TIDMCNS
RNS Number : 0973M
Corero Network Security PLC
19 January 2021
19 January 2021
Corero Network Security plc
("Corero" or the "Company")
Trading Update
Revenue ahead of market expectations
driven by record order intake
Corero Network Security plc (AIM: CNS), a leading provider of
real-time, high-performance, automatic Distributed Denial of
Service (DDoS) cyber defense solutions , provides the following
trading update for the year ended 31 December 2020.
The Company has continued to build on its record H1 2020
performance with increased momentum in order intake and revenue
growth in H2 2020. As a result, management now expects the Company
to report FY 2020 revenue ahead of market expectations, with order
intake also reaching record levels. This strong performance has
been driven by the continued success of Corero's differentiated,
real-time, high-performance, automatic SmartWall DDoS defense
solutions.
Order intake for the year ended 31 December 2020 is expected to
be c.$20.9(1) million (2019: $13.0 million), an increase of c.61%.
H2 2020 order intake was at record levels at c.$13.0 million (H2
2019: $8.0 million), up c.63%. Revenues associated with order
intake are recognisable over the lifetime of each of the
contracts.
Revenue for the year ended 31 December 2020 is expected to have
increased by c.73% to c.$16.8 million (2019: $9.7 million). H2 2020
revenue was also a record high, at approximately $10.6 million (H2
2019: $5.5 million), up c.93%.
Annualised Recurring Revenues(2) ("ARR") increased in the year
with ARR of $9.8 million as at 1 January 2021, driven by growth in
DDoS Protection-as-a-Service ("DDPaaS") and software subscription
orders (ARR at 1 January 2020: $7.2 million).
Corero added 42 new customers in 2020 (2019: 18 new customers),
of which, 17 were acquired through Corero's strategic partnership
with Juniper Networks (2019: 6 new Juniper customers).
Gross cash at bank as at 31 December 2020 was $10.1 million (H1
2020: $6.2m; 2019: $8.3 million) and borrowings were $2.5 million,
including $0.6 million of a US Paycheck Protection Program ("PPP")
loan (H1 2020: $2.9 million including PPP loan; 2019: $2.9 million
of borrowings). Net cash as at 31 December 2020 was c.$7.6 million
(H1 2020: $3.3 million; 2019: $5.4 million).
It is anticipated that EBITDA for the year ended 31 December
2020 will be in line with existing market expectations(3) .
An announcement regarding the date of publication of the
Company's audited full year results will be made in due course.
Lionel Chmilewsky, Corero's CEO, said:
"I am extremely pleased with our 2020 trading performance,
having broken a number of Company records and exceeded revenue
market guidance, all of which has been achieved against the ongoing
unprecedented and uncertain economic backdrop. We continued to make
excellent strategic progress in 2020: we have expanded in many new
countries in 2020 and now have our solutions deployed in 40
countries, won contracts with many more tier one and major
customers and continued to successfully leverage our strategic and
business partnerships such as those with Juniper and GTT."
"I would like to thank every individual across the business for
their hard work in 2020 and the team's dedication to serving our
customers and partners. I look forward to executing on Corero's
exciting growth opportunities in 2021 and beyond."
(1) All numbers for the year ended 31 December 2020 disclosed
within this announcement are unaudited.
(2) ARR is defined as the normalised annualised recurring
revenues and includes recurring revenues from contract values of
annual support, software subscription and from DDoS
Protection-as-a-Service (DDPaaS) contracts.
(3) Market FY20 EBITDA expectation of -$1.5m.
Enquiries:
Corero Network Security plc
Lionel Chmilewsky, Chief Executive Officer
Neil Pritchard, Group Finance Director Tel: +44(0)1895
876 382
Cenkos Securities plc Tel: +44(0)20 7397
8900
Ben Jeynes - Corporate Finance
Alex Pollen - Sales
Vigo Communications Tel: +44(0)20 7390
0230
Jeremy Garcia / Antonia Pollock
corero@vigocomms.com
About Corero Network Security
Corero Network Security plc, is a global leader in real-time,
high-performance, automatic DDoS cyber defense solutions. Both
Service and Hosting providers, alongside digital enterprises across
the globe rely on Corero's award winning cybersecurity technology
to eliminate the threat of Distributed Denial of Service (DDoS) to
their digital environment through automatic attack detection and
mitigation, coupled with network visibility, analytics and
reporting. Corero's industry leading SmartWall and SecureWatch
technology provides scalable protection capabilities against
external DDoS attackers and internal DDoS botnets in the most
complex edge and subscriber environments, while enabling a more
cost-effective economic model than previously available. Corero's
key operational centers located in Marlborough, Massachusetts, USA
and Edinburgh, UK, with the Company's headquarters in Amersham, UK.
The Company is listed on the London Stock Exchange's AIM market
under the ticker
CNS. For more information, visit www.corero.com
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