Cyber security firm Sophos’ shares soar on surprise earnings
Shares in London-listed global cyber security firm Sophos soared on Thursday after the company reported a surprise rise in annual earnings.
Sophos shares were trading more than 12.8 per cent higher at £3.83 midmorning.
The antivirus and encryption software maker said revenue came in 11.2 per cent higher than last year at $710.7m. Adjusted operating profit rose 87 per cent to $109m from $58.3m last time.
The surprise upside in earnings came after the firm said earlier this year that full year earnings may be subdued.
"Despite the challenges we faced in FY19, we are pleased with the strategic progress we made during the year”, said Chief Executive Officer, Kris Hagerman.
“The demand environment for cyber security solutions continues to be robust, and we are confident that we are well positioned competitively, especially as more organisations move to adopt next-generation cybersecurity offerings.
"Increasingly, organisations of all sizes are looking for cloud-native solutions, centralised administration, integrated products, AI-powered protection, openness, and a service-oriented approach to security.
“Our next-gen solution set and strategy align well with these demands and have helped Sophos deliver strong growth in subscription revenue and customer count.
“We have become a leader in the next-gen cyber security market, and we are excited about the road ahead."
The company, which was originally founded in Oxford, also rewarded patient investors with a final dividend of 3.7 cents per share, an increase of six per cent over last year. This means a total dividend for the year of 5.2 cents, an increase of six per cent.