Corero Network Security Plc · LSE:CNS
Corero Network Security — H1 2012 Earnings Presentation
32 slides from Corero Network Security's earnings presentation, 2012
Slide 1: Corero Network Security plc 2012 Interim Results
Corero Network Security plc 2012 Interim Results FIRST LINE OF DEFENSE
Slide 2: Contents
Contents 1 Introduction 2 Financials 3 Corero Network Security 4 Corero Business Systems 5 Summary Appendices © 2012 Corero www.coreroplc.com
Slide 3: Background
Background Corero Network Security has two businesses: – Corero Network Security (CNS) – Corero Business Systems (CBS) CNS – Buy and build network security strategy announced in July 2010 – Platform is the Top Layer acquisition in March 2011 – 2011 and H1 2012 focused on post acquisition reshaping o
Slide 4: Structure
Structure Corero Network Security plc Board Non-exec Chairman: Jens Montanana Executive Director: Andrew Miller Non-exec Directors *: Jens Montanana and Richard Last Andrew Miller Group COO (also responsible for finance and M&A) Corero Group Services Ltd Group FC & Company Secretary Small finance te
Slide 5: Contents
Contents 1 Introduction 2 Financials 3 Corero Network Security 4 Corero Business Systems 5 Summary Appendices © 2012 Corero www.coreroplc.com
Slide 6: H1 2012 Financial Highlights
H1 2012 Financial Highlights Group's reporting currency changed to US Dollars (“$”) – $ more closely aligned to the profile of the Group's revenue and cost base (all CNS invoicing $ denominated) – Change effective from 1 January 2012 – Average GBP $ exchange rate for 6 months to 30 June 2012 1.58 (2
Slide 7: Segmental P&L Summary
Segmental P&L Summary 6 months to 30-Jun-12 6 months to 30-Jun-11 CNS CBS Central Total CNS * CBS Central Total $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 Revenue Product and license revenue 3,109 1,343 4,452 1,946 803 2,749 Professional services 82 1,132 1,214 131 781 912 Support 3,467 1,624 5
Slide 8: Cash Flow Summary
Cash Flow Summary H1 2012 H1 2011 FY2011 H1 2012 H1 2011 FY 2011 $’000 $’000 $’000 $’000 $’000 $’000 Loss before taxation (2,792) (1,383) (2,314) Cash flows from investing activities Adjustments for: Acquisition of subsidiaries - (3,649) (3,649) Amort'n of acquired intangible assets 570 362 924 Purc
Slide 9: Contents
Contents 1 Introduction 2 Financials 3 Corero Network Security 4 Corero Business Systems 5 Summary Appendices © 2012 Corero www.coreroplc.com
Slide 10: CNS Overview
CNS Overview Network security focused – First Line of Defense (“FLoD”) appliance with annuity services FLoD is a shorthand for the role CNS has had the most success with its IPS/DDoS product – Plays to CNS’ strength - DDoS lead feature requirements and IPS supporting role – Leverages CNS’ existing I
Slide 11: H1 2012 CNS Highlights
H1 2012 CNS Highlights H1 sales order intake growth of 18% growth to $6.7m Bookings - H1 2012 4.0 3.7 (2011: $5.6m ) 3.5 2.9 3.0 – Average value per customer $44,000 (2011: $43,000) 2.5 1.9 2.3 $'m Q1 2012 – 41 new customers (2011: 38) with an average value of 2.0 1.5 1.4 1.0 Q2 2012 $52,000 (2011:
Slide 12: H1 2012 CNS Highlights (cont'd)
H1 2012 CNS Highlights (cont’d) Material orders (upgrades and support renewals) from existing customers including: – World’s leading online gaming company – Global leader in gases for industry, health and the environment – Leading international credit card processing company – One of the largest tel
Slide 13: Typical IT Infrastructure
Typical IT Infrastructure Internet’s No-Man’s Land IPS SLB “Good Users” WAF Customer Traffic Customer Traffic Customer Traffic © 2012 Corero www.coreroplc.com 9
Slide 14: Reality: IT Infrastructure Under Attack
Reality: IT Infrastructure Under Attack Internet’s No-Man’s Land Advanced Evasions IPS SYN Floods “Attackers” SLB Server Side Vulnerabilities WAF “Good Users” DDoS Attacks Customer Traffic Customer Traffic Customer Traffic © 2012 Corero www.coreroplc.com 10
Slide 15: Solution: Corero First Line of Defense
Solution: Corero First Line of Defense Internet’s No-Man’s Land Advanced Evasions IPS SYN Floods “Attackers” Foiled Attackers SLB Server Side Vulnerabilities WAF “Good Users” DDoS Attacks Customer Traffic Customer Traffic Customer Traffic © 2012 Corero www.coreroplc.com 11
Slide 16: Benefits of Corero's First Line of Defense
Benefits of Corero’s First Line of Defense Stop DDoS Protect IT Eliminate Attacks Infrastructure Downtime Stop perimeter security Remove unwanted traffic Ensure business breaches from the existing network continuity Protect the web Improve performance of Measurably reduce presence the IT infrastruct
Slide 17: Competitive Perspective - FLoD
Competitive Perspective - FLoD Corero delivers FLoD protection in a purpose built, dedicated solution – Protects the customer’s internal infrastructure and Internet facing services Corero = Leadership in First Line of Defense Competitors deliver piecemeal components spread across their respective in
Slide 18: Why First Line of Defense - Tomorrow
Why First Line of Defense - Tomorrow All networks and services continue to be attacked…. – Standalone IPS role may plateau • Flat to single digit growth forecast today – DDoS market is growing significantly • Double digit growth forecast today There will always be an initial infrastructure device th
Slide 19: Next Generation Product Strategy
Next Generation Product Strategy Security market is dynamic and we must move with it – Current Corero product a good FLoD platform for today’s needs – Shift to next generation networks (10Gb+) and IT delivery models requires an evolutionary approach Corero Next Gen product addresses all FLoD require
Slide 20: Contents
Contents 1 Introduction 2 Financials 3 Corero Network Security 4 Corero Business Systems 5 Summary Appendices © 2012 Corero www.coreroplc.com
Slide 21: CBS Overview
CBS Overview Operates as a stand-alone business Supplies finance (“Resource Financials”) and business systems (“Resource EMS”) software solutions principally to UK education market – Resource Financials & HR – finance and HR management solution delivering web-enabled and workflow controlled business
Slide 22: H1 2012 CBS Highlights
H1 2012 CBS Highlights H1 sales order intake growth of 19% growth to $4.7m (2011: $4.0m) 143 new academy and school customers (2011: 114) – Total of 450 academy and school customers 2 new college customers for the Resource EMS solution (2011: 0) New academy group wins – Outwood Grange Academy Trust,
Slide 23: Contents
Contents 1 Introduction 2 Financials 3 Corero Network Security 4 Corero Business Systems 5 Summary Appendices © 2012 Corero www.coreroplc.com
Slide 24: Summary
Summary Network security and DDoS prevention market forecast to continue to grow strongly – Escalating cyber crime and cyber war threats (and real costs to business) – Business dependency on Internet drives need for security investment (today and into the future) CNS has a differentiated FLoD go-to-
Slide 25: Contents
Contents 1 Introduction 2 Financials 3 Corero Network Security 4 Corero Business Systems 5 Summary Appendices © 2012 Corero www.coreroplc.com
Slide 26: Net Assets Summary
Net Assets Summary 30-Jun-12 30-Jun-11 31-Dec-11 30-Jun-12 30-Jun-11 31-Dec-11 $’000 £’000 £’000 $’000 £’000 £’000 Assets Liabilities Non-current assets Current liabilities Goodwill 18,778 16,973 18,772 Trade and other payables (3,921) (4,451) (4,375) Acquired intangible assets 4,225 5,179 4,659 Bor
Slide 27: FLoD Scalable Product Line
FLoD Scalable Product Line 20 Gbit/Sec ProtectionCluster™ Scalable 1GbE / 10GbE Redundant Solution 10 Gbit/Sec Model 2400ES - High Utilization 10GbE Data Centers Network Throughput 8 Gbit/Sec Model 2000ES – 10GbE Data Centers 4.4 Gbit/Sec Model 1000EC/ES – Large 1GbE Data Centers 2.4 Gbit/Sec Model
Slide 28: Optimized for Strong Protection
Optimized for Strong Protection DDoS Attacks Undesired Access Malicious Content 1. Network Level Attacks 7. Network Errors 13. Application Use Violations 2. Highly Distributed Attacks 8. Packet Errors 14. Protocol Anomalies 3. Excessive Client Requests 9. Evasion Attempts 15. Questionable Data Files
Slide 29: Corero's First Line of Defense
Corero’s “First Line of Defense” Combats Application Abuse and DDoS Attacks Threat Level Analysis Network Layer Attacks Stateful Packet Reflective Attacks Analysis Bi-directional Traffic Outbound Attacks Analysis Application Application Layer Attacks Behavior Analysis Specially-Crafted Attacks State
Slide 30: First Line of Defense – Summary
First Line of Defense – Summary Most Reliable Hardware Solution Protection in Less than 30 Minutes Easy Deployment in Any Topology Lowest Management & Support Requirements Stops DDoS Attacks Protects Infrastructure Eliminates Downtime © 2012 Corero www.coreroplc.com A2.4
Slide 31: Completeness of Corero FLoD Solution Today
Completeness of Corero FLoD Solution Today Requirement Corero FW NGFW IPS DDoS Block Reputed Global Threats & Attackers √ √ √ Block Anonymous & Unknown Attackers √ √ Block Application Rate-Based Attackers √ √ Block Undesired Protocols and Users √ √ √ Block Advanced Evasion Attacks √ √ √ Block Advanc
Slide 32: Thank You
Thank You FIRST LINE OF DEFENSE
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