Corero Network Security PLC Trading update and Proposed Fundraising (5067U)
July 30 2015 - 2:02AM
UK Regulatory
TIDMCNS
RNS Number : 5067U
Corero Network Security PLC
30 July 2015
30 July 2015
Corero Network Security plc
("Corero" or the "Company")
Trading update and Proposed Fundraising to raise up to GBP5.0
million
Corero Network Security plc (AIM: CNS), the AIM listed network
security company, is pleased to provide an update on trading for
the six months ended 30 June 2015 and announce a proposed
fundraising to raise up to GBP5.0 million (before expenses).
Trading update
The growing number of service provider trials for the SmartWall
Threat Defense System ("SmartWall TDS") product support the outlook
for a strengthening second half performance. This outlook is
dependent on a number of material opportunities with market leading
corporations. The longer sales cycles for these large opportunities
will impact the results for the year ending 31 December 2015.
The first half of 2015 is the first full six month reporting
period following Corero's decision in Q4 2014 to transition the
business focus to the SmartWall TDS product.
First half highlights:
-- Flagship SmartWall TDS order (with a value of over $500,000) from a US service provider
-- Customer wins across the multiple SmartWall TDS target markets: service providers, hosting
providers and on-line enterprises
-- SmartWall TDS trials in progress with three of the top 10 US Internet service providers
-- Key sales team appointments in North America adding
significant service provider sales experience
-- Partnership with Verisign to deliver hybrid DDoS protection solutions
-- New development facility in Edinburgh, Scotland which adds
significant security, virtualization and software-defined
networking (SDN expertise
As set out in the results for the year ended 31 December 2014,
announced on 26 March 2015, having made the investment to refresh
and refocus its product line to address the growing DDoS threat,
Corero remains well positioned for scalable returns from a
significant target market.
Corero is continuing to see a shift in enterprises looking to
their service providers for delivery of protection against
distributed denial of service attacks ("DDoS"). The Company's
SmartWall TDS products enable it to address the growing service
provider market demand for DDoS protection solutions.
Despite longer sales cycles in the large service provider
market, the opportunity in this segment is larger than Corero had
originally anticipated. Demand is being driven by the immediate
need for next generation technology solutions to deliver DDoS and
cyber threat protection services to service provider customer bases
and also to protect the growing Cloud services infrastructure from
the impact of DDoS and cyber threats. Corero believes traction in
this market segment would be transformational for the success of
the Company.
Based upon the growing level of interest and number of
significant proof of concept trials, Corero is confident in the
outlook for the SmartWall TDS product offering in the provider
segment and is focusing its efforts on SmartWall TDS sales in these
markets.
The Company expects to announce interim results for the six
months ended 30 June 2015 on 30 September 2015 at which time the
Company will have greater clarity on the expected performance for
the year ending 31 December 2015.
Proposed Fundraising to raise up to GBP5.0 million
Corero is proposing to raise up GBP5.0 million at 10p per share
by way of a subscription.
The net proceeds of the proposed fundraising will be deployed to
support SmartWall TDS sales and marketing activities in the US and
Europe, and the further development of the SmartWall TDS product.
It is anticipated that the fund raise will enable the Company to
achieve positive cash flows from trading in the second half of
2016.
A further announcement regarding the completion of the
Subscription will be announced later today.
AIM Listing
The Directors have, in response to discussions with the some of
the Company's shareholders, considered the appropriateness of the
Company's AIM listing. The Directors believe that it is in the best
interests of the Company and its shareholders as a whole to remain
listed on the AIM market at the present time but will continue to
assess, on a periodic basis, whether an AIM listing remains
appropriate. Shareholders will be notified of any future
developments in this regard.
Enquiries:
Corero Network Security plc
Andrew Miller, CFO and Chief Tel: 01895 876382
Operating Officer
FinnCap
Stuart Andrews/Carl Holmes (corporate Tel: 020 7220 0500
finance)
Stephen Norcross (corporate
broking)
Redleaf Communications Tel: 020 7382 4747
Rebecca Sanders-Hewett/David cns@redleafpr.com
Ison/Susie Hudson
About Corero Network Security
Corero Network Security, an organization's First Line of
Defense(R) against Distributed Denial of Service (DDoS) attacks and
cyber threats, provide enterprises and service providers with an
additional layer of security capable of inspecting and analyzing
Internet traffic and mitigating attacks. Corero products and
services enhance existing 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. The latest addition to
Corero First Line of Defense(R) product family includes the Corero
SmartWall(R) Threat Defense System (TDS) allowing for modular,
highly scalable network visibility and DDoS defence for the Large
Enterprise, Datacentre and Hosting Provider, as well as the
Internet Service Provider.
For more information about how Corero solutions are protecting
over 500 businesses across the globe, visit www.corero.com.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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