REG - Corero Network Sec. - Interim Results
21/09/2023 07:00
For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20230921:nRSU1150Na&default-theme=true
RNS Number : 1150N Corero Network Security PLC 21 September 2023
21 September 2023
Corero Network Security plc
("Corero," the "Company" or the "Group")
Unaudited H1 2023 Interim Results
Strong H1 2023 performance underpinned by ongoing ARR and new business
momentum
Corero Network Security plc (AIM: CNS), a leading provider of distributed
denial of service ("DDoS") protection solutions, announces its unaudited
results for the six months ended 30 June 2023.
Financial highlights:
· H1 2023 order intake(1) increased 19% to $13.0 million (H1 2022:
$10.9 million)
· H1 2023 Group revenue up 19% to $10.5 million (H1 2022: $8.8 million)
· Annualised Recurring Revenues(2) ("ARR") up 13% to $15.3 million (H1
2022: $13.6 million)
· EBITDA(3) loss of $0.2 million (H1 2022: EBITDA profit of $0.9
million)
· Adjusted EBITDA(4) profit of $0.2 million (H1 2022: Adjusted EBITDA
of $0.0 million)
· Net cash at 30 June 2023 of $6.2 million (30 June 2022: $5.8 million)
· $1.2 million early repayment of bank term loan facility, with no
outstanding debt (30 June 2022: $1.7 million)
Operational highlights:
· New strategic go-to-market partnership with Akamai Technologies Inc.
("Akamai")
· Ideal Customer Profile ("ICP") focus driving significant customer
growth across H1 2023
· Strong momentum through Q2, delivering $6.0 million of significant
customer contracts
· Continued growth in the Company's subscription-based products and
DDoS Protection-as-a-service ("DDPaaS") offering, underpinning revenue and
earnings predictability
Outlook:
· Solid start to H2 2023, with a number of significant customer wins
· Robust new business pipeline continues to develop
· Demand for DDoS mitigation from enterprises of varying sizes
continues to remain strong, driven by ongoing and high-profile DDoS attacks(5)
· The Board remains confident in the Company's near-term growth
prospects with Corero continuing to trade in line with market expectations
Jens Montanana, Executive Chairman, commented:
"I am extremely pleased with the momentum that we have built during the first
half of 2023, securing a number of key customer wins across the period. The
increase in revenue, order intake and ARR all demonstrate the fundamental
strength of both Corero's business model and ongoing demand for our
market-leading products.
"Our new strategic partnership with Akamai further expands our routes to
market and is expected to deliver incremental revenue growth in the medium
term.
"The robust foundations created during H1 2023, and the strength of the
Company's balance sheet following the repayment of the outstanding term bank
loan, gives us confidence for the full year as we continue to focus on
delivering on our growth strategy."
(1) Defined as orders received from customers in the period
(2) Defined as the normalised annualised recurring revenue and includes
recurring revenue from contract values of annual support, software
subscription and from DDoS Protection-as-a-Service contracts
(3) Defined as Earnings before Interest, Taxation, Depreciation and
Amortisation
(4) Defined as Earnings before Interest, Taxation, Depreciation less
unrealised foreign exchange differences
(5) 2023 Corero Threat Intelligence Report
https://www.corero.com/2023_threatreport/
(https://www.corero.com/2023_threatreport/)
This announcement contains inside information for the purposes of article 7 of
the Market Abuse Regulation (EU) 596/2014 as amended by regulation 11 of the
Market Abuse (Amendment) (EU Exit) Regulations 2019/310. With the publication
of this announcement, this information is now considered to be in the public
domain.
Enquiries:
Corero Network Security plc Tel: +44 (0) 20 7390 0230
Jens Montanana, Executive Chairman
Phil Richards, CFO
Canaccord Genuity Limited (Nominated Adviser and Broker) Tel: +44 (0) 20 7523 8000
Simon Bridges / Andrew Potts / Harry Rees
Vigo Consulting Tel: +44 (0) 20 7390 0230
Jeremy Garcia / Kendall Hill
About Corero Network Security
Corero Network Security is a leading provider of DDoS protection solutions,
specializing in automatic detection and protection solutions with network
visibility, analytics, and reporting tools. Corero's technology protects
against external and internal DDoS threats in complex edge and subscriber
environments, ensuring internet service availability. With operational centers
in Marlborough, Massachusetts, USA, and Edinburgh, UK, Corero is headquartered
in London and listed on the London Stock Exchange's AIM market (ticker: CNS).
For more information, visit: https://www.corero.com (https://www.corero.com) .
For more information, visit www.corero.com (http://www.corero.com) , and
follow us on LinkedIn (https://www.linkedin.com/company/corero/)
and Twitter (https://twitter.com/Corero) .
Executive Chairman's Interim review
Introduction
Corero delivered a solid six months of trading across H1 2023, underpinned by
the Company's focus on its ICP, which, alongside targeted marketing and sales
initiatives, delivered a 19% year-on-year increase in both order intake and
revenue for the six months to 30 June 2023.
This growth builds upon the strong foundations already in place, with the
Company's market-leading SmartWall solution ensuring that Corero remains well
placed to continue to service customers to the highest levels of satisfaction
whilst attracting significant new customers.
Additionally, Corero continues to experience high levels of customer retention
and renewals, and therefore very low levels of customer churn at just 2%. The
Group generated $15.3 million of ARR as at 1 July 2023, an increase of 13% (H1
2022: $13.6 million), driven by growth in DDPaaS and software subscription
orders. ARR remains a key performance indicator for the Company, providing
visibility over future revenue, with an ARR compound annual growth rate of 28%
since H1 2019.
Adjusting for unrealised FX gains and losses, Adjusted EBITDA profit for the
six months ended 30 June 2023 was $0.2 million (H1 2022: $0.0 million),
demonstrating the continued underlying profitability of the Group.
DDoS attacks continue to grow in both volume and sophistication, as reported
in the Corero 2023 DDoS Thereat Intelligence Report, and, as a result,
companies across a diverse range of sectors are increasingly recognising the
importance of obtaining cutting-edge DDoS protection to safeguard their
digital operations. Against this favourable backdrop, Corero is
well-positioned to continue to deliver best-in-class products and services to
its ICP.
The recently announced strategic partnership with Akamai will further expand
Corero's routes to market. This relationship with an industry-leading security
services provider reinforces the value of Corero's market-leading SmartWall
technology.
Strategic update
The Group's six core strategic drivers remain ever-present and have been at
the heart of the Group's operational and financial performance.
Key progress in the period includes:
· New business pipeline and revenue growth: Corero delivered 19%
year-on-year revenue growth driven by the Company's successful sales and
marketing activities and long-standing sales channel partners.
· Leverage existing reseller and strategic partnerships and develop new
ones: The Group continues to invest in existing key partners, including
Juniper and GTT. Additional efforts have been made in the development of new
strategic partners, ensuring Corero products continue to form an important
component of its partners' global cyber defence capabilities. The Company also
continues to look to new partnerships to expand its market footprint,
including the recently announced strategic partnership with Akamai which
further enhances Corero's reach and is expected to deliver incremental revenue
growth for the Company.
· Target and expand ICP relationships: Our ICP focus has yielded
significant new customer wins during the first six months of 2023 and forms an
important component of our new business pipeline.
· Better monetise existing services and introduce new services: We
continue to explore and provide service initiatives that enhance the
protection and network security visibility for our customers, developing
product offerings that both the Group and our customers can monetise.
· Amplify demand generation programmes: We have created targeted
content at each stage of the buying cycle, and within the key segments we
serve. This includes targeted and sector-specific email campaigns, customer
database intelligence and expansion, and speaking engagements with partners,
amongst many other initiatives.
· Continue to enhance our technological innovation leadership: We
continue to further strengthen our portfolio of SmartWall products. These
developments include improved protection against emerging DDoS threats such as
so-called carpet bomb attacks and enhanced analytics for DDoS
Protection-as-a-Service customers.
DDoS addressable market and market drivers
Cybersecurity is a high-growth market and the segment for DDoS protection and
mitigation is forecast by MarketsandMarkets to grow from $3.9 billion in 2022
to $7.3 billion in 2027 (a compound annual growth rate of 13% over the
forecast period). This growth is being driven by the rise in multi-vector
attacks, availability of DDoS-for-hire services, impact of the growth in IoT
devices, roll-out of 5G services, and growing demand for hybrid DDoS
protection and mitigation services and solutions, where cloud-based DDoS
mitigation and on-premises DDoS protection (such as Corero's SmartWall
solution) work in combination to provide optimal customer protection.
According to Technavio, North America is expected to contribute 39% to the
growth of the global DDoS protection and mitigation market from 2022 to 2027,
underpinned by the fast-growing popularity of cyber insurance in the
region(6). Corero secured a number of contracts with companies based in North
America across H1 2023, and has a robust network of experienced sales and
marketing employees operating out of the US and Canada to identify new
business opportunities and capitalise on the increasing demand for DDoS
protection and mitigation services from companies in the region.
In terms of market dynamics, the competition in the cloud-based DDoS
protection market is increasing whilst the landscape for on-premises DDoS
solution providers is relatively stable. In general, the two solutions remain
complementary.
The key market drivers positively impacting Corero include:
· Continued increase in the level of malicious DDoS activity worldwide,
with the threat showing no signs of abating. Corero's recent report on the
Mirai botnet(7) is one example of this evolving threat.
· The adoption of 100Gbps connectivity is accelerating, with many
providers, including existing customers and prospects, increasing the roll out
100Gbps and 400Gbps networks which drives demand for increased DDoS protection
capacity.
(6) Technavio February 2023 DDOS Protection Mitigation Market by Component,
Application, and Geography - Forecast and Analysis 2023-2027
https://www.technavio.com/report/ddos-protection-mitigation-market-analysis
(https://www.technavio.com/report/ddos-protection-mitigation-market-analysis)
(7) https://www.corero.com/mirai-like-ddos-attacks/
Corero's competitive advantage
As DDoS attacks continue to grow in size, frequency and sophistication, they
reinforce the need for scalable, accurate and automated DDoS mitigation
solutions. Supporting multiple deployment topologies, SmartWall utilises an
always-on DDoS mitigation architecture to automatically, and surgically,
remove just the DDoS attack traffic. In H1 2023, 98% of DDoS attacks on
Corero's customers were mitigated automatically, without further intervention,
by Corero or customers' security teams.
Corero continues to invest in its market-leading solutions through its
research and development efforts and its engineering and customer service
teams. Insights gained from observing millions of DDoS attacks via the
Company's SecureWatch service platform not only inform customers but also
serve to provide unique insights for the Corero technology roadmap, ensuring
the Company remains at the forefront of the industry.
Outlook
The global DDoS mitigation market remains strong, which, coupled with Corero's
technological superiority, cost-effectiveness, and efficacy, continues to
underpin the Company's strong customer traction. Corero anticipates that the
strong cybersecurity market dynamics and demand for the Company's solutions
will remain robust in the medium to long term despite wider macroeconomic
conditions and cycles, given both the critical role Corero's products and
services play in protecting businesses, and the growing awareness from
companies worldwide of the significant disruption DDoS attacks can cause.
Corero's focus on targeting its ICP, alongside ongoing sales and marketing
initiatives, and the development of the Company's strategic partnership
relationships favourably position Corero to build on the strong momentum
generated in H1 2023.
The Group expects that H2 2023 will, consistent with seasonality patterns of
business in previous years, display characteristically greater weighting of
business activity towards the end of the year. Corero anticipates that its
recently announced partnership with Akamai will expand the Company's routes to
market and deliver incremental revenue growth opportunities in the medium
term.
The early repayment of all outstanding debt during the period further
demonstrates the robust nature and positive outlook for the business.
Based on the Company's H1 2023 performance, growth in ARR, order intake and
new business pipeline, management expects trading for the full year 2023 to be
in line with market expectations and believes Corero is well-placed for
further growth in the medium and long term.
Jens Montanana
Executive Chairman
21 September 2023
Chief Financial Officer's Review
The Group reported revenues of $10.5 million in the six months ended 30 June
2023 (H1 2022: $8.8 million).
Total operating expenses before depreciation and amortisation were $9.7
million (H1 2022: $6.9 million). When adjusting for realised and unrealised FX
movements on trading and intercompany balances, operating expenses for H1 2023
amounted to $8.9 million (H1 2022: $8.2 million). The underlying $0.7 million
increase in operating expenses year-on-year is primarily attributable to
additional investment in the Company's sales and marketing team.
Depreciation and amortisation of intangible assets amounted to $0.9 million
(H1 2022: $1.0 million), with capitalised R&D costs of $0.9 million (H1
2022: $0.8 million).
EBITDA for H1 2023 was a loss of $0.2 million (H1 2022: profit of $0.9
million). Adjusted EBITDA, adjusted for unrealised FX losses of $0.4 million
(H1 2022: gains of $0.9 million), was a profit of $0.2 million (H1 2022: $0.0
million).
Loss before and after taxation was $1.2 million (H1 2022: loss of $0.3
million). The reported loss per share was 0.2 cents (H1 2022: loss per share
0.1 cents).
Gross cash at bank as at 30 June 2023 was $6.2 million (30 June 2022: $7.5
million; 31 December 2022: $5.6 million), with $1.2 million of the remaining
outstanding bank term loan facility repaid during the period. Net cash at 30
June 2023 was $6.2 million (30 June 2022: $5.8 million; 31 December 2022: $4.4
million). The Company is debt free as at 30 June 2023.
Net cash generated from operating activities before movements in working
capital in the first six months of 2023 was $0.1 million (H1 2022: $1.3
million). Movements in working capital generated cash of $3.1 million for H1
2023 (H1 2022: cash used of $2.5 million), reflecting the collection of
significant trade receivables invoiced in the final two months of the prior
year. This resulted in cash generated from operating activities during H1 2023
of $3.2 million (H1 2022: cash used of $1.2 million). Net cash used in
investing activities included similar sustained investment in R&D to the
prior year of $0.9 million (H1 2022: $0.8 million spend), with capex
investment also of a similar magnitude at $0.2 million (H1 2022: $0.3
million).
H1 2023 included repayments of borrowings of $1.2 million (H1 2022: $0.9
million), being the entirety of the outstanding bank term loan facility, which
was repaid during the period.
Overall, cash and cash equivalents for H1 2023 increased by $0.6 million (H1
2022: decrease of $3.3 million).
Phil Richards
Chief Financial Officer
21 September 2023
Condensed Consolidated Income Statement
for the six months ended 30 June 2023
Unaudited six months ended 30 June Audited year ended 31 December
Unaudited six months ended 30 June
2023 2022 2022
Continuing operations $'000 $'000 $'000
Revenue 10,526 8,820 20,121
Cost of sales (995) (1,042) (2,576)
Gross profit 9,531 7,778 17,545
Operating expenses (10,619) (7,942) (16,719)
Consisting of:
Operating expenses before depreciation and amortisation (9,741) (6,899) (14,776)
Depreciation and amortisation of intangible assets (878) (1,043) (1,943)
Operating (loss)/profit (1,088) (164) 826
Finance income 7 - 7
Finance costs (142) (161) (279)
(Loss)/profit before taxation (1,223) (325) 554
Taxation charge (17) - -
(Loss)/profit after taxation for the period (1,240) (325) 554
(1,240) (325) 554
(Loss)/profit after taxation attributable to equity holders of the parent for
the period
Basic and diluted (loss)/earnings per share
Cents Cents Cents
Basic (loss)/earnings per share (0.2) (0.1) 0.1
Diluted (loss)/earnings per share (0.2) (0.1) 0.1
EBITDA(1)
(210) 879 2,769
Adjusted EBITDA(1) - adjusted for unrealised foreign exchange differences 220 (48)
1,808
( 1) See note 6 for definitions and reconciliation.
Condensed Consolidated Statement of Total Comprehensive Income
for the six months ended 30 June 2023
Unaudited six months ended 30 June Unaudited six months ended 30 June Audited year ended 31 December
2023 2022 2022
$'000 $'000 $'000
(Loss)/profit for the period (1,240) (325) 554
Other comprehensive income/(expense):
Items reclassified subsequently to profit or loss upon derecognition:
Foreign exchange differences 631 (1,093) (1,087)
Other comprehensive expense for the period net of taxation attributable to the (609) (1,418) (533)
equity owners of the parent
Total comprehensive expense for the period attributable to the equity owners (609) (1,418) (533)
of the parent
Condensed Consolidated Statement of Financial Position
as at 30 June 2023
Unaudited Unaudited Audited
as at 30 as at 30 as at 31 December
June June
2023 2022 2022
$'000 $'000 $'000
Assets
Non-current assets
Goodwill 8,991 8,991 8,991
Acquired intangible assets 1 3 2
Capitalised development expenditure 4,647 4,429 4,500
Property, plant and equipment - owned assets 538 674 604
Leased right of use assets 21 104 62
Long term trade and other receivables 1,326 907 1,571
15,524 15,108 15,730
Current assets
Inventories 108 220 164
Trade and other receivables 4,106 3,087 5,294
Cash and cash equivalents 6,172 7,492 5,646
10,386 10,799 11,104
Total assets 25,910 25,907 26,834
Liabilities
Current Liabilities
Trade and other payables (2,975) (3,483) (3,956)
Lease liabilities (71) (99) (78)
Deferred income (4,614) (4,271) (3,323)
Borrowings - (971) (971)
(7,660) (8,824) (8,328)
Net current assets 2,726 1,975 2,776
Non-current liabilities
Trade and other payables - (151) (100)
Lease liabilities - (27) -
Deferred income (2,844) (1,590) (2,285)
Borrowings - (728) (237)
(2,844) (2,496) (2,622)
Net assets 15,406 14,587 15,884
Capital and reserves attributable to the equity owners of the parent
Share capital 6,983 6,914 6,980
Share premium 82,296 82,122 82,284
Capital redemption reserve 7,051 7,051 7,051
Share options reserve 1,890 1,692 1,777
Foreign exchange translation reserve (1,962) (2,599) (2,593)
Accumulated profit and loss reserve (80,852) (80,593) (79,615)
Total shareholders' equity 15,406 14,587 15,884
Consolidated Interim Statement of Cash Flows
for the six month period ended 30 June 2023
Unaudited six months ended 30 June Unaudited six months ended 30 June Audited year ended 31 December
2023 2022 2022
Operating activities $'000 $'000 $'000
(Loss)/profit before taxation for the period (1,223) (325) 554
Adjustments for movements:
Amortisation of acquired intangible assets 1 1 2
Amortisation of capitalised development expenditure 764 940 1,732
Depreciation - owned assets 231 252 497
Depreciation - leased assets 41 41 82
Finance income (7) - (7)
Finance expense 140 155 268
Finance lease interest costs 2 6 11
Share based payments expense 116 202 386
Cash generated from operating activities before movement in working capital 65 1,272 3,525
Movement in working capital:
Decrease/(increase) in inventories and sales evaluation assets 80 (74) (26)
Decrease/(increase) in trade and other receivables 2,356 (1,258) (3,867)
Increase/(decrease) in trade and other payables 664 (1,142) (1,361)
Net movement in working capital 3,100 (2,474) (5,254)
Cash generated from/(used in) operating activities 3,165 (1,202) (1,729)
Taxation (17) - -
Net cash generated from/(used in) operating activities 3,148 (1,202) (1,729)
Cash flows from investing activities
Investment in development expenditure (911) (841) (1,704)
Purchase of property, plant and equipment (177) (257) (420)
Net cash used in investing activities (1,088) (1,098) (2,124)
Cash flows from financing activities
Net proceeds from issue of ordinary share capital 15 - 228
Finance income 7 - 7
Lease liability payments (53) (51) (104)
Finance expense (61) (89) (158)
Repayments of borrowings (1,317) (880) (1,364)
Net cash (used in)/generated from financing activities (1,409) (1,020) (1,391)
Increase/(decrease) in cash and cash equivalents 651 (3,320) (5,244)
Effects of exchange rates on cash and cash equivalents (125) (389) (311)
Cash and cash equivalents at 1 January 5,646 11,201 11,201
Cash and cash equivalents at balance sheet dates 6,172 7,492 5,646
Consolidated Interim Statement of Changes in Equity
for the six month period ended 30 June 2023
Share capital Share premium Capital redemption reserve Share options reserve Foreign exchange translation reserve Accumulated profit and loss reserve Total attributable to equity owners of the parent
$'000 $'000 $'000 $'000 $'000 $'000 $'000
1 January 2022 6,914 82,122 7,051 1,490 (1,506) (80,268) 15,803
Loss for the period - - - - - (325) (325)
Other comprehensive expense - - - - (1,093) - (1,093)
Total comprehensive expense for the period - - - - (1,093) (325) (1,418)
Contributions by and distributions to owners
Share based payments - - - 202 - - 202
Total contributions by and distributions to owners - - - 202 - - 202
30 June 2022 6,914 82,122 7,051 1,692 (2,599) (80,593) 14,587
Profit for the period - - - - - 879 879
Other comprehensive expense - - - - 6 - 6
Total comprehensive income for the period - - - - 6 879 885
Contributions by and distributions to owners
Issue of share capital - exercise of options 66 162 - - - - 228
Fully exercised share options - - - (99) - 99 -
Share based payments - - - 184 - - 184
Total contributions by and distributions to owners 66 162 - 85 - 99 412
31 December 2022 and 1 January 2023 6,980 82,284 7,051 1,777 (2,593) (79,615) 15,884
Loss for the period - - - - - (1,240) (1,240)
Other comprehensive expense - - - - 631 - 631
Total comprehensive expense for the period - - - - 631 (1,240) (609)
Contributions by and distributions to owners
Issue of share capital - exercise of options 3 12 - - - - 15
Fully exercised share options - - - (3) - 3 -
Share based payments - - - 116 - - 116
Total contributions by and distributions to owners 3 12 - 113 - 3 131
30 June 2023 6,983 82,296 7,051 1,890 (1,962) (80,852) 15,406
Notes to the interim financial statements
1. General information and basis of preparation
Corero Network Security plc (the "Company") is a company domiciled in England.
The condensed consolidated interim financial statements of the Company for the
six months ended 30 June 2023 comprise the Company and its subsidiaries
(together referred to as the "Group").
These condensed interim consolidated financial statements have been prepared
in accordance with UK-adopted IAS 34,"Interim Financial Reporting". They do
not include all disclosures that would otherwise be required in a complete set
of financial statements and should be read in conjunction with the Annual
Report and Accounts for the year ended 31 December 2022 ("2022 Annual Report
and Accounts"). The financial information for the half years ended 30 June
2023 and 30 June 2022 do not constitute statutory accounts within the meaning
of Section 434(3) of the Companies Act 2006 and have neither been audited nor
reviewed by the Group Auditor.
The annual financial statements of Corero Network Security plc are prepared in
accordance with international accounting standards in conformity with the
requirements of the Companies Act 2006. The comparative financial information
for the year ended 31 December 2022 included within this report does not
constitute the full statutory accounts for that period. The statutory Annual
Report and Financial Statements for 2022 have been filed with the Registrar of
Companies. The Independent Auditors' Report on the Annual Report and Accounts
for 2022 was unqualified and did not contain a statement under 498(2) or
498(3) of the Companies Act 2006.
There have been no related party transactions or changes in related party
transactions described in the latest Annual Report and Accounts that could
have a material effect on the financial position or performance of the Group
in the first six months of the financial year.
These consolidated interim financial statements were approved by the Board on
19 September 2023 and approved for issue on 21 September 2023.
A copy of this Interim Report can be viewed on the company's website:
www.corero.com (http://www.corero.com) .
2. Significant accounting policies
The basis of preparation and accounting policies used in preparation of these
interim financial statements have been prepared in accordance with the same
accounting policies set out in the 2022 Annual Report and Accounts.
3. Segment reporting and revenue
The Group is managed according to one business unit, Corero Network Security,
which makes up the Group's reportable operating segment. This business unit
forms the basis on which the Group reports its primary segment information to
the Board, which management consider to be the Chief Operating Decision maker
for the purposes of IFRS 8 Operating Segments. Consequently, there are no
separable 'other segmental information' not otherwise showed in these
Condensed Consolidated Financial statements.
The Group's revenues from external customers are divided into the following
geographies:
Unaudited Unaudited Audited
six months ended 30 June 2023 six months ended 30 June 2022 year ended 31 December 2022
$'000 $'000 $'000
The Americas 8,689 6,264 14,695
EMEA 1,292 1,915 4,388
APAC 545 641 1,038
Total 10,526 8,820 20,121
Revenues from external customers are identified by invoicing systems and
adjusted to take into account the difference between invoiced amounts and
deferred revenue adjustments as required by IFRS accounting standards.
The revenue is analysed for each revenue category as:
Unaudited Unaudited Audited
six months ended 30 June 2023 six months ended 30 June 2022 year ended 31 December 2022
$'000 $'000 $'000
Software licence and appliance revenue 3,866 2,878 8,107
DDoS Protection-as-a-Service revenue 2,786 2,288 4,854
Maintenance and support services revenue 3,874 3,654 7,160
Total 10,526 8,820 20,121
The revenue is analysed by timing of delivery of goods or services as:
Unaudited Unaudited Audited
six months ended 30 June 2023 six months ended 30 June 2022 year ended 31 December 2022
$'000 $'000 $'000
Point-in-time delivery 3,866 2,878 8,107
Over time 6,660 5,942 12,014
Total 10,526 8,820 20,121
4. Taxation
Due to the utilisation of past tax losses, the Group does not recognise a
material taxation income tax expense or credit.
5. Earnings per share
Earnings/(loss) per share is calculated by dividing the earnings attributable
to ordinary shareholders by the weighted average number of ordinary shares in
issue during the period. The effects of anti-dilutive ordinary shares
resulting from the exercise of share options are excluded from the calculation
of loss per share.
30 June 2023 loss 30 June 2023 weighted average number of 1p shares 30 June 2023 loss per share 30 June 2022 loss 30 June 2022 weighted average number of 1p shares 30 June 2022 loss per share
$'000 Thousand Cents $'000 Thousand Cents
Basic loss per share (1,240) 499,962 (0.2) (325) 494,852 (0.1)
From loss for the year
Diluted loss per share
Basic loss per share (1,240) 499,962 (0.2) (325) 494,852 (0.1)
Dilutive effect of share options - 47,823 - - 29,742 -
Diluted loss per share (1,240) 547,785 (0.2) (325) 524,594 (0.1)
31 Dec 2022 profit 31 Dec 2022 weighted average number of 1p shares
31 Dec 2022 profit per share
$'000 Thousand Cents
Basic earnings per share 554 495,900 0.1
Basic earnings per share
Diluted earnings per share
Basic earnings per share 554 495,900 0.1
Dilutive effect of share options - 15,248 -
Diluted earnings per share 554 511,148 0.1
6. Key performance measures
EBITDA and Adjusted EBITDA
Earnings before interest, tax, depreciation, and amortisation ("EBITDA") is
defined as earnings from operations before all interest, tax, depreciation,
and amortisation charges. The following is a reconciliation of EBITDA and
further adjustment for all three periods presented:
Unaudited Unaudited Audited
six months ended 30 June 2023 six months ended 30 June 2022 year ended 31 December 2022
$'000 $'000 $'000
Loss/(profit) before taxation (1,223) (325) 554
Adjustments for:
Finance income (7) - (7)
Finance expense 140 155 268
Finance lease interest costs 2 6 11
Depreciation - owned assets 72 61 127
Depreciation - lease liabilities 41 41 82
Amortisation of acquired intangible assets 1 1 2
Amortisation of capitalised development expenditure 764 940 1,732
EBITDA (210) 879 2,769
Unrealised foreign exchange differences 430 (927) (961)
Adjusted EBITDA - for unrealised foreign exchange differences 220 (48) 1,808
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 (mailto:rns@lseg.com)
or visit
www.rns.com (http://www.rns.com/)
.
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
. END IR FLFLEAAIIFIVRecent news on Corero Network Security
See all newsREG - Corero Network Sec. - Strong Start to 2024 Securing Orders of >$8million
AnnouncementRCS - Corero Network Sec. - Corero launches DDoS cloud-backup service
AnnouncementREG - Corero Network Sec. - Directorate Change
AnnouncementRCS - Corero Network Sec. - $1.8m Contract Win & Incumbent Replacement
AnnouncementREG - Corero Network Sec. - Significant $2m+ Contract Renewal and Expansion
Announcement