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Corero posts sharply reduced losses

"Corero continues to be well positioned to deliver on its goal of becoming the leading player in the real-time DDoS mitigation market, with over 100 customers and a growing number of go-to-market partners," said Ashley Stephenson, the CEO of Corero

The cloud
DDoS attacks remain a persistent blight on the Internet

Security software firm Corero Network Security PLC (LON:CNS) has reiterated its commitment to moving into profit at the underlying earnings (EBITDA) level this year.

2018 saw the network security specialist substantially reduce 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.

WATCH: Corero Network Security looks ahead to year of execution

Corero said 51.1% (2017: 47.1%) of that revenue is 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 23.1% year-on-year, and 43.2% of SmartWall revenue now falls into the recurring category.

Total operating expenses were reduced to US$12.7mln in 2018 from US$14.9mln in 2017.

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

READ: Corero raises fresh capital to support SmartWall sales push

The board is confident about Corero's prospects in the short to medium term, not least because the threat of DDoS attacks is set to continue growing, with the roll-out of 5G mobile telecoms services and the evolution of the Internet of Things providing new opportunities for malevolent agencies to launch malicious attacks on businesses and their customers.

The board’s confidence is underpinned by its resale partnership with networking products titan Juniper Networks, which recently secured its first revenue-generating order.

"2018 was a year of continued strategic progress for Corero, culminating in the signing of a landmark resale partnership with Juniper Networks, a US-based industry leader in automated, scalable and secure networks. Not only does this agreement provide an additional route to market for our products but it also serves as a significant endorsement of our SmartWall technology,” said Ashley Stephenson, the chief executive officer of Corero.

“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.

Quick facts: Corero Network Security PLC

Price: 5.425 GBX

Market: AIM
Market Cap: £26.85 m

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