12th May 2010 07:00
12 May 2010
Micro Focus International plc
Pre-close period update for the twelve months to 30 April 2010
Micro Focus International plc ("Micro Focus" or "the Group", LSE: MCRO.L) announces that following a solid close to the second half of the financial year to 30 April 2010, the Group expects to report total revenues of approximately US$432.0m (2009: US$274.7m) for the period. Group EBITDA margin, excluding exceptional items and stock based compensation, for the same period, is expected to be approximately 40% for the full year.
At constant currency and excluding the Borland Software Corporation and the Compuware Testing/ASQ business acquired in FY2010, organic year-on-year revenue growth for the full year is approximately 8%. On a like for like basis, including FY2010 revenue contributions from NetManage, Liant and Relativity from the date of acquisition to year end in both financial years, the underlying combined licence, maintenance and consulting revenue growth is approximately 5%.
The move into the testing/ASQ market is progressing well and the Borland and Compuware acquisitions have been integrated. The twelve month run rate revenue contribution for these businesses is in line with previous guidance, at approximately $160m.
Cash generation remains strong. Net debt at the end of the year was approximately US$68m and the Group is now highly likely to return to a cash positive position within twelve months.
Commenting on the FY2010 performance Kevin Loosemore, Chairman of Micro Focus, said:
"In a challenging environment, Micro Focus has delivered solid organic growth in FY2010. Whilst ISV revenues felt some impact from the economy, we experienced strong growth in our migrations business. At the same time, we added a complementary new market in Testing through the acquisitions of Borland and Compuware, significantly expanding the company's addressable market. These businesses have been successfully integrated enabling a strong margin performance across the Group. The Board is confident that the company has a platform to continue to deliver superior shareholder returns"
Nigel Clifford, Chief Executive Officer of Micro Focus, added:
"Our customers and partners increasingly recognise the business benefits available through effective application modernisation and testing. We enter the new financial year with a strong customer proposition and a focus on flawless execution."
Further details will be provided in the preliminary results statement for the year to 30 April 2010 to be announced on 24 June 2010.
Enquiries:
Micro Focus |
Tel: +44 (0)1635 32646 |
Nick Bray, Chief Financial Officer Tim Brill, IR Director |
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Financial Dynamics |
Tel: +44 (0)20 7831 3113
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Charles Palmer Haya Herbert-Burns Nicola Biles |
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Notes to editors:
About Micro Focus
Micro Focus, a member of the FTSE 250, provides innovative software that allows companies to dramatically improve the business value of their enterprise applications. Micro Focus Enterprise Application Modernization and Management software enables customers' business applications to respond rapidly to market changes and embrace modern architectures with reduced cost and risk. For additional information please visit www.microfocus.com
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