LONDON (ShareCast) - (Sharecast News) - Cybersecurity specialist Corero Network Security warned on Wednesday that it had swung to a loss in the six months ended 30 June amid falling revenues and ongoing investment in long-term growth initiatives.
Corero said H1 revenues were expected to be roughly $10.9m, down from $12.2m as a result of a weaker macroeconomic environment and lower upfront capex license sales, while underlying losses were seen at approximately $1.4m, a sharp turnaround from the prior year's underlying profit of $700,000.

Order intake in H125 was $12.5m, down from $14.2m, driven by a below-expectations Alliance Partner performance, as well as the weaker macroeconomic environment and US tariff uncertainty.

The AIM-listed group also noted that it has seen a shift in customer decisions away from upfront capex license sales to DDoS Protection as-a-Service solutions sales, which are recognised over the life of the contract. Corero said the shift in revenue mix toward DDPaaS sales contributed to 25% annual recurring revenue growth, which increased to $21.6m.

Chief executive Carl Herberger said: "I am pleased to report strong ARR growth in the first half of the year, underpinned by increasing demand for our DDPaaS offering whilst at the same time experiencing lower levels of upfront license sales than we had forecast.

"Our growing pipeline, including Alliance Partner opportunities, underpins our confidence in the second half of 2025. With recent execution, including our first CORE deployments at the end of H1 2025, we remain confident in our ability to drive sustained ARR growth."

As of 0905 BST, Corero shares had sunk 34.85% to 9.61p.



Reporting by Iain Gilbert at Sharecast.com

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