Corero Network Security PLC Trading Update (0196M)

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: [phone] 
 
     Cenkos Securities plc                                Tel: [phone] 
     Mark Connelly - NOMAD 
      Michael Johnson - Sales 
 
     Vigo Communications                                  Tel: [phone] 
     Jeremy Garcia / Ben Simons / Antonia Pollock 
      [e-mail] 
 
 

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

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January 03, 2019 02:00 ET (07:00 GMT)