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Corero Network Security PLC

Corero Network Security keeps growing customer base

Snapshot

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

Quick facts: Corero Network Security PLC

Price: 3.55 GBX

Market: AIM
Market Cap: £14.27 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 a trading update for the six months ended 30 June, the AIM-listed firm forecast that full-year revenues would be around 20% higher than 2018, while direct sales investment would result in increased EBITDA losses.

This was despite a slower first half, with the company expecting revenues in the period to fall to US$4.2mln from US$5mln as a result of lower than expected conversions from the pipeline of its Juniper Networks partnership, however, the deal was expected “contribute materially” in the second half of the year.

Inflexion points

  • The first week of December saw two contracts with new customers and an expansion contract with an existing client for a total value of US$1.1mln.

  • 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

“Within a month of launching the service, we have secured the inaugural contract for our new hybrid DDoS protection solution, which combines Corero's market-leading real-time SmartWall DDoS protection with coordinated automatic cloud back-up protection, enabling our customers to defend against even the largest of DDoS attacks.”

“At the same time, we continue to see strong growth in add-on business from our existing customers as their DDoS protection requirements increase."

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Watch

Corero Network Security - Elevator Pitch

Ashley Stephenson, chief executive of Corero Network Security PLC (LON:CNS), pitches the company to investors. For further information visit: www.corero.com

on 30/9/19

2 min read