Micro Focus shares have fallen the most in 12 years after CEO Chris Hsu announces that he is stepping down.
Hsu announced that he is leaving the company in order to ‘spend more time with his family and pursue another opportunity’. His departure comes as Micro Focus announced that its year-on-year revenue decline will be greater than expected as it grapples with its latest $8.8 billion deal with HPE.
In total, shares in Micro Focus fell 41 per cent to 1,116 pence in London, the most since February 2006. Micro Focus is now expecting revenue over the twelve months to Oct. 31 to fall between 6 per cent and 9 per cent, compared to previous guidance of a drop of 2 per cent to 4 per cent.
In September Micro Focus completed an $8.8 billion acquisition of Hewlett Packard Enterprise’s software assets. Hsu, a former HPE executive, took over as chief executive officer of the combined group following the deal’s completion.
"Clearly we have let people down with this execution and we have to rebuild that trust," Kevin Loosemore, chairman of Micro Focus, said. "The strategy remains the same. We believe this deal will turn out to be a good deal. We think the market in infrastructure software will continue to consolidate and we hope to participate in this consolidation."
Stephen Murdoch, currently Micro Focus’ chief operating officer, has become the new CEO.