Micro Focus warns of revenue growth shortfall
Posted by Mike on Wednesday, August 11, 2010
Micro Focus International warns its first-quarter performance is below management expectations following transaction delays.
As a result of weaker license revenue, the group now expects to deliver low single-digit like for like revenue growth for 2011 instead of mid single-digit growth.
However it expects no change to current EBITDA guidance for the full year as a result of cost management initiatives.
Revenue for the three months to July grew by 40% year on year but excluding the impact of the Borland and Compuware acquisitions was flat.
The group said its performance was below management expectations and caused by the delayed timing of a number of significant transactions beyond the end of the first quarter.
It also pointed to continued weakness in higher-volume, low-value deals across all three lines of business (COBOL Development, Modernization & Migration and AMQ).
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