Profit Warning: Ssh Communications Security Corporation Lowers Its 2019 Revenue Estimate

 
TIDMSSH1V 
 
 
   SSH Communications Security Oyj, stock exchange release, November 12, 
2019, 21:00 EEST 
 
   Profit Warning: SSH Communications Security Corporation lowers its 2019 
revenue estimate 
 
   SSH estimates that its revenue from the software business (software fees, 
professional services, and recurring revenue) will decrease somewhat 
compared to 2018 level. 
 
   Main reasons for the lower than expected revenue include: 
 
 
   -- We estimate that our professional services revenue will decrease more 
      than anticipated (approximately EUR 1 million) compared to 2018. We 
      concluded several large professional services engagements at the end of 
      2018, and new engagements have been smaller in 2019. 
 
   -- The weakening of the Euro compared to the US Dollar has a negative impact 
      on revenue at comparable exchange rates. 
 
   -- Start of sales in the NQX(R) business is further delayed -- although we 
      have received clear indications of interest in the product, lengthy 
      procurement processes postpone the start of significant sales to 2020. 
 
 
   Despite the decrease in revenue, our future outlook remains positive: 
our recurring revenue has grown, and the volume of software 
subscriptions has increased, which provides a good foundation for future 
growth. Furthermore, we have in 2019 achieved several new Universal SSH 
Key Manager(R) (UKM) customer wins, which we believe will lead to 
expansion orders in 2020. We are making progress in our PrivX(R) 
business across all geographic regions. We also estimate that the NQX 
business will start creating revenue in 2020. 
 
   The new guidance is: 
 
   For the year 2019, we expect the revenue from our software business 
(software fees, professional services, and recurring revenue) at 
comparable exchange rates to decrease somewhat compared to 2018. 
 
   In the medium term, we aim for growth that exceeds the projected annual 
cybersecurity market growth of approximately 10% and will also explore 
avenues for accelerated growth through inorganic growth opportunities. 
Possible significant quarterly variation in revenue growth is still to 
be expected due to the timing of larger deals over the financial year. 
 
   The earlier guidance, issued in the Financial Statement Release on 12 
February 2019, was: 
 
   For the year 2019, we expect double-digit percentage growth from our 
software business (software fees, professional services, and recurring 
revenue) at comparable exchange rates, exceeding the projected annual 
cybersecurity market growth of approximately 10%. In the medium term, we 
expect similar or faster growth and will also explore avenues for 
accelerated growth through inorganic growth opportunities. Possible 
significant quarterly variation in revenue growth is still to be 
expected due to the timing of larger deals over the financial year. 
 
   SSH COMMUNICATIONS SECURITY OYJ 
 
   Kaisa Olkkonen 
 
   CEO 
 
   For further information, please contact: 
 
   Kaisa Olkkonen, CEO, tel. [phone] 
 
   Niklas Nordström, CFO, tel. [phone] 
 
   Distribution: 
 
   Nasdaq Helsinki Oy 
 
   Major media 
 
   https://www.globenewswire.com/Tracker?data=WY-3gTftcVERhJQBYJuEA8XQ9u1Z0dFe9l9TInITw1H5x4PLVmb1lcsNhaPWJvsbWaeKVEd0Afi4m-4Ye9ogag== 
www.ssh.com 
 
   About SSH Communications Security 
 
   SSH.COM helps organizations access, secure, and control their digital 
core -- their critical data, applications, and services. We have over 
3,000 customers around the world, including 40 percent of Fortune 500 
companies, many of the world's largest financial institutions, and major 
organizations in all verticals. We are committed to helping our 
customers thrive in the cloud era with solutions that offer secure 
access with zero inertia, zero friction, and zero credentials risk. 
SSH.COM sells online; through offices in North America, Europe, and 
Asia; and through a global network of certified partners. The company's 
shares (SSH1V) are quoted on the NASDAQ Helsinki. For more information, 
visit www.ssh.com. 
 
 
 
 
 
 

(END) Dow Jones Newswires

November 12, 2019 14:00 ET (19:00 GMT)

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