Tech firm Sophos Group has had disappointing results as the company’s earnings fell eight per cent for the nine months to 31 December to $104m from $113m the previous year.
Operating profit was up to $23.9m along with revenue to $178m, cashflow was up by 6.9 per cent to $18.7m.
Sophos chief executive, Kris Hagerman said, “Sophos remains strongly positioned from a technology, product, and strategic perspective. We are confident in our strengthening product platform and how it positions us for the future.”
Equity analyst at Hargreaves Lansdown, Nicholas Hyett said, “There are a lot of problems in this announcement, not least the fact that management guidance once again has proven overly optimistic.
“The networks business looks like it’s running into real problems and while there’s some positive noises on recent product launches, there’s little in the numbers to back that up.
“Our real concern is that repeated cuts to guidance. Little in the way of explanation raises serious questions about management’s grip on the business and has perhaps irreparably damaged the group’s credibility with investors.”