Our Business

Introduction

Micro Focus International plc (LSE: MCRO.L ) is listed on the London Stock Exchange and is a member of the FTSE 250. Micro Focus provides innovative software that allows companies to dramatically improve the business value of their enterprise applications by responding rapidly to market changes and adopting modern architectures with reduced cost and risk.

Micro Focus is a global business with principal offices in the UK, USA, Germany and Japan. Founded in 1976, it has over 15,000 customers, including more than 70 of the Fortune Global 100 companies, and one million licensed users. In the financial year to 30 April 2007, Micro Focus generated revenues of $171.6M.

Solutions

Its solutions fall into three main areas, as follows:

Application Portfolio Management to align IT spend with business strategy by providing factual business intelligence for informed decision making, to take the risk out of change.

Application Modernization to modernise existing applications with a low risk, low cost alternative to rewrite or package replacement strategies.

Application Development to exploit a highly productive development environment to accelerate delivery of high value functionality to the business.

Business model

Micro Focus generates revenue through license fees and maintenance fees, each of which account for around half of Group revenues, with the addition of a small proportion of revenues from consultancy fees. Its channels to market are through its own direct sales force and through Independent Software Vendors, System Integrators, distributors.

Micro Focus' strategy for growth is focused on organic growth supplemented by acquisition opportunities in all of its chosen solution areas.