(Alliance News) - Sophos Group PLC on Wednesday said it swung to a first half loss despite rising revenue, after incurring legal and restructuring costs.
The cybersecurity company, which is the object of an agreed GBP3 billion takeover offer from US-based private equity firm Thoma Bravo LLC, parted with USD14.3 million in exceptional costs, compared with a USD5.5 million gain in the first half of last year.
Sophos explained: "The current period expense arose as a result of restructuring costs, legal costs, and legal and professional fees incurred in connection with a review of apparent non-compliance with certain regulatory matters pertaining to the use of some of the group's products in certain overseas territories."
In the six months to September 30, the FTSE 250 constituent reported a pretax loss of USD1.5 million, compared with last year's interim profit of USD26.0 million.
Revenue climbed by 4.7% year-on-year to USD365.8 million from USD349.5 million, helped by growth in the Americas. Total billings rose by 5.5% to USD372.0 million from USD352.7 million.
Revenue in the Americas rose by 8.7% to USD133.8 million from USD123.1 million last year. There also was growth in the Asia-Pacific Japan region, by 5.0% year-on-year, to USD48.1 million from USD45.8 million.
In Europe, Middle East & Africa, revenue rose 1.8% to USD183.9 million from USD180.6 million.
Sophos proposed no interim dividend, nor will it pay one at the conclusion of its financial year. The firm said this was due to the USD7.40 per share offer from Thoma. Last year, Sophos made an interim payout of 1.5 cents per share.
Sophos shares were 0.2% lower at 571.00 pence each in early trading on Wednesday morning in London.
The company said: "We made further progress in our transition to next-gen cybersecurity. billings from our next-gen portfolio increased by 40% in the first-half of the year and now account for 56% of total group billings."
Sophos agreed to the Thoma takeover in October.
At the time, Chair Peter Gyenes said: "It is the view of the Sophos board this is a compelling offer for Sophos shareholders which secures the delivery of future value for shareholders today. Thoma Bravo has deep sector expertise in cybersecurity software as well as a long and successful track record of partnering with and investing in its portfolio companies to support long-term growth and success.
"Under Thoma Bravo's ownership, we expect Sophos to accelerate its evolution and leadership in next-generation cybersecurity. The Sophos board believes this recommended offer delivers a significant opportunity for all stakeholders, our shareholders, customers, partners, and employees."
By Eric Cunha; ericcunha@alliancenews.com
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