TIDMEDA
RNS Number : 3851Q
Endace Limited
06 November 2012
FOR IMMEDIATE RELEASE 6 November 2012
ENDACE LIMITED
HALF YEARLY RESULTS FOR THE SIX MONTH
PERIOD ENDED 30 SEPTEMBER 2012
Endace Limited (LSE/AIM: EDA, "Endace" or "the Company"), a
world leader in network monitoring solutions, announces interim
results for the half year ended 30 September 2012.
Highlights
-- Continued and successful growth in areas of strategic product focus
-- Sales increased 3.4% against strong first half last year to US$19.2 million
-- Gross margins improved to 75.0% (2011: 72.6%), reflecting
success in building incremental value into our systems
-- Pre-tax break-even position, after adjusting for share options (2011: Profit of $0.2m)
-- Cash at period end was US$4.3 million (2011: US$2.6 million)
-- Systems sales grew 8% to be 44% of total revenues (2011: 42%
of revenues); annuity income grew 16% to represent 19% of total
revenues (2011: 17% of revenues)
-- Strong sales to government sector in UK and North America
-- Revenue generated by channel partners increased to 40.9% of sales
-- Continued investment in building out sales and marketing
team, including appointments to Product and Channel Marketing
-- Since the end of the first half, commercial release of
EndaceAccess 100Gbps monitoring platform
-- Strong pipeline and confident of meeting full year expectations
Endace Chief Executive, Mike Riley, commented:
"The first half of FY 2013 was a period of pleasing progress for
Endace. The growth in systems business and recurring income
continued, demonstrating increasing demand for our network
visibility solutions from both new and existing customers. During
the period we made further investments in our marketing and sales
teams, which we view as essential to take advantage of the growing
market for high speed network visibility infrastructure
solutions.
Our pipeline is strong and we remain confident of meeting
expectations for the full year."
Ends
CONTACTS:
Endace Limited
Mike Riley, CEO +44 20 7067 0700
Kate Parsons, CFO +44 20 7067 0700
Panmure Gordon
Hugh Morgan / Giles Stewart +44 20 7886 2500
Weber Shandwick Financial
Nick Oborne / Stephanie Badjonat /
Robert Cook +44 20 7067 0700
About Endace
Endace provides world-leading network visibility infrastructure,
which is trusted by some of the world's largest organizations to
accelerate their response to network and security problems.
Endace Intelligent Network Recorders guarantee to capture, index
and record 100-percent of network traffic while scaling from 1 Gbps
to 100 Gbps. EndaceVision is Endace's proprietary web-based
application that enables engineers to visualize, search and
retrieve network traffic from any Endace Recorder anywhere across
the network.
Endace's marketing headquarters are in Sunnyvale, California.
R&D is in Auckland, New Zealand. Sales offices across the US,
in Reading, UK and Sydney, Australia provide support for
customers.
Quoted on London's AIM, the stock code is LSE: EDA.L.
CHIEF EXECUTIVE'S REVIEW
Introduction
The first half of FY 2013 was a period of pleasing progress for
Endace. The growth in systems business and recurring income
continued, demonstrating increasing demand for our network
visibility solutions from both new and existing customers. During
the period we made further investments in our marketing and sales
teams to take advantage of the growing market for high speed
network visibility infrastructure solutions.
Markets
Given the continuing difficult macro-economic environment in
many regions around the world, we are encouraged that we maintained
our historical geographic mix of revenues. In addition, our unique
offerings in the government intelligence sector delivered strong
systems sales in the period.
Our go-to-market strategy of selling systems to Enterprise
customers through key channel partners was a major focus during the
first half. These activities are still in the investment stage of
their lifecycle but we are already seeing the percentage of
business achieved in conjunction with channel partners on the rise,
a trend we expect to continue in the second half and beyond.
Product portfolio
EndaceVision has been well received by customers and prospects
since its launch in March 2012, and the building out of
functionality based on market feedback has been a key activity in
the first half. As has so often been the case at Endace, in
breaking new ground we continue to enjoy positive market feedback
and customer interest in having input to future roadmap direction.
This allows us to be more market-focused in our product direction
and to continue to make our offerings more compelling, protect our
product margins, and attract an increasing proportion of recurring
revenues.
We were particularly pleased with the further and continuing
improvement in the quality of revenues this half year. Among our
key strategic goals is the increase in standard system sales and
recurring revenue. The corollary to this has been a reduced focus
on bespoke, one-off customer projects. While such projects have
been profitable and typically provided additional engineering
insight to Endace, they have had little general market appeal. We
are therefore very excited to report that the first half revenues
were all based on our standard DAG card and Systems product
portfolio as well as the associated annuity income. There were no
customer special project revenues in this half-year, and the sales
of lower margin third-party accessories and other ancillary items
was also significantly down on the prior year. These changes to our
product portfolio and revenue mix make our solutions more
attractive to our channel partners, and provide the basis for
scalable and profitable future growth.
We are also pleased to have finalised the commercial release of
the EndaceAccess 100Gbps monitoring platform, an industry first.
This important breakthrough demonstrates the technological
leadership for which Endace is renowned, and is an important
addition to the product portfolio, assuring customers a seamless
solution as networks migrate from 10Gbps to 100Gbps.
Contract wins
Due to the nature of our customers and the network challenges
being solved with our systems, we are generally discouraged from
announcing customer wins by specific name. Nonetheless, we achieved
a good blend of new and follow-on business during the half year
across all our three key geographical segments. It was particularly
pleasing to win new Government contracts in the UK following the
budget challenges late in the previous fiscal year. The competitive
landscape remains broadly unchanged, and the improvement in gross
margins over the prior periods is indicative of our success to date
in building incremental value into our systems.
Investment in sales and marketing
The new Sunnyvale Silicon Valley office opened during the half.
Since joining as our marketing and product management lead, Spencer
Greene has built an impressive team of seasoned professionals based
in that office. Rob Atherton joined us from Fortinet to head up
Corporate Development, Sri Sundaralingam joined us from Juniper to
head up Product Management, and Jeff Paine joined us after
consulting for many top tier clients to head up Product
Marketing.
The sales organisation has been expanded during the period, and
augmented with inside sales resources skilled at lead development
and qualification. A major new lead generation campaign, "Max", was
initiated in late August, and was followed by the launch of the
EndaceEdge channel program, aimed at building sustainable
relationships with key channel partners around the globe through
whom Endace can expand its market access.
Partnerships and collaborative agreements
During the first half we continued our channel investments in
key relationships with Axial in the UK, World Wide Technologies,
Accuvant and FishNet Security in the USA, and O2 in Australia. Our
strategy is to focus on building deep relationships with a small
number of key partners who have strong end-customer relationships
in their chosen markets. Through this focus we will ensure that we
share good business alignment with all of our partners, and can
allocate our resources to optimise our return from the channel.
Outlook
We remain confident that our strategy of transitioning to become
a systems business will continue to deliver the results we are
expecting. Our focus on business efficiencies, cash and
profitability continues. Despite the difficult macro economic
environment, we continue to invest in our marketing activities and
sales teams in order to take advantage of the enormous potential
market the Endace product portfolio can address.
Our pipeline is strong and we remain confident of meeting
expectations for the full year.
CHIEF FINANCIAL OFFICER'S REVIEW
Group revenue for the six months to 30 September 2012 was $19.2m
(2011: $18.6m) and we have reported a loss before tax of $0.1m
(2011: break-even). Adjusted for share option costs, we have a
break-even position before tax (2011: profit before tax of
$0.2m).
Revenue in the Americas accounted for 59.7% (2011: 61.8%) of
total Group revenue. Europe, Middle East and Africa (EMEA)
accounted for 29.9% (2011: 30.2%), and revenue in Asia Pacific
10.4% (2011: 8.0%).
Vertical 6 months 6 months
ended ended
30 September 30 September
2012 2011
Government 41.8% 20.5%
==================== ============== ==============
Enterprise 31.0% 44.1%
Telecommunications 24.6% 29.1%
==================== ============== ==============
Uncategorised 2.6% 6.3%
Total 100.0% 100.0%
==================== ============== ==============
Categorisation of total Group revenue by industry sector for the
six months ended 30 September 2012 differs slightly from prior
years in that we now classify based on end user, with an overlay
distinction of direct versus indirect sale. Historically, we
categorised direct sales into Enterprise (including Financial
Services), Telecommunications and Government and considered all
other sales to be Reseller/OEM and by default indirect. The
September 2011 comparative numbers quoted here have been calculated
using the revised approach and may therefore differ from previous
reports. Significant sales into the Government sector in both the
Americas and EMEA during the first half of the year have resulted
in increased contribution to total invoiced sales of 41.8%, up from
20.5% in the comparative period in 2011. Sales into the Enterprise
sector represented 31.0% (2011: 44.1%) of Group invoiced sales, and
Telco 24.6% (2011: 29.1%). The reduction in Enterprise revenue as a
percentage of total revenue is mostly attributable to Financial
Services and in particular High Frequency Trading ("HFT"). The
reduction in Telco revenue is due to non-repeat, project related
sales which contributed significantly to the first half of last
year. A small portion of sales generated via resellers/OEM partners
do not provide us with visibility of the end user category. Revenue
that could not be categorized into Enterprise, Telecommunications
or Government amounted to 2.6% of Group revenue (2011: 6.3%).
Reflecting the investment in developing valuable partnerships
and a scalable indirect channel model to serve all of our targeted
end user industry sectors, revenues generated via our channel
partners in the 6 months to 30 September 2012 increased to 40.9% of
Group invoiced sales, up from 27.0% for the same period last
year.
In line with the Company's strategic focus, revenue generated by
System sales, combined with recognised Support income for the six
months to 30 September 2012 increased to 63.2% of total revenue
(2011: 59.1%). Within this, Systems revenue increased 8.4% over
last year, to contribute 43.9% of total revenue (2011: 42.2%), and
recurring support revenue grew by 15.6%, representing 19.3% of
total revenue (2011: 17.3%). The increase in support revenue
reflects the successful growth in the Systems business and the
ability to secure renewals of existing support contracts. Support
revenue is recognised over the life of the support contract and as
at 30 September 2012 $4.0m (2011: $3.7m) has been carried forward
to future accounting periods, including $2.9m (2011: $2.4m) which
will be recognised as revenue in the second half of this financial
year.
DAG card sales were unchanged year on year, constituting 31.8%
(2011: 32.8%) of Group revenue.
Revenue in non-strategic areas such as accessories and non-core
special projects and services declined 35.5% to account for 5.0% of
Group revenue (2011: 8.1%).
As noted last year, in the period ended 30 September 2011 there
were some changes made to the accounting treatment of selling
commissions, support cost of sales and inventory provisioning which
contributed to a portion of the reported gross margin improvement
from 2010 to 2011. Gross margins for the current period are
reported using the same accounting treatment and are therefore
directly comparable. The gross profit percentage for the six months
ended 30 September 2012 has strengthened further to 75.0% (2011:
72.6%, 31 March 2012: 73.1%). This improvement in gross profit
percentage is the result of increased margin on core products
through sustained value positioning and cost management, combined
with reduced inventory obsolescence expense.
Continued investment in people and the development of centres of
excellence within the organisation are areas of focus for FY 2013.
Fifteen new employees have been brought on board in the first six
months, across a variety of cost centres, bringing total headcount
as at 30 September 2012 to 185. Significant hires for the period
include the fulfilment of newly established Product Marketing and
Channel Marketing roles and a Global HR Manager. The second half of
this year will see continued recruitment activity, in line with the
drive for accelerated revenue growth.
We are continuing to invest in R&D, to support both our
sustaining engineering and the new product development projects we
have in progress. Normalised R&D expenditure as a percentage of
sales for the six months ended 30 September 2012 was 24.6% (2011:
27.3%).
Endace continues to benefit from the Research & Development
funding it obtains through New Zealand Government grant
initiatives. The two current grants provide for the reimbursement
of up to NZ$10.6m of eligible R&D expenditure over a three-year
period ending September 2013. The first grant reimburses 50% of the
business costs associated with a series of major product
developments and has enabled Endace to accelerate a number of
significant projects. The second grant funds 20% of eligible
R&D expenses incurred, not covered by the first grant. The two
grants combined have contributed US$1.0m of Other Income and
US$1.5m of cash benefit in the 6 months to September 2012.
Also included in Other Income for the 6 months to 30 September
2012, is US$0.4m relating to R&D tax credits received from the
Inland Revenue Department. This refund was due under the R&D
tax credit regime in place in New Zealand for the 2008/2009 income
tax year. The actual amount paid out under the claim was NZ$0.8m
(US$0.6m), US$180,000 of which was accrued for in the FY10
accounts.
The average USD exchange rate strengthened only slightly against
the NZD when compared with the same period last year, resulting in
a small decrease in the USD equivalent of NZD costs. The positive
impact that currency fluctuations had on NZD denominated
expenditure and therefore Group profit was further increased by
realised gains arising from foreign exchange hedge contracts. The
combined FX benefit equated to US$0.1m.
Receivables and cash management continue to be an area of
improvement focus which has resulted in the reduction in the level
of receivables aged beyond our standard payment term, as well as a
decrease in the doubtful debt provision.
The value of inventory is $1.0m less than the same period last
year. This is primarily due to a reduction in third party software
holding following the removal of CACE licenses from Endace
Appliances and a $0.4m reduction in Systems inventory on hand,
approximately half of which is permanent.
At 30 September 2012, cash balances were $4.3m (2011: $2.6m).
Net cash inflows from operating activities were $0.9m (2011:
outflow of $0.5m) and net cash outflows from investing activities
were $2.0m (2011: $3.7m). The decrease in net outflow year on year
reflects the level of Other Income received this year as well as
the reduced amount of capital expenditure and lower inventory
holdings.
CONSOLIDATED INCOME STATEMENTS
FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2012
6 Months 6 Months 12 Months
Ended Ended Ended
30 September 30 September 31 March
2012 2011 2012
(unaudited) (unaudited) (audited)
Notes US$'000 US$'000 US$'000
------------- ------------- ----------
Revenue 3 19,223 18,599 41,150
Cost of sales (4,801) (5,096) (11,078)
Gross profit 14,422 13,503 30,072
Other income 4 1,413 809 1,638
Selling and administrative
expenses (11,009) (10,279) (20,548)
Research and development
expenses (4,905) (4,026) (8,995)
Finance cost (34) (14) (19)
Finance income 42 24 43
(Loss) / profit before
taxation 5 (71) 17 2,191
Income tax expense 6 (4) (124) (418)
(Loss) / profit for
the period (75) (107) 1,773
------------- ------------- ----------
Earnings per share 7 US cents US cents US cents
------------- ------------- ----------
- basic (0.49) (0.71) 11.70
- diluted (0.49) (0.71) 10.50
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2012
6 Months 6 Months 12 Months
Ended Ended Ended
30 September 30 September 31 March
2012 2011 2012
(unaudited) (unaudited) (audited)
US$'000 US$'000 US$'000
----------------------- ------------- ---------------------
(Loss) / profit after tax (75) (107) 1,773
Other comprehensive income
Cash flow hedges 73 (456) (166)
Total comprehensive (loss) / income
for the period (2) (563) 1,607
----------------------- ------------- ---------------------
The notes which follow are an integral part of these interim
financial statements.
CONSOLIDATED BALANCE SHEET
AS AT 30 SEPTEMBER 2012
As at As at As at
30-Sep 30-Sep 31-Mar
2012 2011 2012
(unaudited) (unaudited) (audited)
Notes US$'000 US$'000 US$'000
------------ ------------ ----------
Current assets
Cash and cash equivalents 4,339 2,591 5,441
Trade and other receivables 8 12,989 11,987 11,869
Current income tax receivable 78 - 187
Derivative financial
instruments 149 - 75
Inventories 3,019 4,027 3,831
Total current assets 20,574 18,605 21,403
------------ ------------ ----------
Non-current assets
Property, plant and equipment 5,856 6,150 6,105
Intangible assets 9 13,633 13,788 13,878
Deferred tax asset 1,777 1,772 1,551
Total non-current assets 21,266 21,710 21,534
------------ ------------ ----------
Total assets 41,840 40,315 42,937
------------ ------------ ----------
Current liabilities
Trade and other payables 6,261 7,111 6,393
Financial derivatives - 326 -
Current income tax payable - 258 106
Deferred income 3,621 3,388 4,577
Total current liabilities 9,882 11,083 11,076
------------ ------------ ----------
Non-current liabilities
Deferred tax liabilities 260 23 260
Deferred income 338 335 302
Total non-current liabilities 598 358 562
------------ ------------ ----------
Total liabilities 10,480 11,441 11,638
------------ ------------ ----------
Equity
Share capital 16,125 15,925 16,108
Foreign currency translation
reserve (147) (147) (147)
Cash flow hedge reserve 128 (235) 55
Share option reserve 1,812 1,726 1,792
Retained earnings 13,442 11,605 13,491
----------
Total equity 31,360 28,874 31,299
------------ ------------ ----------
Total equity and liabilities 41,840 40,315 42,937
------------ ------------ ----------
The notes which follow are an integral part of these interim
financial statements.
CONSOLIDATED CASH FLOW STATEMENTS
FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2012
6 Months 6 Months 12 Months
Ended Ended Ended
30 September 30 September 31 March
2012 2011 2012
(unaudited) (unaudited) (audited)
Notes US$'000 US$'000 US$'000
------------- ------------- ----------
Cash flows from operating activities
Cash receipts from customers 17,192 18,696 43,349
Cash paid to suppliers and employees (17,557) (19,794) (38,673)
------------- ------------- ----------
Cash generated from operations (365) (1,098) 4,676
Interest paid (34) (14) (19)
Proceeds from government grants 1,057 766 1,838
Income tax (payment) / refund 229 (199) (401)
Net cash flows from operating activities 10 887 (545) 6,094
------------- ------------- ----------
Cash flows from investing activities
Purchases of property, plant and
equipment (707) (1,343) (3,543)
Purchases of intangible assets 9 (67) (117) (427)
Investment in product development 9 (1,776) (2,434) (4,155)
Proceeds from Government Grants
- development assets 481 208 599
Interest received 42 24 43
Net cash flows from investing activities (2,027) (3,662) (7,483)
------------- ------------- ----------
Cash flows from financing activities
Proceeds from exercise of share
options 12 448 596
Net cash flows from financing activities 12 448 596
------------- ------------- ----------
Net decrease in cash and cash equivalents (1,128) (3,759) (793)
Cash and cash equivalents at beginning
of period 5,441 6,388 6,388
Exchange gains / (losses) on cash
and cash equivalents 26 (38) (154)
------------- ----------
Cash and cash equivalents at end
of period 4,339 2,591 5,441
------------- ------------- ----------
The notes which follow are an integral part of these interim
financial statements.
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2012
Foreign
currency Cash flow Share
Share translation hedge option Retained
capital reserve reserve reserve earnings Total equity
US$'000 US$'000 US$'000 US$'000 US$'000 US$'000
Balance as at 31 March
2011 (audited) 15,414 (147) 221 1,711 11,627 28,826
--------- ------------- ---------- --------- ---------- -------------
Comprehensive income
Loss for the period - - - - (107) (107)
Other comprehensive income - - (456) - - (456)
Tax credit on cash flow
hedge - - - - - -
--------- ------------- ---------- --------- ---------- -------------
Total comprehensive income - - (456) - (107) (563)
Transactions with owners
Capital raised on employee
options 448 - - - - 448
Share options exercised 63 - - (63) - -
Share options forfeited - - - (85) 85 -
Share option compensation
expense - - - 163 - 163
--------- ------------- ---------- --------- ---------- -------------
Total transactions with
owners 511 - - 15 85 611
Balance as at 30 September
2011 (unaudited) 15,925 (147) (235) 1,726 11,605 28,874
--------- ------------- ---------- --------- ---------- -------------
Comprehensive income
Profit for the period - - - - 1,880 1,880
Other comprehensive income - - 355 - - 355
Tax credit on cash flow
hedge - - (65) - - (65)
--------- ------------- ---------- --------- ---------- -------------
Total comprehensive income - - 290 - 1,880 2,170
Transactions with owners
Capital raised on employee
options 148 - - - - 148
Share options exercised 35 - - (35) - -
Share options forfeited - - - (70) 6 (64)
Share option compensation
expense - - - 171 - 171
--------- ------------- ---------- --------- ---------- -------------
Total transactions with
owners 183 - - 66 6 255
Balance as at 31 March
2012 (audited) 16,108 (147) 55 1,792 13,491 31,299
--------- ------------- ---------- --------- ---------- -------------
Comprehensive income
Profit / (loss) for the
period - - - - (75) (75)
Other comprehensive income - - - - - -
Tax credit on cash flow
hedge - - 73 - - 73
--------- ------------- ---------- --------- ---------- -------------
Total comprehensive income - - 73 - (75) (2)
Transactions with owners
Capital raised on employee
options 12 - - - - 12
Share options exercised 5 - - (5) - -
Share options forfeited - - - (81) 26 (55)
Share option compensation
expense - - - 106 - 106
--------- ------------- ---------- --------- ---------- -------------
Total transactions with
owners 17 - - 20 26 63
Balance as at 30 September
2012 (unaudited) 16,125 (147) 128 1,812 13,442 31,360
--------- ------------- ---------- --------- ---------- -------------
The notes which follow are an integral part of these interim
financial statements.
NOTES TO THE HALF YEAR FINANCIAL STATEMENTS
1. General information
The Group operates in the network security and monitoring market
sectors.
The Group has operations in New Zealand, the US, the UK and
Australia. Endace Limited (referred to as the "Company") is a
limited liability company incorporated and domiciled in New Zealand
with its registered office at Level 2, Building A, The Millennium
Building Phase 2, 600 Great South Road, Ellerslie, Auckland 1051,
New Zealand. The Company has its primary listing on the Alternative
Investment Market (AIM) of the London Stock Exchange. These
consolidated interim financial statements have been approved for
issue by the Board of Directors on 6 November 2012.
2. Significant accounting policies
a) Basis of preparation
These consolidated interim financial statements for the six
months ended 30 September 2012 have been prepared in accordance
with New Zealand Generally Accepted Accounting Practice ('NZ
GAAP'). They comply with the New Zealand equivalent to
International Accounting Standard 34 ('NZ IAS 34 Interim Financial
Statements') as well as the International Accounting Standard 34
('IAS 34 Interim Financial Statements'). These consolidated interim
financial statements should be read in conjunction with the annual
financial statements for the year ended 31 March 2012 which have
been prepared in accordance with the New Zealand equivalents to
International Financial Reporting Standards ('NZ IFRS'). They also
comply with International Reporting Standards ('IFRS').
The accounting policies applied in these consolidated interim
financial statements are the same as those used and described in
the annual financial statements for the year ended 31 March
2012.
3. Segment reporting
The chief operating decision-maker has been identified as the
team comprising the Chief Executive Officer ('CEO') and the
management team (collectively 'The Leadership team'). This team
reviews the Group's internal reporting in order to assess
performance and allocate resources. The team has determined the
operating segments based on these reports.
The Leadership team considers the business from both a
geographic and product perspective. The reportable segments
presented reflect the Group's management and reporting structure as
viewed by the Leadership team. Geographically, the Leadership team
considers the Group's performance in North America, Europe, Middle
East and Africa and Asia Pacific, based on the location of
customers. From a product perspective management separately
considers revenue from systems, DAG cards, support activities and
other grant income in these geographies.
The Leadership team assesses the performance of the operating
segments based on a measure of operating profit. Finance costs are
not allocated to segments as this type of function is managed on a
net basis, centrally.
The Group also manages assets and liabilities on a central basis
and therefore does not provide any segment information of this
nature to the Leadership team.
Revenue from external parties reported to the Leadership team is
measured in a manner consistent with that in the Income
Statement.
a) Description of segments
The Group is organised into three main geographical
segments.
North America
Comprises sales and distribution of systems and DAG cards and,
support operations in Chantilly, Virginia, USA; servicing customers
throughout the Americas.
The Group marketing function is also based in North America.
Europe, Middle East, Africa
Comprises sales and distribution of systems and DAG cards and
support operations in Reading, UK; servicing customers throughout
Europe, Middle East and Africa.
Asia Pacific
Comprises sales and distribution of systems and DAG cards and
support operations in New Zealand and Singapore; servicing
customers throughout the Asia Pacific region.
Group product development and engineering operations are also
based in New Zealand as is the corporate head office.
Unallocated
These items are unable to be allocated to a specific segment
within the Group.
b) Segment results
Europe,
Middle
6 Months ended 30 September North East, Asia
2012 (unaudited) America Africa Pacific Unallocated Consolidated
US$'000 US$'000 US$'000 US$'000 US$'000
--------- -------- --------- ------------ -------------
Revenue
Segment sales 11,467 5,756 31,405 - 48,628
Inter-segment sales - - (29,405) - (29,405)
Total revenue 11,467 5,756 2,000 - 19,223
--------- -------- --------- ------------ -------------
Results
Operating profit/(loss) 619 216 (914) - (79)
Finance (expense) / income
- net (15) 27 (4) - 8
Profit/(loss) before
taxation 604 243 (918) - (71)
========= ======== ========= ============ =============
Profit for the year includes
the following amounts:
Depreciation 278 59 920 - 1,257
Amortisation - 1 1,535 - 1,536
========= ======== ========= ============ =============
Reportable non-current
asset information:
Total non-current assets
(excluding goodwill) 1,293 185 10,247 2,524 14,249
Goodwill 3,859 2,105 1,053 - 7,017
Capital expenditure 554 33 1,755 - 2,342
========= ======== ========= ============ =============
Europe,
Middle
6 Months ended 30 September North East, Asia
2011 (unaudited) America Africa Pacific Unallocated Consolidated
US$'000 US$'000 US$'000 US$'000 US$'000
--------- -------- --------- ------------ -------------
Revenue
Segment sales 11,505 5,610 42,459 - 59,574
Inter-segment sales - - (40,975) - (40,975)
Total revenue 11,505 5,610 1,484 - 18,599
--------- -------- --------- ------------ -------------
Results
Operating profit/(loss) 460 224 (677) - 7
Finance income - net - - - 10 10
Profit/(loss) before
taxation 460 224 (677) 10 17
========= ======== ========= ============ =============
Profit for the year includes
the following amounts:
Depreciation 226 59 874 - 1,159
Amortisation - 1 1,264 - 1,265
========= ======== ========= ============ =============
Reportable non-current
asset information:
Total non-current assets
(excluding goodwill) 1,583 5,557 7,453 100 14,693
Goodwill 3,859 2,105 1,053 - 7,017
Capital expenditure 385 50 4,279 - 4,714
========= ======== ========= ============ =============
Europe,
Middle
12 Months ended 31 March North East, Asia
2012 America Africa Pacific Unallocated Consolidated
US$'000 US$'000 US$'000 US$'000 US$'000
--------- -------- --------- ------------ -------------
Revenue
Segment sales 25,527 11,888 29,701 - 67,116
Inter-segment sales - - (25,966) - (25,966)
Total revenue 25,527 11,888 3,735 - 41,150
--------- -------- --------- ------------ -------------
Results
Operating profit/(loss) 2,237 502 (572) - 2,167
Finance income - net - - - 24 24
Profit/(loss) before taxation 2,237 502 (572) 24 2,191
========= ======== ========= ============ =============
Profit for the year includes
the following amounts:
Depreciation 478 121 1,841 - 2,440
Amortisation 1 2 2,790 - 2,793
========= ======== ========= ============ =============
Reportable non-current
asset information:
Total non-current assets
(excluding goodwill) 1,018 217 10,758 2,524 14,517
Goodwill 3,859 2,105 1,053 - 7,017
Capital expenditure 745 70 6,900 - 7,715
========= ======== ========= ============ =============
Breakdown of the revenue is as follows:
6 Months 6 Months 12 Months
Ended Ended Ended
30 September 30 September 31 March
2012 2011 2012
(unaudited) (unaudited) (unaudited)
US$'000 US$'000 US$'000
------------- ------------- ------------
Systems 8,432 7,777 19,170
DAG Cards 6,107 6,106 11,545
Accessories, software &
other 875 1,214 2,973
Total sale of goods 15,414 15,097 33,688
Revenue from services 3,809 3,502 7,462
Total revenue by product
category 19,223 18,599 41,150
------------- ------------- ------------
4. Other Income
6 Months 6 Months 12 Months
Ended Ended Ended
30 September 30 September 31 March
2012 2011 2012
(unaudited) (unaudited) (audited)
US$'000 US$'000 US$'000
Grant Income 1,007 809 1,633
Other 406 - 5
1,413 809 1,638
------------- ------------- ----------
Grant income represents two grants received during the period
from the Ministry of Business, Innovation and Employment (MBIE)
(formerly the Ministry of Science and Innovation (MSI)). The
Technology Development Grant aims to assist businesses undertaking
research and development with an objective of improving New
Zealand's economic performance. The Technology for Business Growth
grant aids specific new product development projects.
Both of these grant contracts contain recovery of funds clauses
which refer to MBIE's ability to request the repayment of some or
all of the funding should the company enter into any arrangement
which "materially reduces the benefit to New Zealand anticipated by
the original proposals". There has been no request to date from the
MBIE to repay any of the funds granted.
5. Expenses
6 Months 6 Months 12 Months
Ended Ended Ended
30 September 30 September 31 March
2012 2011 2012
(unaudited) (unaudited) (audited)
(Loss) / profit before taxation
is stated after charging / (crediting): Note US$'000 US$'000 US$'000
------------- ------------- ----------
Wages and salaries expense 8,297 6,776 15,371
Depreciation of property, plant
and equipment 1,256 1,159 2,440
Amortisation of intangible assets 9 1,537 1,265 2,793
Bad debt expense (60) (129) 368
Doubtful debts provision - 1 (1,550)
Inventory obsolescence provision 113 127 78
Operating lease rentals 719 555 1,206
Directors fees 168 145 293
Net share option compensation charge 51 163 270
Net foreign exchange (gains) (104) (686) (590)
Donations 2 1 10
6. Income tax expense
6 Months 6 Months 12 Months
Ended Ended Ended
30 September 30 September 31 March
2012 2011 2012
(unaudited) (unaudited) (audited)
US$'000 US$'000 US$'000
Profit / (loss) before taxation (71) 17 2,191
------------- ------------- ----------
Profit / (loss) before taxation
multiplied by standard rate
of corporation tax in New
Zealand 28% (September 2011:
28%) (March 2012:28%) (20) 5 613
Effects of:
Foreign tax differences 25 30 214
Adjustment to tax in respect
of the prior year (1) 78 (194)
Assessable income / (deductible
expenditure) - 11 (215)
Changes in NZ tax rate to deferred
tax balances - - -
Income tax expense / (credit) 4 124 418
------------- ------------- ----------
7. Earnings per share
Basic earnings per share is calculated by dividing the earnings
attributable to ordinary shareholders by the weighted average
number of ordinary shares outstanding during the period.
As at 30 September As at 30 September
2012 2011 As at 31 March 2012
(unaudited) (unaudited) (audited)
Number Number Per
of Per share of Per share Number share
Earnings shares amount Earnings shares amount Earnings of shares amount
US$'000 '000 US cents US$'000 '000 US cents US$'000 '000 US cents
(Loss) /
Profit
attributable
to
shareholders (75) (107) 1,773
--------- -------- ---------- --------- -------- ---------- --------- -------------- ---------
Basic EPS
Earnings
attributable
to ordinary
shareholders (75) 15,215 (0.49) (107) 15,111 (0.71) 1,773 15,151 11.70
Effect of
dilutive
securities
Options - - - - - - - 1,739 -
Diluted EPS
adjusted
earnings (75) 15,215 (0.49) (107) 15,111 (0.71) 1,773 16,890 10.50
--------- -------- ---------- --------- -------- ---------- --------- -------------- ---------
As at 30 September 2012, there were 1.8 million (31 March
2012:1.8 million) share options outstanding that could potentially
have a dilutive impact in the future but were anti-dilutive at 30
September 2012 and 2011.
8. Trade and other receivables
As at As at As at
30 September 30 September 31 March
2012 2011 2012
(unaudited) (unaudited) (audited)
US$'000 US$'000 US$'000
------------- ------------- ----------
Trade receivables 11,133 11,161 9,595
Less: provision for impairment
of receivables (68) (1,548) (34)
11,065 9,613 9,561
Other receivables 699 1,158 727
Less: provision for impairment
of other receivables - - (94)
------------- ------------- ----------
699 1,158 633
Prepayments 1,225 1,216 1,675
12,989 11,987 11,869
------------- ------------- ----------
9. Intangible assets
Development Intellectual
Goodwill Software costs property Total
US$'000 US$'000 US$'000 US$'000 US$'000
At 1 April 2011 (audited) 7,057 1,566 9,515 1,442 19,580
Additions - 104 2,292 13 2,409
Disposal - - (139) - (139)
At 30 September 2011
(unaudited) 7,057 1,670 11,668 1,455 21,850
--------- --------- ------------ ------------- --------
Additions - 307 1,453 3 1,763
Disposal - - (145) - (145)
At 31 March 2012 (audited) 7,057 1,977 12,976 1,458 23,468
Additions - 65 1,225 2 1,292
Disposal - - - - -
At 30 September 2012
(unaudited) 7,057 2,042 14,201 1,460 24,760
--------- --------- ------------ ------------- --------
Amortisation
At 1 April 2011 (audited) 40 1,319 4,281 1,157 6,797
Charge for the period - 102 1,108 55 1,265
At 30 September 2011
(unaudited) 40 1,421 5,389 1,212 8,062
--------- --------- ------------ ------------- --------
Charge for the period - 114 1,365 49 1,528
At 31 March 2012 (audited) 40 1,535 6,754 1,261 9,590
Charge for the period - 123 1,401 13 1,537
At 30 September 2012
(unaudited) 40 1,658 8,155 1,274 11,127
--------- --------- ------------ ------------- --------
Net book amount
At 30 September 2012
(unaudited) 7,017 384 6,046 186 13,633
--------- --------- ------------ ------------- --------
At 31 March 2012 (audited) 7,017 442 6,222 197 13,878
--------- --------- ------------ ------------- --------
At 30 September 2011(unaudited) 7,017 249 6,279 243 13,788
--------- --------- ------------ ------------- --------
In the six months ended 30 September 2012 grant income of
$551,386 was netted against development cost additions (March 2012:
$694,633).
10. Net cash flows from operating activities
6 Months 6 Months 12 Months
Ended Ended Ended
30 September 30 September 31 March
2012 2011 2012
(unaudited) (unaudited) (audited)
US$'000 US$'000 US$'000
------------- ------------- ----------
(Loss) / profit for the year (75) (107) 1,773
Adjustments for
Depreciation and amortisation 2,794 2,424 5,233
Net share option compensation charge 51 163 270
Interest income (42) (24) (43)
Foreign exchange (gain) / loss (26) 38 154
Movement in deferred tax assets
and liabilities (226) (426) (392)
Non-cash movement in working capital 1,034 (474) (35)
Changes in working capital
Inventories 812 (593) (397)
Trade and other receivables (1,011) (25) 93
Financial derivatives (74) 628 227
Trade and other payables (2,350) (2,149) (789)
------------- ------------- ----------
Net cash flows from operating activities 887 (545) 6,094
------------- ------------- ----------
11. Contingent liabilities and contingent assets
The Group had no contingent liabilities or contingent assets as
at 30 September 2012 (March 2012: Nil).
12. Capital commitments
The Group had no capital commitments as at 30 September 2012
(March 2012: Nil).
13. Related party transactions
There have been no material changes in the nature of related
party transactions since 31 March 2012, see note 26 in the Group's
31 March 2012 Annual Report and Accounts.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR BKPDQKBDBBDK
Endace (LSE:EDA)
過去 株価チャート
から 5 2024 まで 6 2024
Endace (LSE:EDA)
過去 株価チャート
から 6 2023 まで 6 2024
