Endace takes first hit as market tumbles

Shares dropped around four percent

New Zealand-based network technology vendor Endace took its first hit on the London Stock Exchange after the US Congress failed to deliver the expected US$700 billion bailout package last week, with its shares dropping around 4%.

(See also: Financial crisis - tech innovation at risk)

However, CEO Mike Riley says while the company has exposure to the financial services industry, the market turmoil could play to Endace’s strengths.

“Some holders last night needed to free up some liquidity,” he told Computerworld after the fall.

Riley says it’s hard to say what the impact, if any, of the financial services meltdown will be on Endace.

“There’s no doubt part of our business does come from financial services, but so far we haven’t seen and change in the market,” he says. None of the high-profile recent failures were Endace customers, he says.

Riley says financial services is a broad term and some slices of the market are affected more than others. Endace’s technology helps speed and analyse trading system performance, he says, and in volatile markets “speed of execution is everything”.

“We’ve not seen any impact there,” he says.

Riley says Endace is keeping a watching brief on the market consolidation on Wall Street and on its financial services business, but the biggest contributor to the company’s revenue has been from government, rather than the finance sector.

“We’re making sure we’re not completely dependent,” he says.

Riley says new rounds of compliance regulation are “inevitable” and could end up driving demand for Endace’s network probes and other systems.

Endace showed its wares in September at an event called “High Performance on Wall Street”. It also recently won an American Chamber of Commerce export award.

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