Results out 6/12/2007/ Promises are positive.

Projected earnings are reasonable.

But DYOH

Another Shares magazine tip goes splat.

Biffa
Dignity

"The balance between risk and reward looks very attractive. Someone ain't doing their research!

Now this down 54% after being tipped last week in Shares!

Incredible its down 60%.

StockMarketWire.com
Software product group Micro Focus International downgraded its revenue guidance and said its chief executive, Chris Hsu, had resigned.

The company now expected revenue for the year through October to be 6-9% below the prior year. That compared to previous guidance of a 2-4% fall.

The impact of the downgrade on the adjusted Ebitda margin was expected to be mitigated by planned cost cutting, which was tracking ahead of schedule, the company said.

Hsu had resigned with immediate effect 'in order to spend more time with his family and pursue another opportunity', Micro Focus said. He had been replaced by chief operating officer Stephen Murdoch.

The revenue downgrade was blamed on several factors, including disruptions from the implementation of a new IT system, higher staff turnover, continued 'sales execution issues' and disruption of ex-Hewlett Packard Enterprise customer accounts as a result of a de-merger of Hewlett Packard Enterprise.

For the six months through April, revenue on a constant currency basis was expected to fall by 9-12%.

At the midpoint of the revenue guidance range, cost reductions would enable the company to achieve an adjusted Ebitda margin percentage of around 37% in the year through October.

'We remain confident in Micro Focus' strategy whilst recognising that operational issues have led to a disappointing short term performance and outlook,' chairman Kevin Loosemore said.

'We believe that Micro Focus is well positioned to help our customers with the increasing pace of change across their Hybrid IT environments and to deliver customer centred innovation.'

StockMarketWire.com
Software supplier Micro Focus International said it expected its annual revenue to be at the better end of its most recent annual guidance range, while also announcing that chief financial officer Chris Kennedy was leaving the company.

Trading continued to track in line with expectations, with an improved revenue trajectory in the second half.

Consequently, revenue in constant currency terms for the year through October was expected at the better end of a guidance range for a fall of between 6% and 9%, the company said.

Trading had also been consistent with the company's adjusted Ebitda margin guidance of around 37% at the midpoint of that revenue range.

Micro Focus said Kennedy would leave in the first quarter of 2019 to join broadcaster ITV.

He would be replaced by Brian McArthur-Muscroft, was most recently CFO of Paysafe Group and had also held the CFO role at TeleCity Group.

Micro Focus also announced that it planned to recommence its buy-back programme.

In the period 29 August to 24 October the company bought shares worth around $171m.

The extended program, when initiated, would cover an additional tranche of shares to a combined total value of up to $400m, inclusive of those already repurchased.