Micro Focus' share price plummeted by over 30 per cent today after the British software vendor revealed it would miss revenue guidance.
In a trading update, Micro Focus said that it would not hit constant currency guidance of a year-on-year decline of between four and six per cent in its fiscal year.
The firm said that "weak sales execution" has been compounded by a "deteriorating macro environment" which has led to longer decision-making times from buyers.
CEO Stephen Murdoch said that poor performance has triggered an assessment of the business.
"Following the recent disappointing trading performance, we have determined that it is appropriate to accelerate the undertaking of a strategic review of the group's operations with a view to determining where performance can be improved and how the business can be better positioned to optimise shareholder value," he said.
"We are fully committed to meeting the needs of our customers through the ongoing delivery of innovation within our exceptional product portfolio.
"While the review is taking place, management will continue to drive previously targeted improvements in business performance and execute the operational initiatives already in place."
Micro Focus' share price fell as much as much as 31 per cent today. However, its price is still up over 12 per cent compared with the start of the year, but down more than a quarter on its peak in July.
The software firm said the strategic review would focus on what is required to "optimise the value of our broad portfolio of products and it will consider a range of strategic, operational and financial alternatives available to the company".
Micro Focus has endured a troubling couple of years since it completed the acquisition of Hewlett Packard Enterprise's software division.
Last March it saw half of its valuation wiped out in one day after posting a sales warning.
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