Business Weekly - Cambridge, UK

A 32 per cent rise in 2006 first quarter revenues for the Cambridge internet security company to £5.1m (Q1 2005: £3.9m) in the face of difficult conditions brought on by SafeNet’s failed attempt to buy nCipher was not enough to prevent the price drop.

nCipher chief executive, Alex van Someren, said: “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.

“However, we believe that our portfolio of security products and services puts us in an excellent position to exploit a number of high-growth market developments in the IT security field.”

A downbeat revenues forecast coupled with a 133 per cent drop in pre-tax profits prompted a 6.9 per cent fall in nCipher’s share price, down 14.5 pence to 195.5 pence a share.

A 32 per cent rise in 2006 first quarter revenues for the Cambridge internet security company to £5.1m (Q1 2005: £3.9m) in the face of difficult conditions brought on by SafeNet’s failed attempt to buy nCipher was not enough to prevent the price drop.

nCipher chief executive, Alex van Someren, said: “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.

“However, we believe that our portfolio of security products and services puts us in an excellent position to exploit a number of high-growth market developments in the IT security field.”