LONDON (Reuters) – British IT group Micro Focus Intl <MCRO.L> said it would miss its revenue target for the year, blaming weak sales execution compounded by a deteriorating economic environment, and said as a result it would accelerate a review of its operations.
The company downgraded its revenue forecast for the year to end-October to between minus 6% and minus 8% from its previous guidance of minus 4% to minus 6%.
Chief Executive Stephen Murdoch said: “Following the recent disappointing trading performance, we have determined that it is appropriate to accelerate the undertaking of a strategic review of the Group’s operations with a view to determining where performance can be improved and how the business can be better positioned to optimise shareholder value.”
The company, which maintains and upgrades the legacy software systems that underpin big businesses such as banks and airlines, had reiterated its guidance as recently as last month when it reported a 5.3% fall in revenue for its first half.
(Reporting by Paul Sandle; editing by Kate Holton)