Micro Focus CFO To Quit; Annual Profit Up

24th Jun 2010 07:27

By Lilly Vitorovich Of DOW JONES NEWSWIRES LONDON (Dow Jones)--Micro Focus International PLC (MCRO.LN) Thursday announced the surprise departure of Chief Financial Officer Nick Bray, who is in talks with several companies including a strategic competitor to the U.K. software firm, as it reported a rise in annual profit and revenue. Given the nature of the discussions with other parties, Bray offered his resignation as a director of the company, which the board has accepted with immediate effect. He will remain on gardening leave for an "appropriate period" as the board kicks off a search for his replacement. Bray's departure follows the appointment of Nokia Corp. (NOK) executive Nigel Clifford as the group's new chief executive in March. Clifford started at Micro Focus on May 1. Earnings before interest, tax, depreciation and amortization before exceptional items and stock-based compensation--one of the key figures U.K. analysts track--rose 46% to $173.3 million for the year ended April 30, ahead of market expectations of $169.3 million, on a strong second-half performance and the contribution of acquisitions. That compares with $118.6 million over the same period a year earlier. Micro Focus, which generates around half of its revenue in the U.S., posted a 57% rise in annual revenue to $432.6 million, ahead of expectations of $429 million, helped by last year's two acquisitions. That compares with $274.7 million a year ago. Excluding acquisitions, annual revenue at constant currency--another figure closely watched by the market--was up 5% from a year ago. Last month, Micro Focus forecast a 57% rise in annual revenue, and said the group started the new financial year with a "strong customer proposition and a focus on a flawless execution." Chairman Kevin Loosemore said at the time that "the board is confident that the company has a platform to continue to deliver superior shareholder returns." Micro Focus provides software and consultancy services to help clients update legacy IT platforms, a less costly solution than buying new systems, particularly for firms looking to cut costs during the economic downturn. The company bulked up its operations last year by buying U.S.-based Borland Corp. and Compuware Corp.'s (CPWR) testing and automated software quality business, giving the company a footprint in software testing. Micro Focus shares closed 528 pence Wednesday, valuing the company at GBP1.08 billion. -By Lilly Vitorovich, Dow Jones Newswires; 44-0-207 842 9290; [email protected] (END) Dow Jones Newswires June 24, 2010 02:27 ET (06:27 GMT)