Shares nosedive at security firm

SOPHOS shares tumbled yesterday after the cybersecurity firm warned that “subdued” trading would drag into the fourth quarter.

In a stock market update, the company said it experienced a decline in billings from new customers, as well as a decline in hardware orders in the third quarter to December 31, adding that the final three months of the year would see a similar trend.

Constant currency billings grew two per cent in the third quarter and were up two per cent for the nine-month period, but total billings in the three months to December declined 0.6 per cent to 193.7 million US dollars.

FTSE 250-listed Sophos said the lacklustre figures were dragged down by challenging comparatives last year and warned that constant-currency billings for the full year would see a “modest decline”.

Shares tumbled more than 25 per cent in morning trade to 282p following the update.

Boss 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.”

Sophos posted operating profit of $23.9m in the third quarter, which compares with a loss of $1.6m in the same period last year. Third-quarter revenue rose 7.3 per cent to $178m.