UK software firm Micro Focus suffers share price collapse

March 19, 2018
London's benchmark FTSE 100 index was down 1.25 percent

The share price of British software maker Micro Focus collapsed Monday by more than half on the back of a poorly-received trading update and the departure of its chief executive.

Micro Focus warned in a statement that year-on-year revenues had fallen by more than anticipated since January, sending its shares slumping 55.88 percent to 831.40 pence.

That made it easily the biggest faller on London's benchmark FTSE 100 index, which was down 1.25 percent overall.

The company added it was grappling with the impact of its recent $8.8 billion (7.2 billion euro) purchase of software assets of Hewlett Packard Enterprise (HPE). The deal was completed last September.

Micro Focus added that boss Chris Hsu, a former HPE executive, had decided to step down immediately "in order to spend more time with his family and pursue another opportunity".

Chief operating officer Stephen Murdoch becomes CEO with immediate effect.

"Since the interim results on 8 January 2018, the rate of year-on-year revenue decline has been greater than anticipated," Micro Focus said in the statement.

"The recent performance is primarily due to lower than expected licence income and is a result of a number of factors, which management believe to be largely one-off transitional effects of the combination with HPE software."

The group forecast revenues over the 12 months to October would fall by between six percent and nine percent.

That was down from prior guidance for a decline of between two percent and four percent.

Explore further: Engine maker Rolls-Royce powers back into profit

Related Stories

BT shares tumble on sliding sales

February 2, 2018

Shares in British telecoms and television broadcasting company BT slumped Friday to a five-year low on news of shrinking quarterly revenue.

UK tech sector in shakeup under Hewlett Packard deal

September 8, 2016

British group Micro Focus will merge with some of Hewlett Packard Enterprise's software assets, the pair said, in a further consolidation of the global tech sector after SoftBank's blockbuster purchase of ARM Holdings.

Recommended for you

First proof of quantum computer advantage

October 18, 2018

For many years, quantum computers were not much more than an idea. Today, companies, governments and intelligence agencies are investing in the development of quantum technology. Robert König, professor for the theory of ...

Permanent, wireless self-charging system using NIR band

October 8, 2018

As wearable devices are emerging, there are numerous studies on wireless charging systems. Here, a KAIST research team has developed a permanent, wireless self-charging platform for low-power wearable electronics by converting ...

Facebook launches AI video-calling device 'Portal'

October 8, 2018

Facebook on Monday launched a range of AI-powered video-calling devices, a strategic revolution for the social network giant which is aiming for a slice of the smart speaker market that is currently dominated by Amazon and ...

0 comments

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.