REG - Corero Network Sec. - Trading Update

Corero Network SecurityAnnouncement

26/07/2022 07:00

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RNS Number : 6875T  Corero Network Security PLC  26 July 2022

26 July 2022

 

Corero Network Security plc

("Corero" or the "Company")

 

Trading Update

 

Record H1 Performance. Strong levels of ARR underpins future growth

 

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
six months ended 30 June 2022(1).

 

Order intake, which reflects revenues recognised over the lifetime of each of
the contracts, remained strong across H1 2022, up 22% to c.$10.9 million (H1
2021: $8.9 million).

 

Revenue for H1 2022 increased c.6% to c.$8.8 million (H1 2021:  $8.3 million)
with EBITDA(2) in H1 2022 expected to be c.$0.9 million (H1 2021: $0.1
million), with successful development in the execution of management's
go-to-market strategy.

 

Annualised Recurring Revenue(3) ("ARR"), a key performance metric for the
Group, increased c.21% in H1 2022 to c.$13.6 million (H1 2021: $11.2 million),
driven by growth in DDoS Protection-as-a-Service ("DDPaaS") and software
subscription orders.

 

The Company's net cash at 30 June 2022 was $5.8 million (H1 2021: $5.1
million; FY 2021: $8.4 million) and gross cash of $7.5 million (H1 2021: $8.8
million; FY 2021: $11.2 million), whilst borrowings were further reduced to
$1.7 million (H1 2021: $3.7 million; FY 2021: $2.8 million).

 

Corero added 21 new customers in H1 2022 (H1 2021: 20 customers), of which,
eight were originated through the Company's longstanding Juniper Networks
partnership (H1 2021: eight customers). To date, Corero has deployed its
unique solutions in 50 countries across six continents and continues to invest
in sales and marketing activities to further expand is global customer reach.

 

The Company expects to issue its unaudited interim results for the six months
ended 30 June 2022 in mid-September 2022.

 

Lionel Chmilewsky, CEO of Corero, said:

 

"We are delighted to report another strong six months of further operational
momentum and strategic growth for Corero. With both ARR and bookings growth
maintaining their positive trajectory across the first half of the year, it
further underpins our focus on new business.

 

The investment we are making to further support our Sales and Marketing and
Product Development functions has allowed us to gain further coverage and
traction across the dynamic DDoS defense market.  I firmly believe these new
initiatives will continue to reinforce our customer relationships and further
enhance our business pipeline for further growth in 2022 and beyond."

 

(1) All numbers for the six months ended 30 June 2022 disclosed within this
announcement are unaudited.

(2) EBITDA is defined as earnings before interest, interest, tax,
depreciation, and amortisation.

(3)( )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.

 

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 / Harry Rees

 Vigo Consulting                                               Tel: +44(0)20 7390 0230
 Jeremy Garcia / Kendall Hill
 corero@vigoconsulting.com (mailto:corero@vigoconsulting.com)

The information contained within this announcement was deemed to constitute
inside information as stipulated under the Market Abuse Regulation (EU) No.
596/2014, as amended by regulation 11 of the Market Abuse (Amendment) (EU
Exit) Regulations 2019/310, prior to release of this announcement. Upon the
publication of this announcement, this inside information is now considered to
be in the public domain.

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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