MFGP - Micro Focus International slides after year-end earnings report
Micro Focus International (NYSE:MFGP) is down 11% in early Tuesday trading after the company released its earnings report for FY21. Revenue declined 5% Y/Y to $2.9B. Adjusted EBITDA of $1.04B (FY20: $1.18B) at a margin of 36% (FY20: 39%), reflecting the reduction in revenue in the year partially offset by cost actions. Adjusted free cash flow of $292.4M (FY20: $660.1M) since FY21 was impacted by significant cash outflows in respect of working capital and one-off tax payments, report. Also, the company has completed its sale of Digital Safe for $375M with cash from net proceeds received on Jan. 31. Net debt was $4.20B at year-end, representing a net leverage ratio of 4.0x. This reduces to 3.8x on a proforma basis, assuming the disposal of Digital Safe. "We made good progress in FY21 as we continued to reposition the product portfolio to focus on growth opportunities, restructured the go-to-market organisation and implemented a single platform across
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Micro Focus International slides after year-end earnings report