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Corero Network Security keeps growing customer base

Snapshot

The firm develops software designed to protect against distributed denial of service (DDoS) attacks

Corero Network Security PLC - Corero Network Security targets sales acceleration

Quick facts: Corero Network Security PLC

Price: 5.25 GBX

AIM:CNS
Market: AIM
Market Cap: £25.98 m
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  • Corero Network Security PLC (LON:CNS) specialises in cybersecurity 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 January Corero said it had delivered a record second half in the last financial year as recurring revenue levels continued to rise.

For the year ended 31 December 2019, group reported revenues for the last six months of the year had risen 10% on 2018, while order intake in the period increased by 36% to US$8mln.

The second half also saw Corero add 12 new customers out of 18 for the whole year, as well as five new orders for its Juniper software out of six across 2019.

The company said it is expecting to enter the new year with a recurring revenue base of over US$7mln, up from US$5.4mln in 2018.

Revenue for the full year is expected to be US$10mln, the same as 2018, due to an increase in deferred revenues from a higher mix of long-term DDoS protection as a service (DPaaS) orders. The EBITDA loss for the year is expected to widen slightly to US£3mln from US$2.1mln.

Inflexion points

  • In mid-December, the company said ti and secured US$1.8mln in contracts with new and existing customers to supply its Smartwall software

  • In November, Corero announced a placing and share subscription to raise up to £3.25mln, before expenses, to be used mainly for the development of its SmartWall product. The company says this comprises a conditional £950,000 ordinary share placing at a price of 3.5p each, and £2.3mln more at the same price by two directors, chairman Jens Montanana and non-executive Richard Last, and existing major shaholder Juniper Networks Inc.

  • In early July, the company said it had secured new orders worth US$1mln comprising of two new contracts and two renewals for its SmartWall DDoS protection products

  • The company has recently appointed tech industry veteran Michael Connolly as its US-based Vice President Worldwide Sales

 

What the boss says: Ashley Stephenson, chief executive

"Our strong order momentum in the second half of 2019, combined with our higher levels of recurring revenue and strong new business pipeline, provide Corero with solid foundations for 2020.”

"This improvement in our operational platform underpins our confidence in the growth potential of our business and reinforces our drive to deliver on our plans for 2020 and beyond."

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Full interview: Corero Network Security bags US$1mln of new deals for its ...

Corero Network Security PLC's (LON:CNS) Ashley Stephenson speaks to Proactive London's Andrew Scott after announcing two new customer wins for its SmartWall DDoS protection product, plus an additional purchase from an existing customer. All up they total US$1mln over the course of the...

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