Micro Focus International PLC (LON:MCRO) saw its shares fall today after the blue chip software company posted largely in-line full-year results but said its revenues for the first-half of the current year will be "broadly flat."
In afternoon trading, Micro Focus shares were down almost 7.5%, or 164p at 2,034p.
The FTSE 100-listed firm said revenues for the year ended 30 April were US$1.3807bn, 0.9% lower than the previous year's US$1.3927bn, albeit slightly above the mid-point of its management's guidance range.
The group - which expects to complete its transformational merger with the software business of Hewlett Packard Enterprises Co (NYSE:HPE) on September 1 - added that full-year underlying adjusted earnings rose by 4.2% to US$640.9mln.
Following completion of the acquisition of HPE Software, the group will change its financial year end to 31 October and will report an 18-month financial period ending 31 October 2018.
The group said, before that change, it anticipates revenues for the current Micro Focus Group business for the six months to 31 October "will be broadly flat on the comparative period."
It said adjusted diluted earnings per share increased by 19.7% to 175.65 US cents, up from 146.70 US cents in 2016, while the full year dividend was hiked by 32.1% to 88.06 US cents from 66.68 US cents in 2016.
M&A continues to be a key component of the company's strategy
Kevin Loosemore, Micro Focus's executive chairman said: "This has been a significant year for Micro Focus with the announcement of the combination with Hewlett Packard Enterprises Software to create one of the world's largest pure play software companies."
He added that mergers and acquisitions continues to be a key component of the company's strategy.
"Over the last six years we have completed and successfully integrated 10 acquisitions and on completion of the HPE Software transaction will have increased the revenue of the business approximately 10 fold since 2011," Loosemore said.