Micro Focus International plc (MFGP): history, ownership, mission, how it works & makes money

A Brief History of Micro Focus International plc (MFGP)

Founding and Early Years

Micro Focus International plc was established in 1976 in Newbury, England. It initially focused on creating software that enabled businesses to develop and run COBOL applications.

Initial Public Offerings and Growth

In 2005, Micro Focus went public on the London Stock Exchange, trading under the ticker symbol MCRO. The company reported revenue of £54.3 million in its first year as a public entity.

Acquisitions and Strategic Expansion

Micro Focus has pursued an aggressive acquisition strategy, acquiring companies to enhance its product offerings. Notable acquisitions include:

• In 2014, Micro Focus acquired the software assets of Attachmate for $1.2 billion.
• In 2016, it acquired the Borland software business from Micro Focus for around $75 million.
• In 2017, the company merged with HPE Software, with the transaction valued at approximately $8.8 billion.

Financial Performance Overview

As of 2023, Micro Focus reported a revenue of $1.25 billion for the fiscal year ending October 31, 2022, with a net income of $78 million.

Market Position and Competitors

Micro Focus has established itself as a prominent player in the software industry, specializing in enterprise solutions that support legacy modernization, DevOps, and IT operations management. Key competitors include:

• IBM
• Microsoft
• Oracle
• CA Technologies
• ServiceNow

Recent Developments

In 2023, Micro Focus launched several new products aimed at enhancing cloud-native application development and IT operations management. The company reported a 10% growth in cloud services revenue, reaching £150 million for the fiscal year.

Future Outlook

Looking forward, Micro Focus aims for continued expansion in cloud services, targeting a revenue goal of £1.5 billion by 2025. The company plans to invest heavily in research and development, with approximately £200 million allocated in the next fiscal year.

A Who Owns Micro Focus International plc (MFGP)

Ownership Structure

Micro Focus International plc (MFGP) operates under a diverse ownership structure consisting of institutional investors, individual shareholders, and company executives. As of the latest available data from October 2023, the ownership breakdown is as follows:

Major Institutional Shareholders

The following table outlines the largest institutional shareholders of Micro Focus International plc:

Executive Ownership

The executive team of Micro Focus International plc holds a notable portion of shares as well. Here are the top executives and their respective ownership stakes:

Recent Changes in Ownership

In the latest quarterly report, significant changes in ownership were noted. Institutional investors increased their stake by approximately 3.2% in the last quarter, indicating a strong confidence in the company's future performance.

Micro Focus International plc (MFGP) Mission Statement

Corporate Mission

The mission statement of Micro Focus International plc is to deliver software solutions that help customers innovate faster and improve the agility of their IT. The company focuses on leveraging existing IT investments while driving modernized digital transformation.

Core Values

• Customer Centricity: Prioritize customer needs in all operations.
• Integrity: Maintain ethical business practices.
• Innovation: Foster creativity to enhance solutions and services.
• Collaboration: Promote teamwork both internally and with customers.

Financial Performance Indicators

As of the fiscal year ending October 31, 2022, Micro Focus reported the following financials:

Market Position

Micro Focus holds a significant position in the global software market, particularly in enterprise software solutions. According to the latest market analysis, the company ranked in the top 10 for enterprise application software providers, with a market share of approximately 2.5%.

Target Audience

The target audience for Micro Focus includes:

• Large enterprises looking to modernize IT infrastructure.
• Government agencies investing in advanced technology.
• Healthcare organizations needing compliant and secure software solutions.
• Financial institutions focusing on risk management and compliance.

Strategic Goals

Micro Focus aims to achieve strategic goals that include:

• Expanding cloud-based services to capture a larger segment of the market.
• Enhancing AI and machine learning capabilities within product offerings.
• Strengthening partnerships with leading technology providers.

Recent Initiatives

Recent initiatives to support the mission statement include:

• Launch of Fortify on Demand, a cloud-based application security platform, in Q3 2022.
• Partnership with Amazon Web Services (AWS) to deliver hybrid cloud solutions.
• Investment in R&D amounting to $300 million in FY 2022.

Corporate Social Responsibility

Micro Focus emphasizes corporate social responsibility by:

• Reducing carbon footprint by 30% by 2025.
• Implementing employee volunteer programs that contribute to community development.
• Investing in educational initiatives for STEM fields with a budget of $10 million.

Conclusion

Micro Focus International plc is dedicated to its mission of helping organizations transform their IT environments while maintaining a strong ethical framework, focusing on customer needs, and driving innovation across its service offerings.

How Micro Focus International plc (MFGP) Works

Company Overview

Micro Focus International plc (MFGP) is a global enterprise software company specializing in software solutions that support development, testing, and operations for businesses. The company aims to help organizations bridge the gap between existing and emerging technologies. As of October 2023, Micro Focus has a market capitalization of approximately $1.9 billion.

Core Business Segments

Micro Focus operates through several core business segments, each focusing on different technology areas:

• Application Modernization
• IT Operations Management
• Cybersecurity
• DevOps
• Big Data

Financial Performance

For the fiscal year 2022, Micro Focus reported the following financial data:

Market Strategy

Micro Focus employs various strategies to maintain its market presence, including:

• Partnerships: Collaborating with leading technology firms.
• Acquisitions: Expanding product offerings through strategic acquisitions.
• Customer Focus: Enhancing customer experience and support.

Geographical Presence

Micro Focus has a significant global presence, with operations in various regions:

Research and Development Investment

Micro Focus allocates a significant portion of its revenue towards research and development:

Customer Base

Micro Focus serves a diverse range of industries:

• Financial Services
• Government
• Healthcare
• Retail
• Telecommunications

Recent Developments

In October 2023, Micro Focus announced the launch of a new product aimed at enhancing cybersecurity capabilities, expected to drive future revenue growth.

How Micro Focus International plc (MFGP) Makes Money

Revenue Streams

Micro Focus International plc primarily generates revenue from various segments including Software Licenses, Maintenance, Professional Services, and Consulting Services.

Software Licenses

The company sells software licenses for its range of products, which include enterprise software solutions. In the fiscal year 2022, Micro Focus reported revenue of approximately $1.3 billion from software licenses.

Maintenance Revenue

A significant portion of Micro Focus’s income comes from maintenance contracts. In FY 2022, maintenance revenue accounted for about 59% of total revenue, amounting to around $1.5 billion.

Professional Services

Micro Focus also offers professional services including implementation and integration of its software solutions. Professional services generated approximately $400 million in FY 2022.

Consulting Services

The consulting division contributes to revenue through advisory services for IT projects, totaling about $250 million in FY 2022.

Geographic Revenue Distribution

Micro Focus's revenue is distributed across various geographic regions, as illustrated in the following table:

Key Products and Solutions

Micro Focus has a diverse product portfolio that includes:

• Application Modernization
• Cybersecurity Solutions
• IT Operations Management
• Analytics and Reporting Tools
• DevOps Solutions

Strategic Partnerships

Micro Focus engages in strategic partnerships to enhance its market presence and service offerings. Collaborations with technology leaders contribute to an estimated additional revenue of around $150 million annually.

Market Positioning and Growth

As of 2023, Micro Focus holds a significant position in the software industry, focusing on delivering solutions that address the needs of large enterprises. The company aims to target sectors such as finance, healthcare, and telecommunications.

Financial Performance Overview

In the fiscal year ending October 2022, Micro Focus reported the following financial performance metrics:

Investment in R&D

Micro Focus invests substantially in research and development to innovate its product offerings. In FY 2022, R&D expenditure reached approximately $300 million, representing about 12% of total revenue.

Future Outlook

The company is focused on leveraging cloud technologies and AI to enhance its product suite, projecting a revenue growth of approximately 5% annually over the next five years, with particular emphasis on subscription-based models.