Feeds

Micro Focus shares drop on update

Targets missed, shares whacked

Beginner's guide to SSL certificates

Micro Focus shares lost a quarter of their value yesterday as the software company warned markets it was unlikely to hit sales or profit targets for the year.

Interim results for the six months to 31 October 2010 showed profits and turnover were lower than expected, although the company has cut debt. Micro Focus shares fell from 400p to under 300p yesterday, and they're up about two per cent this morning.

Management have already acted to sort the problems out and said better integration of recent acquisitions like Borland and Compuware's testing division would increase efficiencies. Debt fell to $5.5m in January compared to $40.4m at the end of October 2010.

It said it would invest more in its Cobol development business where it sees strong chances of growth.

But Micro Focus also warned there were other areas where it would be cutting investment or even selling off divisions.

Micro Focus is taking a charge of between $14m and $18m to pay for the restructuring.

The company said it was unlikely to make up for the shortfall in revenue in the last three months of the year. It expects sales of between $432m and $442m for the full year.

But because most of the revenue shortfall is in high margin licence fee and maintenance contracts, it expects adjusted profits to be between $141m and $153m once the restructuring charge has been deducted.

You can download Micro Focus's market update from here. ®

Protecting users from Firesheep and other Sidejacking attacks with SSL

More from The Register

next story
New 'Cosmos' browser surfs the net by TXT alone
No data plan? No WiFi? No worries ... except sluggish download speed
'Windows 9' LEAK: Microsoft's playing catchup with Linux
Multiple desktops and live tiles in restored Start button star in new vids
iOS 8 release: WebGL now runs everywhere. Hurrah for 3D graphics!
HTML 5's pretty neat ... when your browser supports it
Mathematica hits the Web
Wolfram embraces the cloud, promies private cloud cut of its number-cruncher
Mozilla shutters Labs, tells nobody it's been dead for five months
Staffer's blog reveals all as projects languish on GitHub
'People have forgotten just how late the first iPhone arrived ...'
Plus: 'Google's IDEALISM is an injudicious justification for inappropriate biz practices'
SUSE Linux owner Attachmate gobbled by Micro Focus for $2.3bn
Merger will lead to mainframe and COBOL powerhouse
iOS 8 Healthkit gets a bug SO Apple KILLS it. That's real healthcare!
Not fit for purpose on day of launch, says Cupertino
prev story

Whitepapers

Secure remote control for conventional and virtual desktops
Balancing user privacy and privileged access, in accordance with compliance frameworks and legislation. Evaluating any potential remote control choice.
WIN a very cool portable ZX Spectrum
Win a one-off portable Spectrum built by legendary hardware hacker Ben Heck
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
The next step in data security
With recent increased privacy concerns and computers becoming more powerful, the chance of hackers being able to crack smaller-sized RSA keys increases.