REG - Corero Network Sec. - Trading update <Origin Href="QuoteRef">CNSP.L</Origin>

Corero Network SecurityAnnouncement

06/09/2014 16:46

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RNS Number : 5395M
Corero Network Security PLC
17 July 2014 
 
17 July 2014 
 
Corero Network Security plc 
 
("Corero", the "Company" or the "Group") 
 
Trading update 
 
Corero Network Security plc (AIM: CNS), a leading provider of security
solutions for defending against DDoS (Distributed Denial of Service) attacks
and cyber threats, is pleased to provide an update on trading for the six
months ended 30 June 2014. 
 
Management expects revenue and loss before interest, tax and amortisation
("EBITDA") levels for the full year, and net cash at 31 December 2014, to be
in line with market expectations. 
 
First half highlights: 
 
·      Successful launch and commercial introduction of the SmartWall Threat
Defense System
("SmartWall"), with first two customer sales in June and a growing pipeline 
 
·      Order intake increased 7% compared to H1 2013 
 
·      12 customers with orders exceeding $100,000 in the period 
 
·      Largest enterprise sale of First Line of Defense DDS solution 
 
·     Net cash of $5.0m at 30 June 2014 
 
The focus for Corero in 2014 continues to be the successful launch and
commercial introduction of SmartWall, Corero's new family of products which
expands the Company's addressable market to include Internet service providers
and hosting providers. SmartWall enables these providers to offer
comprehensive DDoS and cyber threat protection services to their customers. 
 
Corero achieved important technical and commercial milestones in the period to
30 June 2014 including the first two SmartWall customer sales in June, in line
with plans set out at the beginning of 2014.  Prospective customer interest in
SmartWall is strong with a growing pipeline of opportunities for the second
half of 2014 following the general availability release of the product in
June. 
 
Despite the typical longer sales cycles for larger deals, order intake in the
first six months included 12 customers with orders exceeding $100,000
(compared with 7 in the first half of 2013) comprising mainly DDS First Line
of Defense sales but also the first two SmartWall customer sales. DDS is
Corero's existing solution for protecting enterprise and public sector
organisations. 
 
Sales order intake was $4.5 million in the six months ended 30 June 2014, an
increase of 7% over the comparative period in 2013.  The Company expects
revenue recognised during the first six months, comprising mainly revenue from
existing product lines, to be below that in the comparative period as
prospective customers pre-sales trials and testing have extended into the
third quarter.  In addition, a higher services element, which will be spread
across the life of such contracts, in the H1 2014 order intake will result in
lower immediate revenue recognition and higher deferred revenues. 
 
The Company expects revenue in the second half, driven by SmartWall sales, to
be greater than the first half. 
 
At 30 June 2014, the Group had net cash of $5.0 million (2013: $2.8 million
net debt) with debt of $0.4 million (2013: $8.1 million). 
 
Ashley Stephenson, CEO commented: 
 
"The successful launch and first SmartWall sales in June represent important
achievements for the Company. In addition, the growing pipeline of new
SmartWall opportunities means Corero is well positioned to exploit the
Company's stated strategy of expanding its addressable market to deliver
significant revenue growth. 
 
"The market opportunity for DDoS and cyber threat protection remains strong.
Engagements with prospective customers have confirmed that SmartWall is a
market leading solution. Our focus for the second half of 2014 is SmartWall
sales execution to deliver on our growth plans.  The Board remains confident
of the outlook for H2 2014 and beyond." 
 
Enquiries: 
 
 Corero Network Security plc                                             
 Andrew Miller, CFO and Chief Operating Officer      Tel: 01895 876382   
                                                                         
 FinnCap                                                                 
 Stuart Andrews/Henrik Persson (corporate finance)   Tel: 020 7220 0500  
 Simon Johnson/Stephen Norcross (corporate broking)                      
                                                                         
 Redleaf Polhill                                     Tel: 020 7382 4747  
 Rebecca Sanders-Hewett/Dwight Burden/David Ison     cns@redleafpr.com   
                                                                         
                                                                           
 
 
About Corero Network Security 
 
Corero Network Security, an organization's First Line of Defense against DDoS
(Distributed Denial of Service) attacks and cyber threats, is a pioneer in
global network security. Corero products and services provide online
enterprises, service providers, hosting providers, and Managed Security
Service Providers with an additional layer of security capable of inspecting
Internet traffic and enforcing real-time access and monitoring policies
designed to match the needs of the protected business. Corero technology
enhances any defense-in-depth security architecture with a scalable, flexible
and responsive defence against DDoS attacks and cyber threats before they
reach the targeted IT infrastructure allowing online services to perform as
intended. For more information, visit www.corero.com. 
 
This information is provided by RNS
The company news service from the London Stock Exchange