Trading Update & Notice of Results

RNS Number : 6795J

Corero Network Security PLC

04 July 2011

 



4 July 2011

Corero Network Security plc (AIM: CNS)

("Corero" or "the Group")

Trading update and Notice of results

Corero Network Security plc, the AIM listed network security and business software provider, is pleased to provide an update on trading for the six months ended 30 June 2011.

Highlights:

·     The Group has a healthy cash position of £5.2 million at 30 June 2011

·     Significant post acquisition progress in Corero Network Security

·     Strong year-over-year performance of Corero Business Systems

Corero Network Security:

Corero's acquisition of Top Layer Networks, Inc. ("Top Layer") closed on 2 March 2011.  This marked the first step in the Company's strategy to build a network security technology business focused on delivering software and hardware solutions to mid-market commercial and enterprise customers and telecommunication service providers, through international channels. 

In the period since the acquisition closed, a number of important milestones have been achieved:

·     Launch of DDoS Defence System ('DDS'), an industry first network-layer and application-

layer Distributed Denial of Service ('DDoS') defence product

·     Management team reshaped with the appointment of a General Manager and CFO, Vice

President Engineering, and Chief Marketing Officer

·     Sales teams recruited in France (covering North Africa, Belgium, Luxembourg and France)

and Taiwan (covering Taiwan, Hong Kong and China).  Recruiting teams in Malaysia (to cover

Malaysia, Indonesia, and Singapore), Germany (to cover Germany, Austria and Switzerland),

and Spain (to cover Iberia and Latin America). In addition, the US sales team has been

reshaped

·     The appointment of 20 new channel partners (compared to 40 existing active channel

partners prior to the acquisition of Top Layer by Corero)

·     The rebranding of Top Layer to "Corero Network Security"

Corero Network Security sales order intake in the period post the Top Layer acquisition was $5.0 million (£3.0 million), in line with same period in 2010. 

Corero Business Systems:

Corero Business Systems, which operates as a stand-alone business, continues to perform strongly with sales order intake in the six month period ended 30 June 2011 of £2.5 million (compared to £1.5 million in the same period in 2010). 

It won contracts from 114 academies in the six months to 30 June 2011, compared with 17 in the 2010 comparable period (and 70 in the 12 months ended 31 December 2010), underlying its strong position in this growth market and maintaining its c. 30% market share. In addition, despite the tight Public Sector spending environment, Corero Business Systems won two new contracts in the period for the Resource EMS solution, its Learner Management Information System.

Other key achievements in the first half of 2011 include:

·     Strategic partnership with the Schools Partnership Trust, a leading 'multi academy' group

and one of only four organisations nationally to be awarded 'Accredited Schools Group

Status', to supply Resource Financials to all of their schools

·     Strengthening of the management team by appointment of HR manager to aid expansion

·     Launch of new web site to focus on key products and sectors

The education sector in the UK offers Corero an excellent opportunity for growth, particularly in light of the significant increase in the demand for schools to convert to Academies.  Over the coming year, the Company will invest further in Corero Business Systems to drive growth, enhance the service offering and increase market share.

Andrew Miller, COO of Corero, commented: "The first six months of 2011 have been transformational for Corero with the acquisition of Top Layer and successful integration of that business coupled with the continuing growth of Corero Business Systems. 

"The significant increase in the number and sophistication of cyber crime attacks validates Corero's view of the network security opportunity.  We believe the Top Layer acquisition provides an excellent platform to build Corero's business and the progress made in the period since the acquisition closed on 2 March 2011 is very encouraging. 

"We have confidence for the remainder of the year in executing our strategic goals, an increasing pipeline of opportunities and expect to see the benefit of our increased investment in marketing and sales in the second half of 2011."

On 29 June 2011, Corero plc was renamed Corero Network Security plc, in order that the company name is more closely aligned to its principal trading subsidiary. 

Corero Network Security plc will be announcing its interim results for the six months ended 30 June 2011 on 7 September 2011.

Following today's announcement, if you would like to speak to the management, please contact Bob Huxford on 020 7933 8780.

Enquiries:

Corero Network Security plc
Andrew Miller, Chief Operating Officer	Tel: [phone]
finnCap
Clive Carver/Henrik Persson	Tel: [phone]
Walbrook PR	Tel: [phone]
Bob Huxford (Media Relations)	Mob: [phone] or [e-mail]
Paul Cornelius (Investor Relations)	Mob: [phone] or [e-mail]

About Corero Network Security

Corero Network Security is an international network security products technology company, and innovator in Intrusion Prevention Systems and leader in DDoS defence solutions. 

Corero Business Systems serves the education and business sectors in the UK by delivering powerful, dynamic modular accounting and business management software and services.

 

END

 

 

TSTSSMSILFFSEIW