Corero losses softened by strong fourth quarter

Defence solutions group Corero Network Security posted record final quarter order intake of its SmartWall threat defence system, boosting its expected revenues for the year.

Corero, which upped its guidance for annual revenue to $9m from the previously expected $8.5m, said SmartWall and other newer recurring revenue should show "strong growth" over the prior year, with revenue from legacy products to contribute just $600,000 over the twelve months leading to 31 December, compared to the $3.3m it accounted for at the end of trading back in 2016.

SmartWall orders were anticipated to come in somewhere between $9.3m and $9.8m, with approximately 50% representing recurring revenue in the form of support, services, and distributed denial of service (DDoS) protection as a service contracts.

However, Corero was still expecting a loss before interest, tax, depreciation and amortisation of $4.8-5.3m but said it was "encouraged" that its fourth-quarter loss of $100,000 to $500,000 had "brought the group close to its goal" of being EBITDA-positive.

Net cash was projected to have dropped to $1m from $2.9m a year earlier.

Ashley Stephenson, Corero's chief executive, said, "Corero enters 2018 with confidence following a year of strong growth in SmartWall order intake with proof points of multiple $1.0 million plus customers, a growing catalogue of industry awards and several disruptive contract wins against competitors."

"The group has also expanded its ecosystem of world-class partners and introduced an enhanced product portfolio. We are excited about the prospects for the future of the business," Stephenson added.

As of 0810 GMT, shares had declined 3.43% to 6.76p.