Trading Update

RNS Number : 7371F

Corero Network Security PLC

20 July 2021

 

20 July 2021

Corero Network Security plc

("Corero" or the "Company")

Trading Update  

Record H1 2021 performance and ongoing strategic progress

Corero Network Security plc (AIM: CNS), a leading provider of real-time, high-performance, automatic Distributed Denial of Service (DDoS) cyber defense solutions , is pleased to provide the following trading update for the six months ended 30 June 2021¹.

Order intake for the six months ended 30 June 2021 is expected to be c.$8.9 million, ahead of the previous high of $7.9 million for H1 2020. Revenues associated with order intake are recognised over the lifetime of each of the contracts. This strong start to the year reflects the growing demand for the Company's products despite the on-going backdrop of the Covid-19 pandemic.

Revenue for H1 2021 is expected to have increased by c.34% to c.$8.3 million (H1 2020: $6.2 million). In addition, Annualised Recurring Revenue² ("ARR") is expected to have increased to c.$11.2 million as at 1 July 2021, driven by growth in DDoS Protection-as-a-Service ("DDPaaS") and software subscription orders (ARR at 1 July 2020: $8.8 million; ARR at 1 January 2021: $9.8 million).

Gross cash at bank as at 30 June 2021 was $8.8 million (30 June 2020: $6.2 million; 31 Dec 2020: $10.1 million) and borrowings were $3.7 million (30 June 2020: $2.9 million; 31 Dec 2020: $2.5 million). Net cash as at 30 June 2021 was $5.1 million (30 June 2020: $3.3 million; 31 Dec 2020: $7.6 million).

Corero added 20 new customers in H1 2021 (H1 2020: 18 new customers), of which, eight were originated through Corero's strategic partnership with Juniper Networks (H1 2020: five new Juniper customers).

The Company expects to issue its unaudited interim results for the six months ended 30 June 2021 in mid September 2021. 

Lionel Chmilewsky, Corero's CEO, said:

"We are pleased to report another six months of continued progress, not only in our financial performance, but strategically too. It is very encouraging to see our sales and marketing initiatives delivering new customers, broadening our geographic reach and increasing our penetration into new verticals. Our pipeline for the second half of 2021 remains strong."

¹   All numbers for the six months ended 30 June 2021 disclosed within this announcement are unaudited.

² ARR is defined as the normalised annualised recurring revenues 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, Chief Financial Officer
Canaccord Genuity Limited (Nominated Adviser and Broker)		Tel: [phone]
Simon Bridges / Andrew Potts
Vigo Consulting		Tel: [phone]
Jeremy Garcia / Antonia Pollock [e-mail]

About Corero Network Security

Corero Network Security plc is a global leader in real-time, high-performance, automatic DDoS cyber defense solutions. Both Service and Hosting providers, alongside digital enterprises across the globe rely on Corero's award winning cybersecurity technology to eliminate the threat of Distributed Denial of Service (DDoS) to their digital environment through automatic attack detection and mitigation, coupled with network visibility, analytics and reporting. Corero's industry leading SmartWall and SecureWatch technology provides scalable protection capabilities against external DDoS attackers and internal DDoS botnets in the most complex edge and subscriber environments, while enabling a more cost-effective economic model than previously available. Corero's key operational centers located in Marlborough, Massachusetts, USA and Edinburgh, UK, with the Company's headquarters in Amersham, UK. The Company is listed on the London Stock Exchange's AIM market under the ticker CNS.  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, as amended by regulation 11 of the Market Abuse (Amendment) (EU Exit) Regulations 2019/310,  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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