6th Apr 2020 14:22
(Alliance News) - Corero Network Security PLC on Monday reported a widened loss for 2019 on increased investments and higher costs, adding trading in 2020 has not been hurt by the Covid-19 outbreak.
The stock was trading 4.3% higher at 4.38 pence each on Monday afternoon in London.
For 2019, the cybersecurity firm posted revenue of USD9.7 million, down from USD10.0 million reported for 2018. Pretax loss widened to USD6.6 million from USD5.2 million.
Corero said the widened loss came as a result of increased investment in its technology, sales and marketing activities.
It also noted that revenue for the period was made up of a higher mix of distributed denial-of-service protection-as-a-service long-term contracts, which usually see revenue realised over the term of the contract instead of during a financial reporting period.
A distributed denial-of-service attack is a cyber-attack in which an attempt is made to disrupt normal traffic of a targeted server, service or network by overwhelming the target or its surrounding infrastructure with a flood of internet traffic.
Operating expenses were USD14.1 million, up from USD12.7 million, on an increased share options charge and lower research & development government funding.
Looking ahead, Corero said that while it has not seen "significant short-term impact" from the Covid-19 outbreak, it believes the pandemic may hurt its customers. However, it added that it believes strong sales achieved in the second half of 2019 and higher levels of recurring revenue provide it with "solid foundations" for 2020.
"Whilst the current macroeconomic climate is impacted as a result of Covid-19, we remain confident in the long term resilience of our business, the importance of our SmartWall solutions across our key telecommunication and cloud provider markets, and our ability to support our global customer base during what is a challenging period for everyone," said Chief Executive Ashley Stephenson.
As at the end of December, the company had net cash of GBP5.4 million.
By Ife Taiwo; [email protected]
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