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Micro Focus shares hit after results miss forecasts

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Micro Focus shares hit after results miss forecasts

British technology group Micro Focus has seen its shares fall after the announcement of half-yearly results earlier this week, when it said that its revenue would drop by between 2% and 4% in the 12 months to October 2018.

Shares fell by more than 10% on Monday after its results came in below the expectations of analysts.

Micro Focus, which bought the software assets of HPE and concluded the merger in September last year, reported US$1.234 billion in revenue, which was an increase of 80% year-on-year.

Of this, US$569.8 million came from the HPE Software division.

{loadposition sam08}The revenue from Micro Focus itself and its SUSE product line — it acquired SUSE Linux in 2014 — fell by 2.9% to US$664.7 million.

Micro Focus alone saw a fall of 7% to US$500.3 million, from US$537.7 million in the corresponding period a year ago.

The SUSE Linux division grew 13.3% to US$164 million. Back in 2012, the company's first year as a private standalone business under its former owner Attachmate, SUSE made about US$225 million in revenue.

Micro Focus executive chairman Kevin Loosemore said: “The period under review has seen the completion of the combination of Micro Focus with HPE Software to create one of the world’s largest pure play software companies.

"This was a complex transaction with 12 months between announcement and completion. We are now fully engaged in the integration of the combined company."


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