News blog

Corero Network Security

• BY: Andrew Hore |
• POSTED: 06/11/2014 |

IT network security products supplier Corero Network Security has been hit by poor sales of older products as its newer SmartWall product makes slow progress.

The share price slumped by 7p to 12.5p a share, valuing Corero at £10.2m.

Revenues are likely to be $9m in 2014, down from the previously forecast $11.4m and there will be a another cash outflow in the second half. There was cash of $5.4m at the end of June 2014, following a $4.39m cash outflow in first half. Net cash was expected to be $1.6m at the end of 2014 but the higher losses mean that it will run out sooner. Corero admits that it will need to raise more cash.

There were two sales of SmartWall in the first half. SmartWall is aimed at larger customers than the other products. The core market is data centres and internet service providers.

There is an enormous potential market but Corero needs to show that it can sell its products.

Download the latest AIM Journal from http://www.hubinvest.com/AIMPDFOctober2014_61.pdf