Micro Focus Sees Weak Adj. Margin, Revenues In FY21; To Meet Goal Of Revenue Stabilisation By FY23

Enterprise software group Micro Focus International Plc (MFGP,MCRO.L) Thursday said it expects to report weak adjusted EBITDA margin and revenues in its fiscal year 2021.

Looking ahead, the company said it remains on track to achieve stated goal of revenue stabilisation as it exits FY23.

For fiscal 2021, adjusted EBITDA would be around $1 billion for the year with adjusted EBITDA margin of about 36 percent, lower than last year's 39 percent.

The expected weakness reflects the revenue decline, targeted investments and the impact of the transition to the single enterprise-wide platform.

For the year, revenue would be around $2.9 billion, a decline of 5 percent on a constant currency basis. This represents a 5 percentage points improvement in the rate of decline year-on-year.

Licence revenue is expected to increase by approximately 6 percent, while Maintenance revenue would decline by approximately 9 percent. SaaS and other recurring revenue continued to moderate and is expected to decline 4 percent. Further, Consulting revenue would be down 8 percent, with an improving trajectory in the second half.

Micro Focus will provide an update on the progress on strategy and key priorities over the next two years on November 30.

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