Corero Network Security plc · LSE:CNS
Corero Network Security — H1 2013 Earnings Presentation
23 slides from Corero Network Security's earnings presentation, June 2013
Slide 1: Corero Network Security plc 2013 Interim Results
Corero Network Security plc Ashley Stephenson, CEO Andrew Miller, CFO and COO 2013 Interim Results FIRST LINE OF DEFENSE
Slide 2: Contents
Contents 1 Introduction 2 Financials 3 Corero Network Security Update Appendices © 2012 Corero www.coreroplc.com
Slide 3: Summary
Summary 6 months ended 30-Jun-13: – Revenue $9.5m (2012: $10.8m) – EBITDA loss $1.5m (2012: loss $1.5m) Sold Corero Business Systems for £13.0m on 1-Aug-13 Pro-forma gross cash at 30-Jun-13 inc sale proceeds $21.2m (net cash $15.2m) Solid progress in Corero Network Security division – CEO change and
Slide 4: Strategy
Strategy Post disposal of CBS on 1-Aug-13 exclusively focused on network security market Management changes: – Ashley Stephenson appointed CEO (and appointed to plc Board) – David Ahee appointed SVP Global Sales in May 2013 – Andrew Miller appointed Group CFO and COO CNS investing in next generation
Slide 5: Contents
Contents 1 Introduction 2 Financials 3 Corero Network Security Update Appendices © 2012 Corero www.coreroplc.com
Slide 6: H1 2013 Financial Highlights
H1 2013 Financial Highlights Revenue $9.5m (2012: $10.8m) EBITDA loss* $1.5m (2012: loss $1.5m) Loss per share 4.8 cents (2012: loss 4.9 cents) $5.3m gross cash at 30-Jun-13 (2012: $9.2m) $21.2m pro-forma** gross cash at 30-Jun-13 (net cash $15.2m) Corero Business Systems sale at an attractive valua
Slide 7: H1 2013 P&L Summary
H1 2013 P&L Summary 6 months 6 months 12 months Revenue reflects CNS slow start to 2013 2012 2012 year $’000 $’000 $’000 Gross margins held up Revenue 9,495 10,757 20,565 Operating expenses Include Cost of sales (2,397) (2,634) (5,116) unrealised gain on intercompany Gross profit 7,098 8,123 15,449
Slide 8: H1 2013 Segmental P&L Summary
H1 2013 Segmental P&L Summary 6 months to 30-Jun-13 6 months to 30-Jun-12 CNS CBS Central Total CNS CBS Central Total $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 Revenue Product and license revenue 1,830 1,694 3,524 3,109 1,343 4,452 Professional services 149 1,180 1,329 82 1,132 1,214 Support 2
Slide 9: H1 2013 Cash Flow Summary
H1 2013 Cash Flow Summary H1 2013 H1 2012 FY2012 H1 2013 H1 2012 FY 2012 $’000 $’000 $’000 $’000 $’000 $’000 Loss before taxation (3,013) (2,792) (6,260) Cash flows from investing activities Adjustments for: Acquisition of subsidiaries - - - Amort'n of acquired intangible assets 596 570 1,157 Purcha
Slide 10: Contents
Contents 1 Introduction 2 Financials 3 Corero Network Security Update Appendices © 2012 Corero www.coreroplc.com
Slide 11: CNS Strategy
First Line of Defense CNS Strategy Investing in next generation platform to drive step change – Increase addressable market – Increase Corero’s share of wallet with greater functionality Next Gen product investment and timing – $6.5m investment in 2013 for delivery in Q4 2013 (Phase 1 Product) – Inv
Slide 12: Why First Line of Defense (FLoD)?
First Line of Defense Why First Line of Defense (FLoD)? Significant increases in unwanted and malicious traffic arriving via the Internet, breaching enterprise networks and compromising the performance of online services Market is emerging for new security solutions that are deployed in front of the
Slide 13: Competitive/Complementary Solution Landscape
First Line of Defense Competitive/Complementary Solution Landscape Intelligence Cloud Services Firewall IPS/WAF/LB Backend SIEM FLoD Corero stops more unwanted traffic than competitor products (based on customer tests conducted with CNS) Checkpoint Sourcefire/Cisco Webroot Arbor Corero Cisco HP Syma
Slide 14: CNS Key Markets
First Line of Defense CNS Key Markets Online Businesses (.coms) from e-commerce to on-line gaming and betting – Dependent on the Internet for revenue and vulnerable to cyber criminals – Customers include: ChasePaymentech, BWIN, Camelot, GamersFirst, MoneySuperMarket Financial Services (significant o
Slide 15: H1 2013 CNS Highlights
H1 2013 CNS Highlights Sales order intake $4.2m (2012: $6.2m) New customer wins (28) included significant orders from: – a US energy utility – a leading telecommunications service provider in Brazil – two US regional banks – an Asian based provider of on-line games – a web hosting company – a provid
Slide 16: Market today
Current Product Line FLoD Current Product – Existing Market Access Today’s Features Cloud / MSP SP / Hosting Market today Today Enterprise First Line of Defense Current Product Line © 2012 Corero www.coreroplc.com 12
Slide 17: Market Expansion
Next Gen Product Line FLoD Next Gen Product – Increased Market Access Investment Solution Leadership in 2013: $6.5m Next Gen Product Line Phase 3 Phase 2 Phase 1 Next Gen First Line of Defense Market Expansion Cloud / MSP SP / Hosting Today Enterprise First Line of Defense Current Product Line © 201
Slide 18: Next Gen FLoD Hot Security Technology for Hot Growth Markets
Next Gen Product Line Next Gen FLoD “Hot” Security Technology for “Hot” Growth Markets Market size is 2012 estimate (except PCAP which is 2011) % = analyst growth forecasts to 2016 Cloud DDoS PCAP SSL SIEM MSSP Part of $1.5bn Part of $4.1bn Security $272m (23%) $0.8bn (12%) $9.5bn (17%) market marke
Slide 19: FLoD Next Gen Product – Competitor Differentiation
Next Gen Product Line FLoD Next Gen Product – Competitor Differentiation Corero Next Gen FLoD designed to be market leading solution in: – Enterprise on-premise appliance – Service Provider in-network FLoD – Platform solution for the Cloud delivery of FLoD as-a-service Differentiating features inclu
Slide 20: CNS Summary & Outlook
CNS Summary & Outlook Market Drivers - Significant increase in unwanted and malicious traffic – DDoS prevention market forecast to grow 25% CAGR between 2012 and 2017 (Infonetics) and to reach $870m in 2017 (IDC) – DDoS protection is one of the top five security technology growth opportunities for t
Slide 21: Contents
Contents 1 Introduction 2 Financials 3 Corero Network Security Appendices © 2012 Corero www.coreroplc.com
Slide 22: Net Assets Summary at 30-Jun-13
Net Assets Summary at 30-Jun-13 30-Jun-13 30-Jun-12 31-Dec-12 30-Jun-13 30-Jun-12 31-Dec-12 $’000 £’000 £’000 $’000 £’000 £’000 Assets Liabilities Non-current assets Current liabilities Goodwill 18,758 18,778 18,811 Trade and other payables (3,664) (3,921) (3,972) Acquired intangible assets 3,174 4,
Slide 23: Thank You
Thank You FIRST LINE OF DEFENSE
Corero Network Security — H1 2013 Earnings Presentation on 6ix