Micro Focus warns revenue slide as shares tumble

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Micro Focus has warned its full financial year revenue will drop between two to four per cent as it reveals a less than impressive first half results since completing the merger of HPE Software in September last year.

Micro Focus, which is headquartered in the United Kingdom and publicly listed on the London Stock Exchange, inked the US$8.8 billion spin off and merger deal in September 2016.

The software giant displayed 80 per cent growth in revenue to $1.2 billion in the six months to October 31 with HPE Software contributing $569 million to that. Micro Focus executive chairman, Kevin Loosemore, pointed out this was at the bottom end of its guidance range.  

The remaining $664.7 million derived from existing Micro Focus and SUSE product portfolios, which suffered a 2.9 per cent decrease on the previous year ($684.7 million). 

In further breaking this down, the Micro Focus product portfolio declined seven per cent to $500.3 million, and the SUSE product portfolio grew 13.1 per cent to $164.4 million.

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