StockMarketWire.com - Enterprise software company Micro Focus International warned of potential asset writedowns after its revenue slumped in the first half of its financial year owing to Covid-19 pressures.

Revenue for the six months through April was seen falling to about $1.45bn for the first half, which represented an on-year fall of around 11% on a constant currency basis.

Micro Focus International said it identified a slowdown in customer buying behaviour in April, leading to the deferral of some projects involving new licence revenues as well as delays to some maintenance renewals.

The impact on earnings, however, had largely been mitigated due to cost cutting and the company's adjusted operating earnings margin of about 38% was towards the upper end of its expectations.

Still, Micro Focus International said it continued to be prepared for more disruptions to sales activity and timing pressure on renewals.

'As a consequence, we are currently evaluating the potential impact on the carrying value of the group's intangible assets and goodwill at this point in time,' it said.




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