6 April 2010
For Immediate Release
ENDACE LIMITED
PERIOD END TRADING UPDATE: YEAR TO 31ST MARCH 2010
Endace Limited ("Endace" or the "Group") (LSE/AIM:EDA), a world leader in network monitoring solutions, provides an update on trading following the end of its financial year to 31st March 2010.
In the current economic environment our customers are taking longer to finalise capital expenditure commitments, with the result that three large contracts budgeted for March 2010, and with total revenues of approximately US$5 million, are now expected to be signed in the first quarter of the current financial year. Endace will therefore report results for the year to 31st March 2010 materially below earlier expectations, with revenues growing to approximately US$31 million and profit before tax, adjusted for share option costs, of approximately US$1.5 million.
Cash generation in the second half was pleasing and the Group ended the year with cash balances of approximately US$1.7 million compared to an overdraft of US$848,000 at the half year.
Across Government, telecommunications, internet and mobile service providers, the threats associated with malicious Cyber-security attacks are becoming increasingly a matter for national and international concern, and recent repeated attempts to cause severe damage to critical infrastructure is leading to heightened focus on accurate detection and defence technologies. Endace launched itself publicly into this market in March this year with the unveiling of our IDS strategy, based on 100% packet capture, recording and deep packet forensics.
Notwithstanding the short term order delays highlighted above, the pipeline of opportunities is the strongest we have seen. The Board remains very confident in the Group's prospects.
Ends
Contacts:
Endace Limited
Mike Riley, CEO +64 9 582 0360
Neil Hopkins, Group Finance Director +64 9 582 0360
Weber Shandwick +44 7067 0700
Nick Oborne
Panmure Gordon +44 7459 3600
Edward Farmer
About Endace
For organisations that rely on their IP networks to do business, Endace provides high performance traffic analysis, latency measurement, network security and application acceleration solutions that capture, inspect and report on every single data packet. Our product portfolio includes high-speed packet capture technology, open development environments, multi-function network monitoring appliances and a comprehensive range of powerful yet intuitive management, measurement, alerting and analysis applications. We enable our customers to be confident in their service performance, traffic monitoring, information security, and regulatory compliance. Based in Auckland, New Zealand, Endace also has offices in the UK, USA and Singapore. Quoted on AIM, the stock code is LSE: EDA. For further information: http://ww.endace.com.
Endace, the Endace logo, DAG and NinjaProbe are trademarks or registered trademarks in New Zealand or other countries of Endace Technology Limited. All other trademarks may be the property of their respective holders.