17th Sep 2013 08:50
LONDON (Alliance News) - Corero Network Security PLC Tuesday reported lower revenues and widened losses in the first half of the year.
The US based network security company said that in the second half of the year it completed the sale of Corero Business Systems Limited, the sector of the company that developed finance and management information software for the school, further education and commercial sectors, for a net consideration of USD16.5 million, of which is said it expects to book a profit on the sale of roughly USD15.0 million at year's end.
"The sale of the CBS business has resulted in the company becoming exclusively focused in the network security market and has provided the company with the cash resources to fund the organic development of the network security business," said Chief Executive Officer Ashley Stephenson in a statement.
Corero Network Security reported revenues of USD9.5 million in the six months to June 30, compared with USD10.8 million a year earlier, due to a drop in first-half revenues from its network security division.
The group said the division won 28 new customers in the first half of the year, including significant orders from companies in the US, Asia and Brazil.
Corero also said that it made solid progress with the development of its "next generation" product during the period, and said it expects it to be ready for initial customer deployment by the end of the year. The product is intended to add support for deployment in cloud infrastructure, virtual environments, and larger scale networks enabling access to new global markets.
The group said its pretax loss widened to USD3.0 million in the first half of the year, compared with USD2.8 million a year earlier. It reported a net loss of USD3.6 million, compared USD2.7 million in the prior year.
Corero Network Security shares were down 2.7% or 0.38 pence Tuesday morning, trading at 13.75 pence per share.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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