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Micro Focus International reinstates dividend despite posting $3bn loss
StockMarketWire.com
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Enterprise software group Micro Focus International swung to a deep annual loss after it booked a monster impairment charge and its sales fell, though it reinstated its dividend citing a strong cash position.
Pre-tax losses for the year through October amounted to $2.97 billion, compared to a year-on-year profit of $1.47 billion, as revenue slid 10% to $3.00 billion.
The company declared a final dividend of 15.5c per share.
This came even as Micro Focus International recorded an exceptional charge related to a goodwill impairment of $2.80 billion.
It said the charge was driven by changes in its trading performance and overall environment when compared to original projections produced at the time of the HPE Software acquisition.
Adjusted earnings before interest, tax, depreciation and amortisation fell 14% to $1.17 billion, at an adjusted margin of 39.1%, which the company said was at the upper end of expectations.
That performance, it added, was thanks to tight operational cost control and several cost reduction programmes.
'We are now 12 months into our three-year turnaround plan and whilst there remains a great deal to do, we have made solid progress in delivery of our key strategic objectives and improvements in operational effectiveness,' chief executive Stephen Murdoc said.
'We continue to work closely with our customers around the world enabling them to build on their existing IT investments with the latest innovations to help accelerate their digital transformation programmes.'
Story provided by StockMarketWire.com
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