H1 2020 Trading Update

RNS Number : 7362S

Corero Network Security PLC

13 July 2020

 

13 July 2020  

Corero Network Security plc

("Corero" or the "Company")

H1 2020 Trading Update

Corero Network Security plc (AIM: CNS), a leading provider of real-time, high-performance DDoS defense solutions, provides an update on trading in the six months ended 30 June 2020.

Corero has made a solid start to the year, despite the current unprecedented times, continuing to build on the momentum achieved in the second half of 2019. Order intake increased by 58% to $7.9 million compared to $5.0 million in H1 2019. Revenue for the first half is anticipated to be $6.2 million, representing an increase of 48% compared to H1 2019. Annualised Recurring Revenues* ("ARR") increased in the first half to $8.8 million on 1 July 2020, driven by growth in DDoS Protection-as-a-Service ("DDPaaS") and software subscription orders.

The global restriction measures that have been put in place as a result of COVID-19, have increased internet usage and in-turn the number of opportunistic DDoS attacks. This has highlighted both the relevance and awareness of Corero's solutions globally in recent months as well as the resilience of the Company's business model in these uncertain times. In addition, and as stated in the Company's full year results, Corero successfully moved its workforce to remote working in mid-March and has delivered seamless business continuity throughout lockdown.  

The Company continues to invest in sales and marketing, with progress achieved against its strategy to both augment its direct sales efforts and increase momentum through its channel partners in more regions.

The transition period to Corero's new management is now complete, with both Lionel Chmilewsky as Chief Executive Officer and Neil Pritchard as Group Finance Director having taken up their positions in the business, and Ashley Stephenson being appointed Chief Technology Officer.  The new management team remains fully focused on maximising the global opportunity that exists for Corero's products and services.   

Lionel Chmilewsky, Chief Executive Officer of Corero, commented:

"I am very pleased to see the momentum achieved in the first half of the year including the addition of 18 new customers, a growing pipeline and an increased number of deployed Proof of Concepts. Whilst we continue to monitor the macroeconomic impact of COVID-19 closely, we believe there continues to be a significant growth opportunity for Corero, underpinned by our differentiating technology and strong market dynamics."

*ARR is defined as the normalised annualised recurring revenue and includes recurring revenues from contract values of annual support, software subscription and from DDoS Protection-as-a-Service (DDPaaS) contracts.    

Enquiries:

Corero Network Security plc		Tel: [phone]
Lionel Chmilewsky, Chief Executive Officer Neil Pritchard, Group Finance Director
Cenkos Securities plc		Tel: [phone]
Ben Jeynes - Corporate Finance Alex Pollen - Sales
Vigo Communications		Tel: [phone]
Jeremy Garcia / Antonia Pollock [e-mail]

About Corero Network Security

Corero Network Security is a leader in real-time, high-performance DDoS defense solutions. Service providers, hosting providers and digital enterprises rely on Corero's award winning technology to eliminate the DDoS threat to their environment through automatic attack detection and mitigation, coupled with complete network visibility, analytics and reporting. This industry-leading technology provides cost effective, scalable protection capabilities against DDoS attacks in the most complex environments while enabling a more cost effective economic model than previously available. For more information, visit   www.corero.com

The information contained within this announcement was deemed to constitute inside information as stipulated under the Market Abuse Regulation (EU) No. 596/2014 prior to release of this announcement. Upon the publication of this announcement, this inside information is now considered to be in the public domain.

 

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