Micro Focus -54% on CEO departure, lowered guidance

Mar. 19, 2018 8:39 AM ETOpen Text Corporation (OTEX) StockOTEX, HPEBy: Brandy Betz, SA News Editor54 Comments
  • Micro Focus International (NYSE:MFGPplunges 54% premarket after losing its CEO and lowering its forecast.
  • CEO Chris Hsu left to spend time with family after a little over a year at the job. COO Stephen Murdoch will step into the position.  
  • Micro Focus spent $8.8B last year to buy Hewlett Packard Enterprise’s (NYSE:HPE) software business and has experienced difficulties integrating the unit. 
  • Exec chairman Kevin Loosemore: “We’re finding the integration harder than wed’ anticipated or planned. (We have) no regrets at all (on the deal but) the returns clearly may be delayed slightly.”
  • Full year forecast now expects revenue to drop 6% to 9% (was: down 2% to 4%) with 1H down 9% to 12%.     
  • Previously: Micro Focus -17% after post-HPE merger interim results (Jan. 8)

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