Corero losses narrowed on record H2 order intake

Digital defence provider Corero Network Security expects results from the final quarter of its trading year to come in roughly 20% stronger year-on-year after turning in a record order intake over its second half.

Corero told investors on Thursday that strong demand for its SmartWall Threat Defense System had boosted order intake for the year ended 31 December 2018 to approximately $11m, while group revenue was tagged to rise 17.6% to $10m.

The group noted the rise was lower than it had initially expected as a result of the longer time required to ramp-up new go-to-market partners and secure contracts.

Corero now anticipates that it will post LBITDA of $2.5m, a 50% year-on-year improvement as it enters 2019 "against a backdrop of positive momentum" and a stronger new business pipeline.

Chief executive Ashley Stephenson, said: "Corero enters 2019 following a year of solid growth in revenue and order intake and with a significant resale partnership agreement in place with Juniper Networks.

"We are excited about the prospects in the medium term, with the DDoS mitigation market fundamentals remaining strong and market analysts forecasting double-digit growth."

Stephenson also said both he and the AIM-listed firm's board remained confident that Corero was "well placed for further growth".

As of 0945 GMT, Corero shares had slumped 6.27% to 11.95p.