12 February 2009
Year to 31st March, 2009: Trading Update
Endace Limited ("Endace") (AIM: EDA, "the Company"), a world leader in network monitoring solutions, provides an update on performance for the year ending 31st March, 2009.TRADING UPDATE
The Company continues to build its pipeline of business and to win orders, but it has recently become apparent that in the current economic environment decision-making by some of its clients has slowed significantly and it is currently taking longer to close certain transactions. Uncertainty in the financial services customer base, and in particular in algorithmic and proprietary trading environments, has delayed decisions, and the Company expects a proportion of revenues originally projected for the current financial year now to fall into next financial year.
Despite these slippages, Endace expects to deliver revenue growth in the region of 20 per cent for the year ended 31st March 2009. Based on investments made in the business during the current financial year, we expect pre-tax profits for this financial year to be in line with those achieved in the previous financial year.
Endace's Chief Executive Officer, Mike Riley, commented:
"The current uncertain economic climate is causing a number of our customers to take longer to finalise commitments to orders. This is expected to push a proportion of revenues and profits into the next financial year. We will carefully manage costs to ensure profitability levels are maintained in line with our revenues. This notwithstanding, we are continuing to win new accounts and key design wins, our pipeline has never been stronger and we retain our technical leadership in our chosen markets. Accordingly, I remain confident in our strategy and in the long-term strengths of the business."
Ends
CONTACTS:
Endace Limited
Mike Riley, CEO +64 9-582-0360
Neil Hopkins, Group Finance Director +64 9-582-0360
Weber Shandwick Financial
Nick Oborne / Stephanie Badjonat +44 (0)20-067-0700
Panmure Gordon
Edward Farmer +44(0) 20-7459-3600
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://www.endace.com
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