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.