<SEC-DOCUMENT>0001193125-11-329883.txt : 20120217
<SEC-HEADER>0001193125-11-329883.hdr.sgml : 20120217
<ACCEPTANCE-DATETIME>20111205112100
<PRIVATE-TO-PUBLIC>
ACCESSION NUMBER:		0001193125-11-329883
CONFORMED SUBMISSION TYPE:	CORRESP
PUBLIC DOCUMENT COUNT:		1
FILED AS OF DATE:		20111205

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			OPEN TEXT CORP
		CENTRAL INDEX KEY:			0001002638
		STANDARD INDUSTRIAL CLASSIFICATION:	SERVICES-COMPUTER INTEGRATED SYSTEMS DESIGN [7373]
		IRS NUMBER:				980154400
		STATE OF INCORPORATION:			A6
		FISCAL YEAR END:			0630

	FILING VALUES:
		FORM TYPE:		CORRESP

	BUSINESS ADDRESS:	
		STREET 1:		275 FRANK TOMPA DRIVE
		STREET 2:		WATERLOO
		CITY:			ONTARIO CANADA
		STATE:			A6
		ZIP:			N2L 0A1
		BUSINESS PHONE:		519-888-7111

	MAIL ADDRESS:	
		STREET 1:		275 FRANK TOMPA DRIVE
		STREET 2:		WATERLOO
		CITY:			ONTARIO CANADA
		STATE:			A6
		ZIP:			N2L 0A1
</SEC-HEADER>
<DOCUMENT>
<TYPE>CORRESP
<SEQUENCE>1
<FILENAME>filename1.htm
<TEXT>
<HTML><HEAD>
<TITLE>Response Letter</TITLE>
</HEAD>
 <BODY BGCOLOR="WHITE">

 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2">OPEN TEXT CORPORATION </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT
STYLE="font-family:Times New Roman" SIZE="2">275 Frank Tompa Drive </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2">Waterloo, Ontario, Canada </FONT></P>
<P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2">T (519)&nbsp;888-7111 F (519)&nbsp;888-0677 </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT
STYLE="font-family:Times New Roman" SIZE="2">December&nbsp;5, 2011 </FONT></P> <P STYLE="margin-top:18px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B><I><U>By Electronic Submission </U></I></B></FONT></P>
<P STYLE="margin-top:6px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">United States Securities and Exchange Commission </FONT></P>
<P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">Division of Corporation Finance </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">100 F Street
N.E. Mail Stop 4561 </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">Washington, D.C. 20549 </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT
STYLE="font-family:Times New Roman" SIZE="2">Attention: Melisa Kindelan, </FONT></P>
<P STYLE="margin-top:0px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Staff Accountant, Division of Corporation Finance </FONT></P>
<P STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>Re:</B></FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>Open Text Corporation </B></FONT></TD></TR></TABLE>
<P STYLE="margin-top:0px;margin-bottom:0px; margin-left:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2"><U><B>File No. 0-27544</B> </U></FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">Dear Ms.&nbsp;Kindelan: </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT STYLE="font-family:Times New Roman" SIZE="2">This
letter reflects our response to the comments of the Staff (the &#147;Staff&#148;) of the Securities and Exchange Commission (the &#147;Commission&#148;) as set forth in your letter dated November&nbsp;22, 2011 to Mr.&nbsp;Paul McFeeters, our Chief
Financial Officer. The Comment letter relates to our Form 10-K for the fiscal year ended June&nbsp;30, 2011 (&#147;Form 10-K&#148;) which was filed with the Commission on August&nbsp;15, 2011 and our current reports on Form 8-K (&#147;Form
8-K&#148;) filed with the Commission on October&nbsp;26, 2011 and August&nbsp;10, 2011. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT STYLE="font-family:Times New Roman" SIZE="2">For ease of reference, the response
set forth below has been organized in the same manner in which the Staff&#146;s comments were organized, and such Staff comments are set out in bold text below. </FONT></P> <P STYLE="margin-top:18px;margin-bottom:0px"><FONT
STYLE="font-family:Times New Roman" SIZE="2"><B><U>Form 10-K for the Year Ended June&nbsp;30, 2011 </U></B></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B><U>Item&nbsp;7.
Management&#146;s Discussion and Analysis of Financial Condition and Results of Operation </U></B></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B><U>Fiscal 2011 Compared to Fiscal 2010
</U></B></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B><U>Provision for (recovery of) income taxes, page 34 </U></B></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px"><FONT
STYLE="font-family:Times New Roman" SIZE="2"><B>1. Tell us your consideration to provide disclosures that explain in greater detail the impact on your effective income tax rates and obligations of having proportionally higher earnings in countries
where the statutory tax rates differ from that of the Canadian statutory rate, including which foreign jurisdictions had a more significant impact on your effective tax rate for each period presented. In this regard, you should consider explaining
the relationship between the foreign and domestic effective tax rates in greater detail as it appears as though separately discussing the foreign effective income tax rates may be important information necessary to understanding your results of
operations. In addition, with view to enhanced disclosures in future filings, please explain further the reasons for the reorganization of your international subsidiaries and how such changes have or will impact your effective tax rate. We refer you
to Item&nbsp;303(a)(3)(i) of Regulation S-K and Section III.B of SEC Release 34-48960. </B></FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT STYLE="font-family:Times New Roman" SIZE="2">We note the Staff&#146;s comments
above. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT STYLE="font-family:Times New Roman" SIZE="2">Supplementally, we advise the Staff that we did not discuss the impact of foreign jurisdictions on our effective tax
rates because we believed that, although the impact of foreign rates is significant, it has been consistent year over year in proportion to total income as disclosed under our &#147;Income Taxes&#148; note in our Notes to Consolidated Financial
Statements included in our Form 10-K for the fiscal year ended June&nbsp;30, 2011 (&#147;Note 13&#148;). We submit and note that the most significant impact on the difference in our consolidated effective tax rate from the expected Canadian tax rate
was due to the impact of our internal reorganization of subsidiaries and the integration of acquisitions and not, per se, the impact of earning higher income in non-Canadian jurisdictions. In the context of this reorganization where there was a
change in the tax status of certain subsidiaries there was a significant reduction of deferred tax liabilities related to acquired intangibles and a corresponding credit impact to the tax provision expense and that was the primary cause for the
lower foreign tax expense. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT STYLE="font-family:Times New Roman" SIZE="2">We also note the Staff&#146;s comments regarding a more fulsome discussion explaining the
relationship between the Company&#146;s foreign and domestic effective tax rates. Under Note 13, we have reported the amount of foreign and domestic income, foreign and domestic income taxes, the impact of foreign tax rate differences and listed the
most significant income </FONT></P>

<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">


 <P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">United States Securities and Exchange Commission </FONT></P>
<P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">December 5, 2011 </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"> Page
 2
 </FONT></P> <p STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
 <P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">
tax jurisdictions. We believe that the &#147;rate reconciliation&#148; and other disclosures provided under Note 13 provided information necessary to understand the impact that foreign income tax
rates had on our results of operation for the periods presented. However, we note and accept the Staff&#146;s comments on this matter and undertake that in future filings we will enhance our future MD&amp;A disclosures by including the foreign
jurisdictions which feature the largest discrepancy between the foreign and domestic tax rates. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT STYLE="font-family:Times New Roman" SIZE="2">With respect to the
Staff&#146;s request for &#147;further reasons&#148; for the reorganization of our international subsidiaries we submit that Note 13 does clarify the primary reasons for the reorganization of our international subsidiaries as being undertaken to
(i)&nbsp;consolidate our intellectual property within certain jurisdictions; and (ii)&nbsp;to effect an operational reduction of our global subsidiaries with a view to, eventually, having a single operating legal entity in each jurisdiction. We,
however, note and accept the Staff&#146;s comments on this matter and supplementally advise the Staff that in future filings we will clarify within our MD&amp;A the following &#147;further&#148; reasons (in addition to the two already listed above)
for the reorganization as being undertaken to: (i)&nbsp;better safeguard our intellectual property in jurisdictions with well established legal regimes and protections; and (ii)&nbsp;simplify the management of our intellectual property ownership.
</FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT STYLE="font-family:Times New Roman" SIZE="2">In addition we will also, in future filings, cross reference the tax-related discussion and analysis in the MD&amp;A to the
&#147;Income Taxes&#148; note in our financial statements. </FONT></P> <P STYLE="margin-top:18px;margin-bottom:0px; margin-left:8%"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B><U>Liquidity and Capital Resources, page 35 </U></B></FONT></P>
<P STYLE="margin-top:6px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>2. We note a substantial amount of your revenue is generated from foreign subsidiaries. We also note that your cash and cash equivalents appear to be
held in major banks in the countries in which you operate. Tell us your consideration to disclose the amount of cash and cash equivalents that are currently held by your foreign subsidiaries and the amounts, if any, that are subject to restriction
from and/or additional taxes upon repatriation. We refer you to Item&nbsp;303(a)(1) of Regulation S-K and Section IV of SEC Release 34-48960. </B></FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT
STYLE="font-family:Times New Roman" SIZE="2">We note the Staff&#146;s comments and supplementally advise the Staff that the cash and cash equivalents held by our foreign subsidiaries are not subject to any restrictions that would prevent their
repatriation to Canada. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT STYLE="font-family:Times New Roman" SIZE="2">We also supplementally advise the Staff that our organizational structure largely permits investments
in foreign subsidiaries and the related undistributed earnings to be repatriated to Canada without attracting additional taxation. We do have subsidiaries where additional taxation may arise on repatriation of earnings to Canada, the most
significant being the United States; however, this income is intended to be reinvested indefinitely by these subsidiaries for purposes such as financing local acquisitions, and is not intended to be repatriated. In addition, we believe that we have
sufficient sources of liquidity to meet&nbsp;our liquidity needs, regardless of any taxes upon repatriation, such that those taxes are not expected to have a material effect on our overall liquidity or capital resources or our ability to meet our
cash requirements over either the short or the long term. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT STYLE="font-family:Times New Roman" SIZE="2">As such, we have not disclosed the amount of cash and cash
equivalents held by foreign subsidiaries, as we do not expect any material impact on our liquidity, financial condition or results of operation on account of such cash being restricted or incurring additional taxes upon repatriation. </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT STYLE="font-family:Times New Roman" SIZE="2">To enhance our disclosures we will in future filings state that 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 the Company&#146;s overall liquidity, financial condition or results of operations. </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>3. We note you state that your cash and cash equivalents, as well as available credit facilities and committed loan facilities, will be sufficient to
fund your anticipated cash requirements for working capital, contractual commitments, and capital expenditures for the &#147;foreseeable future.&#148; Please confirm, if true, and revise in the future to indicate whether the Company&#146;s cash
resources will be sufficient to meet your operating needs for the next 12 months. We refer you to FRC 501.03(a). </B></FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT STYLE="font-family:Times New Roman" SIZE="2">We
confirm 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, and capital expenditures for
the next 12 months, and intended the term &#147;foreseeable future&#148; to encompass the next 12 months. To clarify this point, we note and accept the Staff&#146;s comments above and will revise future filings to indicate specifically that we
believe our cash resources will be sufficient to meet our operating needs for the next 12 months. </FONT></P>
 <p STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2">2 </FONT></P>


<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">


 <P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">United States Securities and Exchange Commission </FONT></P>
<P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">December 5, 2011 </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"> Page
 3
 </FONT></P> <p STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
 <P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B><U>Notes to the Consolidated Financial Statements </U></B></FONT></P>
<P STYLE="margin-top:6px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B><U>Note 2 &#150; Significant Accounting Policies </U></B></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px"><FONT
STYLE="font-family:Times New Roman" SIZE="2"><B><U>Litigation, page 107 </U></B></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>4. You disclose that you review the status of each
significant claim or legal proceeding and if the potential loss from such matters is considered probable and the amount can be reasonably estimated, you accrue for the estimated loss. Please tell us your consideration of expanding this disclosure in
future filings to discuss your assessment of reasonably possible losses. Also, specific to the legal matters referenced on page 140, please tell us if there is at least a reasonable possibility that a loss exceeding amounts already recognized may
have been incurred and either disclose an estimate (or, if true, state that the estimate is immaterial in lieu of providing quantified amounts) of the additional loss or range of loss, or state that such an estimate cannot be made. Please refer to
ASC 450-20-50. </B></FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>If you conclude that you cannot estimate the reasonably possible additional loss or range of loss, please
supplementally: (1)&nbsp;explain to us the procedures you undertake on a quarterly basis to attempt to develop a range of reasonably possible loss for disclosure and (2)&nbsp;for each material matter, what specific factors are causing the inability
to estimate and when you expect those factors to be alleviated. We recognize that there are a number of uncertainties and potential outcomes associated with loss contingencies. Nonetheless, an effort should be made to develop estimates for purposes
of disclosure, including determining which of the potential outcomes are reasonably possible and what the reasonably possible range of losses would be for those reasonably possible outcomes. </B></FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">Supplementally we advise the Staff that we evaluate quarterly our legal matters to determine how such matters should be treated for
accounting and disclosure purposes in accordance with the requirements of ASC 450-20-50. 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 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. As of the date of the filing of our Form 10-K, for the fiscal year ended June&nbsp;30, 2011, the aggregated losses were not material to our consolidated financial position or result of operations and
we do not believe it is reasonably possible that a loss exceeding the amounts already recognized may have been incurred that would be material. However, we note and accept the Staff&#146;s comments and confirm that we will undertake to disclose in
the litigation disclosure in future SEC filings, if true, that the recorded amounts of possible reasonable losses are not material to our consolidated financial position or results of operations. </FONT></P>
<P STYLE="margin-top:18px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B><U>Note 13 &#150; Income Taxes, page 121 </U></B></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px"><FONT
STYLE="font-family:Times New Roman" SIZE="2"><B>5. Please tell us the amount, if any, of the unrecognized deferred tax liability for temporary differences related to investments in foreign subsidiaries that are essentially permanent in duration and
the related undistributed earnings, as well as your consideration for disclosing such amounts pursuant to ASC 740-30-50. </B></FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">Supplementally we advise the Staff that, except as stated in the following paragraph, our organizational structure generally, permits
investments in foreign subsidiaries, and the related undistributed earnings, to be repatriated to Canada without attracting additional taxation. Therefore the amount of the deferred tax liability for temporary differences related to these
investments in foreign subsidiaries that are essentially permanent in duration is nil. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">However, we do have subsidiaries where
additional taxation may arise on repatriation of earnings to Canada, the most significant being the United States; however this income is intended to be reinvested indefinitely by these subsidiaries for purposes such as financing local acquisitions.
Significant acquisition activity and related entity mergers and reorganizations over the last twenty years have made the calculation of the timing difference impracticable. We, however, note and accept the Staff&#146;s comments and will undertake to
disclose in future annual filings, under our &#147;Income Taxes&#148; note, our position as follows: </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">&#147;We have not
provided for foreign withholding taxes or deferred income tax liabilities for temporary differences related to the undistributed earnings of our non-Canadian subsidiaries since we do not currently expect to repatriate such earnings. 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.&#148; </FONT></P>
 <p STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2">3 </FONT></P>


<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">


 <P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">United States Securities and Exchange Commission </FONT></P>
<P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">December 5, 2011 </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"> Page
 4
 </FONT></P> <p STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
 <P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B><U>Forms 8-K Filed October&nbsp;26, 2011 and August&nbsp;10, 2011 </U></B></FONT></P>
<P STYLE="margin-top:6px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>6. Your disclosure of the &#147;Non GAAP-based Adjusted Operating Margin and Adjusted Net income&#148; appears to be a form of a non-GAAP income
statement. We believe this disclosure conveys undue prominence to a statement based on non-GAAP information. Please tell us how you considered Question 102.10 of our Compliance and Disclosure Interpretations available at
<U>http://sec.gov/divisions/corpfin/guidance/nongaapinterp.htm</U>. In this regard, tell us your consideration to remove this disclosure and instead continue to present only the individual reconciliations for non-GAAP based adjusted operating margin
and non-GAAP based adjusted net income pursuant to Item&nbsp;10(e)(1)(i) of Regulation S-K that you currently provide. </B></FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">We
acknowledge that we have presented non-GAAP financial measures in our quarterly earnings release furnished to the Commission in our Form 8-K in a form of non-GAAP income statement. We did not intend to convey undue prominence, but rather to present
information to analysts, investors and other stakeholders in a way that is provided to our executive management. Notwithstanding the guidance provided under Question 102.10 of the Commissions Compliance and Disclosure Interpretations, we believe our
presentation is necessary to explain how our non-GAAP measures are calculated and to give investors, analysts and other stakeholders a more clear explanation and comparison for changes and fluctuations in our non-GAAP measures. For instance, our
non-GAAP based adjusted operating margin for the three months ended June&nbsp;30, 2011 was 25.8% compared to 32.1% for the three months ended June&nbsp;30, 2010. As illustrated in the presentation of our &#147;Non-GAAP based Adjusted Operating
Margin and Adjusted Net income&#148; tables, the main contributor for the decrease in our non-GAAP based adjusted operating margin was due to an increase in sales and marketing activity during the three months ended June&nbsp;30, 2011, as compared
to the three months ended June&nbsp;30, 2010. Additionally, the tax rate impacting our non-GAAP adjusted net income changed from 27% in Fiscal 2010 compared to 14% in Fiscal 2011, which is illustrated in our non-GAAP income statement, but would not
be apparent if we only presented the individual reconciliations for non-GAAP based measures pursuant to Item&nbsp;10(e)(1)(i) of Regulation S-K. We believe our presentation, although in the form of a non-GAAP income statement, is useful to analysts,
investors and other stakeholders and consistent with how our executive management views our results of operation. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT STYLE="font-family:Times New Roman" SIZE="2">We
acknowledge that: </FONT></P> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="9%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="3%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2">&#149;</FONT></TD>
<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2">We are responsible for the adequacy and accuracy of the disclosures in our filing; </FONT></P></TD></TR></TABLE>
<P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="9%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="3%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2">&#149;</FONT></TD>
<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2">Staff comments or changes to disclosure in response to Staff comments do not foreclose the Commission from taking any action with respect to the
filing; and </FONT></P></TD></TR></TABLE> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="9%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="3%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2">&#149;</FONT></TD>
<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2">We may not assert Staff comments as a defense in any proceeding initiated by the Commission or any person under the federal securities laws of the
United States. </FONT></P></TD></TR></TABLE> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">In addition, we acknowledge that the Division of Enforcement of the Commission has access to
all information provided to the Staff in connection with the filing. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">If you have any questions with regard to the foregoing
or would like to further discuss any of the matters covered in this letter, please contact me at (905)&nbsp;762-6121. </FONT></P> <P STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="40%" BORDER="0" STYLE="BORDER-COLLAPSE:COLLAPSE">


<TR>
<TD WIDTH="100%"></TD></TR>


<TR>
<TD VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2">Sincerely,</FONT></TD></TR>
<TR>
<TD HEIGHT="16"></TD></TR>
<TR>
<TD VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2">/s/ Paul McFeeters</FONT></TD></TR>
<TR>
<TD HEIGHT="16"></TD></TR>
<TR>
<TD VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2">Paul McFeeters.</FONT></TD></TR>
</TABLE> <P STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="100%" BORDER="0" STYLE="BORDER-COLLAPSE:COLLAPSE" ALIGN="center">


<TR>
<TD WIDTH="2%"></TD>
<TD VALIGN="bottom" WIDTH="1%"></TD>
<TD WIDTH="97%"></TD></TR>


<TR>
<TD VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2">cc:</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top"> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">Gordon A. Davies, Chief Legal Officer and Corporate Secretary,</FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT
STYLE="font-family:Times New Roman" SIZE="2">Open Text Corporation</FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">Sujeet Kini, Vice President, Controller, (Principal Accounting Officer),
Open Text Corporation</FONT></P> <P STYLE="margin-top:0px;margin-bottom:1px"><FONT STYLE="font-family:Times New Roman" SIZE="2">KPMG, Canada, LLP</FONT></P></TD></TR>
</TABLE>
 <p STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2">4 </FONT></P>

</BODY></HTML>
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
