Endace provide IT network security systems which reduce CPU load and enable 100% of packets to be inspected.

The Endace Blurb:
Endace is the world leader in the acceleration of network security and analysis applications.

Endace products include cards and optimised platforms, which deliver:
100% capture of network traffic irrespective of line rate/packet size
Near-zero CPU loading during data transfer to host
Flexible, Hardware-based offload of software functions


Useful Links
Endace website
14 Nov 06 : Interim Results
10 Apr 07 : Major US Ninjaprobe Contract
13 Apr 07 : Trading Statement - results "significantly ahead of market expectations"
14 Apr 07 : Guardian Comment on Endace and broker target raise
19 Apr 07 : Endace CEO, Selwyn Pellet, on ASB Business television
24-26 Apr 07 : InfoSecurity Europe Exhibition - Endace whitepapers and info
1 May 07 : Yahoo/Computer Business Online - Endace Plans App Modules for NinjaProbe
15 May 07 : Ninjaprobe 40GB/s Product Launch
16 May 07 : Agreement With Verint Systems
22 May 07 : Final Results
22 May 07 : Appointment of Chairman and CEO
22 May 07 : ZDnet Distruptive Technologies Blogger's Video on Endace
11 June 07 : Endace bosses sell large number of shares
29 June 07 : New Endace CEO, Mike Riley, interview on WallStreetReporter.com

Upcoming Events
none to report at present

Broker recommendation to buy with 187p target.

Profitable and historic margins around 73%.

Profit anticipated to be up 500% vs last year.

From today's Guardian: (the bits highlighted in bold are actually highlighted in the Guardian itself and not my changes to it)

Computer network security company Endace recorded a big jump yesterday - up 17p to 169.5p - and could well have further to climb after significantly revising up its revenue and profit forecasts. The Aim-listed company, which helps businesses monitor traffic on their computer networks, said revenues for the year ended March 31 would be around $16.5m-$17.0m (8.3m-8.6m), up sharply from $11m a year earlier. Profits meanwhile were put at $3.4m-$3.7m before foreign exchange gains and tax, up from just $0.7m a year earlier. Panmure Gordon analysts said the stock looked "quite cheap" and raised their price target to 215p from 187p. They added that they believed there was an "additional upside" as the company continued to attract more top customers."

Have updated header.

Thought I'd post yesterday's RNS here for discussion:

================================================

ENDACE LIMITED

PERIOD END TRADING UPDATE


Endace Limited ('Endace' or 'the company'; LSE/AIM: EDA), a world leader in
network monitoring solutions, announces its provisional unaudited results for
the year ended 31 March 2007 which are significantly ahead of market
expectations. The company anticipates reporting revenues in the range of US$16.5
- $17.0 million (2005/6: $11.0 million). Strong revenue growth and firm control
of costs have resulted in a profit before foreign exchange gains and tax
expected to be in the range of US$3.4 - $3.7 million (2005/6: $0.7 million).

The company achieved sales growth across all regions, particularly in North
America. Revenue from Data Acquisition and Generation ('DAG') card products
increased substantially, while sales of the recently introduced NinjaProbe range
of appliances made a significant contribution.

The Board is working on detailed plans to take the company through its next
major stage of development and growth; further details will be provided at the
time of the final results announcement.

Endace CEO Selwyn Pellett commented:

'This has been a year of major achievements and validation for Endace. Our
NinjaProbe appliances have traction with Tier 1 telecommunication carriers, and
with systems now operating up to 40Gbps, we are the only vendor capable of
scaling from the edge of the network to its core. I am very excited about our
prospects for 2008.'

The audited results will be released in our final results statement due on 22nd
May 2007.

================================================

Up 11% on Friday, up a further 7.5% already today.

another 11% now, 23% compound since Friday morning.

The $2million Ninjaprobe contract was not included in the annual revenues of $17million, so looks promising for next 12 months.

VM, this looks quite tasty. however, I disagree your comment in post 9, as the Trading Update states:

"sales of the recently introduced NinjaProbe range of appliances made a significant contribution".

You invested here, Soul traders? I was beginning to think I was all alone on this thread!

My take on that quote from the trading update was that it was a contibution from Ninjaprobe sales outside the major contract. The contract with the American telco was announced on 10 Apr, and end-of-year was 31 Mar.

I saw trading statement on this one and was immediately drawn to look at this further when I saw those immortal words - significantly ahead of market expectations - I researched further and found this thread posted by ValueMax - I could see brokers 187 target was prior to trading statement and jumped on at 157. All thats left to say is Thanks very much ValueMax -I probably would have bought this anyway but your postings made up my mind a whole lot quicker.

Nice to hear you made a few bob, keepitreal. If you have found any new info in your research, feel free to post it on here and i'll add the best bits to the header.

By the way, the broker target was raised from 187p to 215p at the end of last week, and everything looks good for further rises leading up to 22 May.

VM, I am thinking about getting involved. Haven't got any spare cash at the moment, though, so have been taking risky punts using T+20 trades as a kind of mini-CFD.


Will keep an eye on this one, anyway!

Further incentive for IT security spending: BBC News - Consumers 'shun' hacked stores

Computerworld (New Zealand) - Endace growth constrained by lack of talent
Despite posting over 50% year-on-year growth, company feels the pinch
By Rob O'Neill Auckland | Wednesday, 18 April, 2007

New Zealand network appliance developer Endace has posted stellar year-on-year results, but says its growth is being constrained by a desperate lack of engineering talent.

Endace, which makes technology that monitors traffic on high-speed networks, has announced it anticipates sales in the US$16.5 to US$17 million (NZ$22 to NZ$22.9 million) range for the year ended 31 March and a profit north of US$3.4 million. That compares with sales of US$10.8 million last year.

Endace, which became the first New Zealand registered company to list on the London Stock Exchange's alternative AIM market in mid 2005, could have done even better, according to CEO Selwyn Pellett if it could find and hire more engineers.

"We are seriously struggling to recruit," Pellett told Computerworld this week. "We are even printing booklets about why people would want to come and work for us and targeting international recruitment."

Two months ago, Endace launched a local recruitment campaign, but that has not succeeded in feeding the company's hunger for engineering talent.

"It is restricting our growth," Pellett says. "The numbers could have been bigger if the engineering team was larger."

That's because Endace is moving its industrial-strength network monitoring technologies into appliances that can be easily installed in organisations such as telecommunications companies, ISPs and large corporates.

Pellett says the strategy is directly responsible for Endace's revenue and profit growth. The appliances average in price around US$20,000 to US$40,000 each compared to selling component cards, as the company did previously, at US$5,000 to US$6,000 each. Endace has recently sold one appliance to monitor a 40GB network for US$250,000.

As to the AIM listing, Pellett reports mixed results. He says its a good place to raise money, but stocks don't become liquid, or actively tradeable, until a company crosses around US$50 million in revenue.

That would certainly appear to be the case if you compare the values of Endace and New Zealand Exchange listed Rakon. Endace is still trading around its list price while Rakon is trading at $4.60 compared with its $1.60 offer price in May 2006.

Covered in today's Shares Mag (page 10): "Endace Refuses To Rest On Its Laurels". No new info in the article, but good coverage nonetheless.

Endace will also get a mention in next week's Shares Mag in the AIM guide. I expect them to give a buy recommendation.

(just noticed that I also get a mention this week at number 96 in the champion investor league!)

Endace CEO, Selwyn Pellet, on ASB Business television

Another gem Valuemax - just watched this vid. - profit projection very interesting and current market value of around 27.3m seems very low. Shares had a good move today in a tricky market. Valuemax - Have a look at my post on Minoan on IPO thread - looks interesting

I think he may have said 17million GBP in the video by mistake - should have been $17million US.

I read up on Minoan. To be honest, I know nothing about Greek tourism or propery. The shares I tend to go for are either oil or IT related, both industries I have worked in and understand. I'll have a read of the admission document when it is published though. Thanks for pointing it out.

Endace whitepapers and info from the Infosec exhibition, taking place the past 3 days.

Incidentally, Shares Mag had Endace as a 'hold' this week in their AIM review, but the info was taken from 10 Apr, before the trading statement (maybe before the contract RNS too). Due an upgrade I think!

Just broken through 2 for the first time.

Article on Yahoo: Endace Plans App Modules for NinjaProbe

Network-monitoring hardware developer Endace plans to launch two application modules for its NinjaProbe appliance, one for flow analysis and the other lawful intercept, with plans to follow them with IDS and protocol analysis modules.

The Manukau City, New Zealand-based company develops the infrastructure for high-speed traffic analysis, whether for security-related or performance-related applications. Its claim to fame is its Data Acquisition and Generation technology for which it claims 100% data capture, at full line rate and with any size packet. Among its core capabilities is the offloading of 95% of the burden of data transfer from the CPU, which frees up capacity for data inspection.

Founded in 2002, Endace initially delivered DAG on network cards, with versions for all interfaces from 10/100 through to 40Gb. Last year it expanded into appliances with the NinjaProbe line, a 3U chassis that fits between four and six cards. It sells the appliance with a series of open source apps to run on top, including SNORT and Bro IDS, NTop, and FProbe for NetFlow analysis.

Now it will be offering preconfigured modules for flow analysis and lawful intercept, which Greg Howard, its VP of sales for EMEA, said are scheduled for launch early next quarter. He said the IDS and protocol analysis modules will follow later and there are also discussions underway with ISVs interested in porting their apps to the box, in some cases to sell it with their branding in an OEM relationship.

This stock moves on thin volume both ways but I now rate this very highly with the market makers obviously aware that more positive news expected with figures due in a couple of weeks. Trend definitely up but expect occasional short term retracements on profit taking.

Heading towards a pount profit per share in the past month.

Results and strategy update due a week on Tuesday. As you said, Keepitreal, this moves on thin volume, so if the update is well received by the market this could be heading over 3.

Works both ways though, so I'll be setting my stoploss fairly high prior to the 22nd.

From ABCMoney:

TUESDAY MAY 22

AIM-listed network monitoring company Endace PLC is expected to turn in a strong full-year performance, after the group announced in April that results would be significantly ahead of market expectations.

The company is benefiting from the recent launch of its NinjaProbe appliances, used to offer application-independent monitoring for combined traffic capture, which it has said will make a significant contribution.

Endace also flagged up strong sales growth across all regions, but highlighted North America in particular, noting that Data Acquisition and Generation card products will make a substantial contribution.

The group said it would also provide further details of its plans to take the company through its next major stage of development and growth at the final results.

In its trading update last month, Endace said it expects to report revenues in the range of 16.5 - 17.0 mln usd for the year to March 31 2007 compared with 11.0 mln usd in the prior year.

Endace also predicted a profit before foreign exchange gains and tax in the range of 3.4 - 3.7 mln usd from 0.7 mln usd previously.

Broker Panmure Gordon is forecasting EBIT of 2.95 mln usd. It expects EPS of 14.00 cents, up from 7.44 last time. No dividend is expected.

Endace Limited
15 May 2007


FOR IMMEDIATE RELEASE 15 May 2007

ENDACE LIMITED

WORLD'S FIRST 40 GIGABIT MONITORING APPLIANCE
JOINS ENDACE NINJAPROBE FAMILY

Newest NinjaProbe appliance enables carriers to
analyse every packet traversing OC768 links

Endace Limited ('Endace'; LSE/AIM: EDA), a world leader in network monitoring
solutions, today announced the NinjaProbe 40G1, the first monitoring platform to
support next-generation network links using transmission rates up to 40 Gigabits
per second (40 Gbps).

The announcement of the NinjaProbe family in March of this year introduced the
first application-independent monitoring infrastructure providing complete
coverage for networks up to 10 Gigabit. With the introduction of the NinjaProbe
40G1 the lossless traffic capture capability of the NinjaProbe appliance family
has now expanded to 40 Gbps.

'The NinjaProbe 40G1 is a pioneering product delivering core network monitoring
infrastructure to handle the highest speeds currently deployed in
telecommunication carrier networks,' says Mike Riley, VP of Worldwide Marketing
for Endace. 'The continuing expansion of the NinjaProbe family provides our
customers with the ability to choose how and where they will monitor their
networks with tools that keep pace with their transmission technologies.'

By deploying 40 Gbps, OC768 Synchronous Optical Networking (SONET) links at the
core, telecommunication carriers are scaling their network infrastructure to
support the increasing bandwidth demands of content-rich multimedia
applications. The NinjaProbe 40G1 passively captures all traffic at 40 Gbps with
the ability to distribute all or selected portions of the data flows, among
multiple 10 Gigabit NinjaProbe appliances. The extensive processing which Endace
equipment can apply to every packet in an OC768 link enables carriers to
analyse, store, and forward network data to other applications and equipment -
including legacy equipment that would otherwise be unable to examine 40 Gigabit
traffic.

Leveraging Endace Data Acquisition Generation (DAG) technology, NinjaProbe
appliances can be deployed for monitoring across the range of carrier network
topologies, providing lossless capture for complete network visibility. A common
secure management layer enables remote configuration and control of probe
deployments by multiple user groups. Carriers now have the flexibility to
implement numerous analysis solutions across their networks using the same
network monitoring infrastructure.

For more information about the NinjaProbe family please contact

sales@endace.com

http://www.investegate.co.uk/Article.aspx?id=200705160701516665W

Another RNS: - Agreement with Verint Systems

Final Results are due on Tuesday.

From the April trading statement:

The company anticipates reporting revenues in the range of US$16.5 - $17.0 million (2005/6: $11.0 million). Strong revenue growth and firm control of costs have resulted in a profit before foreign exchange gains and tax expected to be in the range of US$3.4 - $3.7 million (2005/6: $0.7 million).

The Board is working on detailed plans to take the company through its next major stage of development and growth; further details will be provided at the time of the final results announcement.

Final results show revenues at top end of trading statement plus profits slightly above top end estimate.

Financial highlights

Revenue increased 55% to $17.0m (2006: $11.0m).

Profit before tax and foreign exchange movements rose 356% to $3.74m
(2006: $0.82m).

Pre-tax profit was up 153% to $3.92m (2006: $1.55m).

Net cash at the year end was $3.5m (2006: $6.7m).

Operational highlights

The NinjaProbe appliance family was launched successfully.

US$2m NinjaProbe shipment to a leading US based telco.

Signed a technology licensing agreement with Sprint Nextel Corp (NYSE:
S), a world leader in communications services, for two of its network
traffic products.

Launched new Application & Channel Partner Programmes to drive sales
through software vendors and systems integrators.

Delivered 40 Gbps/OC768 monitoring solution to major US telco.

Board changes announced today: Selwyn Pellett to become non-executive
Chairman, John Scott to become Deputy Chairman and Mike Riley to become CEO.

Panmure Gordon has raised the Endace price target to 300p from 215p.

ZDnet video on Endace from disruptive technologies blogger:

http://blogs.zdnet.com/Berlind/?p=495

New brokers note distributed.

Up 16% today.

Make that 18% and counting....

Another article on Endace: Computer Business Review - Endace sees potential in time-stamping for trading floors

fantastic - well done valuemax for keeping the faith - I was very tempted to sell early on today but I found out somebody was very keen to buy this stock in large volumes - that can only mean one thing when the stock is thinly traded. Good also to see large buys going in late afternoon near high of the day.

How did you find out about the large buying, keepitreal?

Up a further 10% today. SP now doubled since this thread was started in April.

another excellent rise - my broker let me know about the keen buyers - I think they will have cooled a bit today after 2 days of significant gains

Endace have been doing the rounds with the analysts the past few days so I'm hopeful the buying interest will continue.

We may see a rise in selling though with the rising SP so I don't expect the 10%+ daily rises to continue. It'll find a balance somewhere, hopefully a bit further north of the present level.

I'd settle for just a nice 5% tomorrow :-)

The Express is reporting on a rumoured bid for Endace from Cisco.

http://www.moneyam.com/action/news/showArticle?id=1986403

Endace analysis and viewpoint from TMF user Marben

Well worth a read.

see you got your wish on todays rise with a very small pullback late afternoon - article you mention is very good and some of his forward projections are really quite astonishing - I too have sold some of my holding after sticking to my own rules but intend to keep the remainder which are effectively now free as a core holding. - keep up the good work valuemax

Yesterday's 5% comment was more in hope than expectation, but I'm not going to complain!

I did exactly the same as you today, keepitreal. Sold around half, kept the rest for long term. Not bad for a one month investment.

If only we hadn't sold half on Friday!

cant be too greedy I suppose - I tried buying some more today at 350 but price moved and I was too tight to buy at 355 - cant sell my holding now this stock is flying - I hear that Panmure may have increased price target again - anything on this?

I believe they have increased their target to 350p. SP well beyond that now.

From NewRatings.com:
LONDON, May 30 (newratings.com) - Analyst Nick James of Panmure Gordon maintains his "buy" rating on Endace (ticker: EDA). The target price has been raised from 300.0p to 350.0p.

In a research note published this morning, the analyst mentions that the company can take advantage of its technology edge to become a leading provider of network-monitoring solutions. Customer pull from tier-1 players has improved Endaces prospects and the companys transformation is likely to continue in FY08, the analyst says. Robust profitability would enable the company to fund its growth, Panmure Gordon adds.

Panmure seem to be always behind the curve on this one - assuming the share price stays round this level what do panmure say now - because with the share price appraoching 400p and their target already smashed they definately need to review target. - I will have a look at their comments when I get a chance

They'll need to raise it again soon. To 400p, no doubt.

another stonking day - buying still very persistent I see someone bought 5000 at 460 late afternoon which is really good to see - anyone who likes mountain climbing should look at the chart over the last month.
anyone who did not pay attention to postings by valuemax should start at the beginning of this thread look at the chart and weep
share movement today after this sort of rise cannot be just on new buying - watch out for bid speculation

sold most of my remaining holding yesterday when market looked bleak at 455p - just kept a few to make sure I keep an eye on Endace.
Endace was ripe for a correction when market turned back after such a big rise - a lot of punters have been shaken out of this - will be interesting to see how price moves over next few days

Once again we've sold at the same time, keepitreal. Congratulations on your nice profit. I too got out at 455p. The indicators were looking like it was overbought and due a correction.

Even at current level (390p or thereabouts) there is no compelling reason to buy back in. My last buys were at 237p and I'd rate anything below 300p as good value. It will be interesting to see what Panmure do with their rating (currently buy with 350p target, but that's now out of date).

Share selling by directors:

Endace Limited
11 June 2007


11 June 2007

ENDACE LIMITED
(the 'Company')

DIRECTOR / PDMR SHARE DEALINGS

The Company was notified on 8 June 2007 that the following Directors and/or
Person Discharging Managerial Responsibility of the Company, sold the following
ordinary shares in the capital of the Company on 8 June 2007 as set out below.

Selwyn Pellett, Chairman Designate, commented: 'The share transactions announced
today have enabled Endace to expand its shareholder base with the introduction
of highly respected investing institutions as new shareholders in the Company.'


+------------------------------------------------------+-------------------+
|Director | Ian Graham|
+------------------------------------------------------+-------------------+
|Nature of transaction | Disposal|
+------------------------------------------------------+-------------------+
|Number of ordinary shares disposed | 400,000|
+------------------------------------------------------+-------------------+
|Price per share | 3.62|
+------------------------------------------------------+-------------------+



+------------------------------------------------------+-------------------+
|Director | Selwyn Pellett|
+------------------------------------------------------+-------------------+
|Nature of transaction | Disposal|
+------------------------------------------------------+-------------------+
|Number of ordinary shares disposed | 500,850|
+------------------------------------------------------+-------------------+
|Price per share | 3.62|
+------------------------------------------------------+-------------------+


+----------------------------------------+---------------------------------+
|Person Discharging Managerial | Greg Howard|
|Responsibility | |
+----------------------------------------+---------------------------------+
|Nature of transaction | Exercise of Options and disposal|
+----------------------------------------+---------------------------------+
|Number of ordinary shares disposed | 30,600|
+----------------------------------------+---------------------------------+
|Price per share | 3.62|
+----------------------------------------+---------------------------------+


+----------------------------------------+---------------------------------+
|Person Discharging Managerial | Greg Howard|
|Responsibility | |
+----------------------------------------+---------------------------------+
|Nature of transaction | Exercise of Options and disposal|
+----------------------------------------+---------------------------------+
|Number of ordinary shares disposed | 4,000|
+----------------------------------------+---------------------------------+
|Price per share | 3.70|
+----------------------------------------+---------------------------------+

Thought this could have gone down after large director selling but I watched closely this morning and now picked up another head of steam. I have bought a few more before started to motor.

From NewRatings.com:

Endace "buy," target price raised

Wednesday, June 20, 2007 4:22:00 AM ET
Panmure Gordon & Co

LONDON, June 20 (newratings.com) - Analyst Nick James of Panmure Gordon maintains his "buy" rating on Endace (ticker: EDA). The target price has been raised from 350p to 540p.

In a research note published this morning, the analyst mentions that the companys share price has appreciated by 200% since April, following the announcement for a large initial order for the NinjaProbe. Endace has a long way to go in terms of securing engineering resource and closing large deals for the future NinjaProbe products, the analyst says. If the company is able to execute these tasks impeccably over the next two years, it is likely to generate around $30 million in revenues in FY08 and $50 million in FY09, Panmure Gordon adds.

Personally, I would not rate these as a buy at these high prices for exactly the reason the analyst mentions in his piece: "Endace has a long way to go in terms of securing engineering resource and closing large deals for the future NinjaProbe products, the analyst says."

http://www.forbes.com/markets/feeds/afx/2007/06/22/afx3847607.html

LONDON (Thomson Financial) - Shares in Endace dropped 25 pence to 440, as the Investors Chronicle noted that its share price has more than tripled this year and could be one of the first to fall if markets turn sour.

I've added an interview with Mike Riley to the header.

Looks like the Investors Chronicle was right.

Interims due out today (Tuesday).

Endace Limited
30 October 2007


ENDACE LIMITED

INTERIM RESULTS FOR THE SIX MONTHS PERIOD ENDING 30 SEPTEMBER 2007


Endace Limited ('Endace' or 'the Company'; LSE/AIM: EDA), a world leader in
network traffic monitoring, capture and analysis is pleased to announce its
unaudited interim results for the six months ended 30 September 2007.

Financial Highlights

Revenue up 34% to US$8.37m (H1, 2006: US$6.24m).

Profit before tax up 18% to US$1.04m (H1, 2006: US$0.88m).

Positive cash flows over the past 6 months with net cash increasing to
US$5.70m at period end.


Operational Highlights

Continued strong sales into core telecommunications, financial services
and government market verticals.

Successful introduction of NinjaProbe appliances during the period are
helping Endace move up the value chain.

US$2m contract to supply industry-first InfiniBand(TM) monitoring probes
to a leading US-based financial service provider.

Strengthened the senior management team with appointment of Rob Pollard
as Vice President of Sales for Europe, Middle East and Africa and Steve
Gleave as new Vice President of Worldwide Marketing, succeeding Mike Riley
after his promotion to CEO.

Good progress in recruiting staff to expand engineering, sales and
marketing.

The acquisition of Applied Watch Technologies LLC completed after the
period end.

Commenting on the results, Endace's Chief Executive Officer, Mike Riley,
said:

'This has been a solid start to our current financial year. We continue to make
progress in our target customer verticals and are successfully moving up the
value chain. We are confident of achieving our goals for growth over the
remainder of this year and beyond.'

I'm somewhat disappointed. I expected faster growth than this. Endace are at risk of missing their window of opportunity. The longer the big sales take, the more opportunity for rivals to close the technology gap.

Only one more month to wait for great results.
Price performance is much better than many for this last year and well deserved.

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.


This is worrying....

Endace Limited receives cash takeover offer from Emulex Corporation: £5.00 in cash/share