Micro Focus Expects 1st Half Revenue, Earnings To Rise Sharply
By Lilly Vitorovich, Of DOW JONES NEWSWIRES
LONDON -(Dow Jones)- U.K. business software company Micro Focus International
PLC (MCRO.LN) said Wednesday that it expects first-half revenue and earnings to
be up sharply from a year ago, and that its two recent acquisitions have
performed ahead of expectations.
In a trading update, Micro Focus said revenue is expected to be up 44% to $195
million for the six months ended Oct. 31 from $135.6 million a year ago.
Its margin on earnings before interest, tax, depreciation and amortization,
excluding exceptional items and stock-based compensation, is expected to be
ahead of previous expectations at 38%, on Ebitda of approximately $75 million,
up 30% from $57.9 million a year ago.
Micro Focus will report interim results Dec. 9.
Micro Focus provides software and consultancy services to help clients update
legacy IT platforms, a less-costly solution than buying new systems,
particularly for firms looking to save costs due to the economic downturn.
Earlier this year, Micro Focus bought U.S.-based Borland Corp. and Compuware
Corp.'s (CPWR) testing and automated software quality business, giving the
company a footprint in software testing which ensures that software works
properly when it is in development.
Borland and Compuware performed ahead of expectations, both in terms of
revenue and Ebitda, according to Micro Focus.
Non-Executive Chairman Kevin Loosemore said the group is "encouraged by the
continued margin progression and, in particular, relating to the recent
acquisitions. We enter the second half confident in the group's ability to
delivery superior shareholder returns."
Micro Focus shares closed at 342 pence Tuesday, valuing the company at GBP699
million. The stock has risen 21% since January on hopes of improving trading
conditions.
-By Lilly Vitorovich, Dow Jones Newswires; 44-0-207 842 9290;
lilly.vitorovich@dowjones.com
(END) Dow Jones Newswires
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