The actions of the UNITED kingdom’s largest technology company, Micro Focus International, have plunged after it warned of a sharper than expected drop in revenue and its ceo resigned.
Shares of the company, whose customers include BMW and American Express), decreased 42% in afternoon trading.
The problems arise from its purchase of Hewlett-Packard’s Enterprise software business to € 6.8 bn.
Difficulties in the integration of the business, have hit revenues.
At some point on Monday, shares of Micro Focus – who is a member of the FTSE 100 share index of leading UK listed companies – had fallen to 56%.
Micro Focus specialises in prolonging the life cycle of our customers, old systems, allowing them to save you from having to purchase new systems.
The purchase of Hewlett Packard Enterprise visa, which takes on another ex-British computer business, the Autonomy, which was bought by HP.
The company, based in Newbury, Berkshire, was founded in 1976.
Micro Focus executive chairman, Kevin Loosemore, said that operational issues which had led to a “disappointing short-term performance”, but that he had confidence in the strategy of the company.
Mr Loosemore told the Reuters news agency: “we’re finding the integration more difficult than we had planned or anticipated.
“We have no regrets… but the returns clearly may be slightly delayed.”
Micro Focus said chief executive Chris Hsu has been left “in order to spend more time with his family and pursue another opportunity”.
He will be replaced by chief operating officer, Stephen Murdoch.
The statement added that its cost savings drive was in advance of the program, and its net debt should be in line with expectations.