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RNS Number : 9480D Corero Network Security PLC 25 October 2022
25 October 2022
Corero Network Security plc
("Corero" or the "Company")
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 ending
31 December 2022(1).
Order intake, which reflects revenues recognised over the lifetime of each of
the contracts, is expected to remain strong with growth of between 15 and 25%
over the prior year (2021: $21.2 million).
Notwithstanding the expected growth in order intake, Corero estimates that
revenue for the year ending 31 December 2022 is now expected to show growth of
between 5% and 10% over the prior year (2021: $20.9 million). Corero has
seen customer decision making and buying cycles being extended which has
impacted customer order timing as we approach the end of the financial year
and the resultant ability to recognise the revenue in the current period.
The Company expects that the final quarter of the financial year will,
consistent with seasonality patterns of business in previous years, display
characteristic greater weighting of business activity and as a result the
second half will show a material increase on the results from the first half.
As a result, adjusted EBITDA(2) for the year ending 31 December 2022 is
expected to be between $1.0 and $2.0 million (2021: $4.1 million) reflecting
the expected growth from the first half and the previously described
investments in sales and marketing. The cash position continues to be strong.
Corero continues to make progress in delivering against its six core strategic
drivers. One of the key business drivers, the amplification of demand
generation programmes, together with the planned increased sales and marketing
investment in 2022, is delivering strong growth in the sales pipeline with a
record number of new customer opportunities as well as incremental business
with existing customers. The Company also continues to experience high
levels of customer retention and renewals as the underpin to annual recurring
Lionel Chmilewsky, CEO of Corero, said:
"Our expected growth in order intake is pleasing but the extensions we are
seeing in decision making and sales cycles are impacting the timing of orders
and ultimately our revenues this year.
"Our primary focus remains on sales and marketing with our defined
go-to-market strategy including the further development of sales channel
partners. We are confident the investments made in product development and
sales and marketing in 2022 will position Corero to deliver strong growth in
2023 with a strong pipeline of opportunities already being developed."
(1) All numbers for year ending 31 December 2022 disclosed within this
announcement are management estimates based on current information and are
(2) Adjusted EBITDA is defined as earnings before interest, interest, tax,
depreciation, and amortisation excluding unrealised gains on an intercompany
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.
Corero Network Security plc Tel: +44(0) 20 7390 0230
Lionel Chmilewsky, Chief Executive Officer
Andrew Miller, Interim 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
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 London, 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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