Tag: sophos

US firms are at the centre of cybersecurity buy out blitz

Beancounters at GlobalData have added up some numbers and concluded that American companies remained the most active investors in the cybersecurity technology space.

Of the top five acquirers in terms of the number of acquisitions, the top three were headquartered in the US, with the UK-based Sophos and Canadian firm Blackberry also featuring among the top five.

The three American companies, Symantec, Palo Alto Networks and Proofpoint, undertook seven acquisitions each in the cybersecurity space during 2014–2018, while Sophos acquired six companies and Blackberry acquired five companies during the period.

Sophos takes Rook

Sophos has acquired US-based Rook Security to provide managed detection and response (MDR) to its channel partners.

Rook was founded in 2008 and is headquartered in Indianapolis. Sophos said the acquisition adds to its recent deal for DarkBytes, which was announced in January.

Joe Levy, chief technology officer at Sophos, said: “Cybercriminals are relentlessly trying to exploit organisations with techniques ranging from tried-and-true phishing emails to the more recent trend of ‘hacker pen-testing’ to find weaknesses in their surface area.

Sophos sees sales hike

sophos-HQChannel-based Security outfit Sophos has announced annual results which saw its annual sales hiked by more than a fifth.

The company grew revenues by 21 percent to $641 million in the year to 31 March 2018, with billings hiking by 22 percent to $769 million.

Sales of Sophos Central more than doubled, from $88 million to $186 million and its subscription renewal base has now breached the $1billion mark.

CEO Kris Hagerman said that 2018 was a “strong year” as the company continued to take share in the market,.

“We execute a differentiated strategy of delivering advanced and highly-effective cybersecurity solutions designed to be simple to use, managed in the cloud, and sold 100 percent through our channel partners”, he said.

Some of this is a general improvement in the security industry.  Gartner said that total global IT security spending vaulted 8.4 percent last year to reach $89.1 billion, but some of it might be because Sophos is scoring sales off its rivals.

Sophos’ adjusted operating profits nearly matched revenues by rising 20 percent to $46 million. However it was not all good news – the firm posted a pre-tax loss of $52 million on the back of foreign exchange losses.

Hagerman added: “We have a massive market opportunity in front of us, and our strong and growing subscription base and growth in new customers, combined with our next-generation technology in endpoint and firewall and our Sophos Central cloud platform, position us well for FY19 and beyond.”

Sophos trains for Phishes

imagesSecurity outfit Sophos has announced the expansion of its Sophos Phish Threat phishing attack simulator and training software to Europe and Asia which will be made available through its partners.

It has enhanced dashboards and new analytics to track organisational risk and employee performance and is alleged to simplify a key part of an organisations security strategy – employee awareness and training.  It can choose from hosting locations in Ireland, Germany or the US – organisations worldwide can now access multi-language, interactive security training from within the Sophos Central security management platform.

More than 41 percent of organisations see a phishing attack daily, and  employee training remains critical to maintaining efficient security.

Sophos Phish Threat automates the entire training process and provides visual analytics for identifying vulnerable employees. As the only security awareness training program from a leader in IT security, it can be managed alongside email, endpoint, and network security from one console for improved, risk management and incident response.

Senior vice president and general manager for the Sophos Messaging Security Group Bill Lucchini, said that human behaviour is a critical element of cybersecurity yet 62 percent of companies don’t train employees to recognise phishing attempts.

“SophosLabs sees malware on up to 77 percent of blocked mail. Creating a culture of security and data protection awareness has risen in priority with the greater risk of email born ransomware and the planned introduction of new legislation such as GDPR. Employees have to be responsible for the way they handle data and how to spot a phishing attack should be part of their training. Phish Threat builds greater employee awareness by creating suspicious emails using known techniques, successful spoofs, and contemporary examples. In fact, after just four Phish Threat simulation training emails, the average organisation reports a 31 percent reduction in employee susceptibility.”

Phish Threat enables IT managers to identify susceptible employees and manage relevant real-world phishing email simulations to deliver more efficient training sessions from within Sophos Central. Attack templates and training are available in nine languages and continuously updated based on Sophos’s global awareness of current threats. When errors are made, individuals are automatically given corrective training to learn from their mistakes. Phish Threat also provides the analytics and reporting metrics to allow tracking and measurement of overall business risk and security posture at an organisation or individual level. With benchmark data available on employee phishing susceptibility against global norms, training can be fully tailored, and data can be used to enhance security policy across Sophos Central to deliver a multi-layered security strategy against phishing and social engineering attacks.

Pricing and availability details have been passed to Sophos Partners.

Sophos sees share price slide

panda-slideCybersecurity vendor Sophos saw its share price slide by 18 percent this morning, despite posting what its CEO described as “strong growth”.

For the last quarter, Sophos saw its revenue jump 23.4 percent year on year to $166.4 million, but operating profit swung from $1.7 million to a $2.8 million loss.

Sophos CEO Kris Hagerman said: “The strong demand for our industry-leading cybersecurity solutions continued in Q3.

“Customer reaction to XG Firewall v17 has been very positive, and we are delighted to have recently launched a significant new release of Intercept X, incorporating for the first time our neural network-based deep-learning technology into our leading end-point product.

“Consequently, as our business continues to post strong growth, the board is confident both in the outlook for the full year and the longer-term prospects of the group.”

The positive outlook from Hagerman was not enough to prevent the share price slump, with Hargreaves Lansdown claiming that the drop could be a result of weaker than expected billings, as well as weaker cash flows.

Sophos’ subscription billings were up 20 percent in Q3, while cash flow from operations declined 2.2 percent year on year to $17.5m.

“Unfortunately, despite remaining on track to hit expectations for the full year, the third quarter didn’t back up the strong first half”, Hargreaves Lansdown said.

“Billings were up, but not as much as had been expected, and the group’s cash flow also disappointed the market. The shares duly dropped sharply.

“However, those weaker cash flows were due in part to the investment being pulled forward from Q4 to Q3. With this in mind, we’re willing to give it the benefit of the doubt for now but will be looking for a notable uptick in the final quarter of the year.”

Sophos XG Firewall named industry best

20b7df6ac4126abec881b06f11863252--westminster-dog-show-winnerNSS Labs has rated the Sophos XG Firewall as one of the highest performing firewalls in the industry in its most recent Next-Generation Firewall Group Test Report.

The XG Firewall was “Recommended” as one of the top three products for security effectiveness. It passed all stability and reliability tests, offering some of the highest levels of protection and performance at great value.

The NSS Labs evaluation included 11 market leading next-generation firewalls which were rated for security effectiveness, performance, stability and reliability, and total cost of ownership (TCO).

The Sophos XG Firewall out-performed many other market-leading products across the stringent test criteria, placing it amongst the top-ranks of the seven products that also earned the NSS Labs ‘Recommended’ rating.

NSS Labs Thomas Skybakmoen said: “We continue to develop and maintain rigorous testing standards to reflect enterprise defenses that are constantly being challenged by attackers and adopting new evasion techniques at a record pace. The Sophos XG Firewall has executed well in this evaluation with high levels of security effectiveness and zero false positives.”

A copy of the NSS Labs Next-Generation Firewall Test Report for the Sophos XG-750 Firewall and the associated Security Value Map (SVM) graphic, which plots all vendors included in the evaluation are available from the Sophos website.

Released in December 2016, the latest version of the next-generation Sophos XG Firewall added significant new features including:

Sophos will continue to empire build

Pro-empire-enlist-today-he-needs-youSophos has been buying companies like crazy and it is starting to look like more spending is on the way.

Sophos acquired machine-learning security start-up Invincea for $100 million in February, following takeovers of Barricade IO, Mojave Networks, SurfRight and Cyberoam.

CEO Kris Hagerman, has hinted that other purchases are certain to happen.

In recent interviews Hagerman has hinted that the industry should expect more M&A activity in next few years.

He said that there was not an acquisition policy, as the outfit is committed to innovating and spends a lot on R&D.

The idea was to have a mix of organic development and every now splurge on some targeted M&A to help enhance or accelerate Sophos’ own efforts.

Sophos has acquired half a dozen companies over the last four or five years – it’s probably reasonable to expect something in a similar zip code over the next few years, he said.

Security vendors are happy about WannaCry

drama-masksSecurity companies have seen their share prices rise sharply amid expected increase in spending on IT security after the WannaCry hack

The ransomware attack that disrupted the NHS and businesses around the world has led to a boom in share prices of cybersecurity companies – even the firm used by the health service to protect it against hackers.

Governments and companies expected to increase spending on IT security after being caught out by the attack, cybersecurity firms have seen their stock market values climb sharply over the past two days.

Sophos, a cloud network security specialist which counts the NHS among its clients, have jumped by about eight percent. Of course, it had to make a few changes. The claim on the company’s website that “the NHS is totally protected with Sophos” was changed to “Sophos understands the security needs of the NHS”.

Last week, the company tweeted its “top five tips for securing NHS organisations”. But its shares have been performing well over recent months because of the increased need for cyber defences.

NCC group added five percent to its share valuation and cyber consultancy group ECSC surged 42 percent. ISE, a fund invested in cybersecurity businesses, added nearly four percent.

All this is because corporates have suddenly woken up to the fact that they need to spend some cash on IT security and it is probably a daft idea to keep all those Windows XP machines running for the great unwashed while top execs get Microsoft Surfaces.

Sophos already gives services to the healthcare industry and is looking to increase selling to the sector in the aftermath of the attack.

FireEye’s prices have risen seven percent, Symantec up more than three per cent and Palo Alto Networks 2.7 percent.

The success of the WannaCry hack could make other attacks more likely in the future amid doubts over governments’ ability to secure “cyberweapons” from theft.

Sophos improves revenue but makes more losses

sophos-HQUK insecurity outfit  Sophos today reported its interim results which showed that while revenues continued to rise, losses also widened.

Revenue increased to $256.96 million in the six months, up from $234.2 million in the same period last year. Sophos said its billings were up 15 percent while new customer billings were up 20 percent.

That still meant that it had an operating loss of $24.6 million which was an increase from $13.4 million from last year.

Sophos blamed the increased losses on investment into R&D, as well as a continued shift towards subscription-based billing.

Investors appeared largely satisfied first six months of results. The share price crept up by one percent today to 235 pence per share.

Kris Hagerman, chief executive officer said that he was pleased with Sophos’ first half results. They were in-line with Sophos’ outlook, and he was especially pleased with our cash flow performance which was ahead.

“As we enter the second half of the fiscal year we expect continued strong growth, as we benefit from key new product releases in next-generation endpoint and next-generation firewall, and the continued momentum of our Sophos Central cloud management platform,” Hagerman said.

For the year-ending 31 March 2017, the firm said that it expects to deliver mid-teens revenue growth whilst delivering ‘modest’ cash EBITDA margin expansion.

 

 

Sophos dumps support for Quadsys

sophos-HQSophos has ended its relationship with security reseller Quadsys after five of its staffers, including three directors of the company, were sentenced for offences committed under the Computer Misuse Act.

Some vendors were quick to terminate their dealings with Quadsys the moment the arrests were announced but Sophos continued to recommend that customers buy their security software from the reseller.  In fact the insecurity outfit  promoted Quadsys to a Platinum Partner just nine days after the five entered their guilty pleas.

Sophos said that the reason it hung on to Quadsys  for so long was that it was waiting for the full facts of the case to be known and the case was over. Now everything is in the public domain, Sophos feels a bit more confident in ending its business relationship with convicted crims.

It has called on any Sophos users who have the deal with Quadsys, who are worried, to give them a ring and they will explain what it all means.

Quadsys staff were arrested after Sensitive data, including pricing information, was stolen from a rival security reseller.

Sophos sees shares jump

David-Lee-Roth-JumpOxfordshire security outfit Sophos has seen its shares jump after its sales figures for its first financial year as a publicly traded company shot through the roof.

Shares in Sophos went up by four per cent after it announced its first set of financial results as a publicly traded company. The security company floated on the London Stock Exchange last year and has drifted into billings growth of 19.7 per cent to $534.9 million in the 12 months ended March 31.

Cash earnings before interest, taxation, depreciation and amortisation were up 31.6 per cent, to $120.9 million.

Sophos chief executive Kris Hagerman said that he was jolly pleased of the outfit’s strong performance during our first year as a public company.”

“The year has been marked by sustained strength across all major regions and product categories, with our financial and operational performance exceeding the Board’s expectations set at the start of the year and at the upper-end of our revised outlook.

“Our leading product portfolio, innovation to drive our strategy of synchronised security, commitment to ‘security made simple’ and ‘channel first’ sales strategy enabled us to grow our billings and revenue across both new and existing customers,” he added.

 

Quadsys court case gets closer

External-SignA Crown court judge has dismissed an abuse of process application made by three former directors of Sophos reseller Quadsys, who are facing trial over allegations of hacking into a rival’s database to steal customer and pricing info.

Thames Valley Police charged five men at Quadsys including owner Paul Streeter, Managing Director Paul Cox, director Alistair Barnard, account manager Steve Davies and security consultant Jon Townsend with conspiracy to commit fraud by false representation.

In a plea and case management hearing (PCMH) in March, the defendants pleaded not guilty to one count of securing unauthorised access to computer material with intent, contrary to section 1 of the Computer Misuse Act 1990. Another count of securing unauthorised access to computer material without intent was also added.

Streeter, Cox and Barnard had asked the judge presiding over the case at the PCMH several months ago to throw out the charges relating to Section One of the Computer Misuse Act, which carry a minimum sentence of five years if guilt is proven.

Three applications were refused by the judge but no reasons were given.  The five will face trial on 5 September.

Sophos axes jobs

axeSophos is rumoured to be grinding the axe for another round of job cuts.

According to The Next Web around 150 people will be handed their pink slips as the company moves to restructure and focus on its highest growing and strategic business arms.

Although Sophos would not confirm the number, it hinted that the rumours were more than a whisper with a spokesman telling the Next Web that it was in discussion with those affected employees. It said some could also be given a lifeline and shifted into other roles.

“While it is difficult to make any reductions in our team, we are confident these actions will help to drive our long-term success, and allow us to drive greater value for our customers and partners,” Sophos said in an earlier statement.

It follows a similar round of job cuts in September last year, when 35 employees were expected to lose their jobs.

The axe grinding comes as Sophos announced job cuts earlier this year.

Sophos about to shake up its channel again

sophos-HQNew broom at insecurity outfit Sophos, Michael Valentine, has warned that he plans to shake up the company’s channel, just 24 hours after he first put his bottom on his seat.

Valentine has just started his job as Sophos’ senior veep and will manage the global channel programme. He wants to apply his own philosophy to the company’s channel, with subtle changes aimed at reigniting business, particularly in the US and Canada.

He thinks that Sophos needs to attract new partners, particularly if it wants to get money out of the US which has been a lacklustre market.

Talking to CRN in the US, Valentine said that the North American space is where Sophos was doing the least amount of business, and the gap is absolutely huge. Sophos has the product set and the new management allowed to run it and it needs an enriched channel program, he claimed.

In addition to antivirus software, Sophos’ endpoint security platform provides software for encryption, vulnerability monitoring, data loss prevention and mobile device management. It also has unified threat management appliances and firewalls to sell following the acquisition of Astaro in 2011.

Valentine said it was too early to provide any details on changes to the Sophos partner program, but he wants to strengthening Sophos’ three-tiered program with additional support and attention to partners.

This will be yet another shake-up for the Sophos Solution Provider Partner Programme which was rejigged under Emmanuelle Skala, vice president of global channels. There is also a new redesigned partner portal also provides deal registration, product and promotion information.