Tag: micro-focus

IBM claims Micro Focus copies its software

Posted on November 24, 2022 by - News

A not so mobile X86 PCIBM has sued British outfit Micro Focus, claiming it illegally copied and reverse-engineered its software.

The copyright complaints in the US District Court in the Southern District of New York allege that Micro Focus stole IBM’s mainframe systems technology.

It said that Micro Focus created software called Micro Focus Enterprise Server and Micro Focus Enterprise Developer (collectively, Micro Focus Enterprise Suite) by using its developer access to copy IBM’s CICS Transaction Server for z/OS software.

The Newbury firm published, distributed, and promoted the Micro Focus Enterprise Suite Micro Focus and entered into contracts to benefit from IBM’s developer programmes and gain access to its

Micro Focus conducts strategic review

Posted on September 2, 2019 by - News

Software vendor Micro Focus is embarking on a strategic review after announcing it will miss its revenue guidance.

In a trading update, Micro Focus said that it would not hit constant currency guidance of a year-on-year decline of between four and six per cent in its financial year.

CEO Stephen Murdoch said: “Following the recent disappointing trading performance, we have determined that it is appropriate to accelerate the undertaking of a strategic review of the group’s operations to determine where performance can be improved and how the business can be better positioned to optimise shareholder value.”

Profit warning for Micro Focus

Posted on March 20, 2018 by - News

3bb5d891de37a71b88697882b3918a60Micro Focus lost half of its valuation after posting a sales warning .

The Newbury-based vendor said in a trading update that the rate of revenue decline has been “greater than anticipated” since posting interim results in January, with the firm now set to miss its revised revenue guidelines in its current financial year, which ends in October.

The big issue was problems caused by buying Hewlett Packard Enterprise’s (HPE) software unit. These were problems implementing a new IT system, a greater-than-expected reduction in sales staff, disruption in global HPE customer accounts, and difficulties with sales in North America.

The vendor also announced the resignation of its CEO Chris Hsu, who will leave immediately to spend more time with his family and pursue another opportunity. COO Stephen Murdoch will take over.

Micro Focus saw its share price tank over 55 percent following the announcement.

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

“Chris was instrumental in achieving the carve-out of the HPE software business in order that it be merged with Micro Focus. He has led a repositioning of the HPE Software portfolio to the needs of today’s market and put in place a plan to increase our effective product investment as we integrate the companies.”

Micro Focus said it expects revenue to decline between six and nine per cent this year, in constant currency, compared with 2017. EBITDA will however remain flat as a result of cost cutting.

 

HPE spins and goes British

Posted on September 8, 2016 by - News

hp_enterprise_logoThe former maker of expensive printer ink HPE will spin off and merge its non-core software assets with Britain’s Micro Focus in a deal worth $8.8 billion.

The move is part of HPE Chief Executive Meg Whitman’s cunning plan to shift HPE’s strategy to a few key areas such as networking, storage and technology services since the company separated last year from computer and printer maker HP. It will also off-load the troubled software side of the business.

HPE acquired part of its software portfolio through the $10.3 billion purchase of Britain’s Autonomy in 2011. HP’s $11 billion purchase of Autonomy was supposed to form the central part of the US group’s move into software.

HP later wrote off three-quarters of the company’s value, accusing Autonomy executives of financial mismanagement.

Whitman said in a statement that HPE was taking another important step in achieving the vision of creating a faster-growing, higher-margin, stronger cash flow company well positioned for customers and for the future.

The deal with Micro Focus, a multinational software company based in Newbury was announced along with HPE’s latest quarterly earnings. In the third quarter, HPE reported net revenue of $12.2 billion, down 6 percent from $13.1 billion a year earlier.

The transaction is expected to be tax free to HP. Micro Focus will pay $2.5 billion in cash to HPE, while HPE shareholders will own 50.1 percent of the combined company that will operate under the name Micro Focus and be run by its executives. HP said it would pay $700 million in one-time costs related to the separation of the assets.

Other HPE assets that will be merged include software for application delivery management, big data, enterprise security, information management & governance and IT Operations management businesses.

Micro Focus has been bulking up on acquisitions to boost growth, and this would be its largest deal to date. Earlier this year, Micro Focus acquired U.S. firm Serena Software for $540 million.

Kevin Loosemore, executive chairman of Micro Focus, said that “the time is right for consolidation in the infrastructure software market and this proposed merger will create one of the leading players in this space.”

HPE is the latest firm looking to Britain for expansion opportunities after the United Kingdom voted to leave the European Union. Valuations of British companies have been relatively low given current exchange rates.

British Micro Focus merges with Attachmate

Posted on September 17, 2014 by - News

Merge-AheadMainframe software outfit Micro Focus has started proceedings to merge with Attachmate, owners of Novell and Suse Linux, for approximately US$1.2 billion.

The combined company should have yearly revenue of $1.4 billion, with more than 4,500 employees and more than 30,000 customers, Micro Focus said.

Analysts say that it is a good merger as both are established enterprise software vendors with global marketing reach and little overlap in either products or customers.

Attachmate hit the headlines in 2011 when it bought enterprise software vendor Novell in 2011 for $2.2 billion.

Attachmate’s parent company, Wizard Parent, will exchange with Micro Focus all of Attachmate’s 86 million public shares, traded on the London Stock Exchange and now worth about £729.6 million ($1.18 billion), for approximately 40 percent of shares in the combined company.

Based in Houston, the Attachmate Group controls what is left of Novell’s employee productivity, printing and networking software. It also has Attachmate’s own line of advanced software for terminal emulation, legacy modernization and managed file transfer and Suse, a line of enterprise Linux and Linux-based cloud software that was part of the Novell acquisition.  Also from its Novell buy out it controls NetIQ which is a line of identity, access and security management software.

Micro Focus is based in Newbury and sells software products for the enterprise, including an IBM mainframe modernisation software, COBOL development kits and a range of testing tools.

Micro Focus expects the deal to close by November.