20th Feb 2014 10:29
LONDON (Alliance News) - Micro Focus International PLC maintained its full-year expectations Thursday as it saw trading in line with expectations in the three months to January 31, but warned on a hit from currency movements.
The company continues to expect revenues, on a constant currency basis, will show growth between 3% and 6%. Underlying adjusted earnings before interest, tax, depreciation and amortisation will be in line with expectations, Micro Focus said.
The company saw revenues in line with expectations from its acquisitions Iona, Soforte, OpenFusion and AccuRev Inc, as well as most revenue growth in organic revenues.
Micro Focus said its underlying adjusted ebitda was ahead of the previous year during the three months, but it would by hit by USD3.3 million in negative currency movements.
Amortisation of development costs are USD1.5 million for the year to date, Micro focus said, which combined with the forex movements would have a USD4.8 million negative impact on adjusted ebitda for the year to date, and a USD6.7 million impact year-on-year.
The software company said that investigations into the misstatement of revenue caused by invalid orders within its sales channel network in India have been completed, and no further adjustment to revenues is required. The company has reached settlements with the partners who were effected, and said that cash received had now been returned.
Shares in Micro Focus were trading down 0.06% at 796.50 pence Thursday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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