News

17 January 2013 | Education | Corero Network Security plc

Revenue Rises at Corero Network Security plc but an Operating Loss is Incurred

​Corero Network Security plc (CNS), the AIM listed network security and business software provider, announces an update on trading for the year ended 31 December 2012.

Group revenue for the full year ended 31 December 2012 is expected to be in the range $20.0m to $21.0m and show solid growth over the previous year (2011: $18.0m). The Corero Network Security business will, in a year of significant internal change and market repositioning, and adverse macroeconomic factors in Europe, report revenue in line with revenue reported in 2011 ($11.0m).  The Corero Business Systems business ("CBS") has delivered a strong year-on-year performance.

The Group's consolidated operating loss before depreciation, amortisation and financing is expected to be in the range $3.0m to $3.5m (2011: profit $0.4m) reflecting the Group’s investment in CNS and including a $0.3m unrealised exchange loss on intercompany balances (2011: $0.1m unrealised exchange gain).

The Group had a gross cash balance of $4.9m at 31 December 2012 (2011: $6.7m), with borrowings of $6.2m (2011: $5.8m).

Outlook:

 The CBS division performed very strongly in 2012 and the Group expects this to continue into 2013. 

 Significant progress has been made in the CNS division with the focus now being to deliver revenue growth, with a differentiated network security product and services offering, through a channel centric sales model.

 Corero say they are committed to continuing to invest in the CNS division, both in terms of sales and marketing, and its First Line of Defence next generation product which the Group envisages will broaden significantly its addressable market.

 Andrew Miller, Group Chief Operating Officer commented:

"Whilst the Corero Network Security division's sales growth in the year has been disappointing, the Board are confident that the progress and investment made in the business, and appointment of Ashley Stephenson as Chief Executive Officer to drive forward its sales-led growth strategy, have positioned the business well for the future.  We are confident of the market opportunity and CNS' growth prospects. It is clear to the Board that organisations are ever more reliant upon the Internet, with unsuitable and insufficient network security solutions to meet the challenges posed by an explosion in the number and capabilities of cyber-attack entrepreneurs and hacktivists."

 "The Corero Business Systems division has delivered strong profitable growth in 2012 on the back of growth in the Academy schools market which is expected to continue in 2013 and beyond.  CBS has, and will, continue to invest in its award winning portfolio of software solutions for the education and commercial markets to broaden its customer base."

 Corero will release preliminary results for the 12 months ended 31 December 2012 at the end of March 2013.

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