Corero Network Security PLC – Full year results

Corero Network Security plc (AIM:CNS), the AIM listed network security company, announces its audited results for the year ended 31 December 2018.

Financial Highlights:

• Group revenue of $10.0 million (2017: $8.5 million) of which 51.1% is recurring
  –  SmartWall revenue up 23.1%
  –  SmartWall recurring revenue¹ up 43.2%
• Significantly reduced EBITDA² loss of $2.1 million (2017: loss $5.0 million³)
• Adjusted operating costs⁴ 13.3% below 2017 
• Loss before tax of $5.2 million (2017: loss $8.5 million³)
• Loss per share 1.4 cents (2017: loss per share 3.0 cents³)
• Successful equity fund raise in April 2018 of $5.3 million (after costs)
• $2.0 million investment from Juniper Networks (NYSE: JNPR) secured in October 2018
• Strong balance sheet with net cash at 31 December 2018 of $4.4 million (2017: $1.4 million)

Operating Highlights:

• Signed global resale partnership with Juniper Networks (NYSE: JNPR)
• Increase in average new customer order intake value:
  –   Perpetual license sales orders $275,000 (2017: $250,000)
  –   As-a-service contract value $55,000 per annum (2017: $40,000)
• Follow-on orders from existing customers up 57% to $4.4 million (2017: $2.8 million)
• Continued high levels of customer satisfaction
  –   Services renewal rate remained strong at 98.5% (2017: 97.5%)

Outlook

• Entered 2019 with a growing new business pipeline from both new and existing customers
• New Juniper resale partnership now set to deliver incremental revenue growth, with first revenue generating order secured in March 2019
• DDoS mitigation market fundamentals remain strong with market analysts forecasting double digit growth
• The Board continues to believe the business is well-placed for further growth

Ashley Stephenson, CEO of Corero, commented: 

“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. 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.

“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.

“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.”