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Corero sees record order intake in second half of 2018

SmartWall, the group's flagship product, saw revenue growth of around 20% over the prior year
Order intake for 2018 is expected to be around 20% higher than it was in 2017

Cyber-security firm Corero Network Security PLC (LON:CNS) expects to report a record final quarter and to roughly halve full-year losses.

Group revenue for 2018 is expected to be roughly US$10.0mln, up from US$8.5mln the year before but lower than expected as a result of the longer time required to ramp up new go-to-market partners and secure contracts.

READ: Corero rises as it secures over US$1mln in orders from three customers

The group’s loss before interest, tax, depreciation and amortisation (LBITDA) is expected to be in the region of US$2.5mln, compared to a loss of US$5.0mln the year before.

Corero said overheads for 2018 are expected to be some 10% below the prior year.

Order intake for the year is expected to be about US$11.0mln, representing growth of roughly 20% over the prior year when the order intake was US$9.3mln.

Corero ended the year with net cash of US$4.2mln, comprising cash of US$8.0mln (2017: US$1.45mln) and debt of US$3.8mln (2017: Nil).

Management is focused on delivering revenue growth and adding new customers in 2019 and hopes to move into profit at the underlying earnings (EBITDA) level and be cash generative by the end of 2019.

"Corero enters 2019 following a year of solid growth in revenue and order intake and with a significant resale partnership agreement in place with Juniper Networks. We are excited about the prospects in the medium term, with the DDoS [distributed denial of service] mitigation market fundamentals remaining strong and market analysts forecasting double-digit growth,” said Ashley Stephenson, the chief executive officer (CEO) of Corero.

"The board continues to believe the business is well placed for further growth," he added.

In a separate announcement, the company said information technology and cybersecurity veteran Peter George has been appointed as an independent non-executive officer of the company.

George was previously president and CEO of empow cybersecurity.

Corero said it intends to expand its US-based management team, which will include the appointment of a head of global sales. As a result of this decision, Andrew Lloyd, the company’s UK-based president who is also the executive vice president of sales and marketing, will be stepping down from the board and leaving the company by mutual consent.

Jens Montanana, the chairman of Corero, thanked Lloyd for his contribution to the company and wished him well for the future.

“We are delighted to appoint Peter as we seek to both broaden our US reach and deliver a greater balance of independence to our board. We sought to complement our existing skill set with a US-based executive with a successful track record of leading IT network and security companies and we believe Peter has these skills and will be an excellent addition to Corero's board," Montanana said.

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Corero Network Security PLC Timeline

April 11 2019

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