REG - Corero Network Sec. - Trading Update

Corero Network SecurityAnnouncement

24/01/2022 07:05

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RNS Number : 3054Z  Corero Network Security PLC  24 January 2022

24 January 2022

 

This announcement contains inside information for the purposes of Article 7 of
the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law
by virtue of the European Union (Withdrawal) Act 2018 ("MAR"), and is
disclosed in accordance with the Company's obligations under Article 17 of
MAR.

 

Corero Network Security plc

("Corero" or the "Company")

 

Trading Update

 

Record performance underpins transition to profitability

 

Corero Network Security plc (AIM: CNS), a leading provider of real-time,
high-performance, automatic Distributed Denial of Service (DDoS) cyber defense
solutions, is pleased to provide the following trading update for the year
ended 31 December 2021(1).

 

As announced in the Group's pre-close update on 22 December 2021, Corero
performed strongly in FY 2021 with revenues expected to be broadly in-line
with market expectations at c. $20.9 million (2020: $16.9 million), up 24%,
and EBITDA anticipated to be materially ahead of market expectations in an
estimated range of $3.8 to $4.2 million (2020: EBITDA loss of $1.4 million).
In addition, Corero anticipates reporting a maiden profit before taxation in
an estimated range of $1.2 to $1.6 million (2020: loss before taxation of $4.0
million). This performance has been underpinned by continued strong demand for
the Group's market-leading DDoS mitigation solutions, coupled with ongoing
margin improvement and controlled operating expenses. Included within EBITDA
and profit before tax is c$0.2m of foreign exchange gains (2020: $0.4m foreign
exchange losses); and non-recurring income from the forgiveness of a US
Payment Protection Plan (PPP) loan of $0.6 million as reported in the interim
results.

 

Annualised Recurring Revenues(2) ("ARR") increased to c. $12.8 million as at 1
January 2022 (ARR at 1 January 2021: $9.8 million), driven by strong traction
for Corero's subscription-based and DDoS Protection as-a-service ("DDPaaS")
products, which underpins higher levels of earnings predictability for the
Company going forward.

 

Cash at 31 December 2021 was $11.2 million reflecting the improved performance
of the business (H1 2021: $8.8 million; 2020: $10.1 million). Net cash, taking
into account borrowings, at 31 December 2021 was $8.4 million (H1 2021: $5.1
million; 2020: $7.6 million).

 

Corero added 44 new customers in 2021 (2020: 42 new customers), of which, 18
were secured through Corero's strategic partnership with Juniper Networks
(2020: 17 new Juniper customers). Corero has now deployed its unique solutions
across 47 countries.

 

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:

 

"Corero has delivered an excellent performance across 2021, highlighted by a
significant improvement in profit growth, and we are pleased to be reporting
our maiden profit before tax.  We have built strong momentum during 2021
which we fully expect to continue during 2022 and beyond. Given the on-going
strategy and strong 2021 performance, we intend to invest in additional
resources in 2022 to further drive growth.  We look forward to continuing our
strong growth trajectory and updating the market with our strategic progress
over the coming months."

 

(1) All numbers for the year ended 31 December 2021 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
subscriptions including terms greater than one year, and from DDoS
Protection-as-a-Service (DDPaaS) contracts.

 

 

Enquiries:

 

 Corero Network Security plc                                    Tel: +44(0)1494 590 404
 Lionel Chmilewsky, Chief Executive Officer
 Neil Pritchard, Chief Financial Officer

 Canaccord Genuity Limited (Nominated Adviser and Broker)      Tel: +44(0)20 7523 8000
 Simon Bridges / Andrew Potts

 Vigo Consulting                                               Tel: +44(0)20 7390 0230
 Jeremy Garcia / Antonia Pollock
 corero@vigoconsulting.com (mailto:corero@vigoconsulting.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
(http://www.corero.com/)

 

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