MFGP - Why Micro Focus International Stock Tanked Today
Shares of Micro Focus International (NYSE: MFGP) have tanked today, down by 21% as of 12:20 p.m. EST, after the company reported preliminary results for the fiscal year that ended in October. Executive Chairman Kevin Loosemore is also stepping down after serving in that role for 15 years.
Revenue last fiscal year plunged 30% to $3.3 billion, with operating profit falling 41% to $222 million. The U.K.-based tech company had commenced a strategic review in August, and Micro Focus is taking a series of drastic steps in its ongoing turnaround efforts, including replacing Loosemore. The company has named Greg Lock as non-executive chairman, effective Feb. 14. Investors had hoped the strategic review would culminate in a sale of the company, but Loosemore was unable to find any buyers.
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