Corero Network Security PLC DDoS protection "as-a-service" revenue model wins (2696T)
04 January 2017 - 6:00PM
UK Regulatory
TIDMCNS
RNS Number : 2696T
Corero Network Security PLC
04 January 2017
4 January 2017
Corero Network Security plc
("Corero" or the "Company")
DDoS protection "as-a-service" revenue model wins
Corero Network Security plc (AIM: CNS), the AIM listed network
security company, is pleased to announce that it has won five
"as-a-service" subscription-based contracts for its DDoS protection
products and technology in the final quarter of 2016, with an
aggregate annualised contract value of $0.3 million.
The "as-a-service" offering was introduced in response to
increasing customer interest in subscription-based contracts in
contrast to the purchase of equipment under a traditional perpetual
license model. This "as-a-service" offering is expected to expand
Corero's addressable market and is proving popular with
fast-growing Cloud hosting providers and regional service providers
who can enter the market more rapidly by offsetting the costs of
operating a DDoS protection solution with the monthly revenues
derived from selling these high margin security services to their
own customers.
This "as-a-service" sales model, which was introduced in the
fourth quarter of 2016, reduces recognised revenue at the time of
the initial customer order but increases the contract value and
recurring revenues over the life of the deal.
Corero also enjoyed an increase in perpetual license model
revenue billings in the fourth quarter of 2016.
An update on trading for the year to 31 December 2016 will be
provided ahead of the full year results announcement.
Ashley Stephenson, CEO of Corero, commented:
"As reported in the Interim Results announcement in September,
we anticipated an increase in customers seeking to utilise Corero's
DDoS Protection products and technology via an "as-a-service"
subscription-based offering, thereby increasing Corero's
addressable market. We are pleased with these initial customer wins
and see an increasing opportunity to add incremental
subscription-based customers in 2017 which will serve to boost our
recurring revenue base."
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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