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The share price of Micro Focus is taking a battering on the London Stock Exchange, plunging 30 per cent this morning after the home of ageing software brands lowered revenue guidance.
The firm - a retirement home for ageing software businesses - revised its outlook for the year ended 31 October from a previously estimated top line constant currency year-on-year decline of 4 to 6 per cent to a steeper drop of 6 to 8 per cent.
Sales - Execution - Macro - Environment - Conservatism
“Weak sales execution has been compounded by a deteriorating macro environment resulting inmate conservatism and longer decision making cycles within our customer base,” Micro Focus told the City.
The number of sales leads in the bag was described as “significant” but to meet its previous revenue forecast “a highly challenging percentage of this pipeline would need to close prior to year end”. That is highly unlikely to happen, hence the reduction of expectations.
Micro - Focus
Micro Focus added:
Against this backdrop the board has decided to accelerate a strategic review of the group’s operations. This review will focus on what in addition to execution improvements are required to optimise the...
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