Business
Trading update, contract win & new partnership
Trading update, contract win & new partnership.
About this update from Corero Network Security Plc
[{"type":"text","content":"\n \nRNS Number : 4216W Corero Network Security PLC 09 February 2017 \n\n9 February 2017\nCorero Network Security plc\n(\"Corero\" or the \"Company\")\n \nTrading update, major contract win and new alliance partnership\nQ4 2016 record SmartWall order intake, Q1 2017 $1.0 million order and Juniper Networks technology alliance partnership \n \nCorero Network Security plc (AIM: CNS), the AIM listed network security company, provides an update on trading for the year ended 31 December 2016, and announces a material order for its SmartWall® Threat Defense System (\"SmartWall\") from a leading Cloud computing company and Juniper Networks technology alliance partnership (NASDAQ: JNPR).\n \nTrading update\n \nCorero ended the year strongly, with record final quarter SmartWall order intake with 15 new customers added, including five new \"as-a-service\" customers. Corero has now deployed its SmartWall solution at more than 60 service providers, hosting providers and on-line enterprises, providing real-time DDoS and cyber threat protection. A growing number of customers are now public references for Corero. \n \nRevenue for the year ended 31 December 2016 is expected to be approximately $8.8 million (2015: $8.3 million). SmartWall revenue was up 62% over the prior year whilst legacy product revenues declined as expected. The 2016 revenue was lower than market expectations, in part impacted by the new \"as-a-service\" customers signed in Q4, where the revenue is recognised monthly over the term of the contract. The offsetting benefit is that these contract wins will add to the recurring revenue recognised in 2017 and beyond.\n \nThe EBITDA loss (operating loss before depreciation, amortisation and financing) for the year ended 31 December 2016 is expected to be approximately $5.1 million (2015: EBITDA loss $6.4 million), an improvement over market expectations. \n \nNet cash at 31 December 2016 was $2.9 million (2015: $2.7 million). Corero continues to focus on scaling SmartWall revenues and as the business achieves critical mass it will be in a position to self-fund its ongoing product development and sales and marketing activities. In order to get to the position of being cash generating, the Company will require further growth financing support in the firs...