TIDMCNS
RNS Number : 8596F
Corero Network Security PLC
13 July 2023
13 July 2023
This announcement contains inside information for the purposes
of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it
forms part of UK domestic law by virtue of the European Union
(Withdrawal) Act 2018 ("MAR"), and is disclosed in accordance with
the Company's obligations under Article 17 of MAR.
Corero Network Security plc
("Corero" or the "Company")
Half Year Trading Update
Strong YOY revenue growth of 20%
Repayment of bank debt in full
Corero Network Security plc (AIM: CNS), a leading provider of
distributed denial of service ("DDoS") protection solutions,
provides the following trading update for the six months ended 30
June 2023(1) ("H1 2023").
The Group has traded strongly across H1 2023, in line with
management expectations, with revenues expected to increase 20% to
approximately $10.6 million (H1 2022: $8.8 million). This growth
was driven by Corero securing a number of important customer wins
for its SmartWall(R) DDoS protection solutions, including strong
contract momentum in Q2 2023 with significant orders announced
totalling $6.0 million (average value per customer of $597,000)
over the course of the contracts. These customer contract wins
across both Q1 2023 and Q2 2023 were announced by the Company on 13
April and 4 July respectively.
Corero's focus on its Ideal Customer Profile ("ICP") has
significantly contributed to the growth in revenue for H1 2023,
with the Company continuing to build its sales pipeline to maintain
the momentum into H2 2023.
Order intake (2) , which reflects revenues recognised over the
lifetime of each of the contracts, was up 13% to $13.0 million for
H1 2023 (H1 2022: $10.9 million), demonstrating further traction
from the Company's continued sales and marketing efforts.
Annualised Recurring Revenues (3) ("ARR") increased 13% to $15.3
million as at 1 July 2023, (ARR at 1 July 2022: $13.6 million),
driven by robust growth in Corero's subscription-based products and
DDoS Protection as-a-service ("DDPaaS"), which importantly
underpins higher levels of earnings predictability for the business
going forward.
The Company expects to report an adjusted EBITDA(4) profit for
H1 2023 of c. $0.2 million (H1 2022: $0.0 million) and an EBITDA(5)
loss for H1 2023 of c. $0.2 million, which includes an unrealised
foreign exchange loss of $0.4 million (H1 2022: profit of $0.9
million, which included an unrealised foreign exchange gain of $0.9
million), reflecting Corero's ongoing investment in sales and
marketing initiatives, which in turn is driving the growth of the
business.
Corero's gross cash balance as at 30 June 2023 was $6.2 million
(31 December 2022: $5.6 million; H1 2022: $7.5 million). The
Company used its strong balance sheet position to repay in full its
bank term loan facility early, which will result in a saving in
financing costs in H2 2023. As a result there is no outstanding
debt as at 30 June 2023 (net cash: 31 December 2022: $4.4 million;
H1 2022: $5.8 million). The total amount of bank term loan facility
repaid during H1 2023 amounted to $1.2 million.
The Company expects to report its unaudited interim results for
the six months ended 30 June 2023 in late September 2023.
Jens Montanana, Corero's Executive Chairman, said:
"I am extremely pleased with the momentum that we have built
during the first half of 2023, securing a number of key customer
wins in the period. The increase in revenue, order intake and ARR
all demonstrate the fundamental strength of both Corero's business
model and ongoing demand for our market-leading products.
"I am also delighted that with the strength of the Company's
balance sheet we have been able to repay the outstanding term bank
loan in full during the period.
"The performance in H1 2023 gives us confidence for the full
year as we continue to focus on delivering on our growth
strategy."
(1) All numbers for the six months ending 30 June 2023 disclosed
within this announcement are management estimates based on current
information and are unaudited.
(2) Order intake is defined as orders received from customers in
the period.
(3) ARR is defined as the normalised annualised recurring
revenues and includes recurring revenues from contract values of
annual support, software subscriptions including terms greater than
one year, and from DDoS Protection-as-a-Service ("DDPaaS")
contracts.
(4) Adjusted EBITDA is defined as earnings before interest, tax,
depreciation, amortization, and unrealised foreign exchange
differences on intercompany loans.
(5) EBITDA is defined as earnings before interest, tax,
depreciation, and amortization.
Enquiries:
Corero Network Security plc Tel: +44(0)20 7390
0230
Jens Montanana, Executive Chairman
Phil Richards, C hief Financial Officer
C anaccord Genuity Limited (Nominated Adviser Tel: +44(0)20 75
and Broker) 23 8000
S imon Bridges / Andrew Potts / Harry Rees
Vigo Consulting Tel: +44(0)20 7390
0230
Jeremy Garcia / Kendall Hill
corero@vigoconsulting.com
About Corero Network Security
Corero Network Security is a leading provider of distributed
denial of service (DDoS) protection solutions. We are specialists
in automatic detection and protection solutions, that include
network visibility, analytics, and reporting tools. Corero's
technology provides scalable protection capabilities against both
external DDoS attackers and internal DDoS threats, in even the most
complex edge and subscriber environments, ensuring internet service
availability and uptime. Corero's key operational centres are in
Marlborough, Massachusetts, USA, and Edinburgh, UK, with the
Company's headquarters in London, UK. The Company is listed on the
London Stock Exchange's AIM market under the ticker CNS.
For more information, visit www.corero.com , and follow us on LinkedIn and Twitter .
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
TSTSFUEFEEDSEEW
(END) Dow Jones Newswires
July 13, 2023 02:00 ET (06:00 GMT)
Grafico Azioni Corero Network Security (LSE:CNS)
Storico
Da Apr 2024 a Mag 2024
Grafico Azioni Corero Network Security (LSE:CNS)
Storico
Da Mag 2023 a Mag 2024