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Micro Focus International PLC on Monday reported a dip in full-year revenue and earnings in the face of an increasingly volatile market backdrop.
In the financial year ended October 31, revenue for the global enterprise software firm fell to $2.5 billion from $2.9 billion, representing 14% year-on-year decline.
However, Micro Focus said that when excluding Digital Safe from both periods, revenue declined by just 7% year-on-year.
Chief Executive Officer Stephen Murdoch explained that Micro Focus's revenue decline was partially due to suspensions of operations in Russia.
Adjusted earnings before interest, taxes, depreciation and amortization fell to $900 million from $1 billion the previous year.
"To date, demand has remained robust in the face of an increasingly volatile market backdrop, demonstrating the importance of our solutions to customers," said CEO Murdoch.
Micro Focus also posted approximately $200 million in annualised gross cost savings in a bid to partially mitigate the adjusted Ebitda impact of the decline in revenue.
Micro Focus also reported a net debt at October 31 of around $3.5 billion with cash in excess of $500 million.
In August 2022, Micro Focus announced it had reached an agreement with OpenText for the firm to acquire 100% of Micro Focus at 532 pence per share. Murdoch on Monday said he hopes the upcoming acquisition will create one of the world's largest software and cloud businesses.
Micro Focus said it expects the acquisition to be completed in the first quarter of calendar 2023, subject to competition and national security clearances.
Shares in Micro Focus traded flat at 521.60 pence in London on Monday midday.
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