Coro Energy Share Discussion Threads

[25october1969] 21/2/2011 14:52

Buy-and-build outfit Corero plans to snap up more small security vendors that have failed to "break through the glass ceiling" as it begins courting the UK channel.

Four channel stalwarts, including Datatec founder Jens Montanana, took a majority stake in AIM-listed Corero last August and this month tabled a $15.3m (£9.54m) bid for intrusion prevention vendor Top Layer.

The other three investors are former Logicalis chief operating officer Andrew Miller and ex-Fortinet executives Andre Stewart and Stephen Turner.

Miller said Corero will use Top Layer as a platform to construct a channel-focused network security vendor with a global presence.

It will also continue to develop Corero's traditional software business, which focuses on the UK education market and has a turnover of about £3m.

Corero will still have $10m in cash to play with after the Top Layer acquisition closes on 2 March, but plans to use its own shares in future deals. Miller highlighted next-generation firewalls as a market it would expand into through acquisition.

"A number of small firms have not been able to break through the glass ceiling of $10m to 15m revenues," he said.

"We will make further acquisitions. The areas we are looking at are secure web and email gateways and virtual private networks."

Top Layer draws 70 per cent of sales from the US.

"The UK and Europe - that is where we see the opportunity," said Miller.

"We will be talking to cha­­n­nel partners and are targeting small
specialist dist­ri­butors and rese­llers such as VADition."

Barrie Desmond, business development director of VADition, confirmed the duo were in dialogue.

"It could almost provide a triage service for us," he said. "Instead of having 20 meetings with vendors we would only have to have two."

Bruce Hockin, head of business strategy at Barracuda distributor Avnet, said: "It's always interesting to see new players enter the market and I'm sure the channel will be keen to see how the new organisation will integrate Top Layer's skills and technology. Avnet have witnessed strong growth in the IPS market in recent months with Sourcefire, and this technology area continues to be a great market for the channel in invest in and grow with."

[cocker] 18/2/2011 16:44

Still sticking by your year end target of 85p Patrick?. As a gentleman I will allow you one more chance to change your mind.
I'll go for 25p & thats me being optimistic.

[gac141] 15/2/2011 17:07

Very pleased to see Jens ownes such a significant stake in our futures. He for one will want to make this work out. Much better than the pitiful amounts people like JM and IS and even PW owned.

[cocker] 07/2/2011 19:09

A very long wait for the expected news which the market has not reacted to at all. I guess time will tell whether the takeover is a sucess or not. As for Peter Waller, it was obvious that he would either step down or be shown the door. I have always found him to be very pleasant & helpful although a bit of a spin merchant. I do believe that he had our best interest @ heart but was often blinded with what was going on around him. JM being the prime example. His leadership seemed limp @ times & perhaps his departure is in our best interest.

[orange1] 07/2/2011 08:39

Corero is now effectively being taken over by a small, loss-making US company.
Something to get excited about? We shall see.

Meanwhile, there is no logic whatsoever in having a software education business and a network security company co-habiting under the same roof. Can't be long now before the Education business is sold off to raise cash for loss-making Top Layer.

[orange1] 07/2/2011 08:36

So Peter Waller what were main achievements at Corero in the 5 years you were there?

Answer:"As I stand down after five years as chairman, Corero has a recently strengthened executive team, an experienced board and a strong shareholder base. The company now has the financial capacity to invest further in the Corero Business Systems division whilst developing its business in the rapidly growing network security systems market."

Which in plain English means: Nothing. But the company has recently been taken over by people with lots of money.

[gac141] 07/2/2011 07:38

Clearly one the most significant changes to the profile and structure of Corero.

Could be very exciting times ahead!

[cocker] 04/2/2011 17:11

Lets hope so George, as this deal was expected to be signed & sealed since mid December.The delay on the completion is very fustrating to say the least.

[gac141] 04/2/2011 15:03

See a 25k purchase up on Plus markets maybe news soon

[romeo] 26/1/2011 21:57

ditto Molly's post - I am also going to hold and hope.

[gac141] 26/1/2011 20:04

Note the comment is in excess of 200k. I have kept all shares and will continue to do so. Read up on the new management and see beneath the surface.

[spurious] 26/1/2011 15:19

70 Academies this year is a huge success by any standard so well done Bernard. It is perhaps worth remembering that even without a contribution from Fin Markets (now sold and a management team set up for a company several times the current market Cap) Corero is profitable.None of us will get rich on Business Systems alone although I feel it could net £6/8 million in next few years if business continues at current levels.Corero is being transformed behind the scenes and when you put a world class team in place additional expense is incurred.Corero appears to be gearing up for a substantial and transformational acquisition in terms of revenue and product and I am hopeful that we may hear news shortly.I have bought more shares
regards SP

[cocker] 26/1/2011 13:25

Not a single share traded says it all!. With 70 academy's signed the bottom line should have been alot higher than 200k. I'll wait untill results & if no improvement than I will sell entire holding.

[gac141] 26/1/2011 11:16

CORERO PLC

Year-end trading update

Corero plc (AIM: CORO, "Corero" or "the Group") has published a year-end trading update for the financial year ended 31 December 2010.

On 6 August 2010, the Group was transformed financially and operationally by a £6.5m equity fund raising, the sale of its Financial Markets division, the conversion of the convertible unsecured loan stock to ordinary shares and the appointment of two directors and senior executives.

The Group's revised strategy is to develop a new Network Security Systems business through acquisition, whilst continuing to grow the existing Business Systems division.

Group trading profit for the year to 31 December 2010, subject to audit, is expected to be in excess of £200,000. Cash balances were £7.2m.

The Business Systems division reported a strong contribution. It won contracts from a total of 70 academies in 2010, compared with 25 in 2009, showing its strong position in this growth market and maintaining its c. 30% market share.

The Group expects to announce its final results by the end of March 2011; these will reflect the effect of the redemption of the convertible unsecured loan stock on 6 August 2010 and the disposal of the Financial Markets division as outlined in the circular to shareholders of 14 July 2010, and other non-trading accounting adjustments.

[cocker] 26/1/2011 07:42

Profit for year in excess of 200k & 70 Academy's signed. Take out the 160k H1 profit & it looks as if we are down to 40k H2. I guess managment costs are effecting the bottom line..

[romeo] 21/1/2011 06:29

Hi George - yes, things are definitely looking better!

[gac141] 19/1/2011 17:59

Looks like we are breaking out and building towards something big...

[25october1969] 06/1/2011 16:15

Has Peter dipped into his petty cash to top up :-)

[gac141] 06/1/2011 15:56

Interesting.......