(Alliance News) - Shares in Corero Network Security PLC plunged early Friday after the company issued a profit warning.
Shares in Corero were down 46% at 3.42 pence each in London on Friday morning.
Corero said 2019 losses before interest, taxes, depreciation and amortisation will widen year-on-year from USD2.1 million recorded in 2018 due to increased investment in sales function. Annual revenue is expected to rise by 20% on the USD10.0 million achieved a year ago.
For the six months to June 30, the company forecasts revenue of USD4.2 million, which would represent a 16% decline from USD5.0 million last year. Interim Ebitda loss is expected to widen to USD2.0 million from USD1.4 million.
The company attributed the first half revenue fall on slower sales conversion rate in relation to the Juniper Networks Inc partnership.
The security firm said the Juniper global resale partnership will "contribute materially" in the second half of the year despite interim struggles. The partnership deal with New York-listed Juniper allows Corero to resell its own SmartWall software products and services.
Although net cash during at June 30 was USD6.9 million, down from USD9.0 in June 2018, Corero said its chair will offer additional working capital, if required.
Corero Network (CNS)