TIDMCNS
RNS Number : 1150N
Corero Network Security PLC
21 September 2023
21 September 2023
Corero Network Security plc
("Corero," the "Company" or the "Group")
Unaudited H1 2023 Interim Results
Strong H1 2023 performance underpinned by ongoing ARR and new
business momentum
Corero Network Security plc (AIM: CNS), a leading provider of
distributed denial of service ("DDoS") protection solutions,
announces its unaudited results for the six months ended 30 June
2023.
Financial highlights:
-- H1 2023 order intake(1) increased 19% to $13.0 million (H1 2022: $10.9 million)
-- H1 2023 Group revenue up 19% to $10.5 million (H1 2022: $8.8 million)
-- Annualised Recurring Revenues(2) ("ARR") up 13% to $15.3 million (H1 2022: $13.6 million)
-- EBITDA(3) loss of $0.2 million (H1 2022: EBITDA profit of $0.9 million)
-- Adjusted EBITDA(4) profit of $0.2 million (H1 2022: Adjusted EBITDA of $0.0 million)
-- Net cash at 30 June 2023 of $6.2 million (30 June 2022: $5.8 million)
-- $1.2 million early repayment of bank term loan facility, with
no outstanding debt (30 June 2022: $1.7 million)
Operational highlights:
-- New strategic go-to-market partnership with Akamai Technologies Inc. ("Akamai")
-- Ideal Customer Profile ("ICP") focus driving significant customer growth across H1 2023
-- Strong momentum through Q2, delivering $6.0 million of significant customer contracts
-- Continued growth in the Company's subscription-based products
and DDoS Protection-as-a-service ("DDPaaS") offering, underpinning
revenue and earnings predictability
Outlook:
-- Solid start to H2 2023, with a number of significant customer wins
-- Robust new business pipeline continues to develop
-- Demand for DDoS mitigation from enterprises of varying sizes
continues to remain strong, driven by ongoing and high-profile DDoS
attacks(5)
-- The Board remains confident in the Company's near-term growth
prospects with Corero continuing to trade in line with market
expectations
Jens Montanana, Executive Chairman, commented :
"I am extremely pleased with the momentum that we have built
during the first half of 2023, securing a number of key customer
wins across the period. The increase in revenue, order intake and
ARR all demonstrate the fundamental strength of both Corero's
business model and ongoing demand for our market-leading
products.
"Our new strategic partnership with Akamai further expands our
routes to market and is expected to deliver incremental revenue
growth in the medium term.
"The robust foundations created during H1 2023, and the strength
of the Company's balance sheet following the repayment of the
outstanding term bank loan, gives us confidence for the full year
as we continue to focus on delivering on our growth strategy."
(1) Defined as orders received from customers in the period
(2) Defined as the normalised annualised recurring revenue and
includes recurring revenue from contract values of annual support,
software subscription and from DDoS Protection-as-a-Service
contracts
(3) Defined as Earnings before Interest, Taxation, Depreciation
and Amortisation
(4) Defined as Earnings before Interest, Taxation, Depreciation
less unrealised foreign exchange differences
(5) 2023 Corero Threat Intelligence Report
https://www.corero.com/2023_threatreport/
This announcement contains inside information for the purposes
of article 7 of the Market Abuse Regulation (EU) 596/2014 as
amended by regulation 11 of the Market Abuse (Amendment) (EU Exit)
Regulations 2019/310. With the publication of this announcement,
this information is now considered to be in the public domain.
Enquiries:
Corero Network Security plc Tel: +44 (0) 20 7390 0230
Jens Montanana, Executive Chairman
Phil Richards, CFO
Canaccord Genuity Limited (Nominated Adviser Tel: +44 (0) 20 7523 8000
and Broker)
Simon Bridges / Andrew Potts / Harry Rees
Vigo Consulting Tel: +44 (0) 20 7390 0230
Jeremy Garcia / Kendall Hill
About Corero Network Security
Corero Network Security is a leading provider of DDoS protection
solutions, specializing in automatic detection and protection
solutions with network visibility, analytics, and reporting tools.
Corero's technology protects against external and internal DDoS
threats in complex edge and subscriber environments, ensuring
internet service availability. With operational centers in
Marlborough, Massachusetts, USA, and Edinburgh, UK, Corero is
headquartered in London and listed on the London Stock Exchange's
AIM market (ticker: CNS). For more information, visit:
https://www.corero.com .
For more information, visit www.corero.com , and follow us on LinkedIn and Twitter .
Executive Chairman's Interim review
Introduction
Corero delivered a solid six months of trading across H1 2023,
underpinned by the Company's focus on its ICP, which, alongside
targeted marketing and sales initiatives, delivered a 19%
year-on-year increase in both order intake and revenue for the six
months to 30 June 2023.
This growth builds upon the strong foundations already in place,
with the Company's market-leading SmartWall solution ensuring that
Corero remains well placed to continue to service customers to the
highest levels of satisfaction whilst attracting significant new
customers.
Additionally, Corero continues to experience high levels of
customer retention and renewals, and therefore very low levels of
customer churn at just 2%. The Group generated $15.3 million of ARR
as at 1 July 2023, an increase of 13% (H1 2022: $13.6 million),
driven by growth in DDPaaS and software subscription orders. ARR
remains a key performance indicator for the Company, providing
visibility over future revenue, with an ARR compound annual growth
rate of 28% since H1 2019.
Adjusting for unrealised FX gains and losses, Adjusted EBITDA
profit for the six months ended 30 June 2023 was $0.2 million (H1
2022: $0.0 million), demonstrating the continued underlying
profitability of the Group.
DDoS attacks continue to grow in both volume and sophistication,
as reported in the Corero 2023 DDoS Thereat Intelligence Report,
and, as a result, companies across a diverse range of sectors are
increasingly recognising the importance of obtaining cutting-edge
DDoS protection to safeguard their digital operations. Against this
favourable backdrop, Corero is well-positioned to continue to
deliver best-in-class products and services to its ICP.
The recently announced strategic partnership with Akamai will
further expand Corero's routes to market. This relationship with an
industry-leading security services provider reinforces the value of
Corero's market-leading SmartWall technology.
Strategic update
The Group's six core strategic drivers remain ever-present and
have been at the heart of the Group's operational and financial
performance.
Key progress in the period includes:
-- New business pipeline and revenue growth : Corero delivered
19% year-on-year revenue growth driven by the Company's successful
sales and marketing activities and long-standing sales channel
partners.
-- Leverage existing reseller and strategic partnerships and
develop new ones: The Group continues to invest in existing key
partners, including Juniper and GTT. Additional efforts have been
made in the development of new strategic partners, ensuring Corero
products continue to form an important component of its partners'
global cyber defence capabilities. The Company also continues to
look to new partnerships to expand its market footprint, including
the recently announced strategic partnership with Akamai which
further enhances Corero's reach and is expected to deliver
incremental revenue growth for the Company.
-- Target and expand ICP relationships: Our ICP focus has
yielded significant new customer wins during the first six months
of 2023 and forms an important component of our new business
pipeline.
-- Better monetise existing services and introduce new services:
We continue to explore and provide service initiatives that enhance
the protection and network security visibility for our customers,
developing product offerings that both the Group and our customers
can monetise.
-- Amplify demand generation programmes: We have created
targeted content at each stage of the buying cycle, and within the
key segments we serve. This includes targeted and sector-specific
email campaigns, customer database intelligence and expansion, and
speaking engagements with partners, amongst many other
initiatives.
-- Continue to enhance our technological innovation leadership:
We continue to further strengthen our portfolio of SmartWall
products. These developments include improved protection against
emerging DDoS threats such as so-called carpet bomb attacks and
enhanced analytics for DDoS Protection-as-a-Service customers.
DDoS addressable market and market drivers
Cybersecurity is a high-growth market and the segment for DDoS
protection and mitigation is forecast by MarketsandMarkets to grow
from $3.9 billion in 2022 to $7.3 billion in 2027 (a compound
annual growth rate of 13% over the forecast period). This growth is
being driven by the rise in multi-vector attacks, availability of
DDoS-for-hire services, impact of the growth in IoT devices,
roll-out of 5G services, and growing demand for hybrid DDoS
protection and mitigation services and solutions, where cloud-based
DDoS mitigation and on-premises DDoS protection (such as Corero's
SmartWall solution) work in combination to provide optimal customer
protection.
According to Technavio, North America is expected to contribute
39% to the growth of the global DDoS protection and mitigation
market from 2022 to 2027, underpinned by the fast-growing
popularity of cyber insurance in the region(6) . Corero secured a
number of contracts with companies based in North America across H1
2023, and has a robust network of experienced sales and marketing
employees operating out of the US and Canada to identify new
business opportunities and capitalise on the increasing demand for
DDoS protection and mitigation services from companies in the
region.
In terms of market dynamics, the competition in the cloud-based
DDoS protection market is increasing whilst the landscape for
on-premises DDoS solution providers is relatively stable. In
general, the two solutions remain complementary.
The key market drivers positively impacting Corero include:
-- Continued increase in the level of malicious DDoS activity
worldwide, with the threat showing no signs of abating. Corero's
recent report on the Mirai botnet(7) is one example of this
evolving threat.
-- The adoption of 100Gbps connectivity is accelerating, with
many providers, including existing customers and prospects,
increasing the roll out 100Gbps and 400Gbps networks which drives
demand for increased DDoS protection capacity.
(6) Technavio February 2023 DDOS Protection Mitigation Market by
Component, Application, and Geography - Forecast and Analysis
2023-2027
https://www.technavio.com/report/ddos-protection-mitigation-market-analysis
(7) https://www.corero.com/mirai-like-ddos-attacks/
Corero's competitive advantage
As DDoS attacks continue to grow in size, frequency and
sophistication, they reinforce the need for scalable, accurate and
automated DDoS mitigation solutions. Supporting multiple deployment
topologies, SmartWall utilises an always-on DDoS mitigation
architecture to automatically, and surgically, remove just the DDoS
attack traffic. In H1 2023, 98% of DDoS attacks on Corero's
customers were mitigated automatically, without further
intervention, by Corero or customers' security teams.
Corero continues to invest in its market-leading solutions
through its research and development efforts and its engineering
and customer service teams. Insights gained from observing millions
of DDoS attacks via the Company's SecureWatch service platform not
only inform customers but also serve to provide unique insights for
the Corero technology roadmap, ensuring the Company remains at the
forefront of the industry.
Outlook
The global DDoS mitigation market remains strong, which, coupled
with Corero's technological superiority, cost-effectiveness, and
efficacy, continues to underpin the Company's strong customer
traction. Corero anticipates that the strong cybersecurity market
dynamics and demand for the Company's solutions will remain robust
in the medium to long term despite wider macroeconomic conditions
and cycles, given both the critical role Corero's products and
services play in protecting businesses, and the growing awareness
from companies worldwide of the significant disruption DDoS attacks
can cause.
Corero's focus on targeting its ICP, alongside ongoing sales and
marketing initiatives, and the development of the Company's
strategic partnership relationships favourably position Corero to
build on the strong momentum generated in H1 2023.
The Group expects that H2 2023 will, consistent with seasonality
patterns of business in previous years, display characteristically
greater weighting of business activity towards the end of the year.
Corero anticipates that its recently announced partnership with
Akamai will expand the Company's routes to market and deliver
incremental revenue growth opportunities in the medium term.
The early repayment of all outstanding debt during the period
further demonstrates the robust nature and positive outlook for the
business.
Based on the Company's H1 2023 performance, growth in ARR, order
intake and new business pipeline, management expects trading for
the full year 2023 to be in line with market expectations and
believes Corero is well-placed for further growth in the medium and
long term.
Jens Montanana
Executive Chairman
21 September 2023
Chief Financial Officer's Review
The Group reported revenues of $10.5 million in the six months
ended 30 June 2023 (H1 2022: $8.8 million).
Total operating expenses before depreciation and amortisation
were $9.7 million (H1 2022: $6.9 million). When adjusting for
realised and unrealised FX movements on trading and intercompany
balances, operating expenses for H1 2023 amounted to $8.9 million
(H1 2022: $8.2 million). The underlying $0.7 million increase in
operating expenses year-on-year is primarily attributable to
additional investment in the Company's sales and marketing
team.
Depreciation and amortisation of intangible assets amounted to
$0.9 million (H1 2022: $1.0 million) , with capitalised R&D
costs of $0.9 million (H1 2022: $0.8 million).
EBITDA for H1 2023 was a loss of $0.2 million (H1 2022: profit
of $0.9 million). Adjusted EBITDA, adjusted for unrealised FX
losses of $0.4 million (H1 2022: gains of $0.9 million), was a
profit of $0.2 million (H1 2022: $0.0 million).
Loss before and after taxation was $1.2 million (H1 2022: loss
of $0.3 million). The reported loss per share was 0.2 cents (H1
2022: loss per share 0.1 cents).
Gross cash at bank as at 30 June 2023 was $6.2 million (30 June
2022: $7.5 million; 31 December 2022: $5.6 million), with $1.2
million of the remaining outstanding bank term loan facility repaid
during the period. Net cash at 30 June 2023 was $6.2 million (30
June 2022: $5.8 million; 31 December 2022: $4.4 million). The
Company is debt free as at 30 June 2023.
Net cash generated from operating activities before movements in
working capital in the first six months of 2023 was $0.1 million
(H1 2022: $1.3 million). Movements in working capital generated
cash of $3.1 million for H1 2023 (H1 2022: cash used of $2.5
million), reflecting the collection of significant trade
receivables invoiced in the final two months of the prior year.
This resulted in cash generated from operating activities during H1
2023 of $3.2 million (H1 2022: cash used of $1.2 million). Net cash
used in investing activities included similar sustained investment
in R&D to the prior year of $0.9 million (H1 2022: $0.8 million
spend), with capex investment also of a similar magnitude at $0.2
million (H1 2022: $0.3 million).
H1 2023 included repayments of borrowings of $1.2 million (H1
2022: $0.9 million), being the entirety of the outstanding bank
term loan facility, which was repaid during the period.
Overall, cash and cash equivalents for H1 2023 increased by $0.6
million (H1 2022: decrease of $3.3 million).
Phil Richards
Chief Financial Officer
21 September 2023
Condensed Consolidated Income Statement
for the six months ended 30 June 2023
Unaudited six months ended Unaudited six months ended Audited year ended 31
30 June 30 June December
2023 2022 2022
Continuing operations $'000 $'000 $'000
Revenue 10,526 8,820 20,121
Cost of sales (995) (1,042) (2,576)
---------------------------- ---------------------------- ----------------------------
Gross profit 9,531 7,778 17,545
Operating expenses (10,619) (7,942) (16,719)
---------------------------- ---------------------------- ---------------------------- ----------------------------
Consisting of:
Operating expenses before
depreciation and
amortisation (9,741) (6,899) (14,776)
Depreciation and
amortisation of
intangible assets (878) (1,043) (1,943)
---------------------------- ---------------------------- ---------------------------- ----------------------------
Operating (loss)/profit (1,088) (164) 826
Finance income 7 - 7
Finance costs (142) (161) (279)
---------------------------- ---------------------------- ----------------------------
(Loss)/profit before
taxation (1,223) (325) 554
Taxation charge (17) - -
---------------------------- ---------------------------- ----------------------------
(Loss)/profit after
taxation for the period (1,240) (325) 554
---------------------------- ---------------------------- ----------------------------
(Loss)/profit after
taxation attributable to
equity holders of the
parent for the period (1,240) (325) 554
---------------------------- ---------------------------- ----------------------------
Basic and diluted (loss)/earnings
per share
Cents Cents Cents
Basic (loss)/earnings per share (0.2) (0.1) 0.1
------------------------------------- ------ ------ ------
Diluted (loss)/earnings per share (0.2) (0.1) 0.1
------------------------------------- ------ ------ ------
EBITDA(1) (210) 879 2,769
Adjusted EBITDA(1) - adjusted for unrealised foreign exchange differences 220 (48) 1,808
--------------------------------------------------------------------------- -------- ------ --------
(1) See note 6 for definitions and reconciliation.
Condensed Consolidated Statement of Total Comprehensive
Income
for the six months ended 30 June 2023
Unaudited six months ended Unaudited six months ended Audited year ended 31
30 June 30 June December
2023 2022 2022
$'000 $'000 $'000
---------------------------- ---------------------------- ---------------------------- ----------------------------
(Loss)/profit for the
period (1,240) (325) 554
Other comprehensive
income/(expense):
---------------------------- ---------------------------- ---------------------------- ----------------------------
Items reclassified
subsequently to profit or
loss upon derecognition:
Foreign exchange
differences 631 (1,093) (1,087)
---------------------------- ---------------------------- ---------------------------- ----------------------------
Other comprehensive expense
for the period net of
taxation attributable to
the equity owners
of the parent (609) (1,418) (533)
---------------------------- ---------------------------- ---------------------------- ----------------------------
Total comprehensive expense
for the period
attributable to the equity
owners of the parent (609) (1,418) (533)
---------------------------- ---------------------------- ---------------------------- ----------------------------
Condensed Consolidated Statement of Financial Position
as at 30 June 2023
Unaudited Unaudited
as at 30 as at 30 Audited
June June as at 31 December
2023 2022 2022
$'000 $'000 $'000
Assets
Non-current assets
Goodwill 8,991 8,991 8,991
Acquired intangible assets 1 3 2
Capitalised development expenditure 4,647 4,429 4,500
Property, plant and equipment - owned assets 538 674 604
Leased right of use assets 21 104 62
Long term trade and other receivables 1,326 907 1,571
15,524 15,108 15,730
Current assets
Inventories 108 220 164
Trade and other receivables 4,106 3,087 5,294
Cash and cash equivalents 6,172 7,492 5,646
----------- --------- ------------------
10,386 10,799 11,104
----------- --------- ------------------
Total assets 25,910 25,907 26,834
----------- --------- ------------------
Liabilities
Current Liabilities
Trade and other payables (2,975) (3,483) (3,956)
Lease liabilities (71) (99) (78)
Deferred income (4,614) (4,271) (3,323)
Borrowings - (971) (971)
(7,660) (8,824) (8,328)
Net current assets 2,726 1,975 2,776
Non-current liabilities
Trade and other payables - (151) (100)
Lease liabilities - (27) -
Deferred income (2,844) (1,590) (2,285)
Borrowings - (728) (237)
----------- --------- ------------------
(2,844) (2,496) (2,622)
----------- --------- ------------------
Net assets 15,406 14,587 15,884
----------- --------- ------------------
Capital and reserves attributable to the equity owners of the parent
Share capital 6,983 6,914 6,980
Share premium 82,296 82,122 82,284
Capital redemption reserve 7,051 7,051 7,051
Share options reserve 1,890 1,692 1,777
Foreign exchange translation reserve (1,962) (2,599) (2,593)
Accumulated profit and loss reserve (80,852) (80,593) (79,615)
----------- --------- ------------------
Total shareholders' equity 15,406 14,587 15,884
----------- --------- ------------------
Consolidated Interim Statement of Cash Flows
for the six month period ended 30 June 2023
Unaudited six months ended Unaudited six months ended Audited year ended 31
30 June 30 June December
2023 2022 2022
Operating activities $'000 $'000 $'000
(Loss)/profit before
taxation for the period (1,223) (325) 554
Adjustments for movements:
Amortisation of acquired
intangible assets 1 1 2
Amortisation of capitalised
development expenditure 764 940 1,732
Depreciation - owned assets 231 252 497
Depreciation - leased assets 41 41 82
Finance income (7) - (7)
Finance expense 140 155 268
Finance lease interest costs 2 6 11
Share based payments expense 116 202 386
Cash generated from
operating activities before
movement in working capital 65 1,272 3,525
Movement in working capital:
Decrease/(increase) in
inventories and sales
evaluation assets 80 (74) (26)
Decrease/(increase) in trade
and other receivables 2,356 (1,258) (3,867)
Increase/(decrease) in trade
and other payables 664 (1,142) (1,361)
---------------------------- ---------------------------- ----------------------------
Net movement in working
capital 3,100 (2,474) (5,254)
Cash generated from/(used
in) operating activities 3,165 (1,202) (1,729)
Taxation (17) - -
---------------------------- ---------------------------- ----------------------------
Net cash generated
from/(used in) operating
activities 3,148 (1,202) (1,729)
Cash flows from investing
activities
Investment in development
expenditure (911) (841) (1,704)
Purchase of property, plant
and equipment (177) (257) (420)
Net cash used in investing
activities (1,088) (1,098) (2,124)
Cash flows from financing
activities
Net proceeds from issue of
ordinary share capital 15 - 228
Finance income 7 - 7
Lease liability payments (53) (51) (104)
Finance expense (61) (89) (158)
Repayments of borrowings (1,317) (880) (1,364)
---------------------------- ---------------------------- ----------------------------
Net cash (used in)/generated
from financing activities (1,409) (1,020) (1,391)
Increase/(decrease) in cash
and cash equivalents 651 (3,320) (5,244)
---------------------------- ---------------------------- ----------------------------
Effects of exchange rates on
cash and cash equivalents (125) (389) (311)
Cash and cash equivalents at
1 January 5,646 11,201 11,201
---------------------------- ---------------------------- ----------------------------
Cash and cash equivalents at
balance sheet dates 6,172 7,492 5,646
---------------------------- ---------------------------- ----------------------------
Consolidated Interim Statement of Changes in Equity
for the six month period ended 30 June 2023
Total
Foreign Accumulated attributable
Capital Share exchange profit and to equity
Share Share redemption options translation loss owners of
capital premium reserve reserve reserve reserve the parent
$'000 $'000 $'000 $'000 $'000 $'000 $'000
1 January 2022 6,914 82,122 7,051 1,490 (1,506) (80,268) 15,803
Loss for the period - - - - - (325) (325)
Other comprehensive expense - - - - (1,093) - (1,093)
-------- -------- ----------- -------- ------------ ------------ -------------
Total comprehensive expense for the period - - - - (1,093) (325) (1,418)
-------- -------- ----------- -------- ------------ ------------ -------------
Contributions by and distributions to owners
Share based payments - - - 202 - - 202
Total contributions by and distributions to owners - - - 202 - - 202
30 June 2022 6,914 82,122 7,051 1,692 (2,599) (80,593) 14,587
Profit for the period - - - - - 879 879
Other comprehensive expense - - - - 6 - 6
-------- -------- ----------- -------- ------------ ------------ -------------
Total comprehensive income for the period - - - - 6 879 885
Contributions by and distributions to owners
Issue of share capital - exercise of options 66 162 - - - - 228
Fully exercised share options - - - (99) - 99 -
Share based payments - - - 184 - - 184
Total contributions by and distributions to owners 66 162 - 85 - 99 412
31 December 2022 and 1 January 2023 6,980 82,284 7,051 1,777 (2,593) (79,615) 15,884
Loss for the period - - - - - (1,240) (1,240)
Other comprehensive expense - - - - 631 - 631
-------- -------- ----------- -------- ------------ ------------ -------------
Total comprehensive expense for the period - - - - 631 (1,240) (609)
-------- -------- ----------- -------- ------------ ------------ -------------
Contributions by and distributions to owners
Issue of share capital - exercise of options 3 12 - - - - 15
Fully exercised share options - - - (3) - 3 -
Share based payments - - - 116 - - 116
Total contributions by and distributions to owners 3 12 - 113 - 3 131
30 June 2023 6,983 82,296 7,051 1,890 (1,962) (80,852) 15,406
-------- -------- ----------- -------- ------------ ------------ -------------
Notes to the interim financial statements
1. General information and basis of preparation
Corero Network Security plc (the "Company") is a company
domiciled in England. The condensed consolidated interim financial
statements of the Company for the six months ended 30 June 2023
comprise the Company and its subsidiaries (together referred to as
the "Group").
These condensed interim consolidated financial statements have
been prepared in accordance with UK-adopted IAS 34,"Interim
Financial Reporting". They do not include all disclosures that
would otherwise be required in a complete set of financial
statements and should be read in conjunction with the Annual Report
and Accounts for the year ended 31 December 2022 ("2022 Annual
Report and Accounts"). The financial information for the half years
ended 30 June 2023 and 30 June 2022 do not constitute statutory
accounts within the meaning of Section 434(3) of the Companies Act
2006 and have neither been audited nor reviewed by the Group
Auditor.
The annual financial statements of Corero Network Security plc
are prepared in accordance with international accounting standards
in conformity with the requirements of the Companies Act 2006. The
comparative financial information for the year ended 31 December
2022 included within this report does not constitute the full
statutory accounts for that period. The statutory Annual Report and
Financial Statements for 2022 have been filed with the Registrar of
Companies. The Independent Auditors' Report on the Annual Report
and Accounts for 2022 was unqualified and did not contain a
statement under 498(2) or 498(3) of the Companies Act 2006.
There have been no related party transactions or changes in
related party transactions described in the latest Annual Report
and Accounts that could have a material effect on the financial
position or performance of the Group in the first six months of the
financial year.
These consolidated interim financial statements were approved by
the Board on 19 September 2023 and approved for issue on 21
September 2023.
A copy of this Interim Report can be viewed on the company's
website: www.corero.com .
2. Significant accounting policies
The basis of preparation and accounting policies used in
preparation of these interim financial statements have been
prepared in accordance with the same accounting policies set out in
the 2022 Annual Report and Accounts.
3. Segment reporting and revenue
The Group is managed according to one business unit, Corero
Network Security, which makes up the Group's reportable operating
segment. This business unit forms the basis on which the Group
reports its primary segment information to the Board, which
management consider to be the Chief Operating Decision maker for
the purposes of IFRS 8 Operating Segments. Consequently, there are
no separable 'other segmental information' not otherwise showed in
these Condensed Consolidated Financial statements.
The Group's revenues from external customers are divided into
the following geographies:
Unaudited Unaudited Audited
six months six months year ended
ended 30 ended 30 31 December
June 2023 June 2022 2022
$'000 $'000 $'000
The Americas 8,689 6,264 14,695
EMEA 1,292 1,915 4,388
APAC 545 641 1,038
Total 10,526 8,820 20,121
------------ ------------ -------------
Revenues from external customers are identified by invoicing
systems and adjusted to take into account the difference between
invoiced amounts and deferred revenue adjustments as required by
IFRS accounting standards.
The revenue is analysed for each revenue category as:
Unaudited Unaudited Audited
six months six months year ended
ended 30 ended 30 31 December
June 2023 June 2022 2022
$'000 $'000 $'000
Software licence and appliance
revenue 3,866 2,878 8,107
DDoS Protection-as-a-Service
revenue 2,786 2,288 4,854
Maintenance and support services
revenue 3,874 3,654 7,160
Total 10,526 8,820 20,121
------------ ------------ -------------
The revenue is analysed by timing of delivery of goods or
services as:
Unaudited Unaudited Audited
six months six months year ended
ended 30 ended 30 31 December
June 2023 June 2022 2022
$'000 $'000 $'000
Point-in-time delivery 3,866 2,878 8,107
Over time 6,660 5,942 12,014
Total 10,526 8,820 20,121
------------ ------------ -------------
4. Taxation
Due to the utilisation of past tax losses, the Group does not
recognise a material taxation income tax expense or credit.
5. Earnings per share
Earnings/(loss) per share is calculated by dividing the earnings
attributable to ordinary shareholders by the weighted average
number of ordinary shares in issue during the period. The effects
of anti-dilutive ordinary shares resulting from the exercise of
share options are excluded from the calculation of loss per
share.
30 June 2023 30 June 2022
weighted weighted
30 June 2023 average number 30 June 2023 30 June 2022 average number 30 June 2022
loss of 1p shares loss per share loss of 1p shares loss per share
$'000 Thousand Cents $'000 Thousand Cents
Basic loss per
share
From loss for
the year (1,240) 499,962 (0.2) (325) 494,852 (0.1)
--------------- --------------- --------------- --------------- --------------- ---------------
Diluted loss per share
Basic loss per share (1,240) 499,962 (0.2) (325) 494,852 (0.1)
Dilutive effect of share options - 47,823 - - 29,742 -
-------- -------- ------ ------ -------- ------
Diluted loss per share (1,240) 547,785 (0.2) (325) 524,594 (0.1)
-------- -------- ------ ------ -------- ------
31 Dec 2022 weighted 31 Dec 2022 profit per
31 Dec 2022 profit average number of 1p shares share
$'000 Thousand Cents
Basic earnings per share
Basic earnings per share 554 495,900 0.1
------------------- ---------------------------- -----------------------------
Diluted earnings per share
Basic earnings per share 554 495,900 0.1
Dilutive effect of share options - 15,248 -
---- -------- ----
Diluted earnings per share 554 511,148 0.1
---- -------- ----
6. Key performance measures
EBITDA and Adjusted EBITDA
Earnings before interest, tax, depreciation, and amortisation
("EBITDA") is defined as earnings from operations before all
interest, tax, depreciation, and amortisation charges. The
following is a reconciliation of EBITDA and further adjustment for
all three periods presented:
Unaudited Unaudited Audited
six months six months year ended
ended 30 ended 30 31 December
June 2023 June 2022 2022
$'000 $'000 $'000
Loss/(profit) before taxation (1,223) (325) 554
Adjustments for:
Finance income (7) - (7)
Finance expense 140 155 268
Finance lease interest costs 2 6 11
Depreciation - owned assets 72 61 127
Depreciation - lease liabilities 41 41 82
Amortisation of acquired intangible
assets 1 1 2
Amortisation of capitalised
development expenditure 764 940 1,732
------------ ------------ -------------
EBITDA (210) 879 2,769
Unrealised foreign exchange
differences 430 (927) (961)
Adjusted EBITDA - for unrealised
foreign exchange differences 220 (48) 1,808
------------ ------------ -------------
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
IR FLFLEAAIIFIV
(END) Dow Jones Newswires
September 21, 2023 02:00 ET (06:00 GMT)
Corero Network Security (LSE:CNS)
Gráfica de Acción Histórica
De Abr 2024 a May 2024
Corero Network Security (LSE:CNS)
Gráfica de Acción Histórica
De May 2023 a May 2024
