MS INTERNATIONAL PLC — Earnings Release 2018

May 16, 2018

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RNS Number : 1988O

Micro Focus International plc

16 May 2018

16 May 2018

Micro Focus International plc

Pre-Close Statement for the six months ended 30 April 2018

Micro Focus International plc ("Micro Focus", "the Company" or "the Group", LSE: MCRO.L, NYSE: MFGP), the international software product group, provides an update on the trading performance for the six months ended 30 April 2018.

Micro Focus expects to report revenues better than the management guidance of minus 9% to minus 12% on a constant currency basis, compared to the proforma six months ended 30 April 2017. However, this performance includes an unusually large licence deal of approximately $40 million, which closed earlier than expected. Excluding this deal, the Group's underlying revenue was towards the better end of the guidance range.

The Group reiterates the constant currency revenue guidance for the twelve months ending 31 October 2018 of minus 6% to minus 9% compared to the proforma 12 months ending 31 October 2017. In addition, management reiterates that, at the midpoint of the revenue guidance range, the Company expects to achieve an Adjusted EBITDA margin percentage of approximately 37% in the 12 months to 31 October 2018.

As stated in the 19 March 2018 trading update, DSOs remain elevated in the short term, and net debt is expected to improve to approximately $4.2 billion by 31 October 2018, in line with market consensus.

"The Micro Focus team is making encouraging progress on improving both the discipline and speed of execution within the business, whilst also sharpening the focus on our primary purpose - delivering great software products to meet the needs of our customers. This customer centred innovation lies at the heart of our strategy and business model to deliver sustainable shareholder returns," commented Stephen Murdoch, CEO, Micro Focus.  "We look forward to providing detail on this progress and our operational priorities at our forthcoming interim results."

Interim Results date

As previously announced, Micro Focus will issue its interim results for the six months ended 30 April 2018 on Wednesday 11 July 2018.

Enquiries:

Micro Focus	Tel: +44 (0) 1635 32646
Chris Kennedy, Chief Financial Officer
Tim Brill, IR Director
Powerscourt	Tel: +44 (0) 20 7250 1446
Elly Williamson
Celine MacDougall

About Micro Focus

Micro Focus (LSE: MCRO.L, NYSE: MFGP) is a global enterprise software Company supporting the technology needs and challenges of the Global 2000. Our solutions help organizations leverage existing IT investments, enterprise applications and emerging technologies to address complex, rapidly evolving business requirements while protecting corporate information at all times. Our product portfolios are Security, IT Operations Management, Application Delivery Management, Information Management & Governance and Application Modernization & Connectivity. For more information, visit: www.microfocus.com. SUSE, a pioneer in Open Source software, provides reliable, interoperable Linux, Software Defined Infrastructure and Application Delivery platforms that give customers greater control and flexibility while reducing cost. For more information, visit: www.suse.com.

This information is provided by RNS

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