Feeds

SurfControl dips into the red ahead of WebSense takeover

All under control

Choosing a cloud hosting partner with confidence

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
FYI: OS X Yosemite's Spotlight tells Apple EVERYTHING you're looking for
It's on by default – didn't you read the small print?
Russian hackers exploit 'Sandworm' bug 'to spy on NATO, EU PCs'
Fix imminent from Microsoft for Vista, Server 2008, other stuff
Edward who? GCHQ boss dodges Snowden topic during last speech
UK spies would rather 'walk' than do 'mass surveillance'
Microsoft pulls another dodgy patch
Redmond makes a hash of hashing add-on
'LulzSec leader Aush0k' found to be naughty boy not worthy of jail
15 months home detention leaves egg on feds' faces as they grab for more power
China is ALREADY spying on Apple iCloud users, claims watchdog
Attack harvests users' info at iPhone 6 launch
Carders punch holes through Staples
Investigation launched into East Coast stores
prev story

Whitepapers

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.
Cloud and hybrid-cloud data protection for VMware
Learn how quick and easy it is to configure backups and perform restores for VMware environments.
Three 1TB solid state scorchers up for grabs
Big SSDs can be expensive but think big and think free because you could be the lucky winner of one of three 1TB Samsung SSD 840 EVO drives that we’re giving away worth over £300 apiece.
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.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.