24/01/2018 |

Kaspersky Lab loses revenue to the US, but can make money on anti-American markets

Kaspersky

The revenue of Kaspersky Lab in North America as aresult of 2017 decreased by 8%. The company associates this with the geopolitical situation and is trying through the court to cancel the order of the US Department of Homeland Security banning the use of its products in the public sector. However, the weakening of the positions of Russian IT companies in the US can help them in the so-called anti-American markets – in Latin America and some Asian countries, experts say.

The geopolitical situation adversely affected the business of Kaspersky Lab in North America, announced in the company: the sales volume in the region in 2017 decreased by 8%. In September 2017, the US Department of Homeland Security banned the use of the company’s products in federal authorities because of suspicions of links with Russian special services. There is no evidence of any violations, and the decision itself is unconstitutional, Kaspersky Lab insists: on January 19 it became known that the company applied to the court with a demand to cancel it.

The US and Canada account for almost 25% of Kaspersky Lab’s revenue, but the share of sales to the US public sector has always been negligible compared to the private sector, the company said. Nevertheless, they believe that it is “very important” to return to US government agencies, as the ban inflicted damage on “reputation and commercial interests.” The products of Kaspersky Lab also began to be abandoned by private structures, including large retailers.

At the end of the year, the UK National Cybersecurity Center also recommended that some agencies not use Kaspersky Lab software, but there was no direct ban. At the same time, the company’s products were banned from use in state agencies of Lithuania.

As a result, in Europe, the company’s sales at the end of the year decreased by 2%. But in the global market, Kaspersky Lab’s revenue increased by 8%, to $ 698 million.
Positive dynamics was ensured by the growth in sales in Russia and the CIS by 34%, in the Middle East, Turkey and Africa by 31%, in Latin America by 18%, in the Asia-Pacific region by 11% and Japan by 4%.

In other Russian companies in the field of information security has not yet disclosed the figures for 2017. Trend Micro said that the financial report will be ready in February, and Group-IB plans to report in April.

It is unlikely that Kaspersky Lab will be able to challenge the ban in court, believes Zecurion CEO Alexei Raevsky. “Authorities can decide for themselves what to use and what they do not. Moreover, the decision has a political underpinning, “he said. Russian companies have traditionally weak positions in the North American market, Kaspersky Lab was an exception in this respect.

On other companies, the political factor also affects negatively, but rather in terms of prospects, rather than financial losses, the expert notes.
But Russian companies have good potential in the Middle East, Mr. Rayevsky is sure: there is “some fatigue” from American products and scandals with surveillance of the NSA through them, on which you can play.

Companies in the field of information security, advertising their Russian roots, already can or close business in the US, and those who remain, localize and try not to mention the Russian origin, for example, Wallarm, adds the general director of Atak Killer Rustem Khayretdinov. Thus, the policy really complicated their business in the United States. This wave has not yet reached other countries, although competing US companies are already using this argument with might and main in Europe, Mr. Hayretdinov notes. On the contrary, Latin America and Asia, with the exception of Japan, China and the oil Arab monarchies, have remained the region of influence of Russian companies in the sphere of information security for many years, the so-called anti-American market, he says.

Author: Kristina Zhukova

Articlein Russian: Kommersant

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