British software company Micro Focus International posted a better-than-expected 5.3% decline in pro-forma revenue for the 12 months to 31st October and expected this more positive trend to continue.
Group pro-forma revenue fell 5.3% over the period to £4,058m at constant currency. This compares with guidance for a 6-9% decline. Pro-forma adjusted EBITDA, meanwhile, rose 9.2% to $1.5bn.
The company said that performance in the first quarter of the 2019 financial year, ended 31 January, had been in line with this guidance.
In line with the expected further moderation of revenue decline, looking forward, the company said it was guiding constant currency revenue for the continuing Micro Focus Product Portfolio business for the 12 months to 31 October 2019 to be between minus 4% to minus 6% compared to a decline of 7.1% for the 12 months ending 31 October 2018.
"The last 18-month period has been transformational for Micro Focus and has been, at times, very challenging and disruptive for our employees...I am delighted to share the progressive sense of common purpose and clear direction that is building within the Company as we move firmly from the one-off transitional effects of the combination with the Hewlett Packard Enterprise Software business, to the running and continuous improvement of a successful, enlarged operation," CEO Stephen Murdoch said.
The company also said it had completed the current $400m share buy-back programme, which was extended on Thursday by up to $110m.