Corero Network Security Outlook Confident Amid Record Order Intake

Tue, 21st Jan 2020 11:50

(Alliance News) - Corero Network Security PLC on Tuesday said it has "solid" foundations for 2020 after its customer base and order book grew in the second half of 2019.

The stock was 3.7% higher in London in midday trading at 5.91 pence a share.

The AIM-listed network security company said it had a record order intake in the second half of 2019 of USD8.0 million, up 62% on the first half and up 36% year-on-year. For 2019, order intake was 17% higher year-on-year at USD13.0 million versus USD11.1 million.

Turning to revenue, Corero said it was broadly stable year-on-year, at USD10.0 million, due to the increase in deferred revenue amid the higher mix of DDoS protection-as-a-service long-term contract orders in 2019, which are recognised over three-year term.

During the second half of 2019, Corero said it added 12 new customers, taking the total added during 2019 to 18 customers.

Looking ahead, the company said it enters 2020 with a growing recurring revenue base and an annualised recurring revenue value of over USD7.0 million, up from USD5.4 million a year earlier.

"Our strong order momentum in the second half of 2019, combined with our higher levels of recurring revenue and strong new business pipeline, provide Corero with solid foundations for 2020," said Chief Executive Ashley Stephenson.

However, operating costs for 2019 are expected to be USD10.5 million, Corero said, up from USD9.9 million reported a year before, due to an increased share options charge and higher headcount-related costs.

As a result, Corero's loss before interest, tax, depreciation and amortization for 2019 is expected to be USD3.0 million, widened compared to USD2.1 million the prior year.

By Evelina Grecenko; evelinagrecenko@alliancenews.com

Corero Network