Operating losses at security software firm Sophos have grown in its first year as a listed company – despite increased sales and an encouraging outlook overall.
For the year-ending 31 March 2016, Sophos recorded an operating loss of $32.7 million on revenues of $478.2m. This compares to a loss of $0.5m on revenues of $446.7m for FY15.
Exceptional items of $41.9m, particularly costs associated with the initial public offering of the firm’s shares in July 2015, pushed Sophos into the red. Its underlying figures remain healthy with billings up 12.4 per cent from $476.0m in FY15 to $534.9m in FY16.
Sophos is upbeat that its recently introduced Sophos XG Firewall, tech that shares security intelligence with endpoint anti-malware software, and its push in security as a service will help it to grow sales.
The Sophos board expects “mid-teens percentage billings growth on a like-for-like basis” for FY17. How this is predicted to map into revenues and profits next year wasn’t specified in a results statement.
Sophos’ share price reached a peak of £236 in early trading on Thursday before falling back to £227, still up around 1 per cent on its Wednesday closing price of £225. ®