15 November 2005
Endace Maiden Interim Results
Endace Limited (the "Company" or "Endace") (AIM : EDA), a company specialising in network interface devices and related computer systems for network security and measurement applications, is pleased to announce its maiden interim results for the six months ended 30 September 2005. This follows the Company's successful admission to the Alternative Investment Market (AIM), a market regulated by the London Stock Exchange, in June of this year.
Highlights- Successful admission to AIM in June 2005, raising £8m (gross) (US$14m)
- Revenues grew on a like for like basis by 62% to US$4.35 million (2004: $2.7m)
- Profit before tax of $133,000
- Direct sales forces now established in the US and Europe, and a new Asian distributor in South Korea has been appointed
- Customer numbers grew by 59% to 146 customers in the six months to 30 September 2005
- Customer spread is also increasing, with 57% of total sales generated by top 10 customers, compared with 66% in the year ending 31 March 2005
Note: The results presented in the Admission document dated 10 June 2005 were shown on a pro-forma basis consolidating the accounts of all Endace companies as if they had been under common ownership within a formal legal group for the previous three years. Under the principles of merger accounting the comparatives for 1 April 2004 to 30 September 2004 include only Endace Technology Ltd. The comparatives for the period ended 31 March 2005 cover Endace Technology Ltd only for period 1 April 2004 to 23 November 2004 and the formal legal entity from 23 November 2004 to 31 March 2005 which includes all group companies. To enable better trend analysis we have referred to the Pro-forma financial results which assumed the Endace group structure was in place from 1 April 2004.
Selwyn Pellett, CEO of Endace, commented:
"Endace's achievement of generating a pre-tax profit for our inaugural interim results as a listed company is very pleasing, exceeding the Board's expectations of a small loss for the period. This is particularly satisfactory given the historical pattern of revenues being weighted towards the second half of the financial year. Robust growth continues to be captured by Endace for a fourth consecutive year, underscored by strong sales in all markets including significant new clients -- particularly in Europe -- while containing costs.
"The proceeds from our IPO in June have been put to immediate use, enabling enhanced R&D initiatives, margin improvements and the purchase of product development tools. Endace's elevated profile has also assisted marketing efforts globally which, combined with favourable market conditions and internet data trends, has generated the positive results announced today."