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Micro Focus investors disappointed by HP’s software revenue

Shares dropped as much as 10 per cent on a poor trading update
May 10, 2017

Micro Focus's (MCRO) planned acquisition of Hewlett Packard's (HP) software business has dragged on for so long that the group has reported on progress at the target company three times. The latest figures - which came alongside a final quarter update from Micro Focus itself - revealed that HP's software revenue fell by a tenth in the three months to April 2017 due to declines in license and professional services sales.

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Trading at Micro Focus itself has also been a little subdued. For the year to April 2017 management has reiterated its constant currency revenue guidance of flat to minus 2 per cent.