Trading update

RNS Number : 0943E

Corero Network Security PLC

05 February 2015

 



5 February 2015

Corero Network Security plc

("Corero" or the "Company")

Trading update

Corero Network Security plc (AIM: CNS), a leading provider of security solutions for defending against DDoS (Distributed Denial of Service) attacks and cyber threats, provides an update on trading for the year ended 31 December 2014.

EBITDA loss (operating loss before depreciation, amortisation and financing) for the year ended 31 December 2014 is expected to be in line with market expectations of approximately $7.0 million (2013: EBITDA loss $6.2 million) and revenue is expected to be approximately $7.5 million (2013: $10.3 million) which was below the revenue guidance announced on 6^th November.  Revenue was impacted by a tail-off in the sales, in the last quarter, of the previous generation product. Net cash at 31 December 2014 was $6.0 million (2013: $9.5 million).

Corero has accelerated and completed its transition to its SmartWall Threat Defense System ("TDS") with $1.5 million of SmartWall TDS gross billings in 2014.  The sale of SmartWall TDS solutions to customers in Corero's target markets in the second half of 2014 has demonstrated the value of SmartWall TDS in protecting organisations from the impact of DDoS attacks. SmartWall TDS wins to date illustrate the breadth of addressable markets; customers include a service provider in Europe, a hosting provider in the US, a UK government agency and a global DDoS defence deployment for a leading on-line gaming company.  In the second half of 2014 the Company developed the ability to remotely deploy and manage Proof of Concept trials to support a growing pipeline of prospective customers.

The outlook for SmartWall TDS, based on an increasing number of Proof of Concept trials, is extremely positive.  Corero is also pleased to report on the recruitment of a proven sales team in North America focused on the service provider market.  In response to the significant and growing DDoS opportunity in the Cloud provider market, Corero has recently established an additional development team to augment its existing resources. As the DDoS attack landscape continues to evolve, Corero is committed to remain at the forefront of DDoS defence technology.  

Ashley Stephenson, CEO commented:

"The successful deployments, growing number of Proof of Concept trials and significant value opportunities in the pipeline, give Corero confidence that the SmartWall TDS focus will drive revenue from the hosting provider, service provider and on-line enterprise markets, all of which are investing in DDoS protection.

"Corero enters 2015 with a clear strategy focused on growing SmartWall TDS sales to markets that are impacted by DDoS attacks. Though DDoS is not a new concern, the risk to business from DDoS attacks is at an all-time high. Corero is well positioned for scalable and durable returns from these expanded target markets." 

Enquiries:

Corero Network Security plc
Andrew Miller, CFO and Chief Operating Officer		Tel: [phone]
FinnCap
Stuart Andrews (corporate finance)		Tel: [phone]
Simon Johnson/Stephen Norcross (corporate broking)
Redleaf PR		Tel: [phone]
Rebecca Sanders-Hewett/David Ison	[e-mail]

About Corero Network Security

Corero Network Security, an organization's First Line of Defense® against DDoS (Distributed Denial of Service) attacks and cyber threats, is a pioneer in global network security. Corero products and services provide online enterprises, service providers, hosting providers, and Managed Security Service Providers with an additional layer of security capable of inspecting Internet traffic and enforcing real-time access and monitoring policies designed to match the needs of the protected business. Corero technology enhances any defense-in-depth security architecture with a scalable, flexible and responsive defence against DDoS attacks and cyber threats before they reach the targeted IT infrastructure allowing online services to perform as intended.

DDoS attacks continue to be a widely used cyber weapon against government and corporate targets, with the media covering almost on a daily basis reports of cyber attacks and the significant impact these cause. DDoS attacks can be costly in terms of lost revenues, brand damage, customer satisfaction and security operations. The DDoS mitigation market is forecast to increase 66% in the period to 2018 and exceed $1.5 billion, according to Infonetics Research.

For more information, visit www.corero.com.  

 

END

 

 

TSTSSIESLFISEEE