Sophos grows at more than twice market rate

September 30, 2002 Sophos Press Release

Number one European anti-virus developer sees 25% profit growth in 2001/2

Sophos, a world leader in corporate anti-virus protection, today announced financial results for the year ended 31st March 2002.

Highlights:

  • Turnover increased 40% to £31.6 million, from £22.6 million the previous year
  • Profit before tax grew 25% to £9.8 million (2001: £7.8 million)

Analyst group IDC expects the anti-virus market as a whole to grow at 15.3 percent annually between 2001 and 2006*. This year, Sophos's turnover grew at 40% - more than twice this rate. This demonstrates the company's continued success in capturing market share in the highly competitive anti-virus market.

The company has now enjoyed several consecutive years of impressive yet steady growth. Since 1994, Sophos has experienced compound annual turnover growth of 44% and compound pre-tax profits growth of 47%.

Contributing to this year's growth was new revenue resulting from Sophos's further expansion into international territories. In November 2001, Sophos opened a new office in Singapore, enabling the company to better target the lucrative Asia Pacific market. Sophos strengthened its European presence with the opening of a Milan-based Italian subsidiary in 2002.

In May 2002, Sophos announced that TA Associates had bought a minority stake in the company for £41 million (US$60 million). As part of the investment two TA senior executives have been appointed as non-executive directors of Sophos, one to the board of Sophos Plc and the other to the board of Sophos Americas. This second appointment will specifically help drive Sophos's US market activities.

Sophos has also achieved some high profile customer wins in the last year including AMP Group, Alliance and Leicester, Britannia, and the Football Association.

The company's achievements were also recognised with a number of prestigious awards. In the last year, Sophos has been named 'Company of the Year' at the CBI/Real Business Growing Business Awards and received two Queen's Awards for Enterprise in the categories of 'Innovation' and 'International Trade'. Sophos's anti-virus products have received accolades and certifications from independent testing bodies such as ICSA Labs, West Coast Labs, AV-Test.Org and Virus Bulletin as well as magazines including InfoWorld, Federal Computer Week, Network News and Le Monde Informatique.

"Our determination to remain tightly focused on the corporate anti-virus market and continue our aggressive global expansion strategy has paid off again this year," said Dr Jan Hruska, co-founder and joint CEO of Sophos Anti-Virus. "Our Queen's Award for International Trade is recognition that we are making major in-roads into overseas markets. This international success, together with our strong position in the UK market, provides a firm foothold as we continue to target the market share of our larger competitors."

In the UK, Sophos is investing in the future by building a new £32 million global headquarters alongside its existing offices in Abingdon, Oxfordshire. Completion is expected in early summer 2003.

*IDC Bulletin 27864 'Antivirus Software 2002: A Segmentation of the Market'.