Corero Network Security slumps as Eurozone crisis bites

LONDON (ShareCast) - Corero Network Security, which provides computer security solutions, has reported a first half loss as headwinds from the Eurozone and increased marketing spend have taken their toll.

Revenues in the six months to the end of June were $10.8m, against $7.4m in the same period of last year. So far, so good. But the group reported a profit last year of $0.1m for the first half, whereas this year it's revealed a loss before tax of $1.7m, resulting in a loss per share of 4.9 cents.

The second quarter was particularly weak because of the "uncertainty" in Europe (Chicago Options: ^REURUSD - news) , while the group also continued to invest in its sales and marketing capacity.

The Chief Operating Officer, Andrew Miller, said: "Feedback (Hamburg: FEE1.HM - news) from channel partners and customers, and industry analyst research, coupled with the significant threat from the increasing volume of 'denial of service' cyber attacks, gives us confidence that (our) positioning will provide strong revenue growth prospects."

At 9:35 the stock had fallen 15%.