Micro Focus (LON:MCRO) has updated investors on its full-year performance this morning.
Highlights from the company statement:
Revenues in the year were $1,380.7m, slightly above the mid-point of management's guidance range, 0.9% lower than the prior year's pro-forma constant currency ("pro-forma CCY") revenues, $1,392.7m. Underlying Adjusted EBITDA* of $640.9m was 4.2% higher than the $615.3m delivered in the prior year on a pro-forma constant currency basis ("pro-forma CCY"). Adjusted diluted earnings per share increased by 19.7% to 175.65 cents (2016: 146.70 cents) and the full year dividend increased by 32.1% to 88.06 cents (2016: 66.68 cents).
In March 2016 the Company announced it had entered into a definitive agreement to acquire the entire share capital of Spartacus Acquisition Holdings Corp. the holding company of Serena Software Inc. and its subsidiaries (together, "Serena" or "the Serena Group"). The acquisition completed on 2 May 2016 and consequently trading results of Serena are included in the results for the year ended 30 April 2017 set out below.
In September 2016 the Company announced it had agreed with Hewlett Packard Enterprises ("HPE") to merge with the software business assets of HPE ("HPE Software") by way of merger with a wholly owned subsidiary of HPE. The transaction is expected to complete at the beginning of September this year with the listing of consideration shares on the London Stock Exchange ("LSE") and the simultaneous listing of the American Depositary Shares ("ADS") on the New York Stock Exchange ("NYSE"). Exceptional pre-acquisition costs have been incurred in the year and will be incurred up to Completion in FY18.
· On a reported basis:
o Total revenues of $1,380.7m (2016: $1,245.0m), an increase of 10.9%.
o Adjusted EBITDA of $651.1m (2016: $546.8m), an increase of 19.1%.
o Underlying Adjusted EBITDA increased by 20.4% to $640.9m (2016: $532.5m)
· On a pro-forma CCY* basis to provide a better comparison of like-for-like performance:
o Total revenues of $1,380.7m (2016: pro-forma CCY $1,392.7m), a decrease of 0.9%, driven by :
• Strong SUSE Product Portfolio performance where revenues grew by 21.2% on a pro-forma CCY* basis;
• On plan performance in Micro Focus Product Portfolio with expected reduction in maintenance and Serena revenues.
o Adjusted EBITDA of $651.1m (2016: pro-forma CCY $629.9m), an increase of 3.4%.
o Underlying Adjusted EBITDA of $640.9m (2016: pro-forma CCY $615.3m), an increase of 4.2%.
· Underlying Adjusted EBITDA margins improved further to 46.4% (2016: pro-forma CCY 44.2%) through continued focus on operational efficiencies.