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Corero Network Security earnings loss halves in half year as SmartWall revenue surges

The network security provider reported an underlying earnings (EBITDA) loss for the period of US$1.4mln, 50% narrower than the US$2.9mln loss reported a year ago

Network security lock
Sales of the firm’s SmartWall DDoS protection software rose 11.9% to US$4.9mln

Corero Network Security PLC (LON:CNS) reported that earnings losses have halved in the first half of the year as sales of its SmartWall DDoS mitigation software surged.

The network security provider reported an underlying earnings (EBITDA) loss for the period of US$1.4mln, 50% narrower than the US$2.9mln loss reported a year ago, while group revenues rose to US$5mln from US$4.8mln.

READ: Corero Network Security jumps after networking products titan Juniper Networks adds SmartWall to its products list

The revenue rise was almost completely comprised of increased sales of the firm’s SmartWall software, which rose 11.9% to US$4.9mln over the period while recurring revenues increased to 47.7% of total revenue from 40.7% previously.

Adjusted operating costs for the group were also down 18% on the year-ago period to US$5.3mln, with Corero ending the first half with net cash of US$5mln compared to US$5.1mln previously.

In its outlook, Corero said its pipeline of new business opportunities in the second half was growing, adding that it expected revenues for the year to be in line with market expectations with “significantly reduced losses”.

The firm also said that its partnership agreement with Juniper Networks (NYSE:JNPR), which it signed this week, was expected to “materially contribute” to revenue growth in 2019.

Corero said the resale partnership is a breakthrough for the company and will broaden its routes to market.

Ashley Stephenson, chief executive of Corero, said that the company’s focus on developing “go-to-market partnerships” was gathering “significant momentum”, as evidenced by the Juniper deal.

He added that analysts were projecting the DDoS market to “grow strongly for the foreseeable future”.

Quick facts: Corero Network Security PLC

Price: 7.75 GBX

Market: AIM
Market Cap: £38.35 m

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