4th May 2007 07:01
Micro Focus International plc04 May 2007 Embargoed for 7.00am, Friday 4 May 2007 Financial year-end update and acquisition of Acucorp Inc. Micro Focus International plc ("Micro Focus" or "the Group", LSE: MCRO.L)announces a positive update on trading for the full year to 30 April 2007. Following a successful end to the financial year, in which a higher thanexpected number of larger value transactions were closed, Micro Focus expects toreport total revenues, including revenues from the HAL Knowledge Solutionsacquisition announced on 3 November 2006, of approximately US$170m (2006:US$143.7m). Group EBITDA, excluding exceptional items and stock basedcompensation, for the twelve months to 30 April 2007 is expected to beapproximately US$65m (2006: US$38.8m). Further details will be provided in the preliminary results statement for thefull year to 30 April 2007 to be announced on 28 June 2007. Acquisition of Acucorp Inc. In addition, Micro Focus announces that it has agreed to acquire Acucorp Inc. ("Acucorp") for a total cash consideration of US$40.7m, paid in full oncompletion, plus a working capital adjustment capped at a maximum value ofUS$250,000. Acucorp's technology is highly complementary to Micro Focus' core business andthe acquisition provides the opportunity for Micro Focus to expand its reachinto the small and medium-sized enterprise ("SME") market. In the year to December 2006, Acucorp generated an operating profit of US$3.0mand its gross assets as at 31 December 2006 were US$13.1m. Following theacquisition, Micro Focus plans to restructure the business and aims to increasemargins over time to a level consistent with Micro Focus' existing business.The consequent restructuring charge is expected to be approximately US$8.0m inthe financial year to 30 April 2008. Stephen Kelly, Chief Executive Officer of Micro Focus International plc,commented: "We are encouraged by the progress that we have made across the Group in ourfirst full year of trading under the new management team. Solid revenue growth,combined with a firm control of expenses, has resulted in a significant increasein profits compared with the prior year period. This performance has exceededour expectations thanks to better than anticipated closure rates of larger valuetransactions in the final quarter. We remain firmly focused on sales executiongoing forward. The acquisition of Acucorp is consistent with Micro Focus' strategy of expandingour core areas of expertise. We anticipate that the acquisition of Acucorp willcontribute revenues of approximately $17m in FY2008." Enquiries: Micro Focus Tel: +44 (0)1635 32646Stephen Kelly, Chief ExecutiveNick Bray, Chief Financial Officer Financial Dynamics Tel: +44 (0)20 7831 3113Harriet KeenHaya Chelhot Notes to editors: About Micro Focus Micro Focus, a member of the FTSE 250, provides innovative software that allowscompanies to dramatically improve the business value of their enterpriseapplications. Micro Focus Enterprise Application Modernization and Managementsoftware enables customers' business applications to respond rapidly to marketchanges and embrace modern architectures with reduced cost and risk. Foradditional information please visit www.microfocus.com. About Acucorp Inc. Acucorp provides innovative technologies for the modernisation and enhancementof business-critical applications. In addition to both modernizing and enhancingexisting assets, Acucorp's innovative software solutions provideinteroperability and portability to more than 600 different computing platforms.The company, founded in 1988, has headquarters in San Diego, California,regional offices throughout Europe and distributors around the world. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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