Corero Network Security narrows loss as SmartWall sales leap

Corero Network Security on Thursday reported a narrowed annual loss after an improvement in revenue driven by sales of its SmartWall technology.

The network security outfit recorded a loss before tax of $5.2m for 2018, down 39% compared to the year before, as revenue increased by 17% to $10.0m as sales from SmartWall, the AIM traded company's DDoS mitigation solution, grew by 23%.

Recurring revenue, comprised of security maintenance and support services and DDoS protection as-a-service revenue, increased to 51.1% of total revenue compared 47.1% back in 2017.

Ashley Stephenson, chief executive of Corero, said: "2018 was a year of continued strategic progress for Corero, culminating in the signing of a landmark resale partnership with Juniper Networks, a US-based industry leader in automated, scalable and secure networks. Not only does this agreement provide an additional route to market for our products but it also serves as a significant endorsement of our SmartWall technology."

The company secured its first revenue generating order from the resale partnership in March 2019 and said that a "strong" pipeline of further resale opportunities is developing.

Corero had cash and cash equivalents of $8.0m at 31 December, up from $1.4m at the same point the year before, after it raised $5.3m in April 2018 from an equity placing and subscription, $3.9m from a bank term loan concluded in the same month and drawn down in May 2018, and $2.0m from an equity subscription by Juniper Networks in October 2018.

"Corero continues to be well positioned to deliver on its goal of becoming the leading player in the real-time DDoS mitigation market, with over 100 customers and a growing number of go-to-market partners. We remain focused on delivering strong revenue growth and committed to achieving our stated goal of being EBITDA positive and cash generative by the end of the year," said Stephenson.

Corero Network Security's shares were unchanged at 8.25p at 1110 BST.