Software specialist saw revenues decrease due to divestitures and currency headwinds
Companies: Micro Focus International plc
Hewlett Packard reported FY Results today up to 31 October. Since Micro Focus announced in September it is acquiring HPE Software, it has published the HPE Software element of HPE's FY Results. The division showed a drop in revenues but an increase operating profit, after a significant improvement in operating margin.
The update, which included full-year and Q4 results, showed HPE Software's revenue down 6% in the fourth quarter at $903m, and full-year revenue down 12% at $3.2bn. This was primarily due to divestitures and currency headwinds, meaning that on an adjusted basis, the division increased full-year revenues by 1%.
Full-year profit decreased 5%, whilst its Q4 profit increased 1%, because of a whopping 32% improvement in its operating margin.
HPE Software saw revenue decline across all of its services, but the hit was felt hardest in its licence and support revenues, both down more than 12%.
MCRO's share price rose 2% in early trading and is currently valued on a PER of c.17x
