Micro Focus swings to pretax loss
Micro Focus International PLC (MCRO.LN) on Wednesday posted a pretax loss for the six months ended April 30 and confirmed its guidance for fiscal 2018 revenue and adjusted earnings before interest, taxes, depreciation and amortization.
The FTSE 100-listed software company, which changed its reporting period so that its fiscal year now ends in October, posted a pretax loss of $68.5 million for the first half compared with a pretax profit of $83.2 million for the year-ago period on a pro forma basis.
The company said the pretax loss is due to the inclusion of exceptional costs and amortization of purchased intangibles relating to the acquisition last year of Hewlett Packard Enterprise Co.’s (HPE) software business.
Revenue for the period was $1.97 billion, the company said.
Adjusted Ebitda, the company’s preferred metric of performance, rose to $710.5 million from $667.8 million.
Micro Focus reiterated its constant-currency revenue guidance for the 12 months to Oct. 31 of a decline of between 6% and 9% compared with the pro forma 12 months ending Oct. 31, 2017.
The company also backed its full-year adjusted Ebitda margin guidance of approximately 37% at the midpoint of that revenue range.
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