17th Jul 2014 11:02
LONDON (Alliance News) - Corero Network Security PLC Thursday said that it expects its interim revenue and loss before interest, tax and amortisation, as well as its net cash position, to be in line with market-expectations.
In an update on the six months ended June 30, the cyber security company said that it will continue to focus in 2014 on the launch and commercial introduction of SmartWall, the new family of products it is targeting at Internet service providers and hosting providers.
Corero also said that it expects revenue in the second-half, driven by SmartWall sales, to be greater than in the first.
On June 30, Corero had USD5.0 million in net cash, a reversal from last year's USD2.8 million net debt position. It has USD400,000 in debt, as compared with USD8.1 million at the same point last year. It said that sales order intake was USD4.5 million in the six months ended June 30, a 7% increase over the comparative period in 2013. However, it expects revenue recognised during the first six months, comprising mainly revenue from existing product lines, to be below that in the comparative period as prospective customers pre-sales trials and testing have extended into the third quarter.
In addition, Corero said that a higher services element, which will be spread across the life of such contracts, in the first-half of 2014 order intake will result in lower immediate revenue recognition and higher deferred revenues.
"The successful launch and first SmartWall sales in June represent important achievements for the company. In addition, the growing pipeline of new SmartWall opportunities means Corero is well positioned to exploit the company's stated strategy of expanding its addressable market to deliver significant revenue growth," Chief Executive Ashley Stephenson said in a statement.
"Our focus for the second half of 2014 is SmartWall sales execution to deliver on our growth plans. The Board remains confident of the outlook for [the second-half of] 2014 and beyond," Stephenson added.
Corero shares were Thursday quoted up 0.32 pence, or 1.3%, at 24.57 pence.
By Samuel Agini; [email protected]; @samuelagini
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