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Endace grows revenue but profits slide

Auckland-based technology company Endace has grown revenue by 7.3 percent over the past year, although pre-tax profits and cash/equivalents are both down.

Auckland-based technology company Endace has grown revenue by 7.3 percent over the past year, although pre-tax profits and cash/equivalents are both down.

Revenue was up to US$41.2 million from $38.4 million and gross margins grew to 73.1 percent from 66.5 percent.

Cash and cash equivalents were pegged at $5.4 million, a decrease from S$6.4 million. And profits before tax, adjusted for share options, fell $400,000 to US$2.5 million (including US$720,000 release of a provision against a debt subsequently recovered).

Chief executive Mike Riley highlighted strong growth in the enterprise sector, although telecommunications and government sectors were affected by budget cuts in the second half of the financial year.
 
"Our sales pipeline is healthy and we remain very excited about the opportunities for Endace.”

Endace was confident of its technology strength in the market and a strategic review undertaken in conjunction with Deutsche Bank had validated its market focus, including investment in a strengthened presence in North America, he said.