Corero Network Security PLC Trading update (0943E)
February 05 2015 - 2:00AM
UK Regulatory
TIDMCNS
RNS Number : 0943E
Corero Network Security PLC
05 February 2015
5 February 2015
Corero Network Security plc
("Corero" or the "Company")
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, provides an update on
trading for the year ended 31 December 2014.
EBITDA loss (operating loss before depreciation, amortisation
and financing) for the year ended 31 December 2014 is expected to
be in line with market expectations of approximately $7.0 million
(2013: EBITDA loss $6.2 million) and revenue is expected to be
approximately $7.5 million (2013: $10.3 million) which was below
the revenue guidance announced on 6(th) November. Revenue was
impacted by a tail-off in the sales, in the last quarter, of the
previous generation product. Net cash at 31 December 2014 was $6.0
million (2013: $9.5 million).
Corero has accelerated and completed its transition to its
SmartWall Threat Defense System ("TDS") with $1.5 million of
SmartWall TDS gross billings in 2014. The sale of SmartWall TDS
solutions to customers in Corero's target markets in the second
half of 2014 has demonstrated the value of SmartWall TDS in
protecting organisations from the impact of DDoS attacks. SmartWall
TDS wins to date illustrate the breadth of addressable markets;
customers include a service provider in Europe, a hosting provider
in the US, a UK government agency and a global DDoS defence
deployment for a leading on-line gaming company. In the second half
of 2014 the Company developed the ability to remotely deploy and
manage Proof of Concept trials to support a growing pipeline of
prospective customers.
The outlook for SmartWall TDS, based on an increasing number of
Proof of Concept trials, is extremely positive. Corero is also
pleased to report on the recruitment of a proven sales team in
North America focused on the service provider market. In response
to the significant and growing DDoS opportunity in the Cloud
provider market, Corero has recently established an additional
development team to augment its existing resources. As the DDoS
attack landscape continues to evolve, Corero is committed to remain
at the forefront of DDoS defence technology.
Ashley Stephenson, CEO commented:
"The successful deployments, growing number of Proof of Concept
trials and significant value opportunities in the pipeline, give
Corero confidence that the SmartWall TDS focus will drive revenue
from the hosting provider, service provider and on-line enterprise
markets, all of which are investing in DDoS protection.
"Corero enters 2015 with a clear strategy focused on growing
SmartWall TDS sales to markets that are impacted by DDoS attacks.
Though DDoS is not a new concern, the risk to business from DDoS
attacks is at an all-time high. Corero is well positioned for
scalable and durable returns from these expanded target
markets."
Enquiries:
Corero Network Security plc
Andrew Miller, CFO and Chief Operating Tel: 01895 876382
Officer
FinnCap
Stuart Andrews (corporate finance) Tel: 020 7220 0500
Simon Johnson/Stephen Norcross (corporate
broking)
Redleaf PR Tel: 020 7382 4747
Rebecca Sanders-Hewett/David Ison cns@redleafpr.com
About Corero Network Security
Corero Network Security, an organization's First Line of
Defense(R) 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.
DDoS attacks continue to be a widely used cyber weapon against
government and corporate targets, with the media covering almost on
a daily basis reports of cyber attacks and the significant impact
these cause. DDoS attacks can be costly in terms of lost revenues,
brand damage, customer satisfaction and security operations. The
DDoS mitigation market is forecast to increase 66% in the period to
2018 and exceed $1.5 billion, according to Infonetics Research.
For more information, visit www.corero.com.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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