Micro Focus reiterates full-year guidance on constant currency basis

on Apr 7, 2015
Updated: Oct 21, 2019
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Shares in Micro Focus International Plc (LON:MCRO) have been little changed in morning trade in London today as the software product group reiterated its full-year guidance and updated investors on the integration of the Attachmate Group (TAG), which the company acquired last year. As of 08:35 BST, Micro Focus’ share price stood flat at 1,183.00p, underperforming the FTSE 250 index which is currently 1.06 percent up at 17,451.81 points. The shares have soared more than 30 percent over the past year.

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Micro Focus reaffirmed its earlier full-year guidance this morning, saying that it expected to deliver revenues of about $1.33 billion and combined pro-forma full-year underlying adjusted earnings before interest, taxes, appreciation and amortisation (EBITDA) of approximately $500 million, based on exchange rates at the time of the company’s December guidance. The software product group, however, noted that taking into account currency movements and the strength of the US dollar, revenues would come in at $1.24 billion, while underlying adjusted EBITDA would drop to $470 million.
The FTSE 250 company also updated investors on the integration of the TAG business, whose acquisition was completed in November last year. Micro Focus said that a design of a combined organisation would be implemented with effect from next month, with a restructuring plan to take place over the next two years. The company said that as part of the restructuring, it would reduce the number of office locations from 126 to approximately 90 by April next year. Micro Focus noted that the restructuring would also result in a net reduction of employee headcount of about 7.5 percent as compared with November 20. The software group expects the restructuring to lead to an exceptional charge in each of its FY15 and FY16 annual accounts.
As of 09:00 BST, Tuesday, 07 April, Micro Focus International plc share price is 1,175.50p.

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