18th Jan 2019 07:42
LONDON (Alliance News) - Sophos Group PLC on Friday said it swung to a profit for the first nine months of its financial year, on the back of double-digit growth in revenue.
The FTSE 250-listed cyber security firm said operating profit for the three months to the end of December swung to a profit of USD23.9 million from a loss of USD1.6 million for the same period the year before.
For the nine-month period, operating profit was USD51.9 million, swinging from a loss of USD24.7 million.
On an adjusted basis, operating profit more than doubled to USD33.1 million from USD16.5 million for the quarter. For the nine month period, adjusted operating profit likewise more than doubled to USD83.0 million from USD32.3 million.
The rise in profit was driven by revenue growth, which in turn was fostered by subscriptions growth.
Revenue for the third quarter was USD178.0 million, up 7.3% from USD165.9 million the year before. For the nine-month period, revenue grew by 14% to USD527.5 million from USD462.7 million.
Billings, however, struggled to rise, dipping in the third quarter by 0.6% to USD193.7 million from USD194.8 million, due to declines in new customers and hardware billings.
For the nine-month period, billings rose by 1.9% to USD546.4 million from USD536.3 million, however Sophos expects annual billings to decline on a constant currency basis, as trends continue into the fourth quarter.
"Sophos remains strongly positioned from a technology, product, and strategic perspective. We are confident in our strengthening product platform and how it positions us for the future," said Chief Executive Kris Hagerman.
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