LONDON (Alliance News) - Corero Network Security PLC on Thursday said its results for the full year are set to take a hit from the longer sales cycles for large contracts and said it intends to raise GBP5 million via a share placing.
Corero said it has seen a growing number of service provider trials for the SmartWall Threat Defense System, its network security product, which supports its outlook for a better second half performance. But its results for the year to the end of 2015 will be hit by the longer sales cycles involved in larger deals of this kind.
The company said, however, that the opportunities in the market are larger than it had anticipated and said it will continue to focus on this segment of the market.
Corero also said it intends to raise GBP5 million via a share subscription to back its growth plans. It plans to raise the funds a placing of up 50 million new shares at 10 pence per share, which it said is a 5.88% premium to its closing middle market quotation price Wednesday.
Shares in the company were down 8.2% to 9.75 pence on Thursday.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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Corero Network (CNS)