August 29, 2019 / 11:35 AM / 4 months ago

Micro Focus says most of sales shortfall will drop through to earnings

LONDON, Aug 29 (Reuters) - Micro Focus Intl said it had little scope to mitigate a cut in its revenue guidance before its Oct. 31 year-end as its cost cutting programmes were already well advanced, meaning most of the shortfall would fall through to the core earnings line.

Chief Executive Stephen Murdoch said it had seen deals in its pipeline slip in the last six weeks, and it was not certain it could increase the run rate to make its full-year guidance.

“We had a very weak close to July; we didn’t lose business but it slipped,” he said. “We still have a pipeline that could put us in original range, but we don’t feel it is credible that we could close sufficient of that.”

Reporting by Paul Sandle; editing by Kate Holton

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