Frankfurt The Linux software provider Susan lowered its order forecast for the current financial year again on Thursday due to the gloomy economic prospects. Investors then fled, causing the stock to plummet 30 percent to a record low of $12.
Suse now expects annualized contract value (ACV) growth of around ten percent in its core business, after previously aiming for growth in the mid-teens percentage range. Suse had already lowered this forecast in July. In the business with up-and-coming software solutions, the group is now assuming an increase of around 20 instead of 50 percent.
Traders pointed to the repeatedly lowered order forecasts as the reason for the falling share. In addition, the free flow of capital was disappointing. Chief Financial Officer Andy Myers was hopeful: "While we see short-term implications for our ACV, I remain confident that we can capitalize on our market opportunities and meet our mid-term guidance."
Suse: Targets for adjusted Ebitda margin confirmed
He confirmed the targets for adjusted sales and adjusted operating return on sales (Ebitda margin) for the 2021/2022 financial year. In the third quarter, which ended in July, sales rose by 13 percent to EUR 171.2 million.
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The adjusted operating result (Ebitda) increased by 18 percent to 65.1 million euros. However, the annualized contract value in the core business fell by eight percent, while growth of 21 percent was recorded in the emerging business. There was also a headwind from the strong dollar.