LONDON (Alliance News) - Corero Network Security PLC on Thursday said it has won a new contract for its SmartWall security product worth USD1.0 million, and it expects to report a narrowed loss for 2016.
The network security company said it expects to report a loss before interest, tax, depreciation and amortisation of USD5.1 million for 2016, compared to a loss of USD6.4 million the prior year, which Corero said was an improvement over market expectations.
It expects to report revenue of USD8.8 million, up from USD8.3 million.
Of this, revenue from SmartWall was up 62% compared to the prior year, whilst legacy product revenues declined "as expected". However, 2016 revenue fell below market expectations as a result of new 'as-a-service' customers it signed in the fourth quarter. This means that revenue is recognised monthly over the term of the contract, but this will add to recurring revenue in 2017 and beyond.
Corero said it had been awarded a USD1.0 million contract for SmartWall following a successful proof of concept trial with an undisclosed customer.
Corero has also entered into a technology alliance partnership with US-based Juniper Networks, which allows Corero to combine SmartWall with Juniper's MX Series Router and QFX Series switches.
"The 2017 financial year is off to a strong start with this major contract win, which demonstrates the significant opportunity for Corero in the Cloud computing market. We expect an increasing number of corporations will see the value of investing in DDoS protection to protect their revenue streams and defend their brand reputations," said Chief Executive Officer Ashley Stephenson in a statement.
Shares in Corero were up 11% at 7.10 pence Thursday morning.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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Corero Network (CNS)