3rd Nov 2006 07:01
Micro Focus International plc03 November 2006 3 November 2006: embargoed for 7.00am Micro Focus International plc Period-end trading update and agreement to acquire HAL Knowledge Solutions SPA Period-end update Micro Focus International plc ("Micro Focus" or "the Company" LSE: MCRO.L)announces an update on trading for the half year to 31 October 2006, ahead ofmanagement's expectations. Following a successful end to the first half year, the Company expects to reporttotal revenues in the range of US$76.0m - US$78.0m (six months to 31 October2005: US$72.9m). With expenses reduced, as previously announced, profits areexpected to improve significantly as against the prior year period. EBITDAexcluding exceptional items and stock based compensation for the six months to31 October 2006 is expected to be in the range of US$29.5m - US$31.5m (sixmonths to 31 October 2005: US$20.5m). Further detail will be provided in the interim results statement for the halfyear to 31 October 2006 on 8 December 2006. Acquisition of HAL Knowledge Solutions SPA In addition, Micro Focus announces that it has agreed to acquire HAL KnowledgeSolutions SPA (HAL KS), a leading provider of Application Portfolio ManagementSoftware in order to enhance the Company's enterprise application modernisationcapabilities. HAL KS has been acquired by Micro Focus for a total considerationof US$3.5m in cash, subject to a net asset adjustment. In the year to December 2005, HAL KS reported a net loss before tax of US$4.5m*and its gross assets as at 31 December 2005 were US$9.5m*. Following theacquisition, Micro Focus plans to restructure the business to reduce costs, withan expected restructuring charge of approximately US$4.0m, falling in thecurrent financial year. HAL KS is expected to have net balance sheet liabilitiesof approximately US$4.5m*. Excluding restructuring charge, the business is expected to break even in thesix month period to April 2007 and be profitable thereafter. Stephen Kelly, Chief Executive Officer, commented: "We are encouraged by the progress we have made at Micro Focus over the past sixmonths. Satisfactory revenue growth combined with a firm control of expenseshave resulted in a significant increase in profits as against the prior yearperiod. "The acquisition of HAL Knowledge Systems SPA will increase the breadth anddepth of our current assessment solution capabilities and its proven technologywill fit well with our core business." Enquiries: Micro Focus Tel: +44 (0)1635 32646Kevin Loosemore, ChairmanStephen Kelly, Chief ExecutiveNick Bray, Chief Financial Officer Financial Dynamics Tel: +44 (0)20 7831 3113Giles SandersonHarriet KeenHaya Chelhot Notes to editors: *US Dollar amounts have been converted from euros at a •:US$ rate of 1.27 andthe figures to 31 December 2005 were from the statutory accounts produced underItalian GAAP. About HAL Knowledge Solutions SPA HAL KS was founded in 1984 and is headquartered in Milan, Italy, with operationsin a number of European countries. Its Application Portfolio Managementsolutions enable companies to design and plan large scale technology changeprogrammes and regular core systems maintenance by allowing them to identify andexpose business processes buried deep inside core systems, often written andadded to over several years. HAL KS provides its solutions both directly to end users and through globalservice partners, including existing Micro Focus partners such as IBM and EDS.Major blue chip customers include Alitalia, Banca Intesa, Barclays, HSBC,Renault Nissan, Telefonica and UBS. About Micro Focus Micro Focus provides innovative software that helps companies to dramaticallyimprove the business value of their enterprise applications. Micro FocusEnterprise Application Modernisation software enables customers' businessapplications to respond rapidly to market changes and embrace modernarchitectures with reduced cost and risk. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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