporation through the applicable payment date for any such Variable Compensation. Notwithstanding anything to the contrary herein, the Variable Compensation shall be paid in accordance with the Corporation's normal payment practice, except to the extent that the Executive has previously elected to defer the receipt of such Variable Compensation pursuant to an arrangement that meets the requirements of Section 409A of the Code.

(c)Long Term Compensation

During the Term, the Executive will be eligible to participate in all Long Term Incentive Programs (“LTIP”) as and when approved by the Compensation Committee of the Board (the “Compensation Committee”). The value of LTIP is generally determined at the beginning of the LTIP term (typically three years) in relation to the Executive's On-Target-Earnings (“OTE”).OTE equals the Base Salary plus Target Bonus. The value target to be used for the three (3) year term of each LTIP shall be determined by the Board.

(d)Equity Plans

The Corporation shall permit the Executive to participate in any share option plan, share purchase plan or similar plan offered by the Parent Corporation from time to time to its similarly situated executive officers in the manner and to the extent authorized by the Compensation Committee.

(e)Stock Ownership

The Executive agrees to comply with the Equity Ownership Guidelines as set out in accordance with Schedule “A.”

(f)Reimbursement of Expenses

During the Term, the Corporation shall reimburse the Executive for all business expenses incurred by the Executive in performing his duties and responsibilities under this Agreement (“Business Expenses”), in accordance and to the extent consistent with the Corporation's policies or practices for reimbursement of business expenses incurred by other Corporation executive officers.

(g)Other Benefits

During the Term, for so long as the Executive meets the eligibility requirements of the applicable plan, practice, policy or program, and except as specifically provided herein: (i) the Executive shall be entitled to participate in all savings and retirement plans, practices, policies and programs of the Parent Corporation which are made available generally to similar situated executive officers of the

2

Corporation; (ii) the Executive and/or the Executive's family, as the case may be, shall be entitled to participate in, and shall receive all benefits under, all perquisite and welfare benefit plans, practices, policies and programs (including the Parent Corporation's health insurance and disability plans) provided by the Parent Corporation which are made available to similarly situated executive officers of the Corporation (for the avoidance of doubt, such plans, practices, policies or programs shall not include any plan, practice, policy or program which provides benefits in the nature of severance or continuation pay), including those benefits set forth in Schedule “B”, as amended from time to time; and (iii) the Executive shall be entitled to 20 days paid vacation per fiscal year of the Parent Corporation at a time approved in advance by the Reporting Manager, which approval shall not be unreasonably withheld but shall take into account the staffing requirements of the Corporation and Parent Corporation and the need for the timely performance of the Executive's responsibilities, subject to the Corporation's policy respecting same in effect from time to time.

(h)Annual Compensation Review

Other than as herein provided, there shall be no cost-of-living increase or merit increase in the Base Salary or increases in any bonuses payable to the Executive unless approved by the Board or the Compensation Committee. The Board and Compensation Committee shall review annually the Base Salary and all other compensation to be received by the Executive under this Agreement.

3.Term

The Executive shall serve, pursuant to this Agreement, as Executive Vice President, WW Field Operations commencing on the date of this Agreement (the “Effective Date”) and expiring on the first anniversary of the Effective Date (such period, the “Term”); provided that, on the first anniversary of the Effective Date and on each anniversary thereafter, the Term shall be extended automatically for an additional one-year period unless either party provides the other party with notice of non-renewal at least three (3) months before any such anniversary. Notwithstanding the foregoing, the Executive's employment hereunder may be terminated prior to the end of the Term upon his “Separation from Service” with the Corporation (as hereinafter defined) in connection with the earliest to occur of any of the events described in Section 4 hereof, in which case the Term shall be terminated as of the date of the Executive's Separation from Service. For purposes of this Agreement, the Executive's Separation from Service shall be deemed to occur when the level of services performed by the Executive for the Corporation decreases to a level equal to 20% or less of the average level of services performed by the Executive for the Corporation during the immediately preceding 36-month period (or, if shorter, during the period from the Effective Date to the date of the relevant determination) and Executive's employment with the Corporation terminates (within the meaning of Treas. Regs. Section 1.409A-1(h)(ii)), and the date of the Executive's Separation from Service (the “Date of Separation from Service”) shall be the date determined in accordance with Sections 5(b) and (as applicable) 5(c) hereof.

4.Separation from Service

(a)Death

The Executive shall separate from service with the Corporation, and the Term shall terminate, upon the Executive's death.

(b)Disability

The Corporation shall be entitled to terminate the Executive's employment for “Disability,” and the Executive shall separate from service with the Corporation, if, as a result of the Executive's incapacity due to physical or mental illness or injury, the Executive (i) shall become eligible

3

to receive a benefit under the Corporation's long-term disability plan applicable to the Executive, or (ii) has been unable, due to physical or mental illness or incapacity, to perform the essential duties of his employment with reasonable accommodation for a continuous period of one hundred twenty (120) days or, during any period of twelve (12) consecutive months during the Term, an aggregate of one hundred-eighty (180) days, whether consecutive or not.

(c)Cause

The Corporation may terminate the Executive's employment for Cause, and upon such termination the Executive shall separate from service with the Corporation. For purposes of this Agreement, the term “Cause” shall mean, when used in connection with the Executive's Separation from Service with the Corporation: (i) the Executive's failure to attempt in good faith to perform his duties (other than as a result of physical or mental illness or injury); (ii) the Executive's willful misconduct or gross negligence of a material nature in connection with the performance of his duties as an employee, which is or could reasonably be expected to be injurious to the Corporation, or any of its Affiliates (as defined below) (whether financially, reputationally or otherwise); (iii) a breach by the Executive of the Executive's fiduciary duty or duty of loyalty to the Corporation or its Affiliates; (iv) except in connection with the Executive's good faith performance of duties, the Executive's intentional and unauthorized removal, use or disclosure of the Corporation's or any Affiliate's document (in any medium or form) relating to the Corporation or an Affiliate, or the customers of the Corporation or an Affiliate thereof and which may be injurious to the Corporation, its customers or their respective Affiliates; (v) the willful performance by the Executive of any act or acts of dishonesty in connection with or relating to the Corporation's or its Affiliates' business or the willful misappropriation (or willful attempted misappropriation) of any of the Corporation's or any of its Affiliates' funds or property; (vi) the indictment of the Executive or a plea of guilty or nolo contendere by the Executive to any felony or other serious crime involving moral turpitude; (vii) a material breach of any of the Executive's obligations under any agreement entered into between the Executive and the Corporation or any of its Affiliates that is material to the employment relationship between Corporation or any of its Affiliates and the Executive, including without limitation, this Agreement; or (viii) a material breach of the policies or procedures of the Corporation or any of its Affiliates, which breach causes or could reasonably be expected to cause harm to the Corporation or its business reputation; provided that, with respect to the events in clauses (i), (ii), (iv) or (vii) herein, the Corporation shall have delivered written notice to the Executive of its intention to terminate the Executive's employment for Cause, which notice specifies in reasonable detail the circumstances claimed to give rise to the Corporation's right to terminate the Executive's employment for Cause and the Executive shall not have cured such circumstances as determined by the Board in good faith, to the extent such circumstances are reasonably susceptible to cure as determined by the Board in good faith, within thirty (30) days following the Corporation's delivery of such notice. For purposes of this Agreement, “Affiliate” means, with respect to any person, any other person that directly or indirectly through one or more intermediaries, controls or is controlled by, or is under common control with, the person specified. For the purposes of this definition and this Agreement, the term “Control” means the possession, direct or indirect, of the power to direct or cause the direction of the management and policies of a person, whether through the ownership of voting securities, by contract or otherwise.

(d) Corporation Termination Other than for Cause and Executive Voluntary Termination (Other Than for Good Reason)

The Corporation may terminate the employment of the Executive for any reason other than for Cause, notwithstanding any other provision of this Agreement, upon compliance with the terms of Section 6(a) hereof. The Executive may voluntarily terminate his employment, other than for Good

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Reason, provided that the Executive provides the Corporation with notice of his intent to terminate his employment at least ninety (90) days in advance of the Date of Separation from Service (as defined below). Upon such termination, in each case, the Executive shall separate from service with the Corporation. In the event of non-renewal of this Agreement by the Corporation in accordance with Section 3 hereof, the Corporation shall comply with the terms of Section 6(a) hereof.

(e)Good Reason

The Executive may terminate his employment and separate from service with the Corporation for Good Reason. For purposes of this Agreement, the term “Good Reason” shall mean, when used in connection with the Executive's Separation from Service with the Corporation, unless the Executive shall have consented in writing thereto, (i) a material diminution in the Executive's duties and responsibilities other than a change in such Executive's duties and responsibilities that arises solely out of (a) the Parent Corporation becoming part of a larger organization following a Change in Control or any change in the reporting hierarchy incident thereto or (b) a reorganization of the Parent Corporation resulting in a similar change to similarly situated executive officers' duties and responsibilities; (ii) a material reduction in the Executive's Base Salary or Target Bonus, unless a proportional reduction in base salary or target bonus, as applicable, is also applicable to similarly situated executive officers; (iii) a relocation of the Executive's primary work location more than fifty (50) miles from the Executive's work location on the Effective Date; or (iv) a reduction in the Executive's title or position with the Corporation other than a change in such Executive's title or position that arises solely out of (a) the Parent Corporation becoming part of a larger organization following a Change in Control or any change in the reporting hierarchy incident thereto or (b) a reorganization of the Parent Corporation resulting in a similar change to similarly situated executive officers' title or position; provided, that in each case, within thirty (30) days following the occurrence of any of the events set forth herein, the Executive shall have delivered written notice to the Corporation of his intention to terminate his employment for Good Reason, which notice specifies in reasonable detail the circumstances claimed to give rise to the Executive's right to terminate employment for Good Reason, the Corporation shall not have cured such circumstances within thirty (30) days following the Corporation's receipt of such notice, and the Executive's Separation from Service with the Corporation shall have occurred within sixty (60) days following such failure to cure.

5.Procedure for Separation from Service

(a)Notice of Separation from Service. Any separation of the Executive from service with the Corporation (other than a separation from service on account of the death of Executive) shall be communicated by written “Notice of Separation from Service” to the other party hereto in accordance with Section 14(a) hereof.

(b)Date of Separation from Service. The Date of Separation from Service shall mean: (i) if the Separation from Service occurs due to the Executive's death, the date of the Executive's death; (ii) if the Separation from Service occurs due to a termination by the Corporation pursuant to Section 4(b), the date on which the Executive receives a Notice of Separation from Service from the Corporation; (iii) if the Separation from Service occurs due to the Executive's voluntary termination without Good Reason, the date specified in the notice given pursuant to Section 4(d) hereof, which shall not be less than ninety (90) days after the Notice of Separation from Service; (iv) if the Separation from Service occurs due to the Executive's termination with Good Reason, the date of his termination in accordance with Section 4(e) hereof; and (v) if the Separation from Service occurs for any other reason, the date on which a Notice of Separation from Service is given or any later date (within thirty (30) days, or any alternative time period agreed upon by the parties, after the giving of such notice) set

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forth in such Notice of Separation from Service.

(c)Section 409A of the Code. Notwithstanding anything to the contrary in Section 5(b), the determination of whether and when the Date of Separation from Service from the Corporation occurs for the purpose of determining when any amount that is “nonqualified deferred compensation” subject to Section 409A of the Code becomes due and payable shall be made in a manner consistent with, and based on the presumptions set forth in, Treas. Regs. Section 1.409A-1(h). Solely for purposes of the determination referred to in the preceding sentence, “Corporation” shall include all persons with whom the Corporation would be considered a single employer under Sections 414(b) and 414(c) of the Code. In the event that the Date of Separation from Service as determined in accordance with this Section 5(c) occurs before the notice period specified in Section 5(b) has elapsed, the Corporation may elect to pay, or commence payment of, any amounts to which this Section 5(c) applies following the completion of such notice period, but not later than December 31 of the calendar year in which the Date of Separation from Service occurs.

6.Separation Payments

(a)Other than for Cause or for Good Reason

In the event of the Executive's Separation from Service due to termination by the Corporation other than for Cause (including a Separation from Service as a result of Disability but not death) or by the Executive for Good Reason, subject to (in respect of clauses (ii) through (iv)) the Executive's continued compliance with Section 6(h) below, Section 20 below and the Restrictive Covenants Agreement described in Section 10 below, the Corporation shall pay to the Executive the amounts described below at the times specified below, and, except for (x) the Executive's rights of indemnification and insurance provided in Section 9 hereof and (y) any vested benefits under any tax-qualified pension plans of the Corporation, the Corporation shall have no additional obligations under this Agreement:

(i)    Accrued Payments. Within thirty (30) days following the Date of Separation from Service, (w) any Base Salary earned by the Executive but not paid through the Date of Separation from Service (reduced by any amounts that the Executive received in connection with benefits paid or payable as a result of Disability, if applicable); (x) any Variable Compensation earned by the Executive for the fiscal year prior to the year in which the Date of Separation from Service has occurred but not yet paid prior to the Date of Separation from Service (except that, with respect to (w) and (x), to the extent that the Executive has previously elected to defer the receipt of such Base Salary or Variable Compensation pursuant to an arrangement that meets the requirements of Section 409A of the Code, the timing of the payment of such Base Salary or Variable Compensation shall be in accordance with the terms of such arrangement); (y) the Executive's accrued but unused vacation pay through the Date of Separation from Service; and (z) any Business Expenses not reimbursed as of the Date of Separation from Service (the amounts described in (w) through (z), together, the “Accrued Payments”);

(ii)    Separation Payments. In respect of each month during the 12-month period measured from the day of the Executive's Date of Separation from Service (the “Severance Period”), (x) an amount equal to one-twelfth of the Base Salary as in effect for the year in which the Date of Separation from Service occurs shall be paid in equal installments in accordance with the Corporation's standard payroll practices (reduced by any amounts received by and/or payable to Executive in connection with benefits paid or payable as a result of Disability, if applicable) (the “Salary Continuation Payments”); and (y) an amount equal to one-twelfth of

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the Target Bonus as in effect for the year in which the Date of Separation from Service occurs shall be paid once a month (together with the Salary Continuation Payments, the “Separation Payments”);

(iii)    Pro Rata Bonus. At the time that Variable Compensation for the Parent Corporation's fiscal year in which the Date of Separation from Service occurred would otherwise be paid (but in no event later than the 15^th day of the third month following the close of such fiscal year), an amount equal to the product of (i) the Target Bonus for such fiscal year that the Executive would have received had the Executive remained employed with the Corporation and (ii) a fraction, the numerator of which is the number of full weeks the Executive was employed with the Corporation in such fiscal year and the denominator of which is fifty-two (the “Pro Rata Bonus”); provided that, to the extent that the Executive has previously elected to defer the receipt of such bonus pursuant to an arrangement that meets the requirements of Section 409A of the Code, the timing of the payment of the Pro Rata Bonus shall be in accordance with the terms of such arrangement; and

(iv)    Continued Group Medical Benefits. The Executive's ability to participate in the medical plan of the Corporation shall continue only through the Date of Separation from Service. If the Executive elects to continue his health and dental insurance coverage pursuant to COBRA, the Corporation shall reimburse the Executive for the COBRA premiums for the Executive and his dependents for the number of months corresponding to the Severance Period; provided, however, that if the Executive is eligible to receive comparable medical or other welfare benefits under another employer-provided plan, the COBRA premium reimbursement described herein shall be terminated. The Executive shall promptly notify the Corporation of any changes in his medical benefits coverage.

(b)Timing of Separation Payments

Notwithstanding anything to the contrary in this Section 6, in the event that Executive is a “specified employee” (within the meaning of Section 409A(2)(B) of the Code) on the Date of Separation from Service, no Separation Payments shall be paid until the earlier of (x) the date of the Executive's death or (y) the first business day of the first calendar month that begins after the six-month anniversary of the Date of Separation from Service at which time all Separation Payments which would otherwise have been paid that would otherwise have been paid during such period of delay shall be paid with Interest (as defined below) and the remaining Separation Payments shall be paid in accordance with Section 6(a) above. “Interest” shall mean interest at the applicable federal rate provided for in Section 7872(f)(2)(A) of the Code, from the date on which payment would otherwise have been made but for any required delay through the date of payment.

(c)Cause or Voluntarily (other than for Good Reason)

In the event of the Executive's Separation from Service with the Corporation due to termination by the Corporation for Cause or voluntarily by the Executive other than for Good Reason, the Corporation shall pay the Executive, within thirty (30) days following the Date of Separation from Service, any Accrued Payments. In the event of the Executive's Separation from Service with the Corporation due to termination voluntarily by the Executive other than for Good Reason, the Board, in their sole and absolute discretion, may waive the notice period required by Section 4(d) above, in which case the Executive's employment shall be deemed to terminate immediately, provided the Executive shall still be entitled to compensation due on account of Annual Base Salary and benefits earned up to the last date of the 3 month advance written notice period given by the Executive and any

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Variable Compensation earned and prorated during such 3 month notice period. Except as provided in this Section 6(c), and except for the Executive's rights of indemnification and insurance provided in Section 9 hereof and any vested benefits under any tax qualified pension or equity incentive compensation plans of the Corporation, and continuation of health insurance benefits on the terms and to the extent required by statute as may be applicable to the Executive, the Corporation shall have no additional obligations under this Agreement.

(d)Death

In the event of the Executive's Separation from Service with the Corporation as a result of the Executive's death, the Corporation shall pay the Executive's estate within thirty (30) days following the Date of Separation from Service, the Accrued Payments. Except as provided in this Section 6(d), and except for the Executive's rights of indemnification and insurance provided in Section 9 hereof and any vested benefits under any tax qualified pension or equity incentive compensation plans of the Corporation, the Corporation shall have no additional obligations under this Agreement.

(e)Options

Except as expressly stipulated in Section 7 hereof, any options which have not vested as of the Date of Separation from Service shall terminate and be of no further force and effect as of the Date of Separation from Service and neither any period of notice nor any payment in lieu thereof upon Separation from Service hereunder shall be considered as extending the period of employment for the purposes of vesting of options notwithstanding anything to the contrary in any other agreement between the Parent Corporation and the Executive. In the event of a Separation from Service other than by the Corporation for Cause, the Executive shall have the right to exercise any options which are vested as at the Date of Separation from Service for ninety (90) days following such date at which time such unexercised options will expire. In the event of a Separation from Service by the Corporation for Cause, all options, vested and unvested, shall terminate and be of no further force and effect as of Date of Separation from Service and neither any period of notice nor any payment in lieu thereof upon Separation from Service hereunder shall be considered as extending the period of employment for the purposes of vesting of options notwithstanding anything to the contrary in any other agreement between the Corporation and the Executive. In addition, notwithstanding anything contained in this Section 6 or elsewhere in this Agreement, in the event of Separation from Service due to death of the Executive, the estate of the Executive shall be entitled to exercise any options which have vested as at the date of death of the Executive, at any time during the period which is twelve (12) months following the date of death of the Executive at the end of which period such options will expire.

(f)Long Term Compensation

Except as expressly provided in Section 7 below, in the event of the Executive's Separation from Service for any reason, all outstanding awards granted under any LTIP shall continue to be governed by the terms set forth in such LTIP.

(g)No Further Entitlements

Except as expressly provided in this Section 6 and Section 7 below, in the event of the Executive's Separation from Service for any reason, the Executive will not be entitled to receive any further payments, in lieu of notice or as damages for any reason whatsoever. Except as to any entitlement as expressly provided in this Agreement, the Executive hereby waives any claims the Executive may have against the Corporation or the Parent Corporation for or in respect of termination pay, severance pay, or notice in lieu thereof on account of loss of office or employment.

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(h)    Release

Notwithstanding anything to the contrary in this Agreement, the payments and benefits described in Section 6(a) above, other than the Accrued Payments, shall commence being made to the Executive, subject to the condition that Executive has delivered to the Corporation an executed copy of a release substantially in the form attached as Schedule “D” and that such release has become effective, enforceable and irrevocable in accordance with its terms, on the date that is 30 days after the Date of Separation from Service or, to the extent required, on the date specified in Section 6(b) above.

7.Change in Control

(a)Definition

For purposes of this Agreement, a “Change in Control” shall mean the occurrence of any of the following events: (i) any sale, lease, exchange or other transfer (in one transaction or a series of related transactions) of all or substantially all of the assets of the Parent Corporation on a consolidated basis to any person or group of related persons for purposes of Section 13(d) of the Securities Exchange Act of 1934 (the “Exchange Act” and a “Group,” respectively); (ii) the approval by the holders of the outstanding voting power of the Parent Corporation of any plan or proposal for the liquidation or dissolution of the Parent Corporation; (iii) any person or Group shall become the beneficial owner (within the meaning of Section 13(d) of the Exchange Act), directly or indirectly, of shares representing more than 50% of the aggregate outstanding voting power of the Parent Corporation and such person or Group actually has the power to vote such shares in any such election; (iv) the replacement of a majority of the Board over a twelve-month period from the directors who constituted the Board at the beginning of such period, and such replacement shall not have been approved by a vote of at least a majority of the Board then still in office who were members of such Board at the beginning of such period; or (v) consummation of a reorganization, merger, consolidation or similar transaction involving the Parent Corporation and/or any entity controlled by the Parent Corporation, or a sale or other disposition of substantially all of the assets of the Parent Corporation, or the acquisition of assets or stock of another entity by the Parent Corporation or any entity controlled by the Parent Corporation (each, a “Business Combination”) unless following such Business Combination the shareholders of the Parent Corporation immediately prior to the Business Combination own at least 50% of the then-outstanding equity securities and of the combined voting power of the corporation or other entity resulting from such Business Combination (including, without limitation, an entity that, as a result of such Business Combination, owns the Parent Corporation or substantially all of the Parent Corporation's assets either directly or through one or more subsidiaries). Notwithstanding the foregoing, for the purposes of this Agreement, an event or series of events shall not be deemed to be a Change in Control to the extent that the application of the relevant definition of Change in Control would cause any tax to become due under Section 409A of the Code.

(b)Change-in-Control Benefits and Payments

In the event of the Executive's Separation from Service due to termination by the Corporation other than for Cause or by the Executive for Good Reason within the one (1) year period following a Change in Control, then the Executive shall be entitled to the following, notwithstanding any else in this Agreement to the contrary:

(i)    payments under Section 6(a) of this Agreement at the time and in the manner set forth therein except that for purposes of clause (ii) of Section 6(a), the Severance Period shall be 24 months;

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(ii)    all options which have not vested as of the Date of Separation from Service shall vest immediately upon such Date and the Executive shall have the right to exercise all of such options for 90 days following such Date at which time any unexercised options will expire; and

(iii)    all outstanding awards granted under any LTIP shall vest 100% and any payments under Section 6.2(b) of the Schedule to the LTIP (Special Provisions Applicable to Eligible Employees Subject to Section 409A of the United States Internal Revenue Code) shall be made as set forth therein except that the Target Bonus (as defined in the LTIP) shall vest 100%;

(iv)    notwithstanding anything to the contrary in this Section 7, in the event that Executive is a “specified employee” (within the meaning of Section 409A(2)(B) of the Code) on the Date of Separation from Service, no Separation Payments shall be paid until the earlier of the date of the Executive's death or the first business day of the first calendar month that begins after the six-month anniversary of the Date of Separation from Service at which time all Separation Payments which would otherwise have been paid that would otherwise have been paid during such period of delay shall be paid with Interest (as defined below) and the remaining Separation Payments shall be paid in accordance with Section 6(a) above. “Interest” shall mean interest at the applicable federal rate provided for in Section 7872(f)(2)(A) of the Code, from the date on which payment would otherwise have been made but for any required delay through the date of payment.

(c)Certain Additional Payments by the Corporation

(i)    If it is determined (as hereafter provided) that any payment or distribution by the Corporation or Parent Corporation to or for the benefit of Executive, whether paid or payable or distributed or distributable pursuant to the terms of this Agreement or otherwise pursuant to or by reason of any other agreement, policy, plan, program or arrangement of the Corporation or Parent Corporation, including without limitation any stock options or other equity award, or the lapse or termination of any restriction on or the vesting or exercisability of any of the foregoing (a “Payment”), would be subject to the excise tax imposed by Section 4999 of the Code (or any successor provision thereto), or any interest or penalties with respect to such excise tax (such tax or taxes, together with any such interest and penalties, are hereafter collectively referred to as the “Excise Tax”), then the Payments shall be payable either (x) in full or (y) as to the maximum value of such lesser amount which would result in no portion of the Payments being subject to the Excise Tax and Executive shall receive the greater, on an after-tax basis, of (x) or (y) above. The reduction of the amounts payable under this Agreement, if applicable, shall be made as follows:

First, if the Payments include the value of acceleration in the time at which any Payment not subject to Section 409A of the Code is paid, a delay in the time of payment (but not a delay of vesting) of such Payment, provided that such delay shall apply to the aggregate amount of such Payments (and not on a Payment-by-Payment basis) and such aggregate amount shall be delayed only to the extent necessary to satisfy this Section 7(c)(i);

Second, to the extent further reduction is required by this Section 7(c)(i), a reduction in the amount of Payments required to be paid or delivered, provided that the Executive shall be entitled to select among the forms of Payment that shall be reduced; and

Third, to the extent further reduction is required by this Section 7(c)(i), if the Payments include the value of acceleration in the time at which any Payment vests, a cutback in the extent of such accelerated vesting, provided that such cutback shall apply to the aggregate amount of such Payments (and not on a Payment-by-Payment basis) and accelerated vesting of such aggregate amount shall be

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cut back only to the extent necessary to satisfy this Section 7(c)(i).

(ii)    Subject to the provisions of Section 7(c)(i) of this Agreement, all determinations required to be made under this Section 7(c), including whether an Excise Tax is payable by Executive and the amount of such Excise Tax and whether and, if so, what reductions are required by Section 7(c)(i), will be made by a nationally recognized firm of certified public accountants (the “Accounting Firm”) chosen by the Corporation. The Corporation will direct the Accounting Firm to submit its determination and detailed supporting calculations to both the Corporation and Executive within fifteen (15) calendar days after the date of the event giving rise to the Payment or the Date of Separation from Service, if applicable, and any other such time or times as may be reasonably requested by the Corporation or Executive. If the Accounting Firm determines that an Excise Tax would be payable by Executive, it will perform the calculation set out in Section 7(c)(i). Any determination by the Accounting Firm as to the determination made under Section 7(c)(i) will be binding upon the Corporation, the Parent Corporation and Executive. If the Accounting Firm determines that no Excise Tax is payable by Executive, it will, at the same time as it makes such determination, furnish Executive with an opinion that he has substantial authority not to report any Excise Tax on his federal, state, local income or other tax return. The Corporation, Parent Corporation and Executive will each cooperate with the Accounting Firm in connection with the preparation and issuance of the determination contemplated by this Section 7(c)(ii).

(iii)    The fees and expenses of the Accounting Firm for its services in connection with the determinations and calculations contemplated by Section 7(c)(ii) of this Agreement will be borne by the Corporation and paid as incurred. If such fees and expenses are initially advanced by Executive, the Corporation will reimburse Executive the full amount of such fees and expenses within fifteen (15) business days after receipt from Executive of a statement therefor and reasonable evidence of his payment thereof.

8.No Mitigation

Except as expressly provided herein, the Executive shall not be required to seek other employment or otherwise mitigate the amount of any payments to be made by the Corporation pursuant to this Agreement. Except as otherwise provided herein, the payments provided pursuant to this Agreement shall not be reduced by any compensation earned by the Executive as the result of employment by another employer after the termination of the Executive's employment or otherwise. The Corporation's obligation to make the payments provided for in this Agreement and otherwise to perform its obligations hereunder shall not be affected by any set-off, counterclaim, recoupment, defense or other claim, right or action which the Corporation may have against the Executive or others.

9.Legal Fees; Indemnification; Liability Insurance

(a)In the event of any contest or dispute between the Corporation and the Executive with respect to this Agreement or the Executive's employment hereunder, each of the parties shall be responsible for its respective legal fees and expenses.

(b)During the Term and for so long as there exists liability thereafter with regard to the Executive's activities during the Term on behalf of the Corporation, the Corporation shall indemnify the Executive to the fullest extent permitted by applicable law (and in no event in connection with the Executive's gross negligence or willful misconduct), and shall at the Corporation's election provide the Executive with legal representation or shall advance to the Executive reasonable attorneys'

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fees and expenses as such fees and expenses are incurred (subject to an undertaking from the Executive to repay such advances if it shall be finally determined by a judicial decision which is not subject to further appeal that the Executive was not entitled to the reimbursement of such fees and expenses).

(c)During the Term and for six years thereafter, the Executive shall be entitled to the same directors' and officers' liability insurance coverage that the Corporation or the Parent Corporation provides generally to its other directors and officers, as may be amended from time to time for such directors and officers.

10.Restrictive Covenants

The Executive agrees to execute contemporaneously with his execution of this Agreement the confidentiality and non-solicitation agreement annexed hereto as Schedule “C” (the “Restrictive Covenants Agreement”).

11.Injunctive Relief

It is impossible to measure in money the damages that will accrue to the Corporation or any of its Affiliates in the event that the Executive breaches any of the Restrictive Covenants. In the event that the Executive breaches any such Restrictive Covenant, the Corporation or any of its Affiliates shall be entitled to an injunction restraining the Executive from violating such Restrictive Covenant (without posting any bond). If the Corporation or any of its Affiliates shall institute any action or proceeding to enforce any such Restrictive Covenant, the Executive hereby waives the claim or defense that the Corporation or any of its Affiliates has an adequate remedy at law and agrees not to assert in any such action or proceeding the claim or defense that the Corporation or any of its Affiliates has an adequate remedy at law. The foregoing shall not prejudice the Corporation's or any of its Affiliates' right to require the Executive to account for and pay over to the Corporation or any of its Affiliates, and the Executive hereby agrees to account for and pay over, the compensation, profits, monies, accruals or other benefits derived or received by the Executive as a result of any transaction constituting a breach of any of the Restrictive Covenants.

12.Arbitration; Forum Selection.

(a)    Arbitration

If there is a disagreement or dispute between the parties with respect to this Agreement or the interpretation thereof, such disagreement or dispute will be referred to binding arbitration to be conducted by a single arbitrator, if Executive and the Corporation agree upon one, otherwise by three arbitrators appointed as hereinafter set out, pursuant to the provisions of the American Arbitration Association's (the “AAA”) rules governing commercial arbitration in effect at the time of the arbitration, except as modified herein. A party who wishes to arbitrate shall give written notice of such intention to the other party (a “Notice of Intention”). The arbitrator shall be appointed by agreement by agreement of Executive and the Corporation or, in default of agreement within ten (10) Business Days of service of the Notice of Intention, each of Executive and the Corporation shall within five (5) Business Days of the expiry of the aforesaid ten (10) Business Day period, select one arbitrator and notify the other of its selection, with the third arbitrator to be chosen by the first two named arbitrators within five (5) Business Days of the expiry of the aforesaid five (5) Business Day period. If one of the parties does not so notify the other of its selection within the prescribed time, then the arbitrator selected by the other party in accordance with the above procedure shall be the sole arbitrator. The arbitration shall be held in Delaware. The procedure to be followed shall be as agreed by the parties or, in default of agreement, determined by the arbitrator(s), provided, however, that depositions or examinations for

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discovery will not be allowed but information may be exchanged by other means. The parties will use their best efforts to ensure that the arbitration hearing is conducted no later than sixty (60) days after the arbitrator is, or arbitrators are, selected. The final decision of the arbitrator or arbitrators or any two of the three arbitrators will be furnished to the parties in writing and will constitute a conclusive determination of the issue in question, binding upon the parties, without right of appeal. The fees and expenses of the arbitration shall be in the discretion of the arbitrator(s). Judgment upon the award may be entered in any court of competent jurisdiction.

(b)    Forum Selection

The parties hereby agree that all demands, claims, actions, causes of action, suits, proceedings and litigation between or among the parties or arising out of the employment relationship between the Executive and the Corporation not subject to the Arbitration provision in Section 12(a) hereof shall be filed, tried and litigated only in a federal or state court located in Delaware. In connection with the foregoing, the parties hereto irrevocably consent to the jurisdiction and venue of such court and expressly waive any claims or defenses of lack of jurisdiction of or proper venue by such court.

13.Section 409A

(a)The intent of the parties is that payments and benefits under this Agreement comply with Section 409A of the Code and the regulations and guidance promulgated thereunder (except to the extent exempt as short-term deferrals or otherwise) and, accordingly, to the maximum extent permitted, this Agreement shall be interpreted to be in compliance therewith. If the Executive notifies the Corporation (with specificity as to the reason therefor) that the Executive believes that any provision of this Agreement (or of any award of compensation, including equity compensation or benefits) would cause Executive to incur any additional tax or interest under Section 409A of the Code or the Corporation independently makes such determination, the Corporation shall, after consulting with Executive and solely in the event and to the extent the Corporation's outside counsel deems it necessary to avoid any such additional tax or interest, reform such provision to comply with Section 409A of the Code. To the extent that any provision hereof is modified in order to comply with Section 409A of the Code, such modification shall be made in good faith and shall, to the maximum extent reasonably possible, maintain the original intent and economic benefit to the Executive and the Corporation of the applicable provision without violating the provisions of Section 409A of the Code. In no event shall the Corporation be required to pay Executive any “gross-up” or other payment with respect to any taxes or penalties imposed under Section 409A of the Code with respect to any benefit paid or promised to Executive hereunder.

(b)It is intended that each installment, if any, of the payments and benefits, if any, provided to the Executive under Section 6 hereof shall be treated as a separate “payment” for purposes of Section 409A of the Code. Neither the Corporation nor the Executive shall have the right to accelerate or defer the delivery of any such payments or benefits except to the extent specifically permitted or required by Section 409 of the Code.

(c)All reimbursements and in-kind benefits provided under this Agreement shall be made or provided in accordance with the requirements of Section 409A of the Code to the extent that such reimbursements or in-kind benefits are subject to Section 409A of the Code. All expenses or other reimbursements paid pursuant herewith that are taxable income to the Executive shall in no event be paid later than the end of the calendar year next following the calendar year in which Executive incurs such expense or pays such related tax. With regard to any provision herein that provides for reimbursement of costs and expenses or in-kind benefits, except as permitted by Section 409A of the

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Code, the right to reimbursement or in-kind benefits shall not be subject to liquidation or exchange for another benefit, the amount of expenses eligible for reimbursement, or in-kind benefits provided, during any taxable year shall not affect the expenses eligible for reimbursement, or in-kind benefits to be provided, in any other taxable year, provided that, the foregoing clause shall not be violated with regard to expenses reimbursed under any arrangement covered by Section 105(b) of the Code, if applicable, solely because such expenses are subject to a limit related to the period the arrangement is in effect and such payments shall be made on or before the last day of the Executive's taxable year following the taxable year in which the expense occurred.

(d)Whenever a payment under this Agreement specifies a payment period with reference to a number of days (e.g., “payment shall be made within thirty (30) days following the Date of Separation from Service”), the actual date of payment within the specified period shall be within the sole discretion of the Corporation.

14.Miscellaneous

(a)Any notice or other communication required or permitted under this Agreement shall be effective only if it is in writing and shall be deemed to be given when delivered personally or four days after it is mailed by registered or certified mail, postage prepaid, return receipt requested or one day after it is sent by a reputable overnight courier service and, in each case, addressed as follows (or if it is sent through any other method agreed upon by the parties):

If to the Corporation:

c/o Open Text Inc.

1301 South Mopac Expressway, Suite 150

Austin, Texas 78746

With a copy to, in all cases, the Parent Corporation:

c/o Open Text Corporation

275 Frank Tompa Drive

Waterloo, Ontario

Canada N2L 0A1

If to the Executive:

Greg Corgan

Address on file.

or to such other address as any party hereto may designate by notice to the others.

(b)This Agreement shall constitute the entire agreement among the parties hereto with respect to the Executive's employment hereunder, and supersedes and is in full substitution for any and all prior understandings or agreements with respect to the Executive's employment, including

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without limitation the employment agreement dated as of June 4, 2012 between the Corporation and the Executive.

(c)This Agreement may be amended only by an instrument in writing signed by the parties hereto, and any provision hereof may be waived only by an instrument in writing signed by the party or parties against whom or which enforcement of such waiver is sought. The failure of any party hereto at any time to require the performance by any other party hereto of any provision hereof shall in no way affect the full right to require such performance at any time thereafter, nor shall the waiver by any party hereto of a breach of any provision hereof be taken or held to be a waiver of any succeeding breach of such provision or a waiver of the provision itself or a waiver of any other provision of this Agreement.

(d)The parties hereto acknowledge and agree that each party has reviewed and negotiated the terms and provisions of this Agreement and has had the opportunity to contribute to its revision. Accordingly, the rule of construction to the effect that ambiguities are resolved against the drafting party shall not be employed in the interpretation of this Agreement. Rather, the terms of this Agreement shall be construed fairly as to both parties hereto and not in favor or against either party.

(e)The parties hereto hereby represent that they each have the authority to enter into this Agreement, and the Executive hereby represents to the Corporation that the execution of, and performance of duties under, this Agreement shall not constitute a breach of or otherwise violate any other agreement to which the Executive is a party. The Executive hereby further represents to the Corporation that he will not utilize or disclose any confidential information obtained by the Executive in connection with any former employment with respect to his duties and responsibilities hereunder.

(f)This Agreement is binding on and is for the benefit of the parties hereto and their respective successors, assigns, heirs, executors, administrators and other legal representatives. Neither this Agreement nor any right or obligation hereunder may be assigned by the Executive.

(g)The Corporation shall require any successor (whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or substantially all of the business and/or assets of the Corporation to assume this Agreement in the same manner and to the same extent that the Corporation would have been required to perform it if no such succession had taken place. As used in the Agreement, “the Corporation” shall mean both the Corporation as defined above and any such successor that assumes this Agreement, by operation of law or otherwise.

(h)Any provision of this Agreement (or portion thereof) which is deemed invalid, illegal or unenforceable in any jurisdiction shall, as to that jurisdiction and subject to this Section 14(h), be ineffective to the extent of such invalidity, illegality or unenforceability, without affecting in any way the remaining provisions thereof in such jurisdiction or rendering that or any other provisions of this Agreement invalid, illegal, or unenforceable in any other jurisdiction. If any covenant should be deemed invalid, illegal or unenforceable because its scope is considered excessive, such covenant shall be modified so that the scope of the covenant is reduced only to the minimum extent necessary to render the modified covenant valid, legal and enforceable. No waiver of any provision or violation of this Agreement by the Corporation shall be implied by the Corporation's forbearance or failure to take action.

(i)The Corporation may withhold from any amounts payable to the Executive hereunder all federal, state, city or other taxes that the Corporation may reasonably determine are required to be withheld pursuant to any applicable law or regulation, (it being understood that the Executive shall be responsible for payment of all taxes in respect of the payments and benefits provided herein).

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(j)This Agreement shall be governed by and construed in accordance with the laws of the State of Delaware without reference to its principles of conflicts of law.

(k)This Agreement may be executed in several counterparts, each of which shall be deemed an original, but all of which shall constitute one and the same instrument. A facsimile of a signature shall be deemed to be and have the effect of an original signature.

(l)The headings in this Agreement are inserted for convenience of reference only and shall not be a part of or control or affect the meaning of any provision hereof.

15.Disclosure

During the Term, the Executive shall promptly disclose to the Board of Directors full information concerning any interest, direct or indirect, of the Executive (as owner, shareholder, partner, lender or other investor, director, officer, employee, consultant or otherwise) or any member of his family in any business that is reasonably known to the Executive to purchase or otherwise obtain services or products from, or to sell or otherwise provide services or products to, the Corporation or to any of its suppliers or customers.

16.Return of Materials

All files, forms, brochures, books, materials, written correspondence, memoranda, documents, manuals, computer disks, software products and lists (including lists of customers, suppliers, products and prices) pertaining to the business of the Corporation or any of its subsidiaries, Affiliates, and Associates that may come into the possession or control of the Executive shall at all times remain the property of the Corporation or such subsidiary, Affiliate or Associate, as the case may be. The term “Associate” shall have the meaning ascribed thereto under Rule 14a-1(a) of the General Rules of the Securities Exchange Act of 1934. On termination of the Executive's employment for any reason, the Executive agrees to deliver promptly to the Corporation all such property of the Corporation in the possession of the Executive or directly or indirectly under the control of the Executive. The Executive agrees not to make for his personal or business use or that of any other party, reproductions or copies of any such property or other property of the Corporation.

17.Resignation of Directorships, etc.

The Executive agrees that after Separation from Service, he will, at the request of the Board, tender his resignation from any position he may hold as an officer or director of the Corporation or any of its subsidiaries, Affiliates or Associates, and the Executive further covenants and agrees, if so requested by the Board, not to stand for re-election to any office of the Corporation or any of its subsidiaries, Affiliates or Associates at any time following termination of the Executive's employment hereunder.

18.No Derogation

Nothing herein derogates from any rights the Executive may have under applicable law, except as set out in this section. The parties agree that the rights, entitlements and benefits set out in this Agreement to be paid to the Executive are in full satisfaction of any rights or entitlements the Executive may have as against the subsidiaries, Affiliates and Associates of the Corporation as a result of the termination of his employment with such subsidiaries, Affiliates or Associates.

19.Currency

All dollars referenced herein are in US dollars unless expressly provided to the contrary.

20.Non-Disparagement

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Each of the parties to this Agreement covenants and agrees not to engage in any pattern of conduct that involves the making or publishing of written or oral statements or remarks (including, without limitation, the repetition or distribution of derogatory rumors, allegations, negative reports or comments) which are disparaging, deleterious or damaging to the integrity, reputation or goodwill of the other party, which for the purposes of the Corporation, includes its subsidiaries, Affiliates or Associates or its and their management. For the sake of clarity, nothing in this Section 20 shall prohibit statements or remarks made in the good faith performance of the Corporation or Executive's obligations under this Agreement or in accordance with applicable law.

21.No Set-Off

The existence of any claim, demand, action or cause of action of the Executive against the Corporation, whether or not based upon this Agreement, will not constitute a defense to the enforcement by the Corporation of any covenant or agreement of the Executive contained herein.

* * * * *

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IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first written above.

Greg Corgan

/s/ Greg Corgan    

Greg Corgan

Open Text Inc.

/s/ Gordon Davies    

Name:     Gordon Davies

Title: Director

Open Text Corporation

/s/ Manny Sousa    

Name:     Manny Sousa

Title: SVP Global Human Resources

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Schedule A

Equity Ownership Guidelines

EQUITY OWNERSHIP GUIDELINES

In a continuing effort to align the interests of the Executives of Open Text Corporation, with the

interest of Open Text's shareholders, the Board of Directors (the “Board”) hereby establishes

the following recommended Open Text Equity Ownership guidelines (the “Guidelines”).

COVERED EXECUTIVES

These Guidelines cover Open Text's Executive Chairman/CSO, CEO/President, all NEO's (Named

Executive Officers), and the Executive Leadership Team (the “Covered Executives”).

OWNERSHIP GUIDELINES

The Board recommends that the Covered Executives (i) achieve the equity ownership levels

within five (5) years of the date of the establishment of these Guidelines (i.e., by October 1, 2014)

or, for an executive who becomes a Covered Executive after the date of these Guidelines were

adopted, within five (5) years after the date of his/her qualifications as a Covered Executive,

and (ii) hold the number of Open Text shares or share equivalents recommended for so long as

they are Covered Executives.

Executive Title	Required Equity Ownership
Executive Chairman*	4x base salary
CEO/President*	4x base salary
Executive Leadership Team	1x base salary

* The share ownership level for new incumbents to the Executive Chairman and CEO/President roles will be reviewed and approved by the Compensation Committee at that time.

Covered Executives may achieve these Guidelines through the exercise of stock option awards, purchases under the Open Text Employee Stock Purchase Plan (ESPP), through an open market purchase made in compliance with applicable securities laws or through any equity plan(s) Open Text may adopt from time to time providing for the acquisition of Open Text shares. Until the Guideline is met, it is recommended that a Covered Executive retains a portion of any stock option exercise or LTIP award in shares of Open Text stock to contribute to these Guidelines.

For compliance guidance purposes, the shares will be valued at the greater of their book value (i.e., purchase price) or the current market value, whichever is greater. The Compensation Committee of the Board will review the recommended executive ownership guideline achievement levels on an annual basis.

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Schedule B

Benefits

Benefits to be enjoyed by the Executive during the term of this Agreement shall include, but are not limited to:

(i) reimbursement of reasonable cell phone expenses consistent with corporate policy;

(ii) a $5,000 perquisite allowance per fiscal year, which may be used for reimbursement of the following types of services or fees:

• Financial planning

• Tax planning

• Estate planning

• Athletic/Health Club

(iii) the services of Medisys Health Group Inc., for the purposes of obtaining mandatory and regular Health Examinations.

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Schedule C

Restrictive Covenants Agreement

EMPLOYEE CONFIDENTIALITY AND

NON-SOLICITATION AGREEMENT

As an employee of Open Text Corporation or any related or affiliated company (the “Company”):

A.     I understand and agree that I have a responsibility to protect and avoid the unauthorized use or disclosure of confidential information of the Company; and

B.     I have a responsibility not to solicit or entice away from the Company any customer of the Company or any employee of the Company.

I.Confidential Information. For purposes of this Agreement, the term “confidential information” means all information that is not generally known and which I obtained from the Company, or learn, discover, develop, conceive or create during the term of my employment with the Company, and which relates directly to the business or to assets of the Company. Confidential information includes, but is not limited to: inventions, discoveries, know-how, ideas, computer programs, designs, algorithms, processes and structures, product information, research and development information, lists of clients and other information related thereto, financial data and information, business plans and processes, and any other information of the Company that the Company informs me, or which I should know by virtue of my position or the circumstances in which I learned it, is to be kept confidential. Confidential information also includes information obtained by the Company in confidence from its vendors or its clients. Confidential information may or may not be labeled as “confidential”. If I am unsure as to whether information is “confidential”, I will ask my manager for assistance.

Confidential information does not include any information that has been made generally available to the public. It also does not include any general technical skills or general experience gained by me during my employment with the Company. I understand that the Company has no objection to my using these skills and experience in any new business venture or employment following the cessation of my employment with the Company.

I recognize and acknowledge that in the course of my employment with the Company I may obtain knowledge of confidential and proprietary information of a special and unique nature and value and I may become familiar with trade secrets of the Company relating to the conduct and details of the Company's business. While I am employed by the Company and for a period of three years following the cessation of my employment I agree:

A.     to keep confidential and hold in secrecy and not disclose, divulge, publish, reveal or otherwise make known, directly or indirectly, or suffer or permit to be disclosed, divulged, published, revealed or otherwise made known to any person whatsoever, or used (except for the benefit and proper purposes of the Company), and shall faithfully do all in my power to assist the Company in holding in secrecy all of the Company's confidential information as defined above.

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B.     to keep confidential and hold in secrecy and not disclose, divulge, publish, reveal or otherwise make known, directly or indirectly, or suffer or permit to be disclosed, divulged, published, revealed or otherwise made known to any person whatsoever, or used (except for the benefit and proper purposes of the Company) any and all secrets or confidential information related to the Company's activities or affairs which I now know or which are hereafter disclosed or made known to me or otherwise learned or acquired by me, including information respecting the business affairs, prospects, operations or strategic plans respecting the Company, which knowledge I gain in my capacity as an employee of the Company and which knowledge is not publicly available or disclosed.

II. Agreement Not to Solicit. I agree that while I am an employee of the Company and for six (6) months thereafter that I will:

A.     not solicit or entice or attempt to solicit or entice away from the Company any of the employees of the Company to enter into employment or service with any person, business, firm or corporation other than the Company;

B.     not solicit or entice or attempt to solicit or entice away from the Company any customer or any other person, firm or corporation dealing with the Company.

III. Return of Documents. Upon the cessation of my employment with the Company for any reason, I agree to return to the Company all records, documents, memoranda, or other papers, copies or recordings, tapes, disks containing software, computer source code listings, routines, file layouts, record layouts, system design information, models, manuals, documentation and notes as are in my possession or control. I acknowledge and agree that all such items are strictly confidential and are the sole and exclusive property of the Company.

IV. General.

A.     I further represent and warrant that I have not entered into any Agreement with any previous or present employer which would prevent me from accepting employment with the Company or which would prevent me from lawfully executing this Agreement.

B.     I understand that the obligations outlined in this Agreement are the concern and responsibility of all employees of the Company. I agree to report in writing any violations of these policies to my manager or to the Vice-President of Human Resources.

C.     All the provisions of this Agreement will be deemed severable, and if any part of any provision is held illegal, void or invalid under applicable law, such provision may be changed to the extent reasonably necessary to make the provision, as so changed, legal, valid and binding. If any provision of this Agreement is held illegal, void or invalid in its entirety, the remaining provisions of this Agreement will not in any way be affected or impaired, but will remain binding in accordance with its terms.

D.     This Agreement and all the rights and obligations arising herefrom shall be interpreted and applied in accordance with the laws of the Province of Ontario and in the courts of the Province of Ontario there shall be exclusive jurisdiction to determine all disputes relating to this Agreement and all the rights and obligations created hereby. I hereby irrevocably attorn to the jurisdiction of the courts of

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the Province of Ontario.

E.     I acknowledge that my employment with the Company is contingent on my acceptance and my observance of this Agreement, and that such employment is adequate and sufficient consideration to bind me to all of the covenants and agreements made by me under this Agreement.

Kerry Lichty Greg Corgan

Print Name of Witness    Print Name of Employee

/s/ Kerry Lichty /s/ Greg Corgan

Signature of Witness    Signature of Employee

Date: Jan 17, 2013

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Schedule D

General Release

1. Release of Claims and Waiver of Rights.

(a) In consideration of any payments and benefits being provided to me under Section 6(a) of the employment agreement (the “Employment Agreement”) dated [•], 20[•], as it may have been amended to the date hereof, between me and Open Text Corporation (the “Company”), those payments and benefits being good and valuable consideration, the adequacy and sufficiency of which are acknowledged by me (the “Payments”), I, [Executive] hereby release, remise and acquit Company, its present and past parents, subsidiaries and affiliates, their successors, assigns, benefit plans and/or committees, and their respective present or past officers, directors, managers, supervisors, employees, shareholders, attorneys, advisors, agents and representatives in their individual and corporate capacity, and their successors and assigns (the “Releasees”), from, and hold them harmless against, any and all claims, obligations, or liabilities (including attorneys, fees and expenses), asserted or unasserted, known or unknown, that I, my heirs, successors or assigns have or might have, which have arisen by reason of any matter, cause or thing whatsoever related to my employment (or termination of my employment) with the Company on or prior to the date on which this General Release is signed.

(b) The terms “claims, obligations, or liabilities” (whether denominated claims, demands, causes of action, obligations, damages or liabilities) include, but are not limited to, any and all claims under any contract with the Company, claims of age, disability, race, religion, national origin, sex, retaliation, and/or other forms of employment discrimination, breach of express or implied contract, breach of employee handbook, practices or procedures, libel, slander, intentional tort or wrongful dismissal, claims for reinstatement or reemployment, arising under any federal, state, or local common or statutory law; claims for unpaid salary, commission or fringe benefits; or any other statutory claim before any state or federal court, tribunal or administrative agency, arising out of or in any way related to my employment relationship with the Company and its affiliates and the termination of that relationship. I will not file or permit to be filed on my behalf any such claim.

(c) This General Release constitutes, among other things, a waiver of all rights and claims I may have under the Age Discrimination in Employment Act of 1967 (29 U.S.C. 621, et seq.) (“ADEA”), the Americans with Disabilities Act of 1990, the Family and Medical Leave Act of 1993, Title VII of the United States Civil Rights Act of 1964, all as amended including the amendment set forth in 42 U.S.C. § 1981 concerning damages in cases of intentional discrimination in employment and any other comparable national or state laws, all as amended, and as may be specified on or prior to the date on which this General Release is signed.

(d) Notwithstanding the preceding paragraphs (b) or (c) or any other provision of this Agreement, this General Release is not intended to interfere with my right to file a charge with the Equal Employment Opportunity Commission (the “EEOC”) in connection with any claim I believe I may have against the Company or its affiliates. However, by executing this General Release, I hereby waive the right to recover in any proceeding I may bring before the EEOC or any state human rights commission or in any proceeding brought by the EEOC or any state human rights commission on my behalf. In addition, this General Release is not intended to interfere with my right to challenge that

24

my waiver of any and all ADEA claims pursuant to this General Release is a knowing and voluntary waiver, notwithstanding my specific representation that I have entered into this General Release knowingly and voluntarily.

(e) This General Release is for any relief, no matter how denominated, including, but not limited to, injunctive relief, wages, back pay, front pay, compensatory damages, or punitive damages.

(f) This General Release shall not apply to any rights in the nature of indemnification or payments under (i) applicable law, (ii) the charter, bylaws or operating agreements of the Company, (iii) the indemnification agreement dated January 2, 2012 or (iv) applicable directors and officers insurance policies which I may have with respect to claims against me relating to or arising out of my employment with the Company and its affiliates or my service on their respective boards of directors, or any vested benefit to which I am entitled under any tax qualified pension plan of the Company or its affiliates, COBRA continuation coverage benefits or any other similar benefits required to be provided by statute. Furthermore, notwithstanding anything to the contrary contained in this Section 1, I do not release any of the Releasees from the Company's obligation to timely provide me with all payments and benefits to which I am entitled pursuant to the terms of the Employment Agreement, or any other obligations of the Company under the Employment Agreement.

2. Representations and Covenants. I hereby represent and agree to all of the following:

(a) I have carefully read this General Release.

(b) I understand it fully.

(c) I am freely, voluntarily and knowingly releasing the Releasees in accordance with the terms contained above.

(d) Before executing this General Release, I had twenty-one (21) days to consider my rights and obligations under this General Release.

(e) The period of time I had to consider my rights and obligations under this General Release was reasonable.

(f) Before signing this General Release, I was advised to consult with an attorney and given a reasonable period of time to do so and in executing this General Release have not relied on any representation or statement not set forth herein.

(g) Execution of this General Release and the General Release becoming enforceable (in accordance with paragraph (h) below) within 30 days from the date of my “separation from service” (as determined under Section 409A of the Internal Revenue Code of 1986, as amended, and the rules and regulations issued thereunder) is a condition to the Payments, which payments and benefits are in addition to anything of value to which I am already entitled to receive from the Company and its affiliates.

(h) For a period of seven (7) days following the date on which I sign this General Release, I may revoke it. Any such revocation must be made in writing and received by the Corporate Secretary of the Company, by the seventh day following the date on which I sign this General Release. The Company's obligation to pay the consideration as set forth in Section 1 above shall not become effective or enforceable until this seven (7) day revocation period has expired without my having exercised my right to revoke.

(i) There are no pending lawsuits, charges, employee dispute resolution proceedings, administrative proceedings or other claims of any nature whatsoever, that I have brought (and which are pending)

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against any Releasee, in any state or federal court, before any agency or other administrative body or in any other forum.

(j) I am not aware of any material violation of any laws or Company policies or procedures by a Company employee or officer that has not been reported to Company officials.

(k) If I violate my obligations under the Employment Agreement and such violation causes material harm to the Company, I understand that, in addition to other relief to which the Company may be entitled, the Company shall be entitled to cease providing the Payments and benefits provided to me pursuant to Section 1 above unless such violation is cured (if capable of being cured) within 30 days of notification by the Company to me of such violation (and, following such cure, all suspended payments shall be made in a single lump sum), and this General Release will remain in full force and effect.

(l) If I should hereafter make any claim or demand or commence or threaten to commence any action, claim or proceeding against the Releasees with respect to any matter, cause or thing which is the subject of the release under Section 1 of this General Release, this General Release may be raised as a complete bar to any such action, claim or proceeding, and the applicable Releasee may recover from me all costs incurred in connection with such action, claim or proceeding, including attorneys' fees.

(m) If any provision of this General Release is declared illegal, invalid, or unenforceable by any court of competent jurisdiction and cannot be modified to be enforceable, such provisions will immediately become null and void, leaving the remainder of this General Release in full force and effect.

(n) This General Release shall be governed by and construed in accordance with the laws of the State of ________________, without regard to conflicts of laws principles.

4. Declaration. I declare under penalty of perjury under the laws of the State of ____________ that the foregoing is true and correct.

___________________________            Date: ___________________

[Executive]

Acknowledged before me this ______________

________________, NOTARY PUBLIC

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EX-10.3

Exhibit 10.3

AMENDMENT NO. 1 TO EMPLOYMENT AGREEMENT

Reference is made to the employment agreement between Mark J. Barrenechea and Open Text Corporation dated as of October 30, 2012 (the “Employment Agreement”). Defined terms used herein are as defined in the Employment Agreement unless otherwise stated.

The Employment Agreement is hereby amended to include the following new paragraph 2(i):

2(i)Income Taxes and Tax Equalization

With respect to each tax year that is affected by the payment of compensation to Executive by the Corporation or its affiliates (collectively, “Open Text”), the Corporation shall pay Executive additional compensation so that Executive's income after payment of income and social taxes on his employment income from Open Text is not more than US$50,000 less than it would be if Executive had been only a resident of the states in the United States in which he resided during the applicable year, excluding for all purposes of this paragraph 2(i) any income tax obligations arising from the exercise of stock options following termination of the Executive's employment.  Open Text employment income means aggregate Base Salary, Variable Compensation, Long Term Compensation in the form of performance share units and restricted share units, stock options, the 2012 Equity Awards, or any other form of employment income contemplated by the Employment Agreement. Income and social taxes means aggregate provincial, state, local and federal income and employment taxes, and the applicable social taxes related thereto, in the United States, including state and local taxes, and Canada.

A tax equalization calculation shall be performed after the completion of Executive's United States and Canadian income tax returns each year to ensure that the amount of tax for which he is personally responsible is computed on the same basis as the income and social tax that Executive would have paid had he remained employed only in the states in the United States in which he resided during the applicable year. Open Text shall provide Executive with tax preparation assistance for so long as he is tax equalized, and all fees and expenses related to the tax advisors of Open Text shall be borne by the Corporation.  Executive authorizes Open Text to provide its tax advisors with such information relating to his employment and compensation as is necessary to give effect to this Amendment. Executive shall be entitled to an independent tax consultant to assist in the tax equalization calculation should he wish to retain one, and the Corporation shall reimburse Executive for all reasonable fees and expenses related to the independent tax consultant in an amount not to exceed $25,000 per year.

The payment mechanics to achieve the tax equalization is intended to avoid any obligation on the Executive to pay out of his own funds any tax liability or expense in anticipation of a future reimbursement or other credit of any kind, provided that Open Text shall make all withholdings required by law. Open Text shall either make arrangement for the payment of such additional taxes on your behalf or make a cash payment to Executive to achieve this objective.

Executive shall be responsible for the timely filing of income tax returns in the United States and Canada and for global taxes on his personal income.

IN WITNESS WHEREOF, the Executive and the Corporation have executed this Amendment as of the 24th day of January, 2013.

Open Text CorporationMark J. Barrenechea

/s/ Gordon Davies /s/ Mark Barrenechea

Name: Gordon A. Davies

Title:Chief Legal Officer and

Corporate Secretary

EX-31.1

Exhibit 31.1

CERTIFICATIONS

I, Mark Barrenechea, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Open Text Corporation;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Securities Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Securities Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

By:		/s/    MARK BARRENECHEA
	Mark Barrenechea President and Chief Executive Officer

Date: January 25, 2013

EX-31.2

Exhibit 31.2

CERTIFICATIONS

I, Paul McFeeters, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Open Text Corporation;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Securities Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Securities Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

By:		/s/ PAUL MCFEETERS
	Paul McFeeters Chief Financial Officer and Chief Administrative Officer

Date: January 25, 2013

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350, AS ADOPTED

PURSUANT TO SECTION 906

OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report on Form 10-Q of Open Text Corporation (the “Company”) for the quarter ended December 31, 2012 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Mark Barrenechea, President and Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/    MARK BARRENECHEA        

Mark Barrenechea

President and Chief Executive Officer

Date: January 25, 2013

EX-32.2

Exhibit 32.2

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350, AS ADOPTED

PURSUANT TO SECTION 906

OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report on Form 10-Q of Open Text Corporation (the “Company”) for the quarter ended December 31, 2012 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Paul McFeeters, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ PAUL MCFEETERS

Paul McFeeters

Chief Financial Officer and Chief Administrative Officer

Date: January 25, 2013

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Derivative Instruments And Hedging Activities (Tables)

6 Months Ended

Dec. 31, 2012

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Fair Value of Derivative Instruments in the Condensed Consolidated Balance Sheets

Fair Value of Derivative Instruments in the Consolidated Balance Sheets (see note 14)

		As of December 31, 2012		As of June 30, 2012
Derivatives	Balance Sheet Location	Fair Value Asset (Liability)		Fair Value Asset (Liability)
Foreign currency forward contracts designated as cash flow hedges	Prepaid expenses and other current assets	$	948	$	283

Effects Of Derivative Instruments On Income And Other Comprehensive Income (OCI)

Effects of Derivative Instruments on Income and Other Comprehensive Income (OCI)

Three and Six Months Ended December 31, 2012
Derivatives in Cash Flow Hedging Relationship	Amount of Gain or (Loss) Recognized in OCI on Derivatives (Effective Portion)						Location of Gain or  (Loss) Reclassified from Accumulated OCI into Income (Effective Portion)	Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion)					Location of Gain or (Loss) Recognized in Income on Derivatives (Ineffective Portion and Amount Excluded from Effectiveness Testing)	Amount of Gain or (Loss) Recognized in Income on Derivatives (Ineffective Portion and Amount Excluded from Effectiveness Testing)
	Three months ended December 31, 2012			Six months ended December 31, 2012				Three months ended December 31, 2012			Six months ended December 31, 2012			Three months ended December 31, 2012	Six months ended December 31, 2012
Foreign currency forward contracts	$	(673	)	$	2,725		Operating expenses	$	1,304		$	2,060	N/A	—	—
Three and Six Months Ended December 31, 2011
Derivatives in Cash Flow Hedging Relationship	Amount of Gain or (Loss) Recognized in OCI on Derivatives (Effective Portion)						Location of Gain or  (Loss) Reclassified from Accumulated OCI into Income (Effective Portion)	Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion)					Location of Gain or (Loss) Recognized in Income on Derivatives (Ineffective Portion and Amount Excluded from Effectiveness Testing)	Amount of Gain or (Loss) Recognized in Income on Derivatives (Ineffective Portion and Amount Excluded from Effectiveness Testing)
	Three months ended December 31, 2011			Six months ended December 31, 2011				Three months ended December 31, 2011			Six months ended December 31, 2011			Three months ended December 31, 2011	Six months ended December 31, 2011
Foreign currency forward contracts	$	3,403		$	(2,252	)	Operating expenses	$	(902	)	$	643	N/A	—	—

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Accounts Payable And Accrued Liabilities (Schedule Of Current Liabilities) (Details) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2012	Jun. 30, 2012
Accounts Payable and Accrued Liabilities [Abstract]
Accounts payable-trade	$ 3,477	$ 7,574
Accrued salaries and commissions	42,782	50,821
Accrued liabilities	123,953	65,557
Amounts payable in respect of restructuring and other Special charges (note 16)	7,303	7,068
Asset retirement obligations	464	714
Accounts payable and accrued liabilities	$ 177,979	$ 131,734

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Goodwill (Summary Of Changes In Carrying Amount Of Goodwill) (Details) (USD $) In Thousands, unless otherwise specified	6 Months Ended
	Dec. 31, 2012
Goodwill [Line Items]
Beginning balance	$ 1,040,234
Adjustments on account of foreign exchange	201
Ending balance	1,212,657
Acquisition of EasyLink Services International Corporation [Member]
Goodwill [Line Items]
Acquisition of goodwill	$ 172,222

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Income Taxes (Interest And Penalties Related To Liabilities For Income Tax Expense) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2012	Dec. 31, 2011
Income Tax Disclosure [Abstract]
Interest expense	$ (2,041)	$ 4,897	$ (187)	$ 6,459
Penalties	(3)	(7,279)	36	(7,241)
Total	$ (2,044)	$ (2,382)	$ (151)	$ (782)

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Accounts Payable And Accrued Liabilities (Schedule Of Long-Term Accrued Liabilities) (Details) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2012	Jun. 30, 2012
Accounts Payable and Accrued Liabilities [Abstract]
Amounts payable in respect of restructuring and other Special charges (note 16)	$ 2,924	$ 1,803
Other accrued liabilities	11,264	8,819
Asset retirement obligations	4,956	3,625
Accrued liabilities	$ 19,144	$ 14,247

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Special Charges (Schedule Of Restructuring Reserve) (Details) (USD $)	3 Months Ended		6 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2012	Dec. 31, 2011
Restructuring Cost and Reserve [Line Items]
Acquisition-related costs	$ 808,000	$ 1,081,000	$ 1,612,000	$ 1,896,000
Impairment Charges And Other Impacts	743,000	2,700,000	1,348,000	1,345,000
Special Charges [Member]
Restructuring Cost and Reserve [Line Items]
Acquisition-related costs		300,000		1,100,000
Business Combination, Integration Related Costs	300,000	800,000	400,000	800,000
Recovery Aro [Member]
Restructuring Cost and Reserve [Line Items]
Impairment Charges And Other Impacts	1,000,000			800,000
Charge Revised Sublease [Member]
Restructuring Cost and Reserve [Line Items]
Impairment Charges And Other Impacts	(300,000)		600,000
Write-off of Debt Issuance Costs [Member]
Restructuring Cost and Reserve [Line Items]
Impairment Charges And Other Impacts		2,700,000
Fiscal 2013 Restructuring Plan [Member]
Restructuring Cost and Reserve [Line Items]
Beginning balance			0
Accruals and adjustments			8,262,000
Cash payments			(2,722,000)
Foreign exchange			72,000
Ending balance	5,612,000		5,612,000
Fiscal 2013 Restructuring Plan [Member] | Workforce Reduction [Member]
Restructuring Cost and Reserve [Line Items]
Beginning balance			0
Accruals and adjustments			4,759,000
Cash payments			(2,227,000)
Foreign exchange			62,000
Ending balance	2,594,000		2,594,000
Fiscal 2013 Restructuring Plan [Member] | Facility Costs [Member]
Restructuring Cost and Reserve [Line Items]
Beginning balance			0
Accruals and adjustments			3,503,000
Cash payments			(495,000)
Foreign exchange			10,000
Ending balance	3,018,000		3,018,000
Fiscal 2012 Restructuring Plan [Member]
Restructuring Cost and Reserve [Line Items]
Beginning balance			7,777,000
Accruals and adjustments			987,000
Cash payments			(4,617,000)
Foreign exchange			91,000
Ending balance	4,238,000		4,238,000
Fiscal 2012 Restructuring Plan [Member] | Workforce Reduction [Member]
Restructuring Cost and Reserve [Line Items]
Beginning balance			4,422,000
Accruals and adjustments			1,334,000
Cash payments			(3,960,000)
Foreign exchange			35,000
Ending balance	1,831,000		1,831,000
Fiscal 2012 Restructuring Plan [Member] | Facility Costs [Member]
Restructuring Cost and Reserve [Line Items]
Beginning balance			3,355,000
Accruals and adjustments			(347,000)
Cash payments			(657,000)
Foreign exchange			56,000
Ending balance	2,407,000		2,407,000
Acquisition of EasyLink Services International Corporation [Member] | Special Charges [Member]
Restructuring Cost and Reserve [Line Items]
Acquisition-related costs	$ 500,000		$ 1,200,000

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Allowance For Doubtful Accounts (Changes In Carrying Amount Of Allowance For Doubtful Accounts) (Details) (USD $) In Thousands, unless otherwise specified	6 Months Ended
	Dec. 31, 2012
Allowance For Doubtful Accounts [Abstract]
Beginning balance of allowance for doubtful accounts	$ 5,655
Bad debt expense for the period	2,268
Write-off /adjustments	(1,892)
Ending balance of allowance for doubtful accounts	$ 6,031

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Accounts Payable And Accrued Liabilities (Tables)

6 Months Ended

Dec. 31, 2012

Accounts Payable and Accrued Liabilities [Abstract]

Schedule Of Current Liabilities

Current liabilities

Accounts payable and accrued liabilities are comprised of the following:

	As of December 31, 2012		As of June 30, 2012
Accounts payable—trade	$	3,477	$	7,574
Accrued salaries and commissions	42,782		50,821
Accrued liabilities*	123,953		65,557
Amounts payable in respect of restructuring and other Special charges (note 16)	7,303		7,068
Asset retirement obligations	464		714
Total	$	177,979	$	131,734

Schedule Of Long-Term Accrued Liabilities

Long-term accrued liabilities

	As of December 31, 2012		As of June 30, 2012
Amounts payable in respect of restructuring and other Special charges (note 16)	$	2,924	$	1,803
Other accrued liabilities	11,264		8,819
Asset retirement obligations	4,956		3,625
Total	$	19,144	$	14,247

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Acquisitions (EasyLink Services International Corporation) (Details) (USD $)	0 Months Ended	3 Months Ended			6 Months Ended
	Jul. 02, 2012	Dec. 31, 2012		Dec. 31, 2011	Dec. 31, 2012		Dec. 31, 2012	Dec. 31, 2011
Business Acquisition, Cost of Acquired Entity [Abstract]
Acquisition related costs (included in Special charges in the Consolidated Statements of Income) for the three month ended December 31, 2012		$ 808,000		$ 1,081,000			$ 1,612,000	$ 1,896,000
Business Acquisition, Pro Forma Information [Abstract]
Total revenues		352,180,000		321,456,000			678,374,000	609,502,000
Net income		61,108,000		47,443,000			80,537,000	82,429,000
Tax recovery relating to certain one-time tax benefits							13,200,000
EasyLink Services International Corporation [Member]
Business Acquisition, Cost of Acquired Entity [Abstract]
Cash consideration paid	342,272,000
Acquisition related costs (included in Special charges in the Consolidated Statements of Income) for the three month ended December 31, 2012		466,000					1,215,000
Business Acquisition, Purchase Price Allocation [Abstract]
Current assets	64,319,000
Cash acquired from acquisition	26,941,000
Non-current assets	37,537,000
Total liabilities assumed	(128,906,000)
Total identifiable net assets	170,050,000
Goodwill	172,222,000
Fair value of total consideration transferred	342,272,000
Goodwill expected to be deductible for tax purposes	0
Fair value of accounts receivable acquired	26,200,000
Acquired accounts receivable, gross	27,500,000
Acquired accounts receivable, expected to be uncollectible		1,300,000			1,300,000		1,300,000
Business Acquisition, Pro Forma Information [Abstract]
Actual revenues		44,158,000			87,617,000
Actual net income		3,699,000	[1]		4,045,000	[1]
Total revenues				366,998,000				701,524,000
Net income				48,973,000				97,601,000
EasyLink Services International Corporation [Member] | Customer Assets [Member]
Business Acquisition, Purchase Price Allocation [Abstract]
Intangible assets	126,600,000
EasyLink Services International Corporation [Member] | Technology Assets [Member]
Business Acquisition, Purchase Price Allocation [Abstract]
Intangible assets	$ 70,500,000

[1] Included in pro forma net income are estimated amortization charges relating to the allocated values of intangible assets. In addition, for the six months ended December 31, 2011, pro forma net income includes a $13.2 million tax recovery relating to certain one-time tax benefits recognized by EasyLink during the period.

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Fair Value Measurements (Details) (Fair Value, Measurements, Recurring [Member], USD $) In Thousands, unless otherwise specified	Dec. 31, 2012	Jun. 30, 2012
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative financial instrument asset (note 15)	$ 948	$ 283
Total recurring assets fair value	948	283
Quoted prices in active markets for identical assets/(liabilities) (Level 1) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative financial instrument asset (note 15)
Total recurring assets fair value
Significant other observable inputs (Level 2) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative financial instrument asset (note 15)	948	283
Total recurring assets fair value	948	283
Significant unobservable inputs (Level 3) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative financial instrument asset (note 15)
Total recurring assets fair value

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Long-Term Debt (Term Loan And Revolver) (Narrative) (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended	6 Months Ended	2 Months Ended	3 Months Ended	6 Months Ended			2 Months Ended
	Dec. 31, 2011 Old Term Loan [Member]	Dec. 31, 2011 Old Term Loan [Member]	Dec. 31, 2011 Term Loan [Member]	Dec. 31, 2012 Term Loan [Member]	Dec. 31, 2012 Term Loan [Member]	Dec. 31, 2011 Term Loan [Member]	Nov. 09, 2011 Term Loan [Member]	Dec. 31, 2011 Revolving Credit Facility [Member]	Nov. 09, 2011 Revolving Credit Facility [Member]	Nov. 09, 2011 LIBOR [Member] Term Loan [Member]
Debt Instrument [Line Items]
Credit agreement, maximum capacity							$ 600		$ 100
Term loan period, years			5 years
Term loan repayment as percentage of principal in year 1			1.25%
Term loan repayment as percentage of principal in year 2			1.25%
Term loan repayment as percentage of principal in year 3			1.88%
Term loan repayment as percentage of principal in year 4			1.88%
Term loan repayment as percentage of principal in year 5			2.50%
Interest addition to floating rate										2.50%
Interest expense	$ 0.9	$ 2.7		$ 4.1	$ 8.2	$ 2.5
Revolver credit agreement term, years								5 years

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Special Charges (Narrative) (Details) (USD $)	3 Months Ended		6 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2012	Dec. 31, 2011
Restructuring Cost and Reserve [Line Items]
Acquisition-related costs	$ 808,000	$ 1,081,000	$ 1,612,000	$ 1,896,000
Other charges	743,000	2,700,000	1,348,000	1,345,000
Special Charges [Member]
Restructuring Cost and Reserve [Line Items]
Acquisition-related costs		300,000		1,100,000
Acquisition-integration related costs	300,000	800,000	400,000	800,000
Recovery ARO [Member]
Restructuring Cost and Reserve [Line Items]
Other charges	1,000,000			800,000
Charge Revised Sublease [Member]
Restructuring Cost and Reserve [Line Items]
Other charges	(300,000)		600,000
Recovery Sublease [Member]
Restructuring Cost and Reserve [Line Items]
Other charges				500,000
Write-off of Debt Issuance Costs [Member]
Restructuring Cost and Reserve [Line Items]
Other charges		2,700,000
Fiscal 2013 Restructuring Plan [Member]
Restructuring Cost and Reserve [Line Items]
Expected total restructuring costs			15,000,000
Special charges recorded to date			8,300,000
Fiscal 2012 Restructuring Plan [Member]
Restructuring Cost and Reserve [Line Items]
Special charges recorded to date			17,900,000
Acquisition of EasyLink Services International Corporation [Member] | Special Charges [Member]
Restructuring Cost and Reserve [Line Items]
Acquisition-related costs	$ 500,000		$ 1,200,000

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Supplemental Cash Flow Disclosures (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2012	Dec. 31, 2011
Supplemental Cash Flow Information [Line Items]
Cash paid during the period for interest	$ 4,302	$ 1,139	$ 8,542	$ 3,721
Cash received during the period for interest	322	290	731	442
Cash paid during the period for income taxes	21,280	7,891	37,561	8,657
International Subsidiaries [Member]
Supplemental Cash Flow Information [Line Items]
Cash paid during the period for income taxes	$ 8,800		$ 24,200

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Special Charges (Schedule Of Special Charges Related To Restructuring Plan) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2012	Dec. 31, 2011
Restructuring Cost and Reserve [Line Items]
Acquisition-related costs	$ 808	$ 1,081	$ 1,612	$ 1,896
Other charges	743	2,700	1,348	1,345
Total special charges (recoveries)	2,269	5,221	11,823	12,326
Fiscal 2013 Restructuring Plan [Member]
Restructuring Cost and Reserve [Line Items]
Special charges	684	0	8,262	0
Fiscal 2012 Restructuring Plan [Member]
Restructuring Cost and Reserve [Line Items]
Special charges	403	1,441	987	8,125
Fiscal 2011 Restructuring Plan [Member]
Restructuring Cost and Reserve [Line Items]
Special charges	(369)	(5)	(384)	974
Cash Liability Portion [Member] | Fiscal 2010 Restructuring Plan [Member]
Restructuring Cost and Reserve [Line Items]
Special charges	$ 0	$ 4	$ (2)	$ (14)

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Income Taxes (Interest Accrued And Penalties Accrued Related To Income Tax Expense) (Details) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2012		Jun. 30, 2012
Income Tax Disclosure [Abstract]
Interest accrued	$ 20,002	[1]	$ 19,316	[1]
Penalties accrued	$ 6,000	[1]	$ 4,040	[1]

[1] *These balances have been included within "Long-term income taxes payable" within the Condensed Consolidated Balance Sheets.

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Supplemental Cash Flow Disclosures

6 Months Ended

Dec. 31, 2012

Supplemental Cash Flow Information [Abstract]

Supplemental Cash Flow Disclosures

SUPPLEMENTAL CASH FLOW DISCLOSURES

	Three Months Ended December 31,				Six Months Ended December 31,
	2012		2011		2012		2011
Supplemental disclosure of cash flow information:
Cash paid during the period for interest	$	4,302	$	1,139	$	8,542	$	3,721
Cash received during the period for interest	$	322	$	290	$	731	$	442
Cash paid during the period for income taxes	$	21,280	$	7,891	$	37,561	$	8,657

Cash paid for interest for the three and six months ended December 31, 2012 includes interest payments made on our Term Loan entered into on November 9, 2011, which increased our outstanding debt as compared to the prior year (see note 10 for more details).

Cash paid for taxes for the three and six months ended December 31, 2012 include payments of $8.8 million and $24.2 million, respectively, relating to taxes exigible on internal reorganizations of our international subsidiaries.

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Acquired Intangible Assets (Calculation Of Estimated Future Amortization Expense) (Details) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2012	Jun. 30, 2012
Acquired Intangible Assets [Abstract]
2013	$ 80,088
2014	102,881
2015	79,183
2016	54,233
2017 and beyond	111,976
Net	$ 428,361	$ 312,563

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Guarantees And Contingencies (Tables)

6 Months Ended

Dec. 31, 2012

Commitments and Contingencies Disclosure [Abstract]

Contractual Obligations

We have entered into the following contractual obligations with minimum payments for the indicated fiscal periods as follows:

	Payments due between
	Total		January 1, 2013— June  30, 2013		July 1, 2013— June  30, 2015		July 1, 2015— June  30, 2017		July 1, 2017 and  beyond
Long-term debt obligations	$	632,800	$	34,276	$	114,364	$	484,160	$	—
Operating lease obligations*	150,684		16,974		57,170		36,672		39,868
Purchase obligations	5,527		2,822		2,605		100		—
	$	789,011	$	54,072	$	174,139	$	520,932	$	39,868

*Net of $2.5 million of sublease income to be received from properties which we have subleased to third parties.

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Derivative Instruments And Hedging Activities (Effects Of Derivative Instruments On Income And Other Comprehensive Income (OCI)) (Details) (Cash Flow Hedging [Member], Foreign Exchange Forward [Member], USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2012	Dec. 31, 2011
Derivatives, Fair Value [Line Items]
Amount of Gain or (Loss) Recognized in OCI on Derivative (Effective Portion)	$ (673)	$ 3,403	$ 2,725	$ (2,252)
Amount of Gain or (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing)	0	0	0	0
Operating Expenses [Member]
Derivatives, Fair Value [Line Items]
Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion)	$ 1,304	$ (902)	$ 2,060	$ 643

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Income Taxes (Tables)

6 Months Ended

Dec. 31, 2012

Income Tax Disclosure [Abstract]

Interest And Penalties Related To Liabilities For Income Tax Expense

For the three and six months endedDecember 31, 2012 and 2011, we recognized the following amounts as income tax-related interest expense and penalties:

	Three Months Ended December 31,				Six Months Ended December 31,
	2012		2011		2012		2011
Interest expense (recovery)	(2,041	)	4,897		(187	)	6,459
Penalties expense (recovery)	(3	)	(7,279	)	36		(7,241	)
Total	(2,044	)	(2,382	)	(151	)	(782	)

Interest Accrued And Penalties Accrued Related To Income Tax Expense

As of December 31, 2012 and June 30, 2012, the following amounts have been accrued on account of income tax-related interest expense and penalties:

	As of December 31, 2012		As of June 30, 2012
Interest expense accrued *	$	20,002	$	19,316
Penalties accrued *	$	6,000	$	4,040

* These balances have been included within "Long-term income taxes payable" within the Condensed Consolidated Balance Sheets.

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Deferred Charges And Credits (Details)	6 Months Ended
	Dec. 31, 2012
Deferred Costs [Abstract]
Deferred charges and credits amortization, period	6 years

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Share Capital, Option Plans And Share-Based Payments (Summary Of Option Activity) (Details) (USD $) In Thousands, except Share data, unless otherwise specified	6 Months Ended
	Dec. 31, 2012
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Options outstanding beginning balance (in shares)	2,147,151
Options granted (in shares)	252,545
Options exercised (in shares)	(190,000)
Options forfeited or expired (in shares)	(120,750)
Options outstanding ending balance (in shares)	2,088,946
Options exercisable (in shares)	898,276
Options outstanding beginning balance, weighted-average exercise price (in dollars per share)	$ 40.07
Options granted, weighted-average exercise price (in dollars per share)	$ 53.20
Options exercised, weighted-average exercise price (in dollars per share)	$ 28.12
Options forfeited or expired, weighted-average exercise price (in dollars per share)	$ 45.70
Options outstanding ending balance, weighted-average exercise price (in dollars per share)	$ 42.42
Options exercisable, weighted-average exercise price (in dollars per share)	$ 27.32
Options outstanding, weighted-average remaining contractual term	4 years 4 months 28 days
Options exercisable, weighted-average remaining contractual term	2 years 1 month 10 days
Options outstanding, aggregate intrinsic value	$ 30,040
Options exercisable, aggregate intrinsic value	$ 25,674

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Pension Plans And Other Post Retirement Benefits (Schedule Of The Change In The Benefit Obligation Of CDT Defined Benefit Plan) (Details) (USD $) In Thousands, unless otherwise specified	6 Months Ended	12 Months Ended
	Dec. 31, 2012	Jun. 30, 2012
Compensation and Retirement Disclosure [Abstract]
Benefit obligation-beginning of period	$ 21,461	$ 18,231
Service cost	230	326
Interest cost	446	873
Benefits paid	(229)	(441)
Actuarial (gain) loss	876	5,179
Foreign exchange (gain) loss	1,662	(2,707)
Benefit obligation-end of period	24,446	21,461
Less: current portion	(524)	(475)
Noncurrent portion of benefit obligation	$ 23,922	$ 20,986

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Property and Equipment (Components Of Property and Equipment By Type) (Details) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2012	Jun. 30, 2012
Property, Plant and Equipment [Line Items]
Cost	$ 157,058	$ 145,872
Accumulated Depreciation	73,923	64,715
Net Property and Equipment	83,135	81,157
Furniture and fixtures [Member]
Property, Plant and Equipment [Line Items]
Cost	11,500	10,828
Accumulated Depreciation	5,935	4,577
Net Property and Equipment	5,565	6,251
Office equipment [Member]
Property, Plant and Equipment [Line Items]
Cost	1,117	975
Accumulated Depreciation	699	596
Net Property and Equipment	418	379
Computer hardware [Member]
Property, Plant and Equipment [Line Items]
Cost	55,094	48,834
Accumulated Depreciation	37,858	34,799
Net Property and Equipment	17,236	14,035
Computer software [Member]
Property, Plant and Equipment [Line Items]
Cost	16,008	13,558
Accumulated Depreciation	9,118	7,404
Net Property and Equipment	6,890	6,154
Leasehold improvements [Member]
Property, Plant and Equipment [Line Items]
Cost	29,312	27,643
Accumulated Depreciation	16,202	13,777
Net Property and Equipment	13,110	13,866
Buildings [Member]
Property, Plant and Equipment [Line Items]
Cost	44,027	44,034
Accumulated Depreciation	4,111	3,562
Net Property and Equipment	$ 39,916	$ 40,472

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Allowance For Doubtful Accounts

6 Months Ended

Dec. 31, 2012

Allowance For Doubtful Accounts [Abstract]

Allowance For Doubtful Accounts

ALLOWANCE FOR DOUBTFUL ACCOUNTS

Balance as of June 30, 2012	$	5,655
Bad debt expense	2,268
Write-off /adjustments	(1,892		)
Balance as of December 31, 2012	$	6,031

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Pension Plans And Other Post Retirement Benefits (Components Of Net Pension Expense For CDT Pension Plan) (Details) (USD $) In Thousands, unless otherwise specified	6 Months Ended		12 Months Ended	3 Months Ended		6 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Jun. 30, 2012	Dec. 31, 2012 CDT Pension Plan [Member]	Dec. 31, 2011 CDT Pension Plan [Member]	Dec. 31, 2012 CDT Pension Plan [Member]	Dec. 31, 2011 CDT Pension Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
Service cost	$ 230		$ 326	$ 117	$ 81	$ 230	$ 166
Interest cost	446		873	226	217	446	444
Amortization of actuarial gains and losses				71	0	139	0
Net pension expense	$ 470	$ 306		$ 414	$ 298	$ 815	$ 610

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Supplemental Cash Flow Disclosures (Tables)

6 Months Ended

Dec. 31, 2012

Supplemental Cash Flow Information [Abstract]

Supplemental Disclosure Of Cash Flow Information

	Three Months Ended December 31,				Six Months Ended December 31,
	2012		2011		2012		2011
Supplemental disclosure of cash flow information:
Cash paid during the period for interest	$	4,302	$	1,139	$	8,542	$	3,721
Cash received during the period for interest	$	322	$	290	$	731	$	442
Cash paid during the period for income taxes	$	21,280	$	7,891	$	37,561	$	8,657

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Property and Equipment (Tables)

6 Months Ended

Dec. 31, 2012

Property, Plant and Equipment [Abstract]

Components Of Property and Equipment By Type

	As of December 31, 2012
	Cost		Accumulated Depreciation		Net
Furniture and fixtures	$	11,500	$	5,935	$	5,565
Office equipment	1,117		699		418
Computer hardware	55,094		37,858		17,236
Computer software	16,008		9,118		6,890
Leasehold improvements	29,312		16,202		13,110
Buildings	44,027		4,111		39,916
Total	$	157,058	$	73,923	$	83,135

	As of June 30, 2012
	Cost		Accumulated Depreciation		Net
Furniture and fixtures	$	10,828	$	4,577	$	6,251
Office equipment	975		596		379
Computer hardware	48,834		34,799		14,035
Computer software	13,558		7,404		6,154
Leasehold improvements	27,643		13,777		13,866
Buildings	44,034		3,562		40,472
Total	$	145,872	$	64,715	$	81,157

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Allowance For Doubtful Accounts (Tables)

6 Months Ended

Dec. 31, 2012

Allowance For Doubtful Accounts [Abstract]

Changes In Carrying Amount Of Allowance For Doubtful Accounts

Balance as of June 30, 2012	$	5,655
Bad debt expense	2,268
Write-off /adjustments	(1,892		)
Balance as of December 31, 2012	$	6,031

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Long-Term Debt (Schedule Of Long-Term Debt) (Details) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2012	Jun. 30, 2012
Long-term Debt, Unclassified [Abstract]
Long-term debt, Term Loan	$ 570,000	$ 585,000
Long-term debt, Mortgage	11,386	11,374
Long-term debt, Total	581,386	596,374
Less:
Current portion of long-term debt, Term Loan	33,750	30,000
Current portion of long-term debt, Total	45,136	41,374
Non current portion of long-term debt	$ 536,250	$ 555,000

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Net Income Per Share (Tables)

6 Months Ended

Dec. 31, 2012

Earnings Per Share [Abstract]

Schedule Of Net Income Per Share

	Three Months Ended December 31,				Six Months Ended December 31,
	2012		2011		2012		2011
Basic earnings per share
Net income	$	61,108	$	47,443	$	80,537	$	82,429
Basic earnings per share	$	1.04	$	0.82	$	1.38	$	1.43
Diluted earnings per share
Net income	$	61,108	$	47,443	$	80,537	$	82,429
Diluted earnings per share	$	1.04	$	0.81	$	1.37	$	1.41
Weighted-average number of shares outstanding
Basic	58,503		57,846		58,473		57,642
Effect of dilutive securities	480		826		488		1,005
Diluted	58,983		58,672		58,961		58,647
Excluded as anti-dilutive*	1,076		189		1,065		137

* Represents options to purchase Common Shares excluded from the calculation of diluted net income per share because the exercise price of the stock options was greater than or equal to the average price of the Common Shares during the period.

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Goodwill (Tables)

6 Months Ended

Dec. 31, 2012

Goodwill [Abstract]

Summary Of Changes In Carrying Amount Of Goodwill

Goodwill is recorded when the consideration paid for an acquisition of a business exceeds the fair value of identifiable net tangible and intangible assets. The following table summarizes the changes in goodwill since June 30, 2012:

Balance as of June 30, 2012	$	1,040,234
Acquisition of EasyLink (note 17)	172,222
Adjustments on account of foreign exchange	201
Balance as of December 31, 2012	$	1,212,657

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Acquired Intangible Assets (Tables)

6 Months Ended

Dec. 31, 2012

Acquired Intangible Assets [Abstract]

Calculation Of Acquired Intangibles By Asset Class

	As of December 31, 2012
	Cost		Accumulated Amortization			Net
Technology Assets	$	543,508	$	(356,490	)	$	187,018
Customer Assets	501,076		(259,733		)	241,343
Total	$	1,044,584	$	(616,223	)	$	428,361
	As of June 30, 2012
	Cost		Accumulated Amortization			Net
Technology Assets	$	473,008	$	(309,517	)	$	163,491
Customer Assets	374,396		(225,324		)	149,072
Total	$	847,404	$	(534,841	)	$	312,563

Calculation Of Estimated Future Amortization Expense

The following table shows the estimated future amortization expense for the fiscal years indicated below. This calculation assumes no future adjustments to acquired intangible assets:

	Fiscal years ending June  30,
2013 (six months ended June 30)	$	80,088
2014	102,881
2015	79,183
2016	54,233
2017 and beyond	111,976
Total	$	428,361

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Significant Accounting Policies

6 Months Ended

Dec. 31, 2012

Accounting Policies [Abstract]

Significant Accounting Policies

NEW ACCOUNTING PRONOUNCEMENTS AND ACCOUNTING POLICY UPDATES

Recently Adopted Accounting Pronouncements

In June 2011, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update No. 2011-05, "Comprehensive Income (Topic 220)—Presentation of Comprehensive Income" (ASU 2011-05), to require an entity to present the total of comprehensive income, the components of net income, and the components of other comprehensive income either in a single continuous statement of comprehensive income or in two separate but consecutive statements. ASU 2011-05 eliminates the option to present the components of other comprehensive income as part of the statement of shareholders' equity.

In December 2011, the FASB issued Accounting Standards Update No. 2011-12, "Deferral of the Effective Date for Amendments to the Presentation of Reclassifications of Items Out of Accumulated Other Comprehensive Income (AOCI) in Accounting Standards Update No. 2011-05" (ASU 2011-12), which indefinitely defers the requirement that companies present reclassification adjustments for each component of AOCI in both net income and other comprehensive income (OCI) on the face of the financial statements.

In the first quarter of Fiscal 2013, we adopted ASU 2011-05 and ASU 2011-12. Pursuant to the adoptions, we have presented a separate Condensed Consolidated Statement of Comprehensive Income. There were no other significant or material changes to our reporting as a result of these adoptions.

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Other Assets (Tables)

6 Months Ended

Dec. 31, 2012

Other Assets, Noncurrent Disclosure [Abstract]

Components Of Other Assets

	As of December 31, 2012		As of June 30, 2012
Debt issuance costs	$	7,391	$	8,463
Deposits and restricted cash	8,479		7,515
Long-term prepaid expenses and other long-term assets	6,789		7,761
Total	$	22,659	$	23,739

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Net Income Per Share (Details) (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended				6 Months Ended
	Dec. 31, 2012		Dec. 31, 2011		Dec. 31, 2012		Dec. 31, 2011
Earnings Per Share [Abstract]
Basic earnings per share, Net income	$ 61,108		$ 47,443		$ 80,537		$ 82,429
Basic earnings per share (in dollars per share)	$ 1.04		$ 0.82		$ 1.38		$ 1.43
Diluted earnings per share, Net income	$ 61,108		$ 47,443		$ 80,537		$ 82,429
Diluted earnings per share (in dollars per share)	$ 1.04		$ 0.81		$ 1.37		$ 1.41
Weighted-average number of shares outstanding - Basic (in shares)	58,503		57,846		58,473		57,642
Effect of dilutive securities (in shares)	480		826		488		1,005
Weighted-average number of shares outstanding - Diluted (in shares)	58,983		58,672		58,961		58,647
Excluded as anti-dilutive (in shares)	1,076	[1]	189	[1]	1,065	[1]	137	[1]

[1] Represents options to purchase Common Shares excluded from the calculation of diluted net income per share because the exercise price of the stock options was greater than or equal to the average price of the Common Shares during the period.

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Special Charges (Tables)

6 Months Ended

Dec. 31, 2012

Restructuring Cost and Reserve [Line Items]

Schedule Of Special Charges Related To Restructuring Plan

Special charges include costs that relate to certain restructuring initiatives that we have undertaken from time to time under our various restructuring plans, as well as acquisition related costs and other similar charges.

	Three Months Ended December 31,						Six Months Ended December 31,
	2012			2011			2012			2011
Fiscal 2013 Restructuring Plan	$	684		$	—		$	8,262		$	—
Fiscal 2012 Restructuring Plan	403			1,441			987			8,125
Fiscal 2011 Restructuring Plan	(369		)	(5		)	(384		)	974
Fiscal 2010 Restructuring Plan	—			4			(2		)	(14		)
Acquisition-related costs	808			1,081			1,612			1,896
Other charges	743			2,700			1,348			1,345
Total	$	2,269		$	5,221		$	11,823		$	12,326

Fiscal 2013 Restructuring Plan [Member]

Restructuring Cost and Reserve [Line Items]

Schedule Of Restructuring Reserve

A reconciliation of the beginning and ending liability for the six months endedDecember 31, 2012 is shown below.

Fiscal 2013 Restructuring Plan	Workforce reduction			Facility costs			Total
Balance as of June 30, 2012	$	—		$	—		$	—
Accruals and adjustments	4,759			3,503			8,262
Cash payments	(2,227		)	(495		)	(2,722		)
Foreign exchange	62			10			72
Balance as of December 31, 2012	$	2,594		$	3,018		$	5,612

Fiscal 2012 Restructuring Plan [Member]

Restructuring Cost and Reserve [Line Items]

Schedule Of Restructuring Reserve

A reconciliation of the beginning and ending liability for the six months endedDecember 31, 2012 is shown below.

Fiscal 2012 Restructuring Plan	Workforce reduction			Facility costs			Total
Balance as of June 30, 2012	$	4,422		$	3,355		$	7,777
Accruals and adjustments	1,334			(347		)	987
Cash payments	(3,960		)	(657		)	(4,617		)
Foreign exchange	35			56			91
Balance as of December 31, 2012	$	1,831		$	2,407		$	4,238

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Accounts Payable And Accrued Liabilities (Narrative) (Details) (USD $) In Millions, unless otherwise specified	Dec. 31, 2012	Jun. 30, 2012
Accounts Payable and Accrued Liabilities [Abstract]
Present value of asset retirement obligation	$ 5.4	$ 4.3
Undiscounted value of asset retirement obligation	$ 5.8	$ 4.8

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Income Taxes (Narrative) (Details) (USD $)	3 Months Ended			6 Months Ended
	Dec. 31, 2012		Dec. 31, 2011	Dec. 31, 2012		Dec. 31, 2011	Jun. 30, 2012
Interest accrued	$ 20,002,000	[1]		$ 20,002,000	[1]		$ 19,316,000	[1]
Penalties accrued	6,000,000	[1]		6,000,000	[1]		4,040,000	[1]
Increase (decrease) in gross unrecognized tax benefit in next 12 months	(11,900,000)			(11,900,000)
Taxes paid on cash distribution	300,000			300,000
Provision for (recovery of) income taxes	3,153,000		6,819,000	19,372,000		5,494,000
Tax benefits related to acquisition of international subsidiaries						4,100,000
Tax benefits related to foreign income tax rate difference				4,600,000		5,900,000
EasyLink Services International Corporation [Member]
Interest accrued	400,000			400,000
Penalties accrued	$ 1,900,000			$ 1,900,000

[1] *These balances have been included within "Long-term income taxes payable" within the Condensed Consolidated Balance Sheets.

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Consolidated Balance Sheets (USD $) In Thousands, unless otherwise specified	Dec. 31, 2012	Jun. 30, 2012
ASSETS
Cash and cash equivalents	$ 367,258	$ 559,747
Accounts receivable trade, net of allowance for doubtful accounts of $6,031 as of December 31, 2012 and $5,655 as of June 30, 2012 (note 3)	168,073	163,664
Income taxes recoverable (note 13)	19,845	17,849
Prepaid expenses and other current assets	45,157	44,011
Deferred tax assets (note 13)	14,101	4,003
Total current assets	614,434	789,274
Property and equipment (note 4)	83,135	81,157
Goodwill (note 5)	1,212,657	1,040,234
Acquired intangible assets (note 6)	428,361	312,563
Deferred tax assets (note 13)	141,736	115,128
Other assets (note 7)	22,659	23,739
Deferred charges (note 8)	62,095	68,653
Long-term income taxes recoverable (note 13)	12,128	13,545
Total assets	2,577,205	2,444,293
Current liabilities:
Accounts payable and accrued liabilities (note 9)	177,979	131,734
Current portion of long-term debt (note 10)	45,136	41,374
Deferred revenues	240,347	273,987
Income taxes payable (note 13)	13,037	27,806
Deferred tax liabilities (note 13)	1,203	1,612
Total current liabilities	477,702	476,513
Long-term liabilities:
Accrued liabilities (note 9)	19,144	14,247
Deferred credits (note 8)	8,950	10,086
Pension liability (note 11)	25,042	22,074
Long-term debt (note 10)	536,250	555,000
Deferred revenues	12,218	12,653
Long-term income taxes payable (note 13)	151,888	147,623
Deferred tax liabilities (note 13)	75,672	26,705
Total long-term liabilities	829,164	788,388
Shareholders' equity:
58,570,757 and 58,358,990 Common Shares issued and outstanding at December 31, 2012 and June 30, 2012, respectively; Authorized Common Shares: unlimited	641,684	635,321
Additional paid-in capital	92,463	95,026
Accumulated other comprehensive income	42,661	44,364
Retained earnings	522,605	442,068
Treasury stock, at cost (610,878 and 793,494 shares at December 31, 2012 and June 30, 2012, respectively)	(29,074)	(37,387)
Total shareholders' equity	1,270,339	1,179,392
Total liabilities and shareholders' equity	$ 2,577,205	$ 2,444,293

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Basis Of Presentation (Narrative) (Details) (Change In Accounting Method Accounted For As Change In Estimate [Member], USD $) In Millions, unless otherwise specified	Dec. 31, 2012
Change In Accounting Method Accounted For As Change In Estimate [Member]
Change in Accounting Estimate [Line Items]
Deferred tax assets	$ 34.9

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Consolidated Statements Of Cash Flows (USD $) In Thousands, unless otherwise specified	6 Months Ended
	Dec. 31, 2012	Dec. 31, 2011
Cash flows from operating activities:
Net income for the period	$ 80,537	$ 82,429
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization of intangible assets	93,586	79,421
Share-based compensation expense	6,276	8,241
Excess tax benefits on share-based compensation expense	(611)	(495)
Pension expense	470	306
Amortization of debt issuance costs	1,072	578
Amortization of deferred charges and credits	5,858	5,379
Loss on sale and write down of property and equipment	24	203
Deferred taxes	(1,152)	(6,958)
Impairment and other non cash charges	0	1,345
Changes in operating assets and liabilities:
Accounts receivable	20,406	(27)
Prepaid expenses and other current assets	1,384	8,041
Income taxes	(13,888)	2,883
Deferred charges and credits	(436)	(14,653)
Accounts payable and accrued liabilities	(20,620)	(16,799)
Deferred revenue	(36,738)	(57,806)
Other assets	289	(2,042)
Net cash provided by operating activities	136,457	90,046
Cash flows from investing activities:
Additions of property and equipment	(9,917)	(16,687)
Purchase of patents	0	193
Purchase consideration for prior period acquisitions	(431)	(609)
Net cash used in investing activities	(326,195)	(270,926)
Cash flows from financing activities:
Excess tax benefits on share-based compensation expense	611	495
Proceeds from issuance of Common Shares	6,402	11,261
Purchase of Treasury Stock	0	0
Proceeds from long-term debt and revolver	0	648,500
Repayment of long-term debt and revolver	(15,338)	(333,856)
Debt issuance costs	0	(9,309)
Net cash provided by (used in) financing activities	(8,325)	317,091
Foreign exchange gain (loss) on cash held in foreign currencies	5,574	(6,440)
Increase (decrease) in cash and cash equivalents during the period	(192,489)	129,771
Cash and cash equivalents at beginning of the period	559,747	284,140
Cash and cash equivalents at end of the period	367,258	413,911
System Solutions Australia Pty Limited [Member]
Cash flows from investing activities:
Purchase of business, net of cash acquired	(516)	(1,524)
Operitel Corporation [Member]
Cash flows from investing activities:
Purchase of business, net of cash acquired	0	(6,260)
Global 360 Holding Corporation [Member]
Cash flows from investing activities:
Purchase of business, net of cash acquired	0	(245,653)
EasyLink Services International Corporation [Member]
Cash flows from investing activities:
Purchase of business, net of cash acquired	$ (315,331)	$ 0

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Pension Plans And Other Post Retirement Benefits (Narrative) (Details) (USD $)	Dec. 31, 2012	Jun. 30, 2012
Defined Benefit Plan Disclosure [Line Items]
Net pension liabilities	$ 23,922,000	$ 20,986,000
CDT Pension Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
Accumulated other comprehensive income related to CDT pension plan	100,000
IXOS AG Defined Benefit Plans [Member]
Defined Benefit Plan Disclosure [Line Items]
Net pension liabilities	$ 700,000	$ 700,000

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Pension Plans And Other Post Retirement Benefits (Tables)

6 Months Ended

Dec. 31, 2012

Compensation and Retirement Disclosure [Abstract]

Schedule Of CDT Defined Benefit Plan And CDT Long-Term Employee Benefit Obligations

The following table provides details of our defined benefit pension plans and long-term employee benefit obligations for Open Text Document Technologies GmbH (CDT) and Open Text Software GmbH (IXOS) as of December 31, 2012 and June 30, 2012:

	As of December 31, 2012
	Total  benefit obligation		Current portion  of benefit obligation*		Non current portion of benefit obligation
CDT defined benefit plan	$	24,446	$	524	$	23,922
CDT anniversary plan	466		85		381
CDT early retirement plan	—		—		—
IXOS defined benefit plans	739		—		739
Total	$	25,651	$	609	$	25,042

	As of June 30, 2012
	Total  benefit obligation		Current portion  of benefit obligation*		Non current portion of benefit obligation
CDT defined benefit plan	$	21,461	$	475	$	20,986
CDT anniversary plan	457		67		390
CDT early retirement plan	69		69		—
IXOS defined benefit plans	698		—		698
Total	$	22,685	$	611	$	22,074

* The current portion of the benefit obligation has been included within "Accounts payable and accrued liabilities" in the Condensed Consolidated Balance Sheets.

Schedule Of The Change In The Benefit Obligation Of CDT Defined Benefit Plan

The following are the details of the change in the benefit obligation for the CDT pension plan for the periods indicated:

	As of December 31, 2012			As of June 30, 2012
Benefit obligation as of June 30, 2012	$	21,461		$	18,231
Service cost	230			326
Interest cost	446			873
Benefits paid	(229		)	(441		)
Actuarial (gain) loss	876			5,179
Foreign exchange (gain) loss	1,662			(2,707		)
Benefit obligation as of December 31, 2012	24,446			21,461
Less: Current portion	(524		)	(475		)
Non current portion of benefit obligation	$	23,922		$	20,986

Components Of Net Pension Expense For CDT Pension Plan

The following are the details of net pension expense for the CDT pension plan for the periods indicated:

	Three Months Ended December 31,				Six Months Ended December 31,
	2012		2011		2012		2011
Pension expense:
Service cost	$	117	$	81	$	230	$	166
Interest cost	226		217		446		444
Amortization of actuarial gains and losses	71		—		139		—
Net pension expense	$	414	$	298	$	815	$	610

Schedule Of Weighted-Average Key Assumptions Used For CDT Pension Plan

In determining the fair value of the CDT pension plan benefit obligations as of December 31, 2012 and June 30, 2012, respectively, we used the following weighted-average key assumptions:

	As of December 31, 2012		As of June 30, 2012
Assumptions:
Salary increases	2.50	%	2.50	%
Pension increases	2.00	%	2.00	%
Discount rate	3.60	%	4.00	%
Employee fluctuation rate:
to age 30	1.00	%	1.00	%
to age 35	0.50	%	0.50	%
to age 40	—	%	—	%
to age 45	0.50	%	0.50	%
to age 50	0.50	%	0.50	%
from age 51	1.00	%	1.00	%

Anticipated Pension Payments Under CDT Pension Plan

Anticipated pension payments under the CDT pension plan for the fiscal years indicated below are as follows:

	Fiscal years ending June  30,
2013 (six months ended June 30)	$	262
2014	562
2015	620
2016	690
2017	759
2018 to 2022	5,599
Total	$	8,492

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Share Capital, Option Plans And Share-Based Payments (Narrative) (Details) (USD $) In Millions, except Share data, unless otherwise specified	0 Months Ended	3 Months Ended		6 Months Ended			3 Months Ended				6 Months Ended		3 Months Ended	12 Months Ended			3 Months Ended
	Nov. 23, 2012	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2012	Dec. 31, 2011	Jun. 30, 2012	Dec. 31, 2012 Stock Options [Member]	Sep. 30, 2011 Stock Options [Member]	Dec. 31, 2012 Employee Share Purchase Plan [Member]	Dec. 31, 2011 Employee Share Purchase Plan [Member]	Dec. 31, 2012 Employee Share Purchase Plan [Member]	Dec. 31, 2011 Employee Share Purchase Plan [Member]	Sep. 30, 2007 LTIP [Member]	Jun. 30, 2011 Fiscal 2013 LTIP [Member]	Jun. 30, 2011 Fiscal 2013 LTIP [Member] Maximum [Member]	Jun. 30, 2011 Fiscal 2013 LTIP [Member] Minimum [Member]	Dec. 31, 2012 Fiscal 2014 LTIP [Member] Maximum [Member]	Dec. 31, 2012 Fiscal 2014 LTIP [Member] Minimum [Member]	Dec. 31, 2012 Fiscal 2015 LTIP [Member] Maximum [Member]	Dec. 31, 2012 Fiscal 2015 LTIP [Member] Minimum [Member]
Share-based Compensation Arrangement By Share-based Payment Award [Line Items]
Number of shares issued from treasury stock (in shares)	182,616		0		0
Number of options outstanding (in shares)		2,088,946		2,088,946		2,147,151	2,088,946
Common shares available for issuance (in shares)							2,806,000
Vesting period							4 years	4 years
Expire period of options, minimum term							7 years	7 years
Expire period of options, maximum term							10 years	10 years
Unrecognized compensation cost relating to unvested stock awards		$ 17.5		$ 17.5
Unvested stock awards compensation cost, weighted average recognition period		3 years 6 months
Cash proceeds from exercise of options granted		2.0	3.0	5.4	10.2
Tax benefit realized from exercise of options		0	0.4	0.8	0.8
Plan term (in years)													3 years
Average stock price of common stock, average period													30 days
Stock Issued During Period, Value, Treasury Stock Reissued				8.3
LTIP equity plans, estimated award grant percentage against target														100.00%	150.00%	50.00%	150.00%	0.00%	150.00%	0.00%
Cash received from employee stock purchase plan									$ 0.4	$ 0.4	$ 1.0	$ 1.0

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Special Charges

6 Months Ended

Dec. 31, 2012

Restructuring, Settlement and Impairment Provisions [Abstract]

Special Charges

SPECIAL CHARGES

Special charges include costs that relate to certain restructuring initiatives that we have undertaken from time to time under our various restructuring plans, as well as acquisition related costs and other similar charges.

	Three Months Ended December 31,						Six Months Ended December 31,
	2012			2011			2012			2011
Fiscal 2013 Restructuring Plan	$	684		$	—		$	8,262		$	—
Fiscal 2012 Restructuring Plan	403			1,441			987			8,125
Fiscal 2011 Restructuring Plan	(369		)	(5		)	(384		)	974
Fiscal 2010 Restructuring Plan	—			4			(2		)	(14		)
Acquisition-related costs	808			1,081			1,612			1,896
Other charges	743			2,700			1,348			1,345
Total	$	2,269		$	5,221		$	11,823		$	12,326

Reconciliations of the liability relating to each of our materially outstanding restructuring plans are provided below:

Fiscal 2013 Restructuring Plan

In the first quarter of Fiscal 2013, we began to implement restructuring activities to streamline our operations (Fiscal 2013 restructuring plan). These charges relate to workforce reductions and facility consolidations. We expect to incur more charges under the Fiscal 2013 restructuring plan, as we execute the remaining restructuring actions. As of December 31, 2012, we expect total costs to be incurred in conjunction with the Fiscal 2013 restructuring plan to be approximately $15.0 million, of which $8.3 million has already been recorded within Special charges to date.

The recognition of these charges requires management to make certain judgments and estimates regarding the amount and timing of restructuring charges or recoveries. Our estimated liability could change subsequent to its recognition, requiring adjustments to the expense and the liability recorded. On a quarterly basis, we will conduct an evaluation of the related liabilities and expenses and revise our assumptions and estimates as appropriate.

A reconciliation of the beginning and ending liability for the six months endedDecember 31, 2012 is shown below.

Fiscal 2013 Restructuring Plan	Workforce reduction			Facility costs			Total
Balance as of June 30, 2012	$	—		$	—		$	—
Accruals and adjustments	4,759			3,503			8,262
Cash payments	(2,227		)	(495		)	(2,722		)
Foreign exchange	62			10			72
Balance as of December 31, 2012	$	2,594		$	3,018		$	5,612

Fiscal 2012 Restructuring Plan

In the first quarter of Fiscal 2012, we began to implement restructuring activities to streamline our operations (Fiscal 2012 restructuring plan). These charges relate to workforce reductions and facility consolidations. The recognition of these charges requires management to make certain judgments and estimates regarding the amount and timing of restructuring charges or recoveries. On a quarterly basis, we will conduct an evaluation of the related liabilities and expenses and revise our assumptions and estimates as appropriate.

Since the inception of the Fiscal 2012 restructuring plan, $17.9 million of costs have been recorded within Special charges. We do not expect to incur any further significant charges related to the Fiscal 2012 restructuring plan.

A reconciliation of the beginning and ending liability for the six months endedDecember 31, 2012 is shown below.

Fiscal 2012 Restructuring Plan	Workforce reduction			Facility costs			Total
Balance as of June 30, 2012	$	4,422		$	3,355		$	7,777
Accruals and adjustments	1,334			(347		)	987
Cash payments	(3,960		)	(657		)	(4,617		)
Foreign exchange	35			56			91
Balance as of December 31, 2012	$	1,831		$	2,407		$	4,238

Acquisition-related costs

Included within Special charges for the three and six months endedDecember 31, 2012 are costs incurred directly in relation to acquisitions in the amount of $0.5 million and $1.2 million, respectively. Additionally, we incurred costs relating to financial advisory, legal, valuation and audit services and other miscellaneous costs necessary to integrate acquired companies into our organization, for the three and six months endedDecember 31, 2012, in the amount of $0.3 million and $0.4 million, respectively.

Included within Special charges for the three and six months endedDecember 31, 2011 are costs incurred directly in relation to acquisitions in the amount of $0.3 million and $1.1 million, respectively. Additionally, we incurred costs relating to financial advisory, legal, valuation and audit services and other miscellaneous costs necessary to integrate acquired companies into our organization, for the three and six months endedDecember 31, 2011, in the amount of $0.8 million for each of these periods.

Other charges

Included within Special charges for the three months ended December 31, 2012 is a charge of approximately $1.0 million relating to interest accrued on certain pre-acquisition sales tax liabilities, offset by a recovery of $0.3 million relating to revised sublease assumptions on a restructured facility acquired in a prior period.

In addition to the charges incurred during the three months ended December 31, 2012, included within Special charges for the six months ended December 31, 2012 is a charge of $0.6 million relating to revised sublease assumptions on a restructured facility acquired in a prior period.

Included within Special charges for the three months ended December 31, 2011 is $2.7 million related to the write-off of debt issuance costs, associated with our old term loan, that was repaid after we entered into our current credit facility on November 9, 2011.

In addition to the charges incurred during the three months ended December 31, 2011, included within Special charges for the six months ended December 31, 2011 is a recovery of $0.8 million relating to a reduction in an asset retirement obligation associated with a leased facility, and a recovery of $0.5 million relating to a new sublease on a restructured facility acquired in a prior period.

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Share Capital, Option Plans And Share-Based Payments (Tables)

6 Months Ended

Dec. 31, 2012

Share-based Compensation Arrangement By Share-based Payment Award [Line Items]

Summary Of Share-based Compensation Costs

Total share-based compensation expense for the periods indicated below is detailed as follows:

	Three Months Ended December 31,				Six Months Ended December 31,
	2012		2011		2012		2011
Stock options	$	1,228	$	974	$	2,567	$	1,772
Performance stock units (issued under LTIP)	1,246		2,350		2,660		6,320
Restricted stock units (issued under LTIP)	377		—		377		—
Restricted stock units (other)	151		—		302		—
Deferred stock units (directors)	172		64		360		129
Restricted stock awards (legacy Vignette employees)	—		9		10		20
Total share-based compensation expense	$	3,174	$	3,397	$	6,276	$	8,241

Summary Of Option Activity

A summary of activity under our stock option plans for the six months endedDecember 31, 2012 is as follows:

	Options		Weighted- Average  Exercise Price		Weighted- Average Remaining Contractual Term (years)	Aggregate Intrinsic  Value ($’000s)
Outstanding at June 30, 2012	2,147,151		$	40.07
Granted	252,545		53.20
Exercised	(190,000	)	28.12
Forfeited or expired	(120,750	)	45.70
Outstanding at December 31, 2012	2,088,946		$	42.42	4.41	$	30,040
Exercisable at December 31, 2012	898,276		$	27.32	2.11	$	25,674

Schedule Of Weighted-Average Fair Value Of Options And Weighted-Average Assumptions Used

For the periods indicated, the following weighted-average fair value of options and weighted-average assumptions used were as follows:

	Three Months Ended December 31,						Six Months Ended December 31,
	2012			2011			2012			2011
Weighted–average fair value of options granted	$	16.28		$	17.99		$	16.78		$	17.71
Weighted-average assumptions used:
Expected volatility	37		%	41		%	38		%	41		%
Risk–free interest rate	0.64		%	0.74		%	0.64		%	0.79		%
Expected dividend yield	—		%	—		%	—		%	—		%
Expected life (in years)	4.35			4.30			4.35			4.30
Forfeiture rate (based on historical rates)	5		%	5		%	5		%	5		%

Long Term Incentive Plan [Member]

Share-based Compensation Arrangement By Share-based Payment Award [Line Items]

Summary Of Share-based Compensation Costs

Expected and actual stock compensation expense for each of the above mentioned LTIP plans is as follows:

					Three Months ended December 31,		Six Months ended December 31,
Grants Made Under LTIP	Equity Instrument	Start Date	End Date	Expected Total LTIP Expense	2012	2011	2012	2011
Fiscal 2012 LTIP	PSU	3/31/2010	9/15/2012	17,314	—	1,830	579	5,280
Fiscal 2013 LTIP	PSU	10/29/2010	9/15/2013	4,707	298	520	598	1,040
Fiscal 2014 LTIP	PSU	2/3/2012	9/15/2014	8,898	862	—	1,397	—
Fiscal 2015 LTIP	PSU	12/3/2012	9/15/2015	3,132	86	—	86	—
Fiscal 2015 LTIP	RSU	11/2/2012	9/15/2015	6,699	377	—	377	—
				40,750	1,623	2,350	3,037	6,320

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Guarantees And Contingencies

6 Months Ended

Dec. 31, 2012

Commitments and Contingencies Disclosure [Abstract]

Guarantees And Contingencies

GUARANTEES AND CONTINGENCIES

We have entered into the following contractual obligations with minimum payments for the indicated fiscal periods as follows:

	Payments due between
	Total		January 1, 2013— June  30, 2013		July 1, 2013— June  30, 2015		July 1, 2015— June  30, 2017		July 1, 2017 and  beyond
Long-term debt obligations	$	632,800	$	34,276	$	114,364	$	484,160	$	—
Operating lease obligations*	150,684		16,974		57,170		36,672		39,868
Purchase obligations	5,527		2,822		2,605		100		—
	$	789,011	$	54,072	$	174,139	$	520,932	$	39,868

*Net of $2.5 million of sublease income to be received from properties which we have subleased to third parties.

Guarantees and Indemnifications

We have entered into agreements with customers which may include provisions for indemnifying our customers for legal claims that our software products infringe certain third party intellectual property rights and for liabilities related to breaches of our confidentiality obligations. We have not made any material payments in relation to such indemnification provisions and have not accrued any liabilities related to these indemnification provisions in our condensed consolidated financial statements.

Litigation

We are currently involved in various claims and legal proceedings. Quarterly, we review the status of each significant legal matter and evaluate such matters to determine how they should be treated for accounting and disclosure purposes in accordance with the requirements of ASC Topic 450-20 "Loss Contingencies" (ASC Topic 450-20). Specifically, this evaluation process includes the centralized tracking and itemization of the status of all our disputes and litigation items, discussing the nature of any litigation and claim, including any dispute or claim that is reasonably likely to result in litigation, with relevant internal and external counsel, and assessing the progress of each matter in light of its merits and our experience with similar proceedings under similar circumstances.

If the potential loss from any claim or legal proceeding is considered probable and the amount can be reasonably estimated, we accrue a liability for the estimated loss in accordance with ASC Topic 450-20. As of the date of this filing on Form 10-Q for the quarter ended December 31, 2012, any such aggregated losses are not material to our consolidated financial position or result of operations and we do not believe as of the date of this filing that it is reasonably possible that a loss exceeding the amounts already recognized may have been incurred that would be material to our consolidated financial position or results of operations.

j2 Global, Inc. (j2) and its wholly-owned subsidiary Advanced Messaging Technologies, Inc. (AMT) have filed several patent infringement lawsuits alleging that OpenText and its subsidiaries and predecessors-in-interest, Captaris, Inc. and EasyLink, are infringing U.S. Patent Nos. 6,208,638, 6,597,688, 7,020,132, 6,350,066, and 6,020,980 by offering fax-related products.  j2 and AMT are seeking injunctions, royalties and damages. Through the recent acquisition of EasyLink, the Company now has complete carriage of the defense of these cases, which are pending in the United States District Court for the Central District of California.  In each of the cases, OpenText and its subsidiaries or predecessors-in-interest have asserted, or will assert, defenses and counterclaims contending that the patents are invalid and not infringed.  In addition, OpenText and its subsidiaries or predecessors-in-interest have asserted that U.S. Patent Nos. 6,208,638, 6,497,688, and 7,020,132 are unenforceable due to j2's inequitable conduct before the United States Patent and Trademark Office (USPTO), and are seeking to add counterclaims against j2 for tortious interference with prospective business advantage and unfair competition.  Each of the cases is in the discovery, or an earlier, phase.  In addition, j2 has requested that the USPTO open reexamination proceedings regarding U.S. Patent No. 6,020,980. The Company believes j2's patent infringement allegations are without merit and will continue to vigorously defend them.

In addition, one of OpenText's subsidiaries, Xpedite Systems, LLC (Xpedite), has sued j2 for patent infringement, alleging j2 is infringing U.S. Patent Nos. 5,872,640 and 7,804,823 through j2's offering of fax-related products. Xpedite is seeking an injunction, royalties and damages.  j2 has asserted defenses and counterclaims asserting that the patents are invalid and not infringed, and j2 has requested that the USPTO undertake reexamination proceedings related to the patents, and the USPTO has agreed to do so.  The litigation is stayed until the conclusion of the USPTO's reexamination proceedings.   

Based on our assessment of ASC Topic 450-20, no amount has been accrued in connection to these cases referred to above.

Contingencies

EasyLink is currently being assessed by the New York State Department of Taxation and Finance (the Department) for the potential applicability of telecommunications excise and franchise taxes to its New York State revenues for the calendar year ended December 31, 2000 through to calendar year ended December 31, 2009. The potential exposure under this assessment, based upon the notice issued by the Department, is approximately $10.5 million.

In addition, in July 2009 EasyLink was assessed approximately $0.5 million in tax, interest and penalties for sales tax in New York State for the period between March 2001 and May 2004. EasyLink has posted a bond in this amount and is pursuing a judicial appeal of the July 2009 decision with New York State Court of Appeals. New York State sales tax audits are also currently underway for subsequent periods from June 2004 through to February 2011. The results of these audits for subsequent periods, and the potential sales tax exposure for EasyLink, are in significant part contingent upon the outcome of the above referenced sales tax appeal.

OpenText intends to vigorously defend against these claims.

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Share Capital, Option Plans And Share-Based Payments (Schedule Of Weighted-Average Fair Value Of Options And Weighted-Average Assumptions Used) (Details) (USD $) In Millions, except Per Share data, unless otherwise specified	3 Months Ended		6 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2012	Dec. 31, 2011
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Employee Service Share-based Compensation, Cash Received from Exercise of Stock Options	$ 2.0	$ 3.0	$ 5.4	$ 10.2
Employee Service Share-based Compensation, Tax Benefit Realized from Exercise of Stock Options	$ 0	$ 0.4	$ 0.8	$ 0.8
Weighted-average fair value of options granted (in dollars per share)	$ 16.28	$ 17.99	$ 16.78	$ 17.71
Expected volatility	37.00%	41.00%	38.00%	41.00%
Risk-free interest rate	0.64%	0.74%	0.64%	0.79%
Expected dividend yield	0.00%	0.00%	0.00%	0.00%
Expected life (in years)	4 years 4 months 6 days	4 years 3 months 18 days	4 years 4 months 6 days	4 years 3 months 18 days
Forfeiture rate (based on historical rates)	5.00%	5.00%	5.00%	5.00%

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Basis Of Presentation

6 Months Ended

Dec. 31, 2012

Basis Of Presentation [Abstract]

Basis Of Presentation

BASIS OF PRESENTATION

The accompanying condensed consolidated financial statements include the accounts of Open Text Corporation and our wholly-owned subsidiaries, collectively referred to as “OpenText” or the “Company”. All inter-company balances and transactions have been eliminated.

These condensed consolidated financial statements are expressed in U.S. dollars and are prepared in accordance with United States generally accepted accounting principles (U.S. GAAP). The information furnished reflects all adjustments necessary for a fair presentation of the results for the periods presented and includes the financial results of EasyLink Services International Corporation (EasyLink), with effect from July 2, 2012 (see note 17).

Use of estimates

The preparation of financial statements in conformity with U.S. GAAP requires us to make estimates, judgments and assumptions that affect the amounts reported in the condensed consolidated financial statements. These estimates, judgments and assumptions are evaluated on an ongoing basis. We base our estimates on historical experience and on various other assumptions that we believe are reasonable at that time, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from those estimates. In particular, significant estimates, judgments and assumptions include those related to: (i) revenue recognition, (ii) allowance for doubtful accounts, (iii) testing of goodwill for impairment, (iv) the valuation of acquired intangible assets, (v) the valuation of long-lived assets, (vi) the recognition of contingencies, (vii) restructuring accruals, (viii) acquisition accruals and pre-acquisition contingencies, (ix) asset retirement obligations, (x) the realization of investment tax credits, (xi) the valuation of stock options granted and liabilities related to share-based payments, including the valuation of our long-term incentive plan, (xii) the valuation of financial instruments, (xiii) the valuation of pension assets and obligations, and (xiv) accounting for income taxes.

Reclassifications

Cloud Services

Starting in the first quarter for the year ended June 30, 2013 (Fiscal 2013), in light of our acquisition of EasyLink on July 2, 2012, we adopted a policy to classify revenues and cost of revenues relating to "Cloud Services" as a separate line item within "Revenues" and "Cost of revenues", respectively, on the Condensed Consolidated Statements of Income. No prior period comparative figures have been adjusted to conform to current period presentation since such prior period amounts are not material. For a detailed explanation of  the products that make up our Cloud Services offerings please see our “Management's Discussion and Analysis of Financial Condition and Results of Operations” included under Part I, Item 2 to this Quarterly Report on Form 10-Q.

Research and Development Tax Credits

Non-refundable research and development tax credits are now being reflected as a component of "Income tax" expense on the Condensed Consolidated Statements of Income. Certain prior period comparative figures have been adjusted on the Condensed Consolidated Balance Sheets to conform to current period presentation. As of June 30, 2012, long-term “Deferred tax assets” have been increased from previously reported amounts by approximately $34.9 million, with a corresponding decrease to “Long-term income taxes recoverable”. There was no change to total assets, liabilities, or shareholders' equity as a result of this reclassification. The prior period comparative figures on the Condensed Consolidated Statements of Income have not been adjusted as the amounts are not material.

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Consolidated Balance Sheets (Parenthetical) (USD $) In Thousands, except Share data, unless otherwise specified	Dec. 31, 2012	Jun. 30, 2012
Statement of Financial Position [Abstract]
Accounts receivable trade, allowance for doubtful accounts	$ 6,031	$ 5,655
Common stock, shares outstanding (in shares)	58,570,575	58,358,990
Common stock, shares issued (in shares)		58,358,990
Treasury stock, shares (in shares)	610,878	793,494

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Pension Plans And Other Post Retirement Benefits

6 Months Ended

Dec. 31, 2012

Compensation and Retirement Disclosure [Abstract]

Pension Plans And Other Post Retirement Benefits

PENSION PLANS AND OTHER POST RETIREMENT BENEFITS

The following table provides details of our defined benefit pension plans and long-term employee benefit obligations for Open Text Document Technologies GmbH (CDT) and Open Text Software GmbH (IXOS) as of December 31, 2012 and June 30, 2012:

	As of December 31, 2012
	Total  benefit obligation		Current portion  of benefit obligation*		Non current portion of benefit obligation
CDT defined benefit plan	$	24,446	$	524	$	23,922
CDT anniversary plan	466		85		381
CDT early retirement plan	—		—		—
IXOS defined benefit plans	739		—		739
Total	$	25,651	$	609	$	25,042

	As of June 30, 2012
	Total  benefit obligation		Current portion  of benefit obligation*		Non current portion of benefit obligation
CDT defined benefit plan	$	21,461	$	475	$	20,986
CDT anniversary plan	457		67		390
CDT early retirement plan	69		69		—
IXOS defined benefit plans	698		—		698
Total	$	22,685	$	611	$	22,074

* The current portion of the benefit obligation has been included within "Accounts payable and accrued liabilities" in the Condensed Consolidated Balance Sheets.

CDT Defined Benefit Plan

CDT sponsors an unfunded defined benefit pension plan covering substantially all CDT employees (CDT pension plan) which provides for old age, disability and survivors’ benefits. Benefits under the CDT pension plan are generally based on age at retirement, years of service and the employee’s annual earnings. The net periodic cost of this pension plan is determined using the projected unit credit method and several actuarial assumptions, the most significant of which are the discount rate and estimated service costs.

The following are the details of the change in the benefit obligation for the CDT pension plan for the periods indicated:

	As of December 31, 2012			As of June 30, 2012
Benefit obligation as of June 30, 2012	$	21,461		$	18,231
Service cost	230			326
Interest cost	446			873
Benefits paid	(229		)	(441		)
Actuarial (gain) loss	876			5,179
Foreign exchange (gain) loss	1,662			(2,707		)
Benefit obligation as of December 31, 2012	24,446			21,461
Less: Current portion	(524		)	(475		)
Non current portion of benefit obligation	$	23,922		$	20,986

The following are the details of net pension expense for the CDT pension plan for the periods indicated:

	Three Months Ended December 31,				Six Months Ended December 31,
	2012		2011		2012		2011
Pension expense:
Service cost	$	117	$	81	$	230	$	166
Interest cost	226		217		446		444
Amortization of actuarial gains and losses	71		—		139		—
Net pension expense	$	414	$	298	$	815	$	610

The CDT pension plan is an unfunded plan and therefore no contributions have been made since the inception of the plan. Actuarial gains and losses in excess of 10% of the greater of the projected benefit obligation or the market-related value of plan obligations are being amortized and recognized as a component of net periodic benefit costs over the average remaining service period of the plan's active employees. Currently there is approximately $0.1 million in accumulated other comprehensive income related to the CDT pension plan that is expected to be recognized as a component of net periodic benefit costs over the remaining fiscal year.

In determining the fair value of the CDT pension plan benefit obligations as of December 31, 2012 and June 30, 2012, respectively, we used the following weighted-average key assumptions:

	As of December 31, 2012		As of June 30, 2012
Assumptions:
Salary increases	2.50	%	2.50	%
Pension increases	2.00	%	2.00	%
Discount rate	3.60	%	4.00	%
Employee fluctuation rate:
to age 30	1.00	%	1.00	%
to age 35	0.50	%	0.50	%
to age 40	—	%	—	%
to age 45	0.50	%	0.50	%
to age 50	0.50	%	0.50	%
from age 51	1.00	%	1.00	%

Anticipated pension payments under the CDT pension plan for the fiscal years indicated below are as follows:

	Fiscal years ending June  30,
2013 (six months ended June 30)	$	262
2014	562
2015	620
2016	690
2017	759
2018 to 2022	5,599
Total	$	8,492

CDT Anniversary Plan

CDT’s long-term employee benefit obligations arise under CDT’s “anniversary plan”. The obligation is unfunded and is carried at its fair value.

IXOS Defined Benefit Plans

Included in our pension liability, as of December 31, 2012, is a net amount of $0.7 million (June 30, 2012—$0.7 million) that relates to two IXOS defined benefit pensions plans (IXOS pension plans) in connection with certain former members of the IXOS Board of Directors and certain IXOS employees, respectively. The net periodic pension cost with respect to the IXOS pension plans is determined using the projected unit credit method and several actuarial assumptions, the most significant of which are the discount rate and the expected return on plan assets.

XML

Document And Entity Information	6 Months Ended
	Dec. 31, 2012	Jan. 21, 2013
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Dec. 31, 2012
Document Fiscal Year Focus	2013
Document Fiscal Period Focus	Q2
Trading Symbol	otex
Entity Registrant Name	OPEN TEXT CORP
Entity Central Index Key	0001002638
Current Fiscal Year End Date	--06-30
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		58,570,575

XML

Share Capital, Option Plans And Share-Based Payments

6 Months Ended

Dec. 31, 2012

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Share Capital, Option Plans And Share-Based Payments

SHARE CAPITAL, OPTION PLANS AND SHARE-BASED PAYMENTS

Share Capital

Our authorized share capital includes an unlimited number of Common Shares and an unlimited number of Preference Shares. No Preference Shares have been issued.

Treasury Stock

During the three and six months endedDecember 31, 2012 and 2011, we did not repurchase any of our Common Shares for potential future reissuance under our Long Term Incentive Plans (LTIP) or otherwise.

On November 23, 2012, we issued 182,616 Common Shares from treasury stock in connection with the settlement of awards granted under our Fiscal 2012 LTIP (three and six months ended December 31, 2011—nil). See below for more details regarding this settlement.

Share-Based Payments

Total share-based compensation expense for the periods indicated below is detailed as follows:

	Three Months Ended December 31,				Six Months Ended December 31,
	2012		2011		2012		2011
Stock options	$	1,228	$	974	$	2,567	$	1,772
Performance stock units (issued under LTIP)	1,246		2,350		2,660		6,320
Restricted stock units (issued under LTIP)	377		—		377		—
Restricted stock units (other)	151		—		302		—
Deferred stock units (directors)	172		64		360		129
Restricted stock awards (legacy Vignette employees)	—		9		10		20
Total share-based compensation expense	$	3,174	$	3,397	$	6,276	$	8,241

Summary of Outstanding Stock Options

As of December 31, 2012, options to purchase an aggregate of 2,088,946 Common Shares were outstanding and 2,806,000 Common Shares were available for issuance under our stock option plans. Our stock options generally vest over four years and expire between seven and ten years from the date of the grant. The exercise price of the options is set at an amount that is not less than the closing price of our Common Shares on the NASDAQ on the trading day immediately preceding the applicable grant date.

A summary of activity under our stock option plans for the six months endedDecember 31, 2012 is as follows:

	Options		Weighted- Average  Exercise Price		Weighted- Average Remaining Contractual Term (years)	Aggregate Intrinsic  Value ($’000s)
Outstanding at June 30, 2012	2,147,151		$	40.07
Granted	252,545		53.20
Exercised	(190,000	)	28.12
Forfeited or expired	(120,750	)	45.70
Outstanding at December 31, 2012	2,088,946		$	42.42	4.41	$	30,040
Exercisable at December 31, 2012	898,276		$	27.32	2.11	$	25,674

We estimate the fair value of stock options using the Black-Scholes option-pricing model, consistent with the provisions of ASC Topic 718, “Compensation—Stock Compensation” (ASC Topic 718) and SEC Staff Accounting Bulletin No. 107. The option-pricing models require input of subjective assumptions, including the estimated life of the option and the expected volatility of the underlying stock over the estimated life of the option. We use historical volatility as a basis for projecting the expected volatility of the underlying stock and estimate the expected life of our stock options based upon historical data.

We believe that the valuation technique and the approach utilized to develop the underlying assumptions are appropriate in calculating the fair value of our stock option grants. Estimates of fair value are not intended, however, to predict actual future events or the value ultimately realized by employees who receive equity awards.

For the periods indicated, the following weighted-average fair value of options and weighted-average assumptions used were as follows:

	Three Months Ended December 31,						Six Months Ended December 31,
	2012			2011			2012			2011
Weighted–average fair value of options granted	$	16.28		$	17.99		$	16.78		$	17.71
Weighted-average assumptions used:
Expected volatility	37		%	41		%	38		%	41		%
Risk–free interest rate	0.64		%	0.74		%	0.64		%	0.79		%
Expected dividend yield	—		%	—		%	—		%	—		%
Expected life (in years)	4.35			4.30			4.35			4.30
Forfeiture rate (based on historical rates)	5		%	5		%	5		%	5		%

As of December 31, 2012, the total compensation cost related to the unvested stock option awards not yet recognized was $17.5 million, which will be recognized over a weighted-average period of approximately 3.5 years.

No cash was used by us to settle equity instruments granted under share-based compensation arrangements.

We have not capitalized any share-based compensation costs as part of the cost of an asset in any of the periods presented.

For the three and six months endedDecember 31, 2012, cash in the amount of $2.0 million and $5.4 million, respectively, was received as the result of the exercise of options granted under share-based payment arrangements. The tax benefit realized by us during the three and six months endedDecember 31, 2012 from the exercise of options eligible for a tax deduction was nil and $0.8 million, respectively.

For the three and six months endedDecember 31, 2011, cash in the amount of $3.0 million and $10.2 million, respectively, was received as the result of the exercise of options granted under share-based payment arrangements. The tax benefit realized by us during the three and six months endedDecember 31, 2011 from the exercise of options eligible for a tax deduction was $0.4 million and $0.8 million, respectively.

Long-Term Incentive Plans

On September 10, 2007, our Board of Directors (the Board) approved the implementation of an incentive plan called the “Open Text Corporation Long-Term Incentive Plan” (LTIP). The LTIP is a rolling three year program whereby we make a series of annual grants, each of which covers the respective performance period, to certain of our employees, and which vests upon the employee and/or the Company meeting pre-determined performance and market-based criteria. One criterion we use to measure performance is, if over the three year period the relative cumulative total shareholder return (TSR) of our Company, compared to the cumulative TSR of companies comprising a peer index group, is higher than a pre-determined target percentile (that is set at the date of grant), then a payout will be made. Depending on whether this target is met or exceeded with respect to the stipulations of the individual LTIPs, the amount of payout would be determined. In calculating the TSR achievement we use the average closing price of our Common Stock, as it trades over the last 30 days ending September 15th (following the third year in the LTIPs rolling three year program). LTIPs will be referred to in this document based upon the year in which the grants are expected to be settled.

Grants made in Fiscal 2010 under the LTIP (Fiscal 2012 LTIP) took effect in Fiscal 2010 starting on July 1, 2009. We met some of the performance conditions and settled the Fiscal 2012 LTIP by issuing 182,616 Common Shares from our treasury stock, with a cost of approximately $8.3 million.

Grants made in Fiscal 2011 under the LTIP (Fiscal 2013 LTIP) took effect in Fiscal 2011 starting on July 1, 2010. Vesting of Performance Stock Units (PSUs) granted under the Fiscal 2013 LTIP are based upon market and performance-based conditions and may be equal to 50%, 100% or 150% of the target payment. We expect to settle the Fiscal 2013 LTIP awards in stock.

Grants made in Fiscal 2012 under the LTIP (Fiscal 2014 LTIP) took effect in Fiscal 2012 starting on February 3, 2012. Vesting of PSUs granted under the Fiscal 2014 LTIP are based upon market-based conditions and will be interpolated between 0% and 150% of the target payment. We expect to settle the Fiscal 2014 LTIP awards in stock.

Grants made in Fiscal 2013 under the LTIP (Fiscal 2015 LTIP) took effect in Fiscal 2013 starting on November 2, 2012 for the Restricted Stock Units (RSUs) and December 3, 2012 for the PSUs. Vesting of PSUs granted under the Fiscal 2015 LTIP are based upon market-based conditions and will be interpolated between 0% and 150% of the target payment. RSUs granted are service-based awards and vest over the life of the LTIP. Subject to certain terms and conditions, if an eligible employee remains employed throughout the vesting period, all RSUs shall become vested RSUs at the end of the vesting period. We expect to settle the Fiscal 2015 LTIP awards in stock

PSUs and RSUs granted under the LTIPs have been measured at fair value as of the effective date, consistent with ASC Topic 718, and will be charged to share-based compensation expense over the remaining life of the plan. We estimate the fair value of PSUs using the Monte Carlo pricing model and RSUs have been valued based upon their grant date fair value.

Expected and actual stock compensation expense for each of the above mentioned LTIP plans is as follows:

					Three Months ended December 31,		Six Months ended December 31,
Grants Made Under LTIP	Equity Instrument	Start Date	End Date	Expected Total LTIP Expense	2012	2011	2012	2011
Fiscal 2012 LTIP	PSU	3/31/2010	9/15/2012	17,314	—	1,830	579	5,280
Fiscal 2013 LTIP	PSU	10/29/2010	9/15/2013	4,707	298	520	598	1,040
Fiscal 2014 LTIP	PSU	2/3/2012	9/15/2014	8,898	862	—	1,397	—
Fiscal 2015 LTIP	PSU	12/3/2012	9/15/2015	3,132	86	—	86	—
Fiscal 2015 LTIP	RSU	11/2/2012	9/15/2015	6,699	377	—	377	—
				40,750	1,623	2,350	3,037	6,320

Of the total compensation cost of $40.8 million noted in the table above , $24.8 million has been recognized to date and the remaining expected total compensation cost of $16.0 million is expected to be recognized over a weighted average period of 2.3 years.

Employee Share Purchase Plan (ESPP)

During the three and six months endedDecember 31, 2012, cash in the amount of approximately $0.4 million and $1.0 million, respectively, was received from employees that will be used to purchase Common Shares in future periods (three and six months endedDecember 31, 2011— $0.4 million and $1.0 million).

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Guarantees And Contingencies (Details) (USD $)	1 Months Ended
	Jul. 31, 2009	Dec. 31, 2012
Commitments and Contingencies Disclosure [Abstract]
Total long-term debt obligations		$ 632,800,000
Long-term debt obligations due within one year		34,276,000
Long-term debt obligations due in second and third years		114,364,000
Long-term debt obligations due in fourth and fifth years		484,160,000
Long-term debt obligations due after fifth year		0
Total operating lease obligations		150,684,000	[1]
Operating lease obligations due within one year		16,974,000	[1]
Operating lease obligations due in second and third years		57,170,000	[1]
Operating lease obligations due in fourth and fifth years		36,672,000	[1]
Operating lease obligations due after fifth year		39,868,000	[1]
Total purchase obligations		5,527,000
Purchase obligations due within one year		2,822,000
Purchase obligations due in second and third years		2,605,000
Purchase obligations due in fourth and fifth years		100,000
Purchase obligations due after fifth year		0
Total obligations		789,011,000
Total obligations due within one year		54,072,000
Total obligations due in second and third years		174,139,000
Total obligations due in fourth and fifth years		520,932,000
Total obligations due after fifth year		39,868,000
Non-cancelable sublease income		2,500,000
EasyLink Services International Corporation [Member]
Loss Contingencies [Line Items]
Estimate of possible assessment		10,500,000
Amount assessed for sales tax, interest, and penalties	$ 500,000

[1] Net of $2.5 million of sublease income to be received from properties which we have subleased to third parties.

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Consolidated Statements Of Income (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended		6 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2012	Dec. 31, 2011
Revenues:
License	$ 76,125	$ 89,703	$ 131,781	$ 154,731
Cloud services	46,151	0	91,035	0
Customer support	164,658	165,386	326,754	327,383
Professional service and other	65,246	66,367	128,804	127,388
Total revenues	352,180	321,456	678,374	609,502
Cost of revenues:
License	5,331	5,370	9,499	9,368
Cloud services	18,261	0	36,544	0
Customer support	28,277	28,468	54,100	54,737
Professional service and other	47,664	50,604	96,246	100,955
Amortization of acquired technology-based intangible assets (note 6)	23,191	21,253	46,973	42,043
Total cost of revenues	122,724	105,695	243,362	207,103
Gross profit	229,456	215,761	435,012	402,399
Operating expenses:
Research and development	38,718	42,652	78,624	86,110
Sales and marketing	67,977	68,451	132,492	133,331
General and administrative	30,005	25,126	58,138	50,887
Depreciation	6,105	5,634	12,214	10,892
Amortization of acquired customer-based intangible assets (note 6)	17,147	13,445	34,399	26,486
Special charges (note 16)	2,269	5,221	11,823	12,326
Total operating expenses	162,221	160,529	327,690	320,032
Income from operations	67,235	55,232	107,322	82,367
Other income (expense), net	1,541	2,637	1,470	11,949
Interest expense, net	(4,515)	(3,607)	(8,883)	(6,393)
Income before income taxes	64,261	54,262	99,909	87,923
Provision for (recovery of) income taxes (note 13)	3,153	6,819	19,372	5,494
Net income for the period	$ 61,108	$ 47,443	$ 80,537	$ 82,429
Net income per share-basic (note 20) (in dollars per share)	$ 1.04	$ 0.82	$ 1.38	$ 1.43
Net income per share-diluted (note 20) (in dollars per share)	$ 1.04	$ 0.81	$ 1.37	$ 1.41
Weighted average number of Common Shares outstanding-basic (in shares)	58,503	57,846	58,473	57,642
Weighted average number of Common Shares outstanding-diluted (in shares)	58,983	58,672	58,961	58,647

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Acquired Intangible Assets

6 Months Ended

Dec. 31, 2012

Acquired Intangible Assets [Abstract]

Acquired Intangible Assets

ACQUIRED INTANGIBLE ASSETS

	As of December 31, 2012
	Cost		Accumulated Amortization			Net
Technology Assets	$	543,508	$	(356,490	)	$	187,018
Customer Assets	501,076		(259,733		)	241,343
Total	$	1,044,584	$	(616,223	)	$	428,361
	As of June 30, 2012
	Cost		Accumulated Amortization			Net
Technology Assets	$	473,008	$	(309,517	)	$	163,491
Customer Assets	374,396		(225,324		)	149,072
Total	$	847,404	$	(534,841	)	$	312,563

The weighted average amortization period for acquired technology and customer intangible assets is approximately six years and seven years, respectively.

The following table shows the estimated future amortization expense for the fiscal years indicated below. This calculation assumes no future adjustments to acquired intangible assets:

	Fiscal years ending June  30,
2013 (six months ended June 30)	$	80,088
2014	102,881
2015	79,183
2016	54,233
2017 and beyond	111,976
Total	$	428,361

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Goodwill

6 Months Ended

Dec. 31, 2012

Goodwill [Abstract]

Goodwill

GOODWILL

Goodwill is recorded when the consideration paid for an acquisition of a business exceeds the fair value of identifiable net tangible and intangible assets. The following table summarizes the changes in goodwill since June 30, 2012:

Balance as of June 30, 2012	$	1,040,234
Acquisition of EasyLink (note 17)	172,222
Adjustments on account of foreign exchange	201
Balance as of December 31, 2012	$	1,212,657

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Acquisitions

3 Months Ended

Dec. 31, 2012

Business Combinations [Abstract]

Acquisitions

ACQUISITIONS

EasyLink Services International Corporation

On July 2, 2012, we acquired EasyLink Services International Corporation (EasyLink), a global provider of cloud-based electronic messaging and business integration services, based in Atlanta, Georgia. The acquisition extends our product offerings as we continue to evolve in the Enterprise Information Management market category. Total consideration for EasyLink was $342.3 million, paid in cash. In accordance with ASC Topic 805, this acquisition was accounted for as a business combination.

The results of operations of EasyLink have been consolidated with those of OpenText beginning July 2, 2012.

The following tables summarize the consideration paid for EasyLink and the amount of the assets acquired and liabilities assumed, as well as the goodwill recorded as of the acquisition date:

Cash consideration paid	$	342,272
Acquisition related costs (included in Special charges in the Condensed Consolidated Statements of Income):          for the three months ended December 31, 2012	$	466
for the six months ended December 31, 2012	$	1,215

The recognized amounts of identifiable assets acquired and liabilities assumed, based upon their fair values as of July 2, 2012, are set forth below:

Current assets (inclusive of cash acquired of $26,941)	$	64,319
Non-current assets	37,537
Intangible customer assets	126,600
Intangible technology assets	70,500
Total liabilities assumed	(128,906		)
Total identifiable net assets	170,050
Goodwill	172,222
	$	342,272

The finalization of the above purchase price allocation is pending the determination of certain potential unrecorded liabilities relating to legacy EasyLink litigation, onerous contracts, and sales tax-related matters. We expect to finalize this determination on or before June 30, 2013.

No portion of the goodwill recorded upon the acquisition of EasyLink is expected to be deductible for tax purposes.

The fair value of current assets acquired includes accounts receivable with a fair value of $26.2 million. The gross amount receivable was $27.5 million of which $1.3 million of this receivable was expected to be uncollectible.

The amount of EasyLink’s revenues and net income included in our Condensed Consolidated Statements of Income for the three and six months endedDecember 31, 2012, and the unaudited pro forma revenues and net income of the combined entity, had the acquisition been consummated as of July 1, 2011, are set forth below:

	Revenues		Net Income
Actual from October 1, 2012 to December 31, 2012	$	44,158	$	3,699
Actual from July 2, 2012 to December 31, 2012	$	87,617	$	4,045

	Three Months Ended December 31,		Six Months Ended December 31,
	2011		2011
Supplemental Unaudited Pro forma Information
Total revenues	$	366,998	$	701,524
Net income*	$	48,973	$	97,601

*Included in pro forma net income are estimated amortization charges relating to the allocated values of intangible assets. In addition, for the six months ended December 31, 2011, pro forma net income includes a $13.2 million tax recovery relating to certain one-time tax benefits recognized by EasyLink during the period.

The results of operations of EasyLink were combined with OpenText as of July 2, 2012 and hence there is no "reportable" pro forma impact on revenues and net income for the three and six months endedDecember 31, 2012.

The unaudited pro forma financial information in the table above is presented for informational purposes only and is not indicative of the results of operations that would have been achieved if the acquisition had taken place at the beginning of the period presented or the results that may be realized in the future.

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Income Taxes

6 Months Ended

Dec. 31, 2012

Income Tax Disclosure [Abstract]

Income Taxes

INCOME TAXES

Our effective tax rate represents the net effect of the mix of income earned in various tax jurisdictions that are subject to a wide range of income tax rates.

We recognize interest expense and penalties related to income tax matters in income tax expense.

For the three and six months endedDecember 31, 2012 and 2011, we recognized the following amounts as income tax-related interest expense and penalties:

	Three Months Ended December 31,				Six Months Ended December 31,
	2012		2011		2012		2011
Interest expense (recovery)	(2,041	)	4,897		(187	)	6,459
Penalties expense (recovery)	(3	)	(7,279	)	36		(7,241	)
Total	(2,044	)	(2,382	)	(151	)	(782	)

As of December 31, 2012 and June 30, 2012, the following amounts have been accrued on account of income tax-related interest expense and penalties:

	As of December 31, 2012		As of June 30, 2012
Interest expense accrued *	$	20,002	$	19,316
Penalties accrued *	$	6,000	$	4,040

* These balances have been included within "Long-term income taxes payable" within the Condensed Consolidated Balance Sheets.

Included in the accrual balances as of December 31, 2012 are accrued interest expense and penalties of $0.4 million and $1.9 million, respectively, relating to the acquisition of EasyLink.

We believe that it is reasonably possible that the gross unrecognized tax benefits, as of December 31, 2012, could decrease tax expense in the next 12 months by $11.9 million, relating primarily to the expiration of competent authority relief and tax years becoming statute barred for purposes of future tax examinations by local taxing jurisdictions.

Our four most significant tax jurisdictions are Canada, the United States, Luxembourg and Germany. Our tax filings remain subject to examination by applicable tax authorities for a certain length of time following the tax year to which those filings relate. Tax years that remain open to examinations by local taxing authorities vary by jurisdiction up to ten years.

We are subject to tax examinations in all major taxing jurisdictions in which we operate and currently have examinations open in Canada, the United States, France, Spain, and India. On a quarterly basis we assess the status of these examinations and the potential for adverse outcomes to determine the adequacy of the provision for income and other taxes.

We believe that we have adequately provided for any reasonably foreseeable outcomes related to our tax examinations and that any settlement will not have a material adverse effect on our consolidated financial position or results of operations. However, we cannot predict with any level of certainty the exact nature of any future possible settlements.

As at December 31, 2012, we have not provided for additional foreign withholding taxes or deferred income tax liabilities for temporary differences related to the undistributed earnings of our non-Canadian subsidiaries other than certain United States subsidiaries, since such earnings are considered permanently invested in those subsidiaries, or are not subject to withholding taxes. It is not practicable to reasonably estimate the amount of additional deferred income tax liabilities or foreign withholding taxes that may be payable should these earnings be distributed in the future. We do plan to make periodic repatriations that will be subject to withholding taxes from certain United States subsidiaries and have accrued additional tax cost attributable to these distributions in the amount of $0.3 million.

The decrease in the provision for income taxes from $6.8 million for the three months ended  December 31, 2011 to $3.2 million for the three months ended December 31, 2012 is primarily due to the impact of valuation allowances set up  during the three months ended December  31, 2011.

The net increase in tax expense from $5.5 million for the six months ended December 31, 2011 to $19.4 million for the six months ended December 31, 2012 was primarily due to tax benefits realized in Fiscal 2012 relating to the internal reorganization of the acquired international subsidiaries of Metastorm Inc., in the amount of $4.1 million, and a Canadian election to file tax returns in U.S. dollar functional currency, in the amount of $5.9 million. The Fiscal 2013 tax expense includes an increase of $4.6 million relating to the impact of adjustments in the United States and Australia upon filing of tax returns. The remainder of the differences are due to normal course movements and non-material items.

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Accounts Payable And Accrued Liabilities

6 Months Ended

Dec. 31, 2012

Accounts Payable and Accrued Liabilities [Abstract]

Accounts Payable And Accrued Liabilities

ACCOUNTS PAYABLE AND ACCRUED LIABILITIES

Current liabilities

Accounts payable and accrued liabilities are comprised of the following:

	As of December 31, 2012		As of June 30, 2012
Accounts payable—trade	$	3,477	$	7,574
Accrued salaries and commissions	42,782		50,821
Accrued liabilities*	123,953		65,557
Amounts payable in respect of restructuring and other Special charges (note 16)	7,303		7,068
Asset retirement obligations	464		714
Total	$	177,979	$	131,734

Long-term accrued liabilities

	As of December 31, 2012		As of June 30, 2012
Amounts payable in respect of restructuring and other Special charges (note 16)	$	2,924	$	1,803
Other accrued liabilities	11,264		8,819
Asset retirement obligations	4,956		3,625
Total	$	19,144	$	14,247

* The increase in accrued liabilities was primarily due to the acquisition of legacy EasyLink obligations.

Asset retirement obligations

We are required to return certain of our leased facilities to their original state at the conclusion of our lease. We have accounted for such obligations in accordance with ASC Topic 410 “Asset Retirement and Environmental Obligations” (ASC Topic 410). As of December 31, 2012, the present value of this obligation was $5.4 million (June 30, 2012—$4.3 million), with an undiscounted value of $5.8 million (June 30, 2012—$4.8 million).

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Pension Plans And Other Post Retirement Benefits (Schedule Of CDT Defined Benefit Plan And CDT Long-Term Employee Benefit Obligation) (Details) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2012		Jun. 30, 2012
Defined Benefit Plan Disclosure [Line Items]
Noncurrent portion of benefit obligation	$ 25,042		$ 22,074
CDT Defined Benefit Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
Total benefit obligation	24,446		21,461
Current portion of benefit obligation	524	[1]	475	[1]
Noncurrent portion of benefit obligation	23,922		20,986
CDT Anniversary Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
Total benefit obligation	466		457
Current portion of benefit obligation	85	[1]	67	[1]
Noncurrent portion of benefit obligation	381		390
CDT Early Retirement Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
Total benefit obligation	0		69
Current portion of benefit obligation	0	[1]	69	[1]
Noncurrent portion of benefit obligation	0		0
IXOS Defined Benefit Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
Total benefit obligation	739		698
Current portion of benefit obligation	0	[1]	0	[1]
Noncurrent portion of benefit obligation	739		698
CDT Pension Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
Total benefit obligation	25,651		22,685
Current portion of benefit obligation	609	[1]	611	[1]
Noncurrent portion of benefit obligation	$ 25,042		$ 22,074

[1] *The current portion of the benefit obligation has been included within "Accounts payable and accrued liabilities" in the Condensed Consolidated Balance Sheets.

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Other Assets

6 Months Ended

Dec. 31, 2012

Other Assets, Noncurrent Disclosure [Abstract]

Other Assets

OTHER ASSETS

	As of December 31, 2012		As of June 30, 2012
Debt issuance costs	$	7,391	$	8,463
Deposits and restricted cash	8,479		7,515
Long-term prepaid expenses and other long-term assets	6,789		7,761
Total	$	22,659	$	23,739

Debt issuance costs relate primarily to costs incurred for the purpose of obtaining our term loan and are being amortized over the term of the loan (see note 10). Deposits and restricted cash relate to security deposits provided to landlords in accordance with facility lease agreements and cash restricted per the terms of contractual-based agreements. Long-term prepaid expenses and other long-term assets primarily relate to advance payments on long-term licenses that are being amortized over the applicable terms of the licenses.

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Deferred Charges And Credits

6 Months Ended

Dec. 31, 2012

Deferred Costs [Abstract]

Deferred Charges And Credits

DEFERRED CHARGES AND CREDITS

Deferred charges and credits relate to cash taxes payable and the elimination of deferred tax balances relating to legal entity consolidations completed as part of an internal reorganization of our international subsidiaries. Deferred charges and credits are amortized to income tax expense over a period of six years.

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Long-Term Debt

6 Months Ended

Dec. 31, 2012

Long-term Debt, Unclassified [Abstract]

Long-Term Debt

LONG-TERM DEBT

Long-term debt

Long-term debt is comprised of the following:

	As of December 31, 2012		As of June 30, 2012
Long-term debt
Term Loan	$	570,000	$	585,000
Mortgage	11,386		11,374
	581,386		596,374
Less:
Current portion of long-term debt
Term Loan	33,750		30,000
Mortgage	11,386		11,374
	45,136		41,374
Non current portion of long-term debt	$	536,250	$	555,000

Term Loan and Revolver

Our credit facility consists of a $600 million term loan facility (the Term Loan) and a $100 million committed revolving credit facility (the Revolver). Borrowings under the credit agreement are secured by a first charge over substantially all of our assets. We entered into and borrowed from this credit agreement on November 9, 2011.

The Term Loan has a five year term and repayments made under the Term Loan are equal to 1.25% of the original principal amount at each quarter for the first 2 years, 1.88% for years 3 and 4 and 2.5% for year 5. The Term Loan bears interest at a floating rate of LIBOR plus 2.50%. For the three and six months endedDecember 31, 2012, we recorded interest expense of approximately $4.1 million and $8.2 million, respectively, relating to the Term Loan (three and six months ended December 31, 2011—$2.5 million).

For the three and six months ended December 31, 2011, we recorded interest expense of approximately $0.9 million and $2.7 million, respectively, relating to our previously outstanding term loan.

The Revolver has a five year term with no fixed repayment date prior to the end of the term. As of December 31, 2012, we have not drawn any amounts on the Revolver.

Mortgage

We currently have an "open" mortgage with a bank where we can pay all or a portion of the mortgage on or before August 1, 2013. The original principal amount of the mortgage was Canadian $15.0 million and interest accrues monthly at a variable rate of Canadian prime plus 0.50%. Principal and interest are payable in monthly installments of Canadian $0.1 million with a final lump sum principal payment due on maturity. The mortgage is secured by a lien on our headquarters in Waterloo, Ontario, Canada. We first entered into this mortgage in December 2005.

As of December 31, 2012, the carrying value of the mortgage was $11.4 million (June 30, 2012—$11.4 million).

As of December 31, 2012, the carrying value of the Waterloo building that secures the mortgage was $16.1 million (June 30, 2012—$16.3 million).

For the three and six months endedDecember 31, 2012, we recorded interest expense of $0.1 million and $0.2 million, respectively, relating to the mortgage (three and six months ended December 31, 2011— $0.1 million and $0.2 million, respectively).

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Pension Plans And Other Post Retirement Benefits (Anticipated Pension Payments Under CDT Pension Plan) (Details) (CDT Pension Plan [Member], USD $) In Thousands, unless otherwise specified	Dec. 31, 2012
CDT Pension Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
2013	$ 262
2014	562
2015	620
2016	690
2017	759
2018 to 2022	5,599
Total	$ 8,492

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Share Capital, Option Plans And Share-Based Payments (Summary Of Share-Based Compensation Costs) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2012	Dec. 31, 2011
Share-based Compensation Arrangement By Share-based Payment Award [Line Items]
Share-based compensation expense	$ 3,174	$ 3,397	$ 6,276	$ 8,241
Stock Options [Member]
Share-based Compensation Arrangement By Share-based Payment Award [Line Items]
Share-based compensation expense	1,228	974	2,567	1,772
Deferred Stock Units (Directors) [Member]
Share-based Compensation Arrangement By Share-based Payment Award [Line Items]
Share-based compensation expense	172	64	360	129
Restricted Stock Awards (legacy Vignette employees) [Member]
Share-based Compensation Arrangement By Share-based Payment Award [Line Items]
Share-based compensation expense	0	9	10	20
Performance Stock Units (Fiscal 2010, 2011 and 2012 LTIPs) [Member]
Share-based Compensation Arrangement By Share-based Payment Award [Line Items]
Share-based compensation expense	1,246	2,350	2,660	6,320
Issued under LTIP [Member] | Restricted Stock Units [Member]
Share-based Compensation Arrangement By Share-based Payment Award [Line Items]
Share-based compensation expense	377	0	377	0
Other [Member] | Restricted Stock Units [Member]
Share-based Compensation Arrangement By Share-based Payment Award [Line Items]
Share-based compensation expense	$ 151	$ 0	$ 302	$ 0

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Pension Plans And Other Post Retirement Benefits (Schedule Of Weighted-Average Key Assumptions Used For CDT Pension Plan) (Details) (CDT Pension Plan [Member])	6 Months Ended	12 Months Ended
	Dec. 31, 2012	Jun. 30, 2012
Defined Benefit Plan Disclosure [Line Items]
Salary increases	2.50%	2.50%
Pension increases	2.00%	2.00%
Discount rate	3.60%	4.00%
To Age 30 [Member]
Defined Benefit Plan Disclosure [Line Items]
Employee fluctuation rate	1.00%	1.00%
To Age 35 [Member]
Defined Benefit Plan Disclosure [Line Items]
Employee fluctuation rate	0.50%	0.50%
To Age 40 [Member]
Defined Benefit Plan Disclosure [Line Items]
Employee fluctuation rate	0.00%	0.00%
To Age 45 [Member]
Defined Benefit Plan Disclosure [Line Items]
Employee fluctuation rate	0.50%	0.50%
To Age 50 [Member]
Defined Benefit Plan Disclosure [Line Items]
Employee fluctuation rate	0.50%	0.50%
From Age 51 [Member]
Defined Benefit Plan Disclosure [Line Items]
Employee fluctuation rate	1.00%	1.00%

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Long-Term Debt (Tables)

6 Months Ended

Dec. 31, 2012

Long-term Debt, Unclassified [Abstract]

Schedule Of Long-Term Debt

Long-term debt is comprised of the following:

	As of December 31, 2012		As of June 30, 2012
Long-term debt
Term Loan	$	570,000	$	585,000
Mortgage	11,386		11,374
	581,386		596,374
Less:
Current portion of long-term debt
Term Loan	33,750		30,000
Mortgage	11,386		11,374
	45,136		41,374
Non current portion of long-term debt	$	536,250	$	555,000

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Other Assets (Details) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2012	Jun. 30, 2012
Other Assets, Noncurrent Disclosure [Abstract]
Debt issuance costs	$ 7,391	$ 8,463
Deposits and restricted cash	8,479	7,515
Long-term prepaid expenses and other long-term assets	6,789	7,761
Total other assets	$ 22,659	$ 23,739

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Derivative Instruments And Hedging Activities

6 Months Ended

Dec. 31, 2012

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Instruments And Hedging Activities

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES

Foreign Currency Forward Contracts

In July 2010, we entered into a hedging program with a Canadian chartered bank to limit the potential foreign exchange fluctuations incurred on future cash flows related to a portion of the Canadian dollar payroll expenses. We operate internationally and are therefore exposed to foreign currency exchange rate fluctuations in the normal course of our business, in particular to changes in the Canadian dollar on account of large costs that are incurred from our centralized Canadian operations, and are denominated in Canadian dollars. As part of our risk management strategy, we use derivative instruments to hedge portions of our payroll exposure. We do not use these forward contracts for trading or speculative purposes. These forward contracts typically mature between one and twelve months.

We have designated these transactions as cash flow hedges of forecasted transactions under ASC Topic 815 “Derivatives and Hedging” (ASC Topic 815). As the critical terms of the hedging instrument, and of the entire hedged forecasted transaction, are the same, in accordance with ASC Topic 815 we have been able to conclude that changes in fair value or cash flows attributable to the risk being hedged are expected to completely offset at inception and on an ongoing basis. Accordingly, quarterly unrealized gains or losses on the effective portion of these forward contracts have been included within other comprehensive income. The fair value of the contracts, as of December 31, 2012, is recorded within “Prepaid expenses and other current assets”.

As of December 31, 2012, the notional amount of forward contracts we held to sell U.S. dollars in exchange for Canadian dollars was $49.8 million (June 30, 2012—$99.6 million).

Fair Value of Derivative Instruments and Effect of Derivative Instruments on Financial Performance

The effect of these derivative instruments on our consolidated financial statements for the periods indicated below were as follows (amounts presented do not include any income tax effects).

Fair Value of Derivative Instruments in the Consolidated Balance Sheets (see note 14)

		As of December 31, 2012		As of June 30, 2012
Derivatives	Balance Sheet Location	Fair Value Asset (Liability)		Fair Value Asset (Liability)
Foreign currency forward contracts designated as cash flow hedges	Prepaid expenses and other current assets	$	948	$	283

Effects of Derivative Instruments on Income and Other Comprehensive Income (OCI)

Three and Six Months Ended December 31, 2012
Derivatives in Cash Flow Hedging Relationship	Amount of Gain or (Loss) Recognized in OCI on Derivatives (Effective Portion)						Location of Gain or  (Loss) Reclassified from Accumulated OCI into Income (Effective Portion)	Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion)					Location of Gain or (Loss) Recognized in Income on Derivatives (Ineffective Portion and Amount Excluded from Effectiveness Testing)	Amount of Gain or (Loss) Recognized in Income on Derivatives (Ineffective Portion and Amount Excluded from Effectiveness Testing)
	Three months ended December 31, 2012			Six months ended December 31, 2012				Three months ended December 31, 2012			Six months ended December 31, 2012			Three months ended December 31, 2012	Six months ended December 31, 2012
Foreign currency forward contracts	$	(673	)	$	2,725		Operating expenses	$	1,304		$	2,060	N/A	—	—
Three and Six Months Ended December 31, 2011
Derivatives in Cash Flow Hedging Relationship	Amount of Gain or (Loss) Recognized in OCI on Derivatives (Effective Portion)						Location of Gain or  (Loss) Reclassified from Accumulated OCI into Income (Effective Portion)	Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion)					Location of Gain or (Loss) Recognized in Income on Derivatives (Ineffective Portion and Amount Excluded from Effectiveness Testing)	Amount of Gain or (Loss) Recognized in Income on Derivatives (Ineffective Portion and Amount Excluded from Effectiveness Testing)
	Three months ended December 31, 2011			Six months ended December 31, 2011				Three months ended December 31, 2011			Six months ended December 31, 2011			Three months ended December 31, 2011	Six months ended December 31, 2011
Foreign currency forward contracts	$	3,403		$	(2,252	)	Operating expenses	$	(902	)	$	643	N/A	—	—

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Net Income Per Share

6 Months Ended

Dec. 31, 2012

Earnings Per Share [Abstract]

Net Income Per Share

PER SHARE

Basic earnings per share are computed by dividing net income by the weighted average number of Common Shares outstanding during the period. Diluted earnings per share are computed by dividing net income by the shares used in the calculation of basic earnings per share plus the dilutive effect of Common Share equivalents, such as stock options, using the treasury stock method. Common Share equivalents are excluded from the computation of diluted net income per share if their effect is anti-dilutive.

	Three Months Ended December 31,				Six Months Ended December 31,
	2012		2011		2012		2011
Basic earnings per share
Net income	$	61,108	$	47,443	$	80,537	$	82,429
Basic earnings per share	$	1.04	$	0.82	$	1.38	$	1.43
Diluted earnings per share
Net income	$	61,108	$	47,443	$	80,537	$	82,429
Diluted earnings per share	$	1.04	$	0.81	$	1.37	$	1.41
Weighted-average number of shares outstanding
Basic	58,503		57,846		58,473		57,642
Effect of dilutive securities	480		826		488		1,005
Diluted	58,983		58,672		58,961		58,647
Excluded as anti-dilutive*	1,076		189		1,065		137

* Represents options to purchase Common Shares excluded from the calculation of diluted net income per share because the exercise price of the stock options was greater than or equal to the average price of the Common Shares during the period.

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Acquired Intangible Assets (Calculation Of Acquired Intangibles By Asset Class) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Dec. 31, 2012	Jun. 30, 2012
Finite-Lived Intangible Assets, Net [Abstract]
Cost	$ 1,044,584	$ 847,404
Accumulated Amortization	(616,223)	(534,841)
Net	428,361	312,563
Technology Assets [Member]
Finite-Lived Intangible Assets, Net [Abstract]
Cost	543,508	473,008
Accumulated Amortization	(356,490)	(309,517)
Net	187,018	163,491
Weighted-average amortization period (in years) for acquired intangible assets	6 years
Customer Assets [Member]
Finite-Lived Intangible Assets, Net [Abstract]
Cost	501,076	374,396
Accumulated Amortization	(259,733)	(225,324)
Net	$ 241,343	$ 149,072
Weighted-average amortization period (in years) for acquired intangible assets	7 years

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Acquisitions (Tables) (EasyLink Services International Corporation [Member])

3 Months Ended

Dec. 31, 2012

EasyLink Services International Corporation [Member]

Summary Of Consideration Paid

The following tables summarize the consideration paid for EasyLink and the amount of the assets acquired and liabilities assumed, as well as the goodwill recorded as of the acquisition date:

Cash consideration paid	$	342,272
Acquisition related costs (included in Special charges in the Condensed Consolidated Statements of Income):          for the three months ended December 31, 2012	$	466
for the six months ended December 31, 2012	$	1,215

Summary Of Purchase Price Allocation

The recognized amounts of identifiable assets acquired and liabilities assumed, based upon their fair values as of July 2, 2012, are set forth below:

Current assets (inclusive of cash acquired of $26,941)	$	64,319
Non-current assets	37,537
Intangible customer assets	126,600
Intangible technology assets	70,500
Total liabilities assumed	(128,906		)
Total identifiable net assets	170,050
Goodwill	172,222
	$	342,272

Summary Of Actual And Pro Forma Revenue And Net Income

The amount of EasyLink’s revenues and net income included in our Condensed Consolidated Statements of Income for the three and six months endedDecember 31, 2012, and the unaudited pro forma revenues and net income of the combined entity, had the acquisition been consummated as of July 1, 2011, are set forth below:

	Revenues		Net Income
Actual from October 1, 2012 to December 31, 2012	$	44,158	$	3,699
Actual from July 2, 2012 to December 31, 2012	$	87,617	$	4,045

	Three Months Ended December 31,		Six Months Ended December 31,
	2011		2011
Supplemental Unaudited Pro forma Information
Total revenues	$	366,998	$	701,524
Net income*	$	48,973	$	97,601

*Included in pro forma net income are estimated amortization charges relating to the allocated values of intangible assets. In addition, for the six months ended December 31, 2011, pro forma net income includes a $13.2 million tax recovery relating to certain one-time tax benefits recognized by EasyLink during the period.

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Consolidated Statements Of Other Comprehensive Income (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2012	Dec. 31, 2011
Net income for the period	$ 61,108	$ 47,443	$ 80,537	$ 82,429
Foreign currency translation adjustments	(989)	(1,354)	(1,465)	(11,972)
Net unrealized gain (loss) on cash flow hedges	(1,453)	3,132	491	(2,070)
Actuarial gain (loss) relating to defined benefit pension plans	(620)	342	(729)	(206)
Total other comprehensive income for the period	(3,062)	2,120	(1,703)	(14,248)
Total comprehensive income	$ 58,046	$ 49,563	$ 78,834	$ 68,181

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Property and Equipment

6 Months Ended

Dec. 31, 2012

Property, Plant and Equipment [Abstract]

Property and Equipment

PROPERTY AND EQUIPMENT

	As of December 31, 2012
	Cost		Accumulated Depreciation		Net
Furniture and fixtures	$	11,500	$	5,935	$	5,565
Office equipment	1,117		699		418
Computer hardware	55,094		37,858		17,236
Computer software	16,008		9,118		6,890
Leasehold improvements	29,312		16,202		13,110
Buildings	44,027		4,111		39,916
Total	$	157,058	$	73,923	$	83,135

	As of June 30, 2012
	Cost		Accumulated Depreciation		Net
Furniture and fixtures	$	10,828	$	4,577	$	6,251
Office equipment	975		596		379
Computer hardware	48,834		34,799		14,035
Computer software	13,558		7,404		6,154
Leasehold improvements	27,643		13,777		13,866
Buildings	44,034		3,562		40,472
Total	$	145,872	$	64,715	$	81,157

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Long-Term Debt (Mortgage) (Narrative) (Details) (Mortgage [Member], USD $)	1 Months Ended	3 Months Ended		6 Months Ended
	Dec. 31, 2005	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2012	Dec. 31, 2011	Jun. 30, 2012
Debt Instrument [Line Items]
Mortgage loan principal amount	$ 15,000,000
Debt maturity date after extension	8/1/2013
Principal and interest payable in monthly installments	100,000
Carrying value of mortgage		11,386,000		11,386,000		11,374,000
Collateral building net		16,100,000		16,100,000		16,300,000
Interest expense		$ 100,000	$ 100,000	$ 200,000	$ 200,000
Canadian Prime [Member]
Debt Instrument [Line Items]
Interest addition to floating rate	0.50%

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Related Party Transactions (Details) (Stephen Sadler [Member], USD $) In Millions, unless otherwise specified	6 Months Ended
	Dec. 31, 2012	Dec. 31, 2011
Stephen Sadler [Member]
Related Party Transaction [Line Items]
Consultancy fees earned by director for business acquisition-related activities	$ 0.5	$ 0.7

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Share Capital, Option Plans And Share-Based Payments Share Capital, Option Plans And Share-Based Payments (Schedule of Long Term Incentive Plan Expense) (Details) (USD $)	3 Months Ended		6 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2012	Dec. 31, 2011
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Unvested stock awards compensation cost, weighted average recognition period	3 years 6 months
Long Term Incentive Plan [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Allocated share-based compensation expense	$ 1,623,000	$ 2,350,000	$ 3,037,000	$ 6,320,000
Expected share-based compensation expense			40,750,000
Compensation cost recognized to date	24,800,000		24,800,000
Compensation cost not yet recognized	16,000,000		16,000,000
Unvested stock awards compensation cost, weighted average recognition period			2 years 3 months 18 days
Performance Stock Units (PSUs) [Member] | Fiscal 2012 LTIP [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Allocated share-based compensation expense	0	1,830,000	579,000	5,280,000
Expected share-based compensation expense			17,314,000
Performance Stock Units (PSUs) [Member] | Fiscal 2013 LTIP [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Allocated share-based compensation expense	298,000	520,000	598,000	1,040,000
Expected share-based compensation expense			4,707,000
Performance Stock Units (PSUs) [Member] | Fiscal 2014 LTIP [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Allocated share-based compensation expense	862,000	0	1,397,000	0
Expected share-based compensation expense			8,898,000
Performance Stock Units (PSUs) [Member] | Fiscal 2015 LTIP [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Allocated share-based compensation expense	86,000	0	86,000	0
Expected share-based compensation expense			3,132,000
Restricted Stock Units (RSUs) [Member] | Fiscal 2015 LTIP [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Allocated share-based compensation expense	377,000	0	377,000	0
Expected share-based compensation expense			$ 6,699,000

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Related Party Transactions

6 Months Ended

Dec. 31, 2012

Related Party Transaction, Due from (to) Related Party [Abstract]

Related Party Transactions

RELATED PARTY TRANSACTIONS

Our procedure regarding the approval of any related party transaction requires that the material facts of such transaction be reviewed by the independent members of our Board and the transaction approved by a majority of the independent members of the Board. The Board reviews all transactions in which we are, or will be, a participant and any related party has or will have a direct or indirect interest. In determining whether to approve a related party transaction, the Board generally takes into account, among other facts it deems appropriate, whether the transaction is on terms no less favorable than terms generally available to an unaffiliated third party under the same or similar circumstances; the extent and nature of the related person’s interest in the transaction; the benefits to the Company of the proposed transaction; if applicable, the effects on a director’s independence; and if applicable, the availability of other sources of comparable services or products.

During the six months endedDecember 31, 2012, Mr. Stephen Sadler, a director, earned approximately $0.5 million (six months endedDecember 31, 2011—$0.7 million) in consulting fees from OpenText for assistance with acquisition-related business activities. Mr. Sadler abstained from voting on all transactions from which he would potentially derive consulting fees.

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Derivative Instruments And Hedging Activities (Fair Value Of Derivative Instruments In The Condensed Consolidated Balance Sheets) (Details) (USD $)	Dec. 31, 2012	Jun. 30, 2012
Derivatives, Fair Value [Line Items]
Notional amount of forward contracts held to sell U.S. dollars in exchange for Canadian dollars	$ 49,800,000	$ 99,600,000
Prepaid Expenses and Other Current Assets [Member] | Cash Flow Hedging [Member] | Designated As Hedging Instrument [Member] | Foreign Exchange Forward [Member]
Derivatives, Fair Value [Line Items]
Fair Value Asset (Liability)	$ 948,000	$ 283,000

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Fair Value Measurements (Tables)

6 Months Ended

Dec. 31, 2012

Fair Value Disclosures [Abstract]

Financial Assets And Liabilities Measured At Fair Value On A Recurring Basis

Our financial assets and liabilities measured at fair value on a recurring basis consisted of the following types of instruments as of December 31, 2012 and June 30, 2012:

December 31, 2012

June 30, 2012

Fair Market Measurements using:

Fair Market Measurements using:

December 31, 2012

Quoted prices in active markets  for identical assets/ (liabilities)

Significant other observable inputs

Significant unobservable inputs

June 30, 2012

Quoted prices in active markets  for identical assets/ (liabilities)

Significant other observable inputs

Significant unobservable inputs

(Level 1)

(Level 2)

(Level 3)

(Level 1)

(Level 2)

(Level 3)

Financial Assets:

Derivative financial instrument asset (note 15)

$

948

n/a

$

948

n/a

$

283

n/a

$

283

n/a

$

948

n/a

$

948

n/a

$

283

n/a

$

283

n/a

XML

Fair Value Measurements

6 Months Ended

Dec. 31, 2012

Fair Value Disclosures [Abstract]

Fair Value Measurements

FAIR VALUE MEASUREMENTS

ASC Topic 820 “Fair Value Measurements and Disclosures” (ASC Topic 820) defines fair value, establishes a framework for measuring fair value, and addresses disclosure requirements for fair value measurements. Fair value is the price that would be received upon sale of an asset or paid upon transfer of a liability in an orderly transaction between market participants at the measurement date and in the principal or most advantageous market for that asset or liability. The fair value, in this context, should be calculated based on assumptions that market participants would use in pricing the asset or liability, not on assumptions specific to the entity. In addition, the fair value of liabilities should include consideration of non-performance risk, including our own credit risk.

In addition to defining fair value and addressing disclosure requirements, ASC Topic 820 establishes a fair value hierarchy for valuation inputs. The hierarchy prioritizes the inputs into three levels based on the extent to which inputs used in measuring fair value are observable in the market. Each fair value measurement is reported in one of the three levels which are determined by the lowest level input that is significant to the fair value measurement in its entirety. These levels are:

• Level 1—inputs are based upon unadjusted quoted prices for identical instruments traded in active markets.

• Level 2—inputs are based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market or can be corroborated by observable market data for substantially the full term of the assets or liabilities.

• Level 3—inputs are generally unobservable and typically reflect management’s estimates of assumptions that market participants would use in pricing the asset or liability. The fair values are therefore determined using model-based techniques that include option pricing models, discounted cash flow models, and similar techniques.

Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis:

Our financial assets and liabilities measured at fair value on a recurring basis consisted of the following types of instruments as of December 31, 2012 and June 30, 2012:

December 31, 2012

June 30, 2012

Fair Market Measurements using:

Fair Market Measurements using:

December 31, 2012

Quoted prices in active markets  for identical assets/ (liabilities)

Significant other observable inputs

Significant unobservable inputs

June 30, 2012

Quoted prices in active markets  for identical assets/ (liabilities)

Significant other observable inputs

Significant unobservable inputs

(Level 1)

(Level 2)

(Level 3)

(Level 1)

(Level 2)

(Level 3)

Financial Assets:

Derivative financial instrument asset (note 15)

$

948

n/a

$

948

n/a

$

283

n/a

$

283

n/a

$

948

n/a

$

948

n/a

$

283

n/a

$

283

n/a

Our valuation techniques used to measure the fair values of the derivative instruments, the counterparty to which has high credit ratings, were derived from pricing models including discounted cash flow techniques, with all significant inputs derived from or corroborated by observable market data, as no quoted market prices exist for the derivative instruments. Our discounted cash flow techniques use observable market inputs, such as foreign currency spot and forward rates.

Our cash and cash equivalents, along with our accounts receivable and accounts payable and accrued liabilities balances, are measured and recognized in our consolidated financial statements at an amount which approximates their fair value (a Level 3 measurement) due to their short maturities.

Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis

We measure certain assets at fair value on a nonrecurring basis. These assets are recognized at fair value when they are deemed to be other-than-temporarily impaired. During the three and six months endedDecember 31, 2012 and 2011, no indications of impairment were identified and therefore no fair value measurements were required.

If applicable, we will recognize transfers into and out of levels within the fair value hierarchy at the end of the reporting period in which the actual event or change in circumstance occurs. During the three and six months endedDecember 31, 2012 and 2011, we did not have any significant transfers in or out of Level 2 or Level 3.