OTEX

It was a relatively weak quarter from the company. My sale of it from the model portfolios was 100% on the basis the thesis has changed. This company took quite a few risks over the course of the pandemic in terms of debt heavy acquisitions and it doesn't look like it's working out all that well.

It looks like they're now in cost cutting mode to try and save some money and increase cash flows. Layoffs will be coming and they do expect to save $490M-$550M.

The biggest warning sign and the reason I sold this company in all portfolios was when the company pushed its guidance out an entire Fiscal year. It looks like it's going through some relatively big struggles right now. Licensing revenue taking a hit, recurring revenue down, overall revenue down.