SSH - Q4 result below expectations, outlook provided
SSH Q4 result was below our expectations. On a positive, company is providing business outlook for 2019 and medium term.
- Q4 net sales totaled EUR 6.4 million (7.2m our expectation)
- Software fees were EUR 2.1 million (2.9m Evli), Professional services were EUR 2.1 million (2.0m Evli), and Recurring revenue was EUR 2.2 million (2.3m Evli)
- Q4 operating profit was EUR 1.3 million (1.8m our expectation)
- EPS was 0.03 (vs. 0.04 our estimate)
- Business outlook for 2019: SSH expects double digit percentage growth from software business (software fees, professional services, and recurring revenue) at comparable exchange rates, exceeding the projected annual cyber security market growth of approximately 10 %.
- In the medium term, SSH expects 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 timing of larger deals over the financial year.