07 April 2011
Period End Trading Update: Year to 31st March 2011
Endace Limited ("Endace") (LSE/AIM: EDA), a world leader in high-speed network security, packet capture and analysis, provides an update on trading for the year ended 31 March 2011 ("FY11").
Endace is pleased to report a strong performance and good levels of growth for the year across all geographies and key verticals it serves.
As a result, both revenues and profit for the year are materially above earlier expectations with revenue at approximately US$38.4 million (FY10: US$31m) and profit before tax, adjusted for share option costs, at approximately US$2.9 million (FY10: US$0.4m). The company's cash position strengthened significantly during the year, closing at US$6.4 million at 31 March 2011 (FY10: US$1.8m), principally due to a strong focus on collection.
Revenues from Card and System sales increased by approximately 28% from FY10 to FY11, and recurring revenues increased by approximately 53%.
The profit before tax, adjusted for share options, of US$2.9 million is stated after providing for US$370,000 of payments made to Endace's prior US-based Accounting & Tax consultants and intended for forwarding to the US tax authorities. These payments were not forwarded and Endace is seeking full recovery. An agreement for repayment of these funds is in the process of being finalised, but at this stage Endace considers a full provision appropriate.
Mike Riley, Endace CEO, commented:
"We are delighted with our performance for the 2011 year. Endace's momentum accelerated as the year progressed, benefiting from our investment last year in the resources to drive growth, including in particular strengthened sales teams in the USA and EMEA and important new product introductions.
"Our markets continue to grow and we are well positioned to make further good progress in the current year."
Final Results for the year ended 31 March 2011 will be announced on Tuesday 24 May 2011. An analyst briefing will take place on the morning of that date at Weber Shandwick Financial, Fox Court, 14 Gray's Inn Road, London, WC1X 8WS.
Ends
CONTACTS:
Endace Limited
Mike Riley, CEO
+64 9 582 0360
Weber Shandwick Financial
Nick Oborne / Stephanie Badjonat / Robert Cook
+44 20 7067 0700
Panmure Gordon
Edward Farmer
+44 20 7459 3600
About Endace
Endace provides open network monitoring and recording systems that form the basis for mission critical network security, monitoring and measurement solutions. Endace Systems are designed to be deployed from the edge to the core of the network, creating a complete monitoring and recording fabric on top of which a range of custom, open-source or commercial applications can be deployed.
One hundred percent packet capture is now widely accepted as a non-negotiable input to applications that are being used to help organizations manage risk, reputation and compliance. Based on proprietary DAG technology, Endace's systems have a global reputation for consistently monitoring and recording 100-percent of network traffic at speeds up to 40Gb/s.
Based in Auckland, New Zealand, Endace also has offices in the U.K. and the United States. Quoted on London's AIM, the stock code is LSE: EDA.