Source - SMW
Corero Network Security has warned that full year revenues will be hit by delays in customer implementation schedules.

Corero expects to end the year strongly, with a record final quarter SmartWall threat defence system order intake.

But it said revenue for the year ending 31 Dec would  be hit by delays in world-wide implementation schedules for a large digital enterprise customer win in Q3 2017 and an existing customer's ongoing deployment (with the majority of the revenue from these two customer's now expected in H1 2018).

It said group revenue for the year ending 31 Dec was now expected to be in the range $8.5m to $9.0m.

It expected that SmartWall revenue and recurring revenue would show strong growth over the prior year, with the contribution from legacy product revenue only $0.6 million (2016: SmartWall revenue of $5.5 million versus legacy product revenue of $3.3 million for a total of $8.8 million).

Corero said SmartWall order intake for the year ending 31 Dec was expected to be between $9.3 million and $9.8 million, with approximately 50% representing recurring revenue in the form of support, services, and DDoS protection as a service (DDPaaS) contracts (2016: SmartWall order intake was $6.7 million including recurring revenue order intake of $2.6 million).    

An update said that group EBITDA loss for the year was expected to be in the range $4.8 million to $5.3 million (2016: EBITDA loss $6.4 million). 

Corero said it was encouraged that the Q4 2017 group EBITDA loss was expected to be in the range $0.1 to $0.5 million, bringing the group close to its goal of being EBITDA positive.      

Corero said it had continued to manage its cost base in 2017 with overheads expected to be approximately 10% below the prior year.