Endace strategic review points to bigger focus on US market
By Paul McBeth
June 20 (BusinessDesk) - Endace, which commercialised cyber-security research done by Waikato University, will spend more time and money trying to break the back of the US market on the advice of a strategic review by Deutsche Bank.
The Auckland-based company, which is listed on the London Stock Exchange's small-cap AIM, will put a stronger focus and investment on growing its US presence, continue to invest in Asia Pacific and take a more measured approach to Europe, it said in statement. The board said the findings support Endace's current strategy for organic growth.
"The strategic review has given us important independent insight into our strengths and into the opportunities for Endace," chief executive Mike Riley said. "It has provided strong validation of our technology and market leadership."
Endace appointed Deutsche to review its options after British government budget cuts squeezed its revenue stream and prompted it to lower its forecast profit. The company made a profit of US$1.8 million in the 12 months ended March 31, and pre-tax earnings of US$2.2 million beat its pessimistic guidance.
As part of the increased focus on gaining traction in the US, Endace appointed Simon Wilson as a non-executive director. Wilson was chairman of web-based protection firm M86 Security until it was acquired by Trustwave this year.
Endace also sent executives Jason Moore and Tim Nichols to the US to lead its sales and marketing drive, having set up an office in California's Silicon Valley.
The company will look at additional strategic partnerships and acquisitions as it seeks to build a global scale, it said.
The stock was unchanged at 367.5 pence, valuing it at 5.8 million pounds.