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Australian cyber security firm’s revenue is down 29 per cent as 2024 acquisitions fail to deliver.
Cyber security company AUCyber has announced the resignation of its CEO, Peter Maloney, at the same time as reporting a poor financial performance in the four months leading up to October 2024.
The company acquired PCG Cyber, Venn IT, and Arado in May, but according to a 4 December ASX announcement, the merger has not paid off.
“As previously announced, AUCyber completed three strategic acquisitions in early May 2024,” the announcement said.
“Whilst the four-way merger of AUCloud, PCG Cyber, Venn IT and Arado businesses have recently been integrated, the performance of the newly formed group is unfortunately below expectations.”
The company’s unaudited revenue between July and October was down 29 per cent of AUCyber’s budget for the 2025 financial year. Since the company won’t make its budgeted $33.6 million, it has now officially withdrawn its FY25 Guidance, which was issued in August 2024.
“Revenues in the cyber security, cloud solutions and managed services businesses have all fallen short of expectations, principally due to slower than expected new customer uptake during the period of integration, in addition to recent customer churn,” AUCyber said.
Revenue for the four months was $8.3 million, alongside an underlying earnings before interest, taxes, depreciation, and amortisation( loss) of $1.3 million.
Following his resignation, Maloney will assist in the transition of his duties ahead until 31 March 2025. However, the board reserves the right to act otherwise.
“The board intends to engage an executive search firm to evaluate internal and external candidates for the role of CEO,” AUCyber said.
“The non-executive directors are conducting further investigation of the company’s operations, and the company will seek to provide the market with a further trading update as part of the release of its 1H FY25 results in late February 2025.”
The announcement also noted that a related entity of Maloney’s, Peerless Investments, owes AUCyber $486,592.
David Hollingworth has been writing about technology for over 20 years, and has worked for a range of print and online titles in his career. He is enjoying getting to grips with cyber security, especially when it lets him talk about Lego.
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