Losses and sales up, shares down at Sophos
Cyber-security firm expects growth to continue
Losses at London Stock Exchange-listed Sophos have gone up despite increasing sales.
For the six months up to 30 September, revenues were $256.9m (£207.4m) compared to $234.2m in the same period a year ago. Losses, however, widened from $13.4m to $24.6m on rising R&D costs and more recurring business.
Unified Threat Management and Sophos Central cloud management platform revenues both improved. Senior execs at the cyber-security firm gave an upbeat assessment for the rest of FY17.
"We continued to outgrow the IT security market, supported by a strong demand environment in our target market, industry-leading technology, the quality and reach of our extensive partner channel, the consistency of our operational execution, and the strength of our financial model, where we benefit from high levels of recurring subscription business," said Sophos CEO Kris Hagerman in a statement.
"As we enter the second half of the fiscal year we expect continued strong growth, in particular as we benefit from key new product releases in next-generation endpoint and next-generation firewall, and the continued momentum of our Sophos Central cloud management platform."
Sophos is projecting revenue growth in the mid-teens for its FY 17, which closes on 31 March. Shares in Sophos fell back from £233 to £225.80 with confirmation of the half-year results. ®