CynergisTek Managed Security Services Revenues: Growing, But…
CynergisTek, a healthcare-focused MSSP, delivered weaker-than-expected quarterly revenue results on Wednesday. But the weakness appears tied to the company’s legacy managed print services business rather than current MSSP push.
For its fourth quarter of 2018, CynergisTek says:
- Revenues were $18.6 million, down slightly from $18.7 million in the corresponding quarter of 2017.
- GAAP net income was $1.3 million compared to a net loss of $(1.6) million in Q4 2017.
- Security-related revenue increased 30 percent to $7.0 million offset by a 13 decline in managed print related services revenue to $11.6 million.
GAAP net income was slightly below Wall Street’s expectations, and revenue was roughly $440,000 below Wall Street’s prediction, according to SeekingAlpha.
CynergisTek Sells Managed Print Services Business
Eager to double down on the security market, CynergisTek recently sold its managed print services business to Vereco.
CynergisTek CEO Mac McMillan predicts cybersecurity opportunities will continue to grow in the company’s core vertical market — healthcare. The cybersecurity workforce shortage exists across all industries but even more so in healthcare, he asserts. “Healthcare cannot find and retain the necessary resources to keep up with increased security threats,” McMillan says.