12 December 2017
visit http://response.ncr.com

NCipher slips on Q1 losses

08 June 2006  |  3367 views  |  0 graph 2

Shares in UK encryption technology vendor nCipher slumped in morning trading after the company said disruption caused by SafeNet's aborted takeover offer had hit first quarter sales and could impact full year revenues.

NCipher stock fell 8.30%, or 17.50 pence to 192.50 pence after the firm reported operating losses of £0.6m for the three months to 31 March, compared to profits of £0.2m a year ago. But on a more positive note, nChiper says first quarter revenue rose 32% to £5.1m, compared to £3.9m a year earlier.

IT security company SafeNet abandoned its takeover bid for nCipher after the proposed acquisition was referred to Britain's Competition Commission.

In a statement, nCipher CEO Alex van Someren, blamed the the first quarter loss on distruption caused by the abandoned bid.

He says the aborted offer delayed the firm's plans to complete the integration of its Abridean acquisition. The operating costs associated with Abridean along with significant one-off professional costs associated with the SafeNet offer, have impacted profitability during the quarter. Furthermore, the firm has continued to invest in the business during the quarter to facilitate future growth, which has increased overheads accordingly.

Van Someren also warned that disruption caused by SafeNet's abandoned bid could hit revenues during the rest of the year: "As a result of SafeNet's aborted offer we have noted some disruption to our sales pipeline which may impact revenues during the balance of the year, and we expect to take steps to control the company's overheads accordingly."

nCipher also says that chairman Ossama Hassanein is retiring from the board following his relocation to Silicon Valley.

Chief operating officer and EVP, finance Ian Smith is also resigning from the board and will be succeeded by Kenneth Prenty who joins the vendor as chief financial officer and company secretary.

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

SafeNet drops nCipher takeover bid

SafeNet drops nCipher takeover bid

07 April 2006  |  3951 views  |  0 comments
SafeNet to acquire nCipher

SafeNet to acquire nCipher

08 February 2006  |  3800 views  |  0 comments
NCipher rises on bid speculation

NCipher rises on bid speculation

24 January 2006  |  3348 views  |  0 comments

Related company news


Related blogs

Create a blog about this story (membership required)
visit www.aciworldwide.comvisit www.solutions.lexisnexis.comvisit http://info.nice.com

Top topics

Most viewed Most shared
Saxo Bank's 'Outrageous Prediction': Bitcoin to peak at $60k next year before spectacular crashSaxo Bank's 'Outrageous Prediction': Bitco...
11771 views comments | 7 tweets | 7 linkedin
Deutsche Bank paper hails 'huge' blockchain potentialDeutsche Bank paper hails 'huge' blockchai...
8609 views comments | 15 tweets | 21 linkedin
Santander UK poaches Barclays innovation chief Michael HarteSantander UK poaches Barclays innovation c...
7055 views comments | 8 tweets | 17 linkedin
Alior Bank to use Open API platform and accelerator to create fintech marketplaceAlior Bank to use Open API platform and ac...
6770 views comments | 20 tweets | 11 linkedin
PSD2: Laying the regulatory foundation for a new age in paymentsPSD2: Laying the regulatory foundation for...
6609 views comments | 17 tweets | 35 linkedin

Featured job

to £70K base, £105K ote, benefits
London, UK

Find your next job