About a-team Marketing Services
The knowledge platform for the financial technology industry
The knowledge platform for the financial technology industry

A-Team Insight Blogs

Endace “To Review Options” After Revenue Hit

Subscribe to our newsletter

In a trading update issued on Monday, networking and latency monitoring specialist Endace said that expected full year revenues would fall short of estimates by 10% and that it had appointed Deutsche Bank to “review options for the future.” That usually means a company is open to being – or looking to be – acquired.

In its statement, the company noted that it is transitioning to a “systems business” with ongoing revenue, but that “decision-making by a number of its clients remains slow. Budget restraints, particularly in the UK Government customer base, have resulted in a shortfall of expected purchases.”

On the numbers, the company said that “despite delivering year on year growth, revenue for the year ended 31 March 2012 is expected to be short of market expectations by approximately 10%.” It now expects to deliver revenues of $40 million, compared to 2011 revenues of $38.4 million.

If the company is looking for a new owner, it would probably be one from the world of mainstream networking, looking for Endace’s expertise in monitoring and cyber security – as opposed to its more focused latency measurement business. So some market dynamics might shift in the low latency management space down the road.

Subscribe to our newsletter

Related content

WEBINAR

Recorded Webinar: Data platform modernisation: Best practice approaches for unifying data, real time data and automated processing

Financial institutions are evolving their data platform modernisation programmes, moving beyond data-for-cloud capabilities and increasingly towards artificial intelligence-readiness. This has shifted the data management focus in the direction of data unification, real-time delivery and automated governance. The drivers of this transition are improved operational efficiency as manual processes are replaced by faster, more accurate automated...

BLOG

Breaking Conway’s Law: Why Composable Trading Platforms Demand Organisational Change, Not Just Better APIs

Nearly 60 years ago, Melvin Conway observed that an organisation’s technology will inevitably mirror its internal structure. It’s a law that has aged uncomfortably well in capital markets, where billions spent on trading, risk and analytics systems have produced vertical stacks that reflect business-line org charts rather than the horizontal data flows firms now need...

EVENT

TEST Event page 1

Now in its 15th year the TradingTech Summit London brings together the European trading technology capital markets industry and examines the latest changes and innovations in trading technology and explores how technology is being deployed to create an edge in sell side and buy side capital markets financial institutions.

GUIDE

Impact of Derivatives on Reference Data Management

They may be complex and burdened with a bad reputation at the moment, but derivatives are here to stay. Although Bank for International Settlements figures indicate that derivatives trading is down for the first time in 10 years, the asset class has been strongly defended by the banking and brokerage community over the last few...