IT security revenues are coming through more slowly than hoped at Corero Network Security but the educational admin software business is generating profit to help to cover part of the loss of the core business.
Corero has started to report its figures in dollars. Revenues grew from $7.4m to $10.8m in the six months to June 2012, while the loss increased from $1.38m to $2.79m. The operating expenses of the IT security business doubled in the period.
The IT security business is being refocused on First Line of Defense (FLoD) appliances. These are positioned ahead of a firewall and other security software and limit the number of denial of service and other attacks. The refocused marketing commenced in the second half so the benefits have not shown through as yet. A new generation of products will be launched next year.
The education administration software continues to make money although more people are being taken on to help to cater for demand. Even so, the operating profit improved from $1m to $1.18m. Growth is coming from new academies and a new deal with Serco will open up the market for local authority run schools.
Net cash was $3.2m at the end of June 2012.
House broker finnCap forecasts a higher full year loss than last year – up from £400,000 to £3.1m – and then a small loss next year.
At 36p a share, down 6p, Corero is valued at £21m.
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