May 16, 2018 / 6:17 AM / in 5 months

Micro Focus says early $40 million contract to help first half revenues

LONDON (Reuters) - Britain’s leading software company Micro Focus International (MCRO.L), reeling from a major profit warning in March, said a new $40 million (29 million pounds) licensing deal would help bolster its first-half revenue.

FILE PHOTO: A sign stands outside the offices of Micro Focus in Newbury, England, September 8, 2016. REUTERS/Eddie Keogh/File Photo

The FTSE 100 company, which manages older software for customers including banks and airlines, announced the departure of its chief executive in March as it cut its revenue outlook due to problems integrating assets from Hewlett Packard Enterprise (HPE.N).

It said on Wednesday that the earlier than expected signing of a new contract meant its revenue would be better than the guidance it gave of minus 9 to minus 12 percent on a constant currency basis for the first-half.

Stripping out the impact of the new contract, Micro Focus said its underlying revenue was still towards the better end of the guidance range. For the full-year, it reiterated its revenue and margin guidance.

“The Micro Focus team is making encouraging progress on improving both the discipline and speed of execution within the business,” new Chief Executive Stephen Murdoch said.

Shares in Micro Focus fell 46 percent on the day of its profit warning in March. The shares are up 25 percent since that day.

Reporting by Kate Holton; editing by Sarah Young

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