Tag: tariffs

  • Masimo Confronts Cyber Attack Disrupting Manufacturing Operations

    Masimo Confronts Cyber Attack Disrupting Manufacturing Operations

    Masimo Corp., a key player in remote patient monitoring, has reported a cyber attack that has led to a slowdown in its manufacturing processes. The company disclosed the incident alongside its quarterly earnings report, explaining that while the investigation remains ongoing, it believes that the intrusion has not impacted its cloud-based hospital data systems. Furthermore, there is currently no evidence to suggest that employee or patient data has been compromised.

    On April 27, Masimo identified unauthorized activity within its on-premise network, prompting immediate action to isolate affected systems. As a consequence, the company stated that certain manufacturing facilities have been operating below normal levels, resulting in delays in processing, fulfilling, and shipping customer orders. The company is actively working to restore operations and mitigate the incident’s impacts.

    Despite the cyber attack, Masimo’s CEO Katie Szyman expressed confidence that the company’s financial guidance for this year would remain largely intact. However, tariffs imposed on imported goods have prompted a downward revision in operating profits, with projections adjusted from a previous range of $420 million to $436 million down to $383 million to $403 million.

    For the first quarter of 2025, Masimo reported revenue of $372 million, reflecting a 10% increase. As part of its restructuring efforts, the company is also set to sell its Sound United business to Harman International for $350 million in cash, aiming to refocus on its core healthcare operations. This strategic move was described by Politan co-founder Quentin Koffey, now vice chairman of Masimo’s board, as a significant milestone to accelerate revenue growth with maintained margins.

  • Cybersecurity Sector Braces for Economic Turmoil Amidst Tariff Chaos

    Cybersecurity Sector Braces for Economic Turmoil Amidst Tariff Chaos

    Amid ongoing economic uncertainty fueled by fluctuating tariff policies, experts are predicting a potential recession in the United States that could impact various industries. As the Trump administration continues its tumultuous approach to trade, including pausing steep tariffs on major trading partners, analysts forecast that the cybersecurity industry may remain resilient in the face of economic challenges.

    According to reports from financial analysts at Wedbush Security, the cybersecurity sector is being viewed as a ‘defensive’ investment strategy as companies grapple with growing threats and a volatile economic environment. Keith Weiss, managing director at Morgan Stanley, emphasized the importance of cybersecurity, suggesting that demand for these services will be sustained due to regulatory requirements and risk management needs. He stated that the expanding attack surface and increasing threat landscape are likely to bolster demand for cybersecurity solutions.[Source] [Source]

    The economic landscape has shifted dramatically, with a recent Reuters poll indicating a significant rise in the probability of a recession to 45% from 25% just a month prior. Federal Reserve Chair Jerome Powell highlighted the difficult balance the Fed faces with the intertwining goals of managing inflation and maintaining employment, stating that rising prices could lead to market slowdowns.[Source]

    While cybersecurity firms generally focus on service rather than goods, they may still face pressure as other sectors scale back their budgets. Sonu Shankar, chief product officer at Phosphorus Cybersecurity, noted that tighter budgets could lead companies to limit security spending, but remaining demand for essential cybersecurity services may shield the industry from more severe downturns. Moreover, businesses are expected to shift their cyber strategies toward prioritizing software-centric solutions, which tend to provide better agility, especially during turbulent market periods.

    The increasing demand for SaaS and cloud-native cybersecurity solutions positions these firms to weather potential future disruptions. Morgan Stanley’s Weiss projects continued growth for products that do not rely on hardware appliances, while Forrester Research’s Jeff Pollard warned that the unpredictability of the current environment could lead organizations to adopt more conservative security budgets, ultimately impacting cybersecurity vendors and their stakeholders.

    With cyberthreats expected to rise during economic downturns, organizations must adapt their cybersecurity strategies and budgets to not only mitigate risks but also meet evolving customer requirements. As Pollard advises, security leaders should align their spending to facilitate sales during downturns, indicating that those who can effectively demonstrate the contribution of their cybersecurity investments to overall business success are poised to navigate these challenging times more effectively.