Feeds

SurfControl dips into the red ahead of WebSense takeover

All under control

Beginner's guide to SSL certificates

SurfControl announced improved sales but a dip into the red on Wednesday, in what's expected to be the censorware firm's last quarterly earnings report before the completion of its acquisition by Websense.

For its fourth quarter, which ended 30 June, SurfControl brought in revenues of $33.9m, up 23 per cent on sales of $27.6m for the same quarter last year. Pre-tax loss for Q4 2007 came in at $6.2m, compared to profits of $0.5m for Q4 2006.

SurfControl recorded a loss due to one off charges of $4.2m and a decline in gross margins. On the plus-side, on-demand service and product billings almost doubled during the quarter, rising 97 per cent, as revenues from straightforward software licensing slipped four per cent. SurfControl bought into the market for delivering services via the internet with its July 2006 acquisition of email and virus filtering firm BlackSpider.

The firm also launched a web filter appliance during the quarter, further underlining its determination to switch away from traditional software licensing. OEM and appliance billings for the quarter grew 94 per cent and 170 per cent respectively.

SurfControl is also increasingly working through the channel - 79 per cent of all billing is now done via a channel partner, up from 65 per cent in the fourth quarter of 2006. The firm, which started life in Macclesfield, near Manchester - like lanky Liverpool front man Peter Crouch - achieved its long cherished ambition of booking half of its revenue in North America.

The company is in the process of changing its reporting period so its financial year ends on 31 December. For the year ending June 2007, SurfControl made a pre-tax loss of $9.4m compared with a profit of $0.7m in the preceding year.

SurfControl's results came in in-line with market expectations and its shares remained steady at around 686p. Next week SurfControl shareholders will vote on a friendly takeover of the firm by net security giant Websense.

Earlier this year, SurfControl's board recommended a 700p per share offer for the company from WebSense. Pending the agreement of shareholders, and regulatory approval, the deal is expected to complete in early October. ®

Beginner's guide to SSL certificates

More from The Register

next story
Knock Knock tool makes a joke of Mac AV
Yes, we know Macs 'don't get viruses', but when they do this code'll spot 'em
Shellshock over SMTP attacks mean you can now ignore your email
'But boss, the Internet Storm Centre says it's dangerous for me to reply to you'
Why weasel words might not work for Whisper
CEO suspends editor but privacy questions remain
Feds seek potential 'second Snowden' gov doc leaker – report
Hang on, Ed wasn't here when we compiled THIS document
DEATH by PowerPoint: Microsoft warns of 0-day attack hidden in slides
Might put out patch in update, might chuck it out sooner
China is ALREADY spying on Apple iCloud users, claims watchdog
Attack harvests users' info at iPhone 6 launch
NOT OK GOOGLE: Android images can conceal code
It's been fixed, but hordes won't have applied the upgrade
prev story

Whitepapers

Cloud and hybrid-cloud data protection for VMware
Learn how quick and easy it is to configure backups and perform restores for VMware environments.
Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Saudi Petroleum chooses Tegile storage solution
A storage solution that addresses company growth and performance for business-critical applications of caseware archive and search along with other key operational systems.
How to simplify SSL certificate management
Simple steps to take control of SSL certificates across the enterprise, and recommendations centralizing certificate management throughout their lifecycle.