Defenx provides a trusted privacy and protection platform, taking aim at a large addressable market protecting smartphones and PCs against hackers and data loss. We offer compelling, fully-featured malware protection that is competitively priced and designed for efficient use of memory, bandwidth and processor.

https://www.defenx.com/

25th Oct 2017

StockMarketWire.com
Defenx, the cyber-security software group, has warned that results for the year to the end of December would be materially below market forecasts and the board currently expected to report a full-year loss.

The group said that as previously explained, its full year revenue outcome was particularly dependent on when a small number of high value contracts start and the treatment of the resultant billings under its revenue recognition policy.

An update said: 'Since the release of the interim results, it has become clear that previously anticipated sales orders are unlikely to be recognised in 2017, with a corresponding adverse impact on the Group's financial performance for the year to 31 December 2017.

'While the Group continues the development of its core security, backup and protection products, the delivery of product updates to address certain recently-identified performance issues and back-end integration is taking longer than expected.

'Further, the broadening of the Company's product portfolio, notably to address the corporate sector, is behind schedule.

' Accordingly, the conversion of opportunities into firm orders is taking longer and requiring more investment than was initially anticipated.'

The group said it was planning to start the strategic partnership with BV-Tech SpA as soon as possible.

It added: 'The master services agreement with BV-Tech has only recently been signed, which allows BV-Tech to be a technology partner and support us in our development activities.

'BV-Tech may become, in the future, an important channel to corporate customers to whom expanded product portfolio can be sold.'

Board Changes
Defenx plc (AIM:DFX), the cyber-security software group, announces the following changes to the board of directors of the Company (the "Board") with immediate effect.

The Company is pleased to announce the appointment of Alessandro Poerio as Chief Executive Officer, with Andrea Stecconi, the current Chief Executive Officer, remaining on the Board as an Executive Director in a customer relationship role. In addition, the Company announces the resignation of Non-Executive Director, Franco Francione, in order to focus on his responsibilities as Chief Financial Officer of BV-Tech SpA.

Alessandro Poerio is an experienced finance and management executive in the technology sector. From 2005 to 2017, he was the Chief Executive Officer of Oberthur Technologies Italia ("OTI"), the Italian subsidiary of Oberthur Technologies Group S.A.S, the global embedded digital security company. Prior to taking up the position of Chief Executive Officer at OTI, Alessandro was the Chief Financial Officer having been appointed in 2002. Before joining OTI, he held various finance roles including at L'Oréal Italia.

Alessandro has a degree in Business Administration from Università Cattolica del Sacro Cuore in Milan.

Tony Reeves, Non-Executive Chairman of Defenx, commented:
"I am pleased that we have secured the services of Alessandro Poerio as the Company's new CEO. Alessandro brings with him considerable experience of building a successful digital security business and we believe he has the right skills to lead the executive team in the next phase of the Company's development. Andrea Stecconi will continue in an executive role, focussed on ensuring we maximise the opportunity with our existing customers and partners.

Although Franco Francione has only been on the Board for a short period, I would like to thank him for his contribution and we will continue to work closely with him as we further develop our relationship with BV-Tech.

Despite the challenges that the Company has faced in recent times, we believe that we have the right strategy and leadership team to ensure the Group delivers profitable revenue growth in the medium and long term."

Trading Update
Defenx PLC (AIM:DFX), the cyber-security software group, provides the following update.

The Company confirms that, as previously advised and for the reasons set out in its announcement of 25 October 2017, the revenues for the year ended 31 December 2017 will be materially below those in the previous year ended 31 December 2016 and that the Company will report a significant loss for the full year.

The Company is pleased to announce that following the appointment of Alessandro Poerio as Chief Executive Officer in November 2017, progress has been made in developing a corporate sales pipeline focused particularly on the Group's cloud offering, which continues to attract significant customer interest. Progress has also been made in bringing the Group's development activities in house enabling our team to continue to address the previously announced performance and back-end integration issues. The Company anticipates providing a further update on its strategy and prospects together with a detailed trading update by late February.

The collection of trade debtors remains difficult with limited collections since mid-November 2017. Management continues to pursue all options to collect amounts due to the Group, including legal proceedings, to accelerate the collection of outstanding trade debtors and secure new orders from historical and new customer relationships.

As at 22 January 2018, the Company had €0.81 million of cash and undrawn facilities of approximately €0.75 million (consisting of a £450,000 supply chain facility, €173,000 invoice discounting facilities and an overdraft of €20,000). In the event that cash collection remains weak, the Group is unable to drawdown its facilities and new orders do not come through as expected, the Group may be required to seek additional funding in late-Q2 2018.