Corero Network Security Plc · LSE:CNS

Corero Network Security — FY2014 Earnings Presentation

25 slides from Corero Network Security's earnings presentation, March 2015

  1. Slide 1: Results for the 12 months ended 31 December 2014

    Corero Network Security plc Results for the 12 months ended 31 December 2014 Ashley Stephenson, CEO Andrew Miller, CFO and COO © 2015 Corero www.corero.com

  2. Slide 2: Agenda

    1. Introduction 2. Results Summary 3. Market Opportunity 4. Why SmartWall? 5. Strategy 6. Outlook Appendices

  3. Slide 3: What We Do: Corero stops DDoS Attacks and Cyber Threats

    What We Do: Corero stops DDoS Attacks and Cyber Threats SmartWall® Threat Defense System DDoS Attacks Customer and Raw Network Internet Protected Cyber Threats Network Example – Corero customer: One week of continuous multi-Gig attacks (blue spikes) 1 © 2015 Corero www.corero.com

  4. Slide 4: SmartWall – Service Provider Focus

    SmartWall – Service Provider Focus Service providers: Enterprise solutions: DDoS Peer point Mitigation SP Large enterprise Secure Internet Small / medium enterprise Corero SmartWall Hosting Data Centre Network Threat Defense 2 © 2015 Corero www.corero.com

  5. Slide 5: History: SmartWall led growth

    History SmartWall led growth Value proposition evolved to focus on Target market: ISPs, DDoS (“previous generation product”) Selling hosting/cloud Announced 2 year previous providers and online investment plan to generation enterprises develop next-gen product DDoS mitigation platform SmartWall TDS

  6. Slide 6: Agenda: Results Summary

    1. Introduction 2. Results Summary 3. Market Opportunity 4. Why SmartWall? 5. Strategy 6. Outlook Appendices

  7. Slide 7: Overview of the Year

    Overview of the Year  A transitional year – strategic execution • H1 2014 SmartWall introduced to the market • H2 2014 accelerated transition to SmartWall  Successful launch and commercial roll out of SmartWall • Closed multiple SmartWall orders with target market customers – order intake $1.5m -

  8. Slide 8: P&L Summary

    P&L Summary  Revenue impacted by: • Lower order intake $8.6m (2013: $9.2m) 2014 2013 • Declining customer wins for the previous $’000 $’000 generation product Revenue 7,477 10,268  Gross profit % impacted by the lower revenue Gross profit 4,105 6,680 • Fixed element of cost of sales is direct cost

  9. Slide 9: Cash Flow Summary

    Cash Flow Summary $’000 $’000 2014 2013 (Loss)/profit before taxation (10,419) 7,796 $’000 $’000 Adjustments for: Cash flows from investing activities Amort'n of acquired intangible assets 1,229 1,202 Sale proceeds from disposal of subsidiary - 17,225 Amort'n of capitalised development costs 1,118 5

  10. Slide 10: Net Assets Summary

    Net Assets Summary 31-Dec-14 31-Dec-13 31-Dec-14 31-Dec-13 $’000 $’000 $’000 $’000 Assets Liabilities Non-current assets Current liabilities Goodwill 17,983 17,983 Trade and other payables (2,362) (2,171) Acquired intangible assets 1,548 2,635 Borrowings (20) (256) Capitalised development expenditur

  11. Slide 11: Agenda: Market Opportunity

    1. Introduction 2. Results Summary 3. Market Opportunity 4. Why SmartWall? 5. Strategy 6. Outlook Appendices

  12. Slide 12: DDoS Attacks Increasingly Rampant

    DDoS Attacks Increasingly Rampant Source: Corero Quarterly DDoS Trends and Analysis Report Q4 2014 Review 8 © 2015 Corero www.corero.com

  13. Slide 13: DDoS Attacks are Costly

    DDoS Attacks are Costly Source: Corero Quarterly DDoS Trends and Analysis Report Q4 2014 Review 9 © 2015 Corero www.corero.com

  14. Slide 14: Market Opportunity for Corero

    Market Opportunity for Corero DDoS product market 2013-2018  Challenge: DDoS & Cyber Threats Mobile • Online Enterprises, Hosting Providers, Service Providers and 2013 Data centre Carrier their customers are being impacted by DDoS attacks and cyber transport Total $348M threats • Customers are look

  15. Slide 15: Agenda: Why SmartWall?

    1. Introduction 2. Results Summary 3. Market Opportunity 4. Why SmartWall? 5. Strategy 6. Outlook Appendices

  16. Slide 16: Commercial Opportunity – SmartWall Focus

    Commercial Opportunity – SmartWall Focus Target Addressable Market Typical / Expected Deal size Hosting & Data Centre US & Canada: >17,000 providers Hosting providers (single location): $100-250k Web hosting companies offering managed, dedicated, and co- UK & Europe: > 9,000 providers Hosting provid

  17. Slide 17: Corero Competitive Differentiation

    Corero Competitive Differentiation Corero SmartWall Competitors Focused DDoS players:  Arbor (now part of • Modular deployment (nx10G) • Monolithic Deployment Options • In-line*, out-of-band scrubbing • Mainly out-of-band or NetScout) or monitor sampled scrubbing  Radware Mitigation Time • Instant

  18. Slide 18: Agenda: Strategy

    1. Introduction 2. Results Summary 3. Market Opportunity 4. Why SmartWall? 5. Strategy 6. Outlook Appendices

  19. Slide 19: Strategy for 2015 and Beyond

    Strategy for 2015 and Beyond Objectives Plan Establish Corero – SmartWall as a leading solution  Raise Corero profile for DDoS protection  Referenceable customers in key markets  Independent market testing  Thought leadership Product Continuously improve Corero DDoS defence  Continuous improvem

  20. Slide 20: Agenda: Outlook

    1. Introduction 2. Results Summary 3. Market Opportunity 4. Why SmartWall? 5. Strategy 6. Outlook Appendices

  21. Slide 21: Outlook

    Outlook  Market Drivers – DDoS attacks growing problem for all • Impacts all businesses and governments • DDoS mitigation (products and services) to increase 66% to over $1.5B in 2018  SmartWall – Drive step change in revenue by expanding into new markets • Service provider and hosting provider fo

  22. Slide 22: Agenda: Appendices

    1. Introduction 2. Results Summary 3. Market Opportunity 4. Why SmartWall? 5. Strategy 6. Outlook Appendices

  23. Slide 23: Customer References

    Customer References On-line gaming company (UK based) “With the deployment of the Corero SmartWall Threat Defense System as a First Line of Defense against DDoS attacks in five of our datacentres, protecting a total of 200Gbps of bandwidth, we saw an immediate reduction in customer impacting DDoS ev

  24. Slide 24: Customer References

    Customer References Service Provider (UK based) “We deployed Corero’s SmartWall Threat Defense System in a large multi-gigabit network managed on behalf of a UK regional government, which serves the communication needs of all government related organisations – schools, higher education, law enforcem

  25. Slide 25: Thank you

    Thank you © 2014 Corero www.corero.com

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