(RTTNews) – Enterprise software group Micro Focus International plc (MFGP, MCRO.L), which is in deal to be bought by OpenText, reported Monday that its fiscal 2022 adjusted EBITDA is expected to be $0.9 billion, down from last year’s $1.0 billion at constant currency rates.
The Adjusted EBITDA margin is expected to be around 35 percent, down from last year’s 36 percent at constant currency basis, reflecting weak revenue and the suspension of Russia operations, partially offset by the in-year impact of cost reduction programme.
The company said its cost saving programmes generated approximately $200 million of annualised gross cost savings.
Revenue is expected to be $2.5 billion, compared to last year’s $2.9 billion. On a reported basis, including Digital Safe in both periods, revenue declined 13 percent.
On a constant currency basis when excluding Digital Safe, revenue declined around 7 percent.
Licence revenue is expected to decrease by approximately 9 percent with new licence sales impacted by the challenging macro-economic environment.
Maintenance revenue is expected to decline by around 7 percent, and consulting revenue declined by approximately 3 percent.
SaaS and other recurring revenues are expected to increase by around 9 percent.
Regarding its deal with OpenText, the company expects the acquisition to complete during the first calendar quarter of 2023, subject to competition and national security clearances following shareholder approval on October 18.
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