Corero losses to widen but net cash, sales both up

Network security firm Corero says 2013 EBITDA loss will be wider than first thought, but urges patience as cash position, sales both improve

Next-generation security and DDoS vendor Corero Network Security has said its annual operating losses for 2013 will be over a million dollars more than they were in the previous year.

Having sold off its only profitable unit, education firm Corero Business Systems, to Civica, for £13m in July 2013, Corero was always anticipating a full-year EBITDA loss, but it will now be down by $4.6m (£2.8m), compared to a loss of $3.1m in 2012.

Group sales, including the pre-sale contribution from Corero Business Systems, will come in at around $16m, up substantially on $11.4m in 2012. Net cash of $9.8m – as of 31 December 2013 – was up from $1.3m net debt at the end of 2012, the firm having repaid its obligations earlier than it had thought.

In a trading statement today Corero said its next-generation product development around securing the internet in the service and hosting provider markets, was proceeding as planned, and said that following a Q1 launch it expected to generate sales from it in the second half of 2014.

“We have made good progress in the last year across many facets of the business and advanced the development of our next generation product which we believe will significantly increase Corero’s addressable market,” said CEO Ashley Stephenson.

“The billings growth in the second half of 2013 and the level of new business wins in the fourth quarter, which was the strongest since the first quarter of 2012, were very encouraging,” he added.

Preliminary results for Corero’s fiscal 2013 will drop towards the end of March.

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