Pan-European MSSP Nixu has issued negative guidance to its shareholders for its FY 2019, citing a significant slowdown in one major cyber security partnership, delays in launching several large digital identity projects, and the relocation of some resellers.
The Espoo, Finland-based cybersecurity player is expected to see its revenues grow by 25 per cent for its FY 2019, instead of the 35 per cent previously forecast.
EBITDA for the full year is "estimated to improve from the previous financial year".
However for its H2 2019, the Helsinki-listed firm will log negative EBITDA.
"I'm sorry that our forecasted business growth pace has weakened so rapidly during the second half of 2019," Nixu CEO, Petri Kairinen, said.
"Typically in our business, some business areas exceed their forecasts while others may fall short. Now we have experienced a situation where we have fallen behind our forecast across the board.
"The fast decline surprised us in a way that is not acceptable."
Eight months ago, Nixu laid out ambitions to become a northern European powerhouse, after acquiring Danish firm Ezenta and the cyber threat intelligence team of Swedish provider Vesper Group.
However, that M&A spree weighed down Nixu's balance sheet, pushing EBITDA into the red.
Kairinen said that while that was part of a strategy to expand to be near to its clients in northern Europe, the firm "concentrated too heavily on the long-term strategy".
"This led to the weakening of operational functions during the second half of this year," he said.
It was just three months ago that Nixu laid out plans to hit €100m in revenues by the end of next year, and log just shy of €200m within the next five years.
Looking ahead, Kairinen claimed the MSSP is still on track.
"The growth drivers created by digitalisation have remained unchanged and therefore I believe that Nixu has everything needed to achieve its long-term growth targets. Also, it is worth noticing that Nixu hasn't lost any significant customers (in addition to the previously reported) or lost more deals than normally.
"Simultaneously, our strategic focus area managed continuous services has continued to grow strongly."
Nixu is operational in four countries: Finland, Sweden, Denmark and the Netherlands. It also set up a subsidiary in San Jose, California.
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