Brit software giant Micro Focus takes a bath after share price crashes 30%, sales tank

The price of Micro Focus shares is hitting the London Stock Exchange, falling 30 percent this morning after the aging software brand house reduced revenue orientation.

The company – a retirement home for aging software companies – revised its forecast for the year ending October 31 from an estimated annual decline in the constant top line of the top line from 4 to 6 percent at a steepest fall from 6 to 8 percent.

"The execution of weak sales has been aggravated by a deteriorated macro environment that results in conservatism and longer decision-making cycles within our customer base," Micro Focus told the City.

The number of potential customers in the stock market was described as "significant" but to meet its previous revenue forecast "A highly challenging percentage of this pipeline would need to be closed before the end of the year." That is very unlikely to happen, hence the reduction of expectations.

Micro Focus added:

In the middle of the current fiscal year, Micro Focus reported a 5.3% drop in group revenues to $ 1,657 billion. He blamed the defection in the sales force as the cause of pain, he felt acutely in licensing. Software maintenance worked better.

In the past five years, Micro Focus has compiled a lot of dusty software equipment that includes Attachmate in 2014 for $ 1.2 billion (whose brands include NetIQ, Novell and SUSE), Serena Software in 2016 for $ 540 million, and more recently the HPE software in 2016 for $ 9 billion. The last purchase has led to all kinds of digestive problems, and CEO Chris Hsu, who had moved with the HP agreement, resigned after only a few months in charge.

Angela Eager, an analyst at TechMarketView, said Micro Focus had withstood storms in the past, indicating "durability of its model," and saw "the value of heritage products for organizations that make digital trips."

He added: "However, Micro Focus is in the middle of a significant storm." 19659002] The share price fell 28.26 percent at the time of writing. ®

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