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 March 31 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 last week. “We are even printing booklets about why people would want to come and work for us and targeting international recruitment.
“It is restricting our growth. 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 tele-communications companies, ISPs and large corporates.
Pellett says the strategy is directly responsible for Endace’s growth.
Appliances average 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.