Corero, the financial markets software firm born again as a ‘network security solutions business’, seems for now to be operating sans CEO or CFO. It was COO Andrew Miller (no relation) who fronted today’s FY results, for which the financials were all about its somewhat orphaned education sector activities, but for which the strategy was more about its network security activities. You may recall that Correro’s new calling was revealed in July last year (see Corero changes course) and the transubstantiation took form last month with the reverse-in to loss-making Massachusetts based network security software firm, Top Layer Networks (see Corero finds a new Top Layer - two, actually!).
Corero’s Business Systems division (education and other commercial activities) was the only continuing operation for the purposes of the results (to 31st Dec.) and saw a 12% rise in revenues to £3.0m with a £115k ‘trading profit’ vs a £37k loss the prior year. But the burden of a £131k share options charge, and almost £0.2m in interest, left Corero with a net loss of £92k, though substantially improved from the £326k loss in 2009. The disposal of its financial markets business brought total FY net profit to £0.4m.
Given that Corero is now chaired by ex-Datatec founder, Jens Montanana (and Miller was a Datatec alumnus as well) you can understand why it is the new network security business that is getting all the attention – and a lot of attention it will require! Corero says it intends to continue to invest in the education business, mainly focused on further education college and academy markets in England, but run the two divisions completely separately. From what I can see, this could be a nice little earner if it got the right management attention (hmmm), and a useful bolt-on – or perhaps market entry vehicle – for another player when the surely inevitable divestment eventually transpires.