Corero hopes to return to profitability

KUALA LUMPUR: Corero Network Security PLC, a network security provider, will be banking on its Malaysia partnership to help it to return to profitability next year.

In the first half ended June 30 2012, the company suffered an operating loss of US$1.5 million, versus US$200,000 operating profit in the same period a year ago.

Its revenue jumped 45 per cent to US$10.8 million during the period.

“We expect the trend to continue this year, as we are focusing on investment in product development as well as talents.

“Hopefully, we will see the trend reversing next year, as we grow into profitability,” said Paul Lawrence, Corero Network Security’s vice president for international operations yesterday.

He was speaking to the media after announcing the strategic partnership with Spectrum Edge Sdn Bhd in which Corero appointed Spectrum Edge as its distributor for the Malaysia market.

“Malaysia is a critical market for Corero, that’s why our first investment in this region is to set up our regional office here in Malaysia. Malaysia is a strategic because the market here is matured and ready to adopt our solutions. It also allows us to easily reach to the other parts of the region,” Lawrence added.

Corero, which aims to achieve US$50 million revenue in three years, said it will not likely enter into any major acquisition deals over the near-term, due to the current global economy environment.

However, Lawrence said that the company will be open to other form of tie-ups, including something similar to the Spectrum Edge strategic partnership.

Spectrum Edge, with over 100 clients in the country and a reseller network of more than 200 channel partners, said Corero’s products will fit into its portfolio of solutions.

“Corero’s award-winning product line and proven expertise in DDoS (distributed denial of service) defence fits perfectly into our portfolio of security solutions and value added services,” said managing director of Spectrum Edge Mohamed Reza Abdul Hamid.

Corero is one of the leading provider of DDoS Defence System.

DDoS is when an attacker sends large amounts of data to the target server. The goal is to stop the targeted server from communicating over the Internet, thus ‘denying access to services’ to everyone that tries to connect to it.