Sophos shares plunge 15pc as profit falls

Network security solutions provider Sophos (LON:SOPH) saw shares fall nearly 15 percent in early trading on Thursday morning, after releasing a trading statement for the 9 months to 31st December.

The group’s operating profit fell 19.6 percent during the period, falling to $30.4 million. Billings increased by 21 percent, with the group’s business driven by its Sophos Central and Enduser Security businesses.

Group revenue saw a rise over the period, up by 19 percent, pushed up by a 23 percent rise in subscription revenue.

Kris Hagerman, chief executive officer, said: “The strong demand for our industry-leading cybersecurity solutions continued in Q3. Customer reaction to XG Firewall v17 has been very positive, and we are delighted to have recently launched a major new release of Intercept X, incorporating for the first time our neural network-based deep learning technology into our leading endpoint product.”

Looking forward Hagerman remains confident, adding: “As our business continues to post strong growth the board is confident both in the outlook for the full-year and the longer-term prospects of the group.”

Shares in Sophos are currently trading down 14.72 percent at 530.00 (0907GMT).