Corero Network's loss widens as orders miss expectations

(Sharecast News) - Shares in Corero Network Security slid on Wednesday as it reported a widened interim loss as revenue fell after the company received a lower number of orders than expected.
Loss before tax came in at $3.9m for the six month period ended 30 June, compared to a $3.0m loss in the same period last year, as revenue fell by 17% to $4.2m.

The AIM-traded group, which provides protection against denial of service (DDoS) attacks, said the fall in revenue was due to a lower-than-expected conversion of opportunities from its resale partnership with Juniper Networks into orders and revenue.

However, Corero remained confident that the partnership is on course to deliver incremental revenue growth in the second half of the year and beyond, adding that DDoS mitigation market fundamentals remain strong.

Corero said it plans to raise around £3m in the second half in order to support investment in sales and marketing before the company becomes cash generative.

Ashley Stephenson, chief executive of Corero, said: "We have a growing pipeline of opportunities through the partnership and a number of trials in process, which are progressing well.

"I am also confident that our ongoing investment in our sales function and the execution of the sales strategy will accelerate the development of our routes to market, which ultimately will underpin Corero's future growth."

Corero Network shares were down 10.89% at 2.41p at 1037 BST.