Corero Network Security PLC Trading Update (0196M)
January 03 2019 - 1:00AM
UK Regulatory
TIDMCNS
RNS Number : 0196M
Corero Network Security PLC
03 January 2019
3 January 2019
Corero Network Security plc
("Corero", the "Company" or the "Group")
Trading Update
- Order intake for 2018 is expected to be approximately 20%
higher than 2017, driven by record order intake in H2 and the final
quarter
- SmartWall revenue growth of approximately 20% over the prior year
- Significantly reduced EBITDA* loss to approximately $2.5 million
Corero Network Security plc (AIM: CNS), the AIM listed network
security company, provides an update on trading for the year ended
31 December 2018.
Corero expects to report a record final quarter and second half
order intake demonstrating the strong demand for the Company's
SmartWall(R) Threat Defense System ("SmartWall"). Order intake for
the year ended 31 December 2018 is expected to be approximately
$11.0 million, representing growth of approximately 20% over the
prior year (2017: $9.3 million).
Group revenue for the year is expected to be approximately $10.0
million (2017: $8.5 million), albeit lower than expected as a
result of the longer time required to ramp up new go-to-market
partners and secure contracts.
Group EBITDA* loss for the year is expected to be approximately
$2.5 million (2017: EBITDA* loss $5.0 million**). Corero has
continued to manage its cost base in 2018 with overheads* expected
to be approximately 10% below the prior year.
Net cash at 31 December 2018 was $4.2 million, comprising cash
at bank of $8.0 million (2017: $1.4 million) and debt of $3.8
million (2017: nil).
Corero enters 2019 against a backdrop of positive momentum
underpinned by a broader go-to-market strategy and a stronger new
business pipeline. Management is focused on delivering revenue
growth, adding new customers, and targeting being EBITDA positive
and cash generative by the end of 2019, by:
- executing on a strong and growing pipeline including
opportunities arising from the recently announced Juniper resale
partnership; and
- leveraging the growing demand for Corero 100Gbps SmartWall
technology from the adoption of faster and more economic 100Gbps
links in the Company's target markets.
Ashley Stephenson, Corero CEO, said:
"Corero enters 2019 following a year of solid growth in revenue
and order intake and with a significant resale partnership
agreement in place with Juniper Networks. We are excited about the
prospects in the medium term, with the DDoS mitigation market
fundamentals remaining strong and market analysts forecasting
double digit growth.
"The board continues to believe the business is well placed for
further growth."
The information contained within this announcement is deemed to
constitute inside information as stipulated under the Market Abuse
Regulation (EU) No. 596/2014. Upon the publication of this
announcement, this inside information is now considered to be in
the public domain.
* before depreciation, amortisation, financing and unrealised
foreign exchange differences on an intercompany loan
** restated as a result of a change in accounting policy related
to the implementation of IFRS 15
Enquiries:
Corero Network Security plc
Andrew Miller, CFO Tel: 01895 876 382
Cenkos Securities plc Tel: 020 7397 8900
Mark Connelly - NOMAD
Michael Johnson - Sales
Vigo Communications Tel: 020 7390 0230
Jeremy Garcia / Ben Simons / Antonia Pollock
corero@vigocomms.com
About Corero Network Security
Corero Network Security is a leader in real-time,
high-performance DDoS defense solutions. Service providers, hosting
providers and digital 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 industry
leading technology provides cost effective, scalable protection
capabilities 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 news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
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of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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