Endace half year revenues to edge higher

Network monitoring solutions provider Endace is expecting its revenue for the six months ended September 30th to be around three per cent higher compared to the same period the previous year.

As such, turnover will be around $19.2m for the half year, while pre-tax profit, adjusted for share option costs, is set to be broadly break-even (2011: $0.2m). The gross margin improved to 75.0%, compared to 72.6% in the same period last year.

Cash at the period end totalled $4.3m, up from $2.6m at the same date the previous year, but down from $5.4m at at the end March this year.

Divisionally, Systems revenues increased by 8%, with annuity revenues up 16% against the comparable period last year. DAG card revenue was unchanged, whilst revenues from accessories, non-core special projects and professional services decreased 36% against the comparable period last year.

Sales through the channel grew to contribute 41% of sales in the period, which the firm said reflected its investment and focus in growing a scalable indirect channel selling standard Endace systems.

The geographical revenue mix remained broadly unchanged at 60% North America, 30% UK/Europe and 10% Australasia, with particular strength in government systems sales both in the UK and in North America.

The Chief Executive Officer, Mike Riley, said: "The investments we have made in our products, our team and our channel relationships are delivering tangible results. We are pleased with our first half performance, especially given the continuing difficult macroeconomic backdrop. Our pipeline is strong and we remain confident of meeting expectations for the full year."

The share price rose 2.7% to 285p by 11:52.

NR