Home Business NewsBusiness Shares in Britain’s tech giant crash after revenue warning and CEO exit

Shares in Britain’s tech giant crash after revenue warning and CEO exit

by LLB Reporter
19th Mar 18 10:43 am

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Shares in one of Britain’s biggest tech firm, Micro Focus, crashed 54 per cent on the London Stock Exchange today — biggest fall in 12 years — after it warned of lower revenues and saw the sudden departure of its chief executive Chris Hsu.

Hsu has reportedly quit to “pursue another opportunity”. Hsu will not be receiving any bonus or stock options, according to the BBC.

The FTSE 100 group also warned that its year-on-year revenue decline will be greater than expected as it grapples with its latest $8.8bn deal. The company now expects revenue for the year ending October 31 to fall between 6 per cent and 9 per cent, down from its previous guidance for declines of 2 per cent to 4 per cent.

Executive chairman Kevin Loosemore said: “We remain confident in Micro Focus’ strategy whilst recognising that operational issues have led to a disappointing short-term performance and outlook.

“We believe that Micro Focus is well positioned to help our customers with the increasing pace of change across their Hybrid IT environments and to deliver customer centred innovation.”

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