Trading update

RNS Number : 1032Y

Corero Network Security PLC

21 January 2014

 



Corero Network Security plc (AIM: CNS)

("Corero", the "Company" or the "Group")

Trading update

Corero Network Security plc,the AIM listed network security provider, announces an update on trading for the year ended 31 December 2013.

Group revenue for the year ended 31 December 2013, including the revenue contribution from Corero Business Systems ("CBS") for the period up to the sale of this business on 1 August 2013, is expected to be approximately $16.0 million.  The Group's consolidated EBITDA loss (operating loss before depreciation, amortisation, financing and profit on the sale of CBS) is expected to be approximately $4.6 million (2012: loss $3.1 million), including a $0.2 million unrealised exchange loss on an intercompany loan (2012: $0.3 million loss). 

The Corero Network Security division generated gross billings (customer orders as opposed to revenue recognition) of $5.1 million in the six months ended 31 December 2013, an increase of 23% over both the comparative period in 2012 and the first six months of 2013. The second half 2013 billings included 15 customers with orders exceeding $100,000 (compared to 7 in second half of 2012 and 9 in the first half of 2013).

The Group had a net cash balance of $9.8 million at 31 December 2013 (2012: $1.3 million net debt), and no debt (2012: debt $6.2 million). The Company repaid its debt obligations early. 

Corero's next generation product development has progressed well with product launch planned for the first quarter of 2014.  The Company expects to generate revenue from sales of this next generation product in the second half of 2014. 

Outlook:

The next 12 months will be focused on revenue growth from an expanded product portfolio. Revenue from the Company's current First Line of Defense product line targeted at enterprise and public sector organisations, will be augmented by a new revenue stream from the sale of Corero's next generation product targeted at securing the Internet in the service provider and hosting provider markets. 

Ashley Stephenson, CEO commented:

"We have made good progress in the last year across many facets of the business and advanced the development of our next generation product which we believe will significantly increase Corero's addressable market."

"The billings growth in second half of 2013, and the level of new business wins in the fourth quarter, which was the strongest since the first quarter of 2012, were very encouraging."

"This positive momentum and our strong financial position, with the cash to execute our growth plans, gives us confidence that we will be able to able to exploit the opportunity for Corero."

Corero will release preliminary results for the 12 months ended 31 December 2013 at the end of March 2014.

Enquiries:

Corero Network Security plc
Andrew Miller, CFO and Group Chief Operating Officer		Tel: [phone]
FinnCap
Stuart Andrews/Henrik Persson (corporate finance)		Tel: [phone]
Simon Johnson/Stephen Norcross (corporate broking)
Walbrook PR		Tel: [phone]
Bob Huxford/Helen Cresswell (Media Relations)
Paul Cornelius (Investor Relations)

About Corero Network Security

Corero Network Security is an international network security company and the leading provider of Distributed Denial of Service (DDoS) and cyber-attack defence.  As the First Line of Defense, Corero's products and services stop DDoS attacks, protect IT infrastructure and eliminate downtime. Customers include enterprises, service providers and government organizations worldwide. Corero's appliance-based solutions are dynamic and automatically respond to evolving cyber attacks, known and unknown, allowing existing IT infrastructure -- such as firewalls -- to perform their intended purposes. Corero's products are transparent, highly scalable and feature the lowest latency and highest reliability in the industry.

 

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