Corero Network Security PLC Trading Update (2551J)
16 August 2019 - 4:00PM
UK Regulatory
TIDMCNS
RNS Number : 2551J
Corero Network Security PLC
16 August 2019
16 August 2019
Corero Network Security plc (AIM: CNS)
("Corero" or the "Company")
Trading update
Corero (AIM: CNS), the AIM listed network security company,
provides an update on trading for the six months ended 30 June 2019
and outlook for the full year ending 31 December 2019.
Revenue for the six months ended 30 June 2019 is expected to be
approximately $4.2 million (H1 2018: $5.0 million). Revenue in the
first half has been impacted by a lower than expected conversion of
the Juniper pipeline of opportunities into orders and revenue.
However, Corero management expect that based on the strong growth
in the pipeline and the number of proof of concepts currently in
process, that the Juniper global resale partnership will contribute
materially to the second half of the year. In addition, service and
support renewals and add-on orders from existing customers have
continued to be strong in the first half of the year.
Operating costs* for the six months ended 30 June 2019 are
expected to be approximately $5.3 million (H1 2018: $5.3 million).
Following the appointment of Michael Connolly as Vice President of
Worldwide Sales in June 2019, Corero plans to increase investment
in the Company's sales function in the second half of 2019 to
deliver on the Company's revenue growth plan.
The EBITDA* loss for the six months ended 30 June 2019 is
expected to be approximately $2.0 million (H1 2018: EBITDA* loss
$1.4 million).
Cash at bank as at 30 June 2019 was $6.9 million (2018: $9.0
million) and debt was $3.2 million (2018: $4.0 million) resulting
in net cash of $3.6 million (2018: $5.0 million).
Corero has made operational progress in the first half of the
year and has enjoyed continued high levels of customer satisfaction
resulting in strong service and support contract renewals and
existing customer follow-on purchases. This, coupled with the clear
focus of the new sales leadership to grow the new business and
Juniper resale partnership pipeline, gives the Board confidence in
the Company's future prospects.
Full year outlook
Management expect revenue for the full year ending 31 December
2019 to be approximately 20% higher than revenue for the prior year
(2018: $10.0 million) and anticipate an increased EBITDA* loss for
the full year (2018: EBITDA* loss $2.1 million), as a result of the
additional Corero direct sales investment in the second half of
2019 of approximately $1.0 million.
Should there be a requirement for additional working capital
prior to being cash generative, the Company would undertake a
modest fund raise. The Company's Chairman and major shareholder has
indicated his support should this be required.
Corero will announce its interim results for the six months
ended 30 June 2019 on 25 September 2019.
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
Ashley Stephenson, CEO of Corero, commented:
"Despite the growing pipeline of business being generated
through the Juniper partnership, the year has started slower than
we expected. Encouragingly we have many trials in process and these
are moving forward with success. I am also confident that our
investment in our sales function will accelerate the development of
our routes to market and therefore underpin Corero's future
growth."
Enquiries:
Corero Network Security plc
Andrew Miller, CFO Tel: 01895 876 382
Cenkos Securities plc Tel: 020 7397 8900
Mark Connelly/Cameron MacRitchie - NOMAD
Michael Johnson - Sales
Vigo Communications Tel: 020 7390 0230
Jeremy Garcia / Antonia Pollock / Ben Simons
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
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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