Micro Focus reports better than expected earnings, extends share buyback
London-listed software firm Micro Focus International has reported a better-than-expected 5.3 per cent decline in revenue for the year.
The company also said it was extending its share buyback programme as it reassured investors that the disruption from its troubled takeover of Hewlett Packard Enterprise’s software business, was now over.
In 2017 Micro Focus bought more than $8 billion of assets from Hewlett-Packard, but it has proved a difficult and costly challenge integrating the two businesses.
The company said adjusted earnings rose by 9.2 per cent to $1.53 billion. Margins also improved by 4.6 per cent points to 37.7 per cent.
Micro Focus had earlier forecast that its full-year revenue would fall by between six and nine per cent.
Micro Focus also extended its existing share buy-back programme by $110m to $510m.
“We are encouraged by progress over recent months and believe we are getting back on track to focus on our outstanding customer and partner relationships,” the company wrote in its trading statement.
Shares in the FTSE100 software firm rose more than five per cent to £15.96 in early trading.