TIDMCNS
RNS Number : 6795J
Corero Network Security PLC
04 July 2011
4 July 2011
Corero Network Security plc (AIM: CNS)
("Corero" or "the Group")
Trading update and Notice of results
Corero Network Security plc, the AIM listed network security and
business software provider, is pleased to provide an update on
trading for the six months ended 30 June 2011.
Highlights:
-- The Group has a healthy cash position of GBP5.2 million at 30
June 2011
-- Significant post acquisition progress in Corero Network
Security
-- Strong year-over-year performance of Corero Business
Systems
Corero Network Security:
Corero's acquisition of Top Layer Networks, Inc. ("Top Layer")
closed on 2 March 2011. This marked the first step in the Company's
strategy to build a network security technology business focused on
delivering software and hardware solutions to mid-market commercial
and enterprise customers and telecommunication service providers,
through international channels.
In the period since the acquisition closed, a number of
important milestones have been achieved:
-- Launch of DDoS Defence System ('DDS'), an industry first
network-layer and application-
layer Distributed Denial of Service ('DDoS') defence product
-- Management team reshaped with the appointment of a General
Manager and CFO, Vice
President Engineering, and Chief Marketing Officer
-- Sales teams recruited in France (covering North Africa,
Belgium, Luxembourg and France)
and Taiwan (covering Taiwan, Hong Kong and China). Recruiting
teams in Malaysia (to cover
Malaysia, Indonesia, and Singapore), Germany (to cover Germany,
Austria and Switzerland),
and Spain (to cover Iberia and Latin America). In addition, the
US sales team has been
reshaped
-- The appointment of 20 new channel partners (compared to 40
existing active channel
partners prior to the acquisition of Top Layer by Corero)
-- The rebranding of Top Layer to "Corero Network Security"
Corero Network Security sales order intake in the period post
the Top Layer acquisition was $5.0 million (GBP3.0 million), in
line with same period in 2010.
Corero Business Systems:
Corero Business Systems, which operates as a stand-alone
business, continues to perform strongly with sales order intake in
the six month period ended 30 June 2011 of GBP2.5 million (compared
to GBP1.5 million in the same period in 2010).
It won contracts from 114 academies in the six months to 30 June
2011, compared with 17 in the 2010 comparable period (and 70 in the
12 months ended 31 December 2010), underlying its strong position
in this growth market and maintaining its c. 30% market share. In
addition, despite the tight Public Sector spending environment,
Corero Business Systems won two new contracts in the period for the
Resource EMS solution, its Learner Management Information
System.
Other key achievements in the first half of 2011 include:
-- Strategic partnership with the Schools Partnership Trust, a
leading 'multi academy' group
and one of only four organisations nationally to be awarded
'Accredited Schools Group
Status', to supply Resource Financials to all of their
schools
-- Strengthening of the management team by appointment of HR
manager to aid expansion
-- Launch of new web site to focus on key products and
sectors
The education sector in the UK offers Corero an excellent
opportunity for growth, particularly in light of the significant
increase in the demand for schools to convert to Academies. Over
the coming year, the Company will invest further in Corero Business
Systems to drive growth, enhance the service offering and increase
market share.
Andrew Miller, COO of Corero, commented: "The first six months
of 2011 have been transformational for Corero with the acquisition
of Top Layer and successful integration of that business coupled
with the continuing growth of Corero Business Systems.
"The significant increase in the number and sophistication of
cyber crime attacks validates Corero's view of the network security
opportunity. We believe the Top Layer acquisition provides an
excellent platform to build Corero's business and the progress made
in the period since the acquisition closed on 2 March 2011 is very
encouraging.
"We have confidence for the remainder of the year in executing
our strategic goals, an increasing pipeline of opportunities and
expect to see the benefit of our increased investment in marketing
and sales in the second half of 2011."
On 29 June 2011, Corero plc was renamed Corero Network Security
plc, in order that the company name is more closely aligned to its
principal trading subsidiary.
Corero Network Security plc will be announcing its interim
results for the six months ended 30 June 2011 on 7 September
2011.
Following today's announcement, if you would like to speak to
the management, please contact Bob Huxford on 020 7933 8780.
Enquiries:
Corero Network Security
plc
Andrew Miller, Chief Operating Tel: 01923 897 333
Officer
finnCap
Clive Carver/Henrik Persson Tel: 020 7600 1658
Walbrook PR Tel: 020 7933 8780
Bob Huxford (Media Relations) Mob: 07747 635 908 or
bob.huxford@walbrookpr.com
Paul Cornelius (Investor Mob: 07827 879 460 or
Relations) paul.cornelius@walbrookir.com
About Corero Network Security
Corero Network Security is an international network security
products technology company, and innovator in Intrusion Prevention
Systems and leader in DDoS defence solutions.
Corero Business Systems serves the education and business
sectors in the UK by delivering powerful, dynamic modular
accounting and business management software and services.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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