StockMarketWire.com - Cybersecurity company Sophos reported a healthy increase in both profit and revenue, primarily driven by increased subscription revenue, despite experiencing a "challenging" year.

Pre-tax profit increased to $54m for the year to 31 March 2019, from a pre-tax loss of $41m the previous year, while total group revenue jumped 11.2% to $711m, driven by a 15.9% increase in subscription revenue.

"FY19 was a challenging year, primarily due to a difficult compare. However, we are pleased with the strategic progress we made during the year as we drive Sophos' transition to be a market leader in next-generation cybersecurity," the company said.

"The demand environment for cybersecurity 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," CEO Kris Hagerman added.

"We believe the drivers are in place for continued future revenue growth, principally driven by growth in our subscription business, especially in our next-generation products. We also expect a return to operating profit margin leverage, following a reduction in the current year as the one-off benefit seen in FY19 from reduced variable performance-related pay unwinds," he added.

Sophos said it also continued to see healthy growth in its customer base, closing the year with over 335,000 term customers, having added more than 35,000 net new term customers over the year.




At 8:41am: [LON:SOPH] Sophos Group Plc share price was +45.9p at 385.9p



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