7:59 cut – MCRO

Micro Focus – Revenue warning

Micro Focus sell and support a wide variety of software products. A significant part of their business is in collecting licence fees and supporting customers still using legacy software (which broadly means “software that nobody in their right mind would start using today”) and of course this business is declining year-on-year. Another significant part is software that requires very significant sales effort to promote and naturally this is very dependant on the effectiveness of the sales people, customer confidence and getting contracts signed by the end of the period. Very little of their software seems to be essential, class leading and of the nature where the customers mostly approach them (or resellers) and buy it in ever increasing numbers (as was once the case for, say, Microsoft Office).

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