Wednesday 24 January 2018 ShareProphets: The one stop source for breaking news, expert analysis, and podcasts on fast-moving AIM and LSE listed shares

Corero – announces “secures second $1m+ SmartWall customer”. How much is the order for?

By Steve Moore | Wednesday 17 May 2017

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.

An announcement entitled “Corero (CNS) secures second $1m+ SmartWall customer”. Sounds good but, having previously written bearishly on this company, let’s take a look at the detail here.

The announcement states that the company “is pleased to announce an additional order of $0.5m for its SmartWall Threat Defense System”. Wait a minute, I thought it was $1 million+?

Er, it seems this is with “the US-based international hosting provider” customer’s initial $0.7 million order in… March 2016! Corero does though also add “the recurring revenue from this contract now exceeds $0.5 million per annum”.

This though compares with a 2016 results announcement which showed, on revenue of $8.8 million, even after a net $11.4 million of new equity, just a $0.95 million swing in current assets against total liabilities to +$0.19 million and it cash crunch ahoy! As such, I noted I bet the company “pleased to announce… it has conditionally raised approximately £5.6 million”!

This latest order itself won’t change the above cash burn dynamics much and the market hasn’t taken the attempted spin – with the shares currently unchanged on the day. As previously noted, the track-record and financials here suggest continued caution and this currently remains on my bargepole list.

Filed under:

Never miss a story.

This area of the site is for independent financial commentary. These blogs are provided by independent authors via a common carrier platform and do not represent the opinions of does not monitor, approve, endorse or exert editorial control over these articles and does not therefore accept responsibility for or make any warranties in connection with or recommend that you or any third party rely on such information. The information available at is for your general information and use and is not intended to address your particular requirements. In particular, the information does not constitute any form of advice or recommendation by and is not intended to be relied upon by users in making (or refraining from making) any investment decisions.

More on CNS


Comments are turned off for this article.

Site by Everywhen