StockMarketWire.com - Cybersecurity Group Falanx said Wednesday losses narrowed in the first half of the year, but professional services revenue growth was hurt by costs relating to integrating the acquisition of First Base.

For the six months ended 30 September, losses narrowed to £0.71m from £0.85m a year earlier and revenues grew by 57% to £2.2m.

First half revenues were slightly lower than the company's original internal expectations as the cost of integrating been the integrated the trade and assets of First Base hurt professional services revenues.

'As a result of fully integrating the business into the Group there was some impact on staff utilisation, with a consequent impact on revenue in the period. This has since recovered and the business is performing in-line with management's expectations,' the company said.

Monthly recurring and managed services revenues increased from £0.19m to about £0.25m owing to growth in monitoring contract wins and the acquisition of SecureStorm and its managed services contracts.

'We have regained strong momentum in our existing business activities during the second half. With the addition of the SolarWinds opportunity, the Directors expect this growth to be maintained into the next financial year,' the company said.


At 10:09am: [LON:FLX] Falanx Group Plc share price was -0.1p at 2.95p



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