(Alliance News) - Cyber security firm Corero Network Security PLC on Wednesday reported a decline in revenue, as expected, as pipeline conversion occurred slower than expected.
Corero reported revenue of USD4.2 million for the six months to June, down 16% from the year before. Recurring revenue made up 67% of revenue, from 48% a year before.
Most of Corero's revenue comes from its SmartWall Threat Defense System family of products. The drop in revenue was due to lower-than-expected conversion of opportunities into revenue in its Juniper resale partnership.
Corero's pretax loss for the half widened to USD3.9 million from the USD3.0 million reported a year earlier.
The company said the services renewal rate was "strong" at 99%, improving from 98% year-on-year, including one USD500,000 contract being renewed.
Chief Executive Ashley Stephenson commented: "We continue to make progress with the Juniper partnership, but as previously announced, the anticipated conversion of the pipeline into revenue in the first half of the year has been slower than previously expected. However, 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 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 shares were 11% lower on Wednesday morning at a price of 2.41 pence each.
By George Collard; georgecollard@alliancenews.com
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Corero Network (CNS)