View all newsletters
Receive our newsletter - data, insights and analysis delivered to you
  1. Technology
November 10, 1995

MICRO FOCUS IS STILL LOSING MONEY AT THE THIRD QUARTER STAGE

By CBR Staff Writer

Now that Micro Focus Plc has its shares quoted in American Depositary Receipt form on Nasdaq, it feels constrained to say something every quarter in addition to making its customary financial reports every six months. Chief executive Paul O’Grady and the management team were anyway giving a presentation to analysts yesterday on progress in restructuring Micro Focus – and those keen enough can find it on the Web at http://www.mfltd.co.uk/Results/Q3/q395.htm. The company made a ú300,000 loss on the third quarter, unchanged from a year ago, excluding any net software capitalisation in either period. Costs in the quarter, also excluding the net effect of capitalised software, were down 8% compared with the same period last year and down 14% from the peak level of costs in the quarter immediately prior to the restructuring. At the end of the quarter there were 713 employees, down from 760 at the end of the third quarter last year and a peak of 792 at the end of the first quarter this year. Turnover stumbled and was down 9.2% at ú17.7m. Revenues from direct sales accounted for a whopping 91% of the total, which means that few people are bundling Cobol with their machines these days, and few are buying it from hardware vendors – but OEM revenues from sales to computer manufacturers did account for the remaining 9%. Cash balances were at least healthy – $56.1m at the end of the third quarter, and yes, Micro Focus lapses into dollars here – and cash outflows of $5.5m in the quarter included one-off payments of $2.5m in connection with the new development centre in Newbury.Micro Focus is pulling all the stops out on its line for micros running 32-bit operating systems.

Topics in this article :
Websites in our network
Select and enter your corporate email address Tech Monitor's research, insight and analysis examines the frontiers of digital transformation to help tech leaders navigate the future. Our Changelog newsletter delivers our best work to your inbox every week.
  • CIO
  • CTO
  • CISO
  • CSO
  • CFO
  • CDO
  • CEO
  • Architect Founder
  • MD
  • Director
  • Manager
  • Other
Visit our privacy policy for more information about our services, how New Statesman Media Group may use, process and share your personal data, including information on your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.
THANK YOU