Corero Network Security PLC Trading update, contract win & new partnership (4216W)
February 09 2017 - 1:00AM
UK Regulatory
TIDMCNS
RNS Number : 4216W
Corero Network Security PLC
09 February 2017
9 February 2017
Corero Network Security plc
("Corero" or the "Company")
Trading update, major contract win and new alliance
partnership
Q4 2016 record SmartWall order intake, Q1 2017 $1.0 million
order and Juniper Networks technology alliance partnership
Corero Network Security plc (AIM: CNS), the AIM listed network
security company, provides an update on trading for the year ended
31 December 2016, and announces a material order for its
SmartWall(R) Threat Defense System ("SmartWall") from a leading
Cloud computing company and Juniper Networks technology alliance
partnership (NASDAQ: JNPR).
Trading update
Corero ended the year strongly, with record final quarter
SmartWall order intake with 15 new customers added, including five
new "as-a-service" customers. Corero has now deployed its SmartWall
solution at more than 60 service providers, hosting providers and
on-line enterprises, providing real-time DDoS and cyber threat
protection. A growing number of customers are now public references
for Corero.
Revenue for the year ended 31 December 2016 is expected to be
approximately $8.8 million (2015: $8.3 million). SmartWall revenue
was up 62% over the prior year whilst legacy product revenues
declined as expected. The 2016 revenue was lower than market
expectations, in part impacted by the new "as-a-service" customers
signed in Q4, where the revenue is recognised monthly over the term
of the contract. The offsetting benefit is that these contract wins
will add to the recurring revenue recognised in 2017 and
beyond.
The EBITDA loss (operating loss before depreciation,
amortisation and financing) for the year ended 31 December 2016 is
expected to be approximately $5.1 million (2015: EBITDA loss $6.4
million), an improvement over market expectations.
Net cash at 31 December 2016 was $2.9 million (2015: $2.7
million). Corero continues to focus on scaling SmartWall revenues
and as the business achieves critical mass it will be in a position
to self-fund its ongoing product development and sales and
marketing activities. In order to get to the position of being cash
generating, the Company will require further growth financing
support in the first half of 2017 and is exploring both equity and
loan financing, and the Company's major shareholder is supportive
of this.
The service provider and hosting provider requirements for
real-time, automatic DDoS mitigation solutions are growing, driven
by the increasing demand from their customers for DDoS protection.
Corero is confident of the market opportunity for SmartWall in the
service provider and hosting provider markets, and is pleased with
the validation from numerous material customer wins in the past
year and from the achievement of a "Recommended" rating from NSS
Labs, the world's leading independent security product test
laboratory.
Major contract win
The Company is pleased to announce that it has been awarded a
new material SmartWall contract valued at $1.0 million with
supporting SecureWatch(R) services for one year (with the vast
majority of the revenue to be recognised in the year ending 31
December 2017). This contract win follows a successful Proof of
Concept trial during which Corero was able to demonstrate the
effectiveness of automatic, real-time DDoS protection.
Juniper Networks technology alliance partnership
Corero has entered into a technology alliance partnership with
Juniper Networks, a US based multinational corporation that
develops and markets networking and security products. This
relationship enables the combination of Corero's SmartWall solution
with Juniper Networks(R) MX Series Router and QFX Series switches
to create highly scalable DDoS mitigation solutions as an integral
component of service provider and enterprise networks.
As a result of Corero's relationship with Juniper, organisations
can take advantage of these proven solution designs for highly
scalable and flexible DDoS mitigation capacity at the enterprise or
provider network edge. This relationship will enable Corero to
expand its market reach by leveraging Juniper Networks global
footprint.
Corero's strategy is to work with network vendors to make DDoS
mitigation an integral component of any well-engineered Internet
facing network design.
Ashley Stephenson, CEO commented:
"Corero enters 2017 well positioned to be the challenger in the
fast growing DDoS mitigation market with SmartWall solution
validation from over 60 customers and technology validation from
NSS Labs. Our goal is to grow faster than the market by taking
share from others. Head to head trials are proving we are the
number one solution for real-time DDoS mitigation.
"We have strengthened our sales leadership with the recent
appointment of Andrew Lloyd as President and Executive Vice
President Sales. We have also expanded our addressable market via
the recently introduced as-a-service purchase model and are
encouraged by the potential for strategic go-to-market partnerships
such as the alliance with Juniper. This gives us confidence Corero
will deliver strong revenue growth in 2017.
"The 2017 financial year is off to a strong start with this
major contract win, which demonstrates the significant opportunity
for Corero in the Cloud computing market. We expect an increasing
number of corporations will see the value of investing in DDoS
protection to protect their revenue streams and defend their brand
reputations."
This announcement contains inside information.
Enquiries:
Corero Network Security plc
Andrew Miller, CFO Tel: 01895 876
382
Cenkos Securities plc Tel: 020 7397
8900
Bobbie Hilliam - NOMAD
Alex Aylen - Corporate Broking
Redleaf Communications Tel: 020 7382
4747
Rebecca Sanders-Hewett/David Ison/Susie Hudson cns@redleafpr.com
About Corero Network Security
Corero Network Security is the leader in real-time,
high-performance DDoS defense solutions. Service providers, hosting
providers and online 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
next-generation technology provides a First Line of Defense(R)
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
This information is provided by RNS
The company news service from the London Stock Exchange
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