Trading Update

6 September 2018

Corero Network Security plc (AIM: CNS)

("Corero" or the "Company")

Trading Update

Corero (AIM: CNS), the AIM listed network security company, provides an update on trading for the six months ended 30 June 2018 and is pleased to confirm that results for the year ending 31 December 2018 are expected to be in-line with expectations.

The Company has made a solid start to 2018, with revenue for the six months ended 30 June 2018 expected to be approximately $5.0 million and SmartWall revenue growth of 40% over H2 2017 and 12% over H1 2017.

Corero continued to manage its cost base in the period with operating costs* for the six months ended 30 June 2018 expected to be approximately 18% below H1 2017.

The EBITDA* loss for the six months ended 30 June 2018 is expected to be approximately $1.4 million (H1 2017: EBITDA* loss $2.9 million).

Cash at bank as at 30 June 2018 was approximately $9.0 million (2017: $5.1 million) and debt was approximately $4.0 million (2017: $nil) resulting in net cash of approximately $5.0 million.

Management are also pleased to report progress in securing a global resale contract with an industry leading vendor. A further announcement will be made as appropriate.

Corero has delivered excellent operational gains in the first half of the year, which, coupled with its new business pipeline and developing go-to-market partnerships, gives the Board confidence in the Company's prospects.

Corero expects to announce its interim results for the six months ended 30 June 2018 on 26 September 2018.

* before depreciation, amortisation, financing and unrealised foreign exchange differences on an intercompany loan

Ashley Stephenson, CEO of Corero, commented: 

"I am pleased to report that we are making strong progress in executing our 2018 strategy, including our goal to expand the business via go-to-market partnerships. We expect these relationships to deliver incremental revenue in H2 2018, with a number of opportunities actively being pursued with customers."

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About Corero Network Security

Corero Network Security is a leader in real-time, high-performance DDoS defense solutions. Service providers, hosting providers and digital enterprises rely on Corero's award winning technology to eliminate the DDoS threat to their environment through automatic attack detection and mitigation, coupled with complete network visibility, analytics and reporting. This industry leading technology provides cost effective, scalable protection capabilities against DDoS attacks in the most complex environments while enabling a more cost effective economic model than previously available. For more information, visit www.corero.com