Corero Network Security plc · LSE:CNS

Corero Network Security — H1 2014 Earnings Presentation

30 slides from Corero Network Security's earnings presentation, Jun 30, 2014

  1. Slide 1: Results for the 6 months ended 30 June 2014

    Corero Network Security plc Results for the 6 months ended 30 June 2014 Ashley Stephenson, CEO Andrew Miller, CFO and COO © 2014 Corero www.corero.com

  2. Slide 2: Agenda

    1. Introduction 2. Interim Results & Highlights 3. Market Opportunity 4. Corero Value Proposition 5. Near Term Strategy 6. Outlook Appendices

  3. Slide 3: Summary

    Summary  Market segment - Cybersecurity • Cybersecurity is one of the fastest growing IT sectors • Impacts all businesses and governments • Major technology suppliers increasing investment in security to address market • DDoS mitigation market to increase 66% to over $1.5B by 2018 (Infonetics Resea

  4. Slide 4: Overview – 6 months ended 30-Jun-14

    Overview – 6 months ended 30-Jun-14  Successful launch and commercial introduction of SmartWall TDS • SmartWall outlook and opportunities in-line with management expectations • First customer sales in June • Growing number of customer trials and developing pipeline  Successful launch of SecureWatc

  5. Slide 5: What we do - Stop DDoS attacks & cyber threats

    What we do - Stop DDoS attacks & cyber threats Corero goes to market as a First Line of Defense that stops DDoS Attacks and Cyber Threats  Patented DDoS defense technology  Suite of security products & services  Multiple routes to market - security distributor/reseller channel, (OEM and SIs) and

  6. Slide 6: Agenda

    1. Introduction 2. Interim Results & Highlights 3. Market Opportunity 4. Corero Value Proposition 5. Near Term Strategy 6. Outlook Appendices

  7. Slide 7: CEO Perspective – Mid 2014

    360 CEO Perspective – Mid 2014  Products & Services  Management & Team • First SmartWall products shipped • Added several key executives • Positive feedback from customers • Overall headcount remaining - Market leading product flat (as planned) - Addressing a market need  Sales  Partnerships • T

  8. Slide 8: P&L summary

    P&L summary Note: 30-Jun-13 comparatives restated for disposal of Corero Business Systems 0n 1-Aug-13 6 months 6 months 12 months 2014 2013 2013  Revenue impacted by: Restated $’000 $’000 $’000 • Higher services mix in H1 2014 order Revenue 3,672 4,869 10,268 intake Gross profit 2,446 3,361 6,680 •

  9. Slide 9: Cash flow summary

    Cash flow summary 6 months 6 months 12 months 6 months 6 months 12 months 2014 2013 2013 2014 2013 2013 $’000 $’000 $’000 $’000 $’000 $’000 (Loss)/profit (5,025) (2,827) 8,167 Cash flows from investing activities Adjustments for: Purchase of intangible assets (48) (36) (107) Amort'n of acquired inta

  10. Slide 10: Net assets summary

    Net assets summary Note: 30-Jun-13 comparatives include Corero Business Systems (sold on 1-Aug-13) 30-Jun-14 30-Jun-13 31-Dec-13 30-Jun-14 30-Jun-13 31-Dec-13 $’000 $’000 $’000 $’000 $’000 $’000 Assets Liabilities Non-current assets Current liabilities Goodwill 17,983 18,758 17,983 Trade and other p

  11. Slide 11: Agenda

    1. Introduction 2. Interim Results & Highlights 3. Market Opportunity 4. Corero Value Proposition 5. Near Term Strategy 6. Outlook Appendices

  12. Slide 12: Snapshot of DDoS attacks (2013-2014) and impact

    Snapshot of DDoS attacks (2013-2014) and impact Attack Bandwidth Gbps Data shown represents the top ~2% of reported attacks MAR 29 2014 AUG 9 DEC 31 2013 400 2013 MAJOR HOSTING SITES 300 200 100 JUN 1 JUL 1 AUG 1 SEP 1 OCT 1 NOV 1 DEC 1 JAN 1 FEB 1 MAR 1 APR 1 MAY 1 JUN 1 JUL 1 2014 JUNE 21 2013 DEC

  13. Slide 13: DDoS facts

    DDoS facts 9 © 2014 Corero www.corero.com

  14. Slide 14: Corero - Expanding the addressable market

    Corero - Expanding the addressable market Service Providers: Corero SmartWall, Arbor, Radware Enterprise solutions: Corero SmartWall, Arbor, Radware, F5 DDoS Peer point Mitigation SP Mid-size New Current enterprise Large New enterprise New New New New Current Secure Internet Hosting Data Centre Core

  15. Slide 15: Market opportunity for Corero

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

  16. Slide 16: Agenda

    1. Introduction 2. Interim Results & Highlights 3. Market Opportunity 4. Corero Value Proposition 5. Near Term Strategy 6. Outlook Appendices

  17. Slide 17: Corero protects the on-line presence against DDoS

    Corero protects the on-line presence against DDoS Advanced DDoS/cyber threat protection removes unwanted traffic FLEXIBLE PRECISE INFRASTRUCTURE POLICY CONTROLS ENFORCEMENT PROTECTION  Rate Limiting  Mitigation of Network/  Protect firewalls, IPSs,  Protocol Validation Application/ Volumetric/ r

  18. Slide 18: Corero First Line of Defense Product Family

    Corero First Line of Defense Product Family DDoS Defense SmartWall® Threat System (DDS) Defense System (TDS)  Medium to Large sized Enterprises  Large Enterprise, Service/Hosting Providers  On Premises deployments  On Premises or Cloud deployments  < 10 Gbps performance  Protection in modular

  19. Slide 19: Agenda

    1. Introduction 2. Interim Results & Highlights 3. Market Opportunity 4. Corero Value Proposition 5. Near Term Strategy 6. Outlook Appendices

  20. Slide 20: Near Term Strategy

    Near Term Strategy Objectives Plan  Establish Corero - First Line of Defense® -  Raise Corero profile as a leading solution for DDoS protection  Referenceable customers  Independent market testing  Establish thought leadership Solution • Cyber attacks getting  Build out Corero First Line of De

  21. Slide 21: Revenue opportunity – SmartWall focus H2 2014

    Revenue opportunity – SmartWall focus H2 2014 % revenue Targeted # deals Market opportunity Deal size New business / upgrade deals to deliver 80% of H2 revenue + 20% recurring revenue < 10 Gbps Tens of thousands of mid to Medium enterprise: $50-250k Current 24 deals large corporations & public 50% E

  22. Slide 22: Agenda

    1. Introduction 2. Interim Results & Highlights 3. Market Opportunity 4. Corero Value Proposition 5. Near Term Strategy 6. Outlook Appendices

  23. Slide 23: Outlook

    Outlook  Market Drivers - Significant increase in malicious traffic (DDoS attacks) • Impacts all businesses and governments • DDoS mitigation (products and services) to increase 66% to over $1.5B in 2018  SmartWall – Will drive step change in revenue by opening up new markets • Increases addressab

  24. Slide 24: Appendices

    1. Introduction 2. Interim Results & Highlights 3. Market Opportunity 4. Corero Value Proposition 5. Near Term Strategy Focus 6. Outlook Appendices

  25. Slide 25: A1. H1 2014 customer order analysis; A2. Customer case studies

    A1. H1 2014 customer order analysis A2. Customer case studies

  26. Slide 26: H1 2014 order intake

    H1 2014 order intake H1 2014 order intake  H1 2014 order intake $4.5m (2013: $4.2m) • Up 9% 16% New contracts • New contracts 41% of order intake (H1 2013: 24%) • Support and services 43% of order intake (H1 2013: 28%) 41% Support and services Upgrades  Corero revenue model 43% • New customer sale

  27. Slide 27: H1 2014 customer momentum

    H1 2014 customer momentum Sector analysis  New customer material orders: Financial Services • SmartWall orders: eCommerce 32% 28% - hosting provider Telecom and hosting - UK government network provider • DDS orders Utilities & Energy 16.% - leading Wall street financial services firm Public sector

  28. Slide 28: Customer Testimonial: Hosting Provider

    Customer Testimonial: Hosting Provider PROBLEM: SOLUTION: Proactively planning for security needs is one thing, but The Company wanted an on premises solution to this Hosting Company felt the pain of being unprepared control and manage themselves. The Corero First Line for a DDoS attack. Experiencin

  29. Slide 29: Customer Testimonial: Banking Institution

    Customer Testimonial: Banking Institution PROBLEM: SOLUTION: This High Profile Wall Street firm experienced The First Line of Defense solution was deployed, and relentless DDoS attacks. The firewall was taking the almost instantly removed the attack traffic from the brunt of the attack traffic causi

  30. Slide 30: Thank you

    Thank you © 2014 Corero www.corero.com

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