Sophos flags up 'modest decline' in performance

Sophos is predicting a 'modest decline' in its full year financial performance after posting third quarter results that showed a 1% fall in year-on-year billings to $194m for the three months ended 31 December. 

This led to a fall in the company's share price this morning by up to 24%.

A previous soft second quarter also saw the share price substantially fall, which is why Sophos is now worth less than half as a company compared to what it was in August 2018.

The security hardware, software and services firm had previously said that 2018 would be tough in terms of year-on-year comparisons, as it received an enterprise customer upgrade boost following the widespread WannaCry attack in May 2017.

Sophos management are now predicting a bounce back in the 2020 results.

There was a further sequential improvement in the renewal rate among existing customers in the third-quarter by 122%, but this was offset by a modest decline in billings from new customers as well as a decline in hardware billings.

“We now expect the trends in the third quarter to generally continue into the fourth quarter, which would result in a modest decline in full-year constant currency billings,” said the vendor, which mainly sells its wares through the channel.

Kris Hagerman, Sophos CEO, stated: "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."

Related Topics

Share this story