IT network security products supplier Corero Network Security launched its SmartWall Threat Defence System during the first half of 2014 and the benefits of the investment should be reaped in the second half and further into the future.
There were two sales of SmartWall in the first half but sales momentum should increase in the second half. SmartWall is aimed at larger customers than the other products. The core market is data centres and internet service providers.
The existing products are still generating revenues but they fell in the first half. Group revenues declined from $4.87m to $3.67m, while the loss increased from $4.23m to $5.21m. An unchanged full year loss of $8.9m is forecast on higher full year sales of $11.5m.
There was a $4.39m cash outflow in first half of 2014, after capitalised development costs of $2.2m. The cash outflow is expected to be slightly lower in the second half but it will still be significant. finnCap forecasts net cash of $1.6m at the end of 2014 and it believes that Corero will fall into net debt during 2015.
At 21p a share, down 1p, Corero is valued at £18m.
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