LONDON (Alliance News) - Corero Network Security PLC on Thursday said it expects to show a "record" second half order intake, though annual revenue is likely to fall short of expectations.
Corero also announced some board and management changes as it seeks to ramp-up US sales.
The company said there has been "strong" demand for its SmartWall threat defence system, which 2018's order intake expected to be 20% higher year-on-year at approximately USD11.0 million as a result of a record second half.
However, revenue for 2018 is expected to be USD10.0 million, up from USD8.5 million the prior year. Despite the 18% growth, this is short of Corero's expectations, and it is due to a longer time required to "ramp up new go-to-market partners and secure contracts".
Corero has guided for a much narrowed earnings before interest, tax, depreciation, and amortisation loss. The Ebitda loss is guided to halve to USD2.5 million in 2018 from USD5.0 million in 2017. Overheads are expected to fall 10% year-on-year.
As at December 31, net cash was USD4.2 million. Cash in the bank was USD8.0 million from USD1.4 million year-on-year, but debt was USD3.8 million from zero a year prior.
"Corero enters 2019 against a backdrop of positive momentum underpinned by a broader go-to-market strategy and a stronger new business pipeline," the company said.
"Management is focused on delivering revenue growth, adding new customers, and targeting being Ebitda positive and cash generative by the end of 2019."
The firm also announced changes at board level. Peter George, who has "over" 30 years' experience in IT networking and cybersecurity, has joined as a US-based non-executive director with immediate effect.
Corero is planning to expand its US-based management, which will include appointing a head of global sales.
As a result, its current UK-based president & executive vice president of sales & marketing, Andrew Lloyd, will leave the board and Corero, effective from Friday.
Chairman Jens Montanana said: "We are delighted to appoint Peter as we seek to both broaden our US reach and deliver a greater balance of independence to our board. We sought to complement our existing skill set with a US-based executive with a successful track record of leading IT network and security companies, and we believe Peter has these skills and will be an excellent addition to Corero's board."
Shares were 6.3% lower on Thursday morning at a price of 11.95 pence each.
Corero Network (CNS)