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Corero Network sets sights on profitability as cyber attacks grew

Corero Network Security PLC specialises in cyber-security software
security
BigPicture
Denial of service attacks are rising
 
  • Corero Network Security PLC’s (LON:CNS) specialises in cyber security software

  • First order generated by partnership with network giant Juniper Networks -  A global hosting provider has signed up, following a successful trial of Juniper's MX Series router 

  • Smartwall revenues growing strongly with hosting providers 

 

What it does

Corero's SmartWall software specialises in protecting a network against the threat posed by distributed denial of service (DDoS) attacks (where traffic flow on the network grinds to a halt as a result of an overwhelming flood of input/output requests).

 

How is it doing

In 2018, the network security specialist substantially reduced its loss before tax to US$5.2mln from US$8.5mln in 2017 on revenue that rose to US$10.0mln from US$8.5mln.

Corero also reiterated its commitment to moving into profit at the underlying earnings (EBITDA) level this year.

More than half of its revenue is now regarded as recurring, comprising security maintenance and support services and distributed denial of service (DDoS) protection-as-a-service revenue.

Revenue from its flagship SmartWall product was up 23% year-on-year.

Corero had net cash of US$4.4mln at the end of the year, up from US$1.4mln a year earlier.

 

What the boss says

“Securing the first Juniper resale customer win in March 2019 was a significant milestone in the development of the Juniper go-to-market channel for Corero,” he added.

"We remain focused on delivering strong revenue growth and committed to achieving our stated goal of being EBITDA positive and cash generative by the end of the year," Stephenson declared.

 

Video

 

Inflexion points 

 
  • More orders coming through with Juniper, leading network equipment supplier - Juniper sales force 100 times larger than Corero

  • Deal size will be published when a number of deals have been signed

  • Cash generation this year, profitability in 2020

  • Renewal rate in customers is high at 90%

  • Internet bandwidth growing at 30% annually 

  • Aim to expand new customers in 2019 

 

Blue Sky 

Threat of DDoS attacks is set to grow.

Roll-out of 5G mobile telecoms services and the evolution of the Internet of Things providing new opportunities for malicious attacks on businesses and their customers.

Longer term push in to the DDOS market.

 
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