Financial report Sept 2012

Support Financial Report September 2012 eh .

Forecast YTD Hardware Revenue vs. Actual YTD Hardware Revenue 3500000 20000000 17093214 3000000 15000000 12503230.81 2500000 10000000 2000000 Forecast Actual 1500000 5000000 1000000 159779.76 503902.83 $1,479,671 2267318.05 0 500000 0 YTD 0 815988.38 Forecast Actuals • New Hardware Sales are 27% behind the YTD forecast • New Support Revenue is 35% behind the YTD forecast Page 3 © Endace 2011 Public Distribution Permitted Silver Gold Bronze

Forecast YTD Hardware Revenue vs. Actual YTD Hardware Revenue • DAG Sales are 36% above the YTD forecast – Low attach rate – Typically Bronze • OSm Sales are 63% below the YTD forecast – Higher attach rate – Higher Gold uptake 9455098 10000000 9000000 8000000 7000000 6075518.21 6000000 4448290 5000000 3517575.36 4000000 3000000 2204369.89 2000000 1101792 705767.35 1000000 0 Acc Cards 2088034 ODE OSM 1800000 1651700.92 1600000 1400000 1200000 1000000 800000 600000 400000 200000 123571.58 7507.57 0 Acc Page 4 Forecast Actual © Endace 2011 Public Distribution Permitted 603401.64 554438.46 267605.11 Cards 314323.3 224440.43 ODE OSM Forecast Actuals

YTD New Hardware, New Support & Support Type Overview 0.16 743258.68; 4.87% 0.15 4055200.16; 26.58% 0.12 0.09 0.07 0.08 6082668.21; 39.87% Accessories Cards ODE OSm 0.04 0.01 4376746.99; 28.69% 0 Accessories Cards ODE OSm 0.16 7507.57; 0.51% 0.13 0.12 554438.46; 37.47% 603401.64; 40.78% 0.08 0.08 0.07 0.04 0.01 0 Accessories Cards ODE OSm 314323.3; 21.24% Forecast - OSm = 18%, Ode = 11%, Cards = 6%, Accessories = 11% Page 5 © Endace 2011 Public Distribution Permitted Accessories Cards ODE OSm Other

YTD New Support – Opportunity Lost 900 800 700 262 600 500 • 262 new cards sold without support Accuvant Eladian Partners Alcatel-Lucent (US) Enable Services Limited AT&T EEXFO Oy Avent Technology Solutions Maryland Procurement Dallas Digital Services NeuStar Inc Department of Defense, Air Force Lackland AFB Dustin AB Triveni Digital • 6 new appliances sold without support Telstra – MSNG Project Probes – support to be purchased after deployed • No ODE sold without support Page 6 No Support Support 400 300 589 200 6 127 100 0 Cards 100.00% 90.00% 80.00% 70.00% 60.00% 50.00% 40.00% 30.00% 20.00% 10.00% 0.00% © Endace 2011 Public Distribution Permitted ODE 10 64 OSM 0 17 Acc 0.09 0.31 0.37 1 0.69 Cards No Support Support 0.91 0.63 ODE OSM Acc

YTD New Support – Opportunity Lost 500000 400000 355353.35 300000 200000 100000 54010 2447.17 0 Cards OSM *Revenue figures based on Bronze Support pricing Page 7 © Endace 2011 Public Distribution Permitted Acc

New Support – Overall Product Family to Support Type 700000 600000 65188.71 89243.55 43207.04 500000 • OSm hardware customer typically purchase Gold – 16% Bronze – 11% Silver – 74% Gold • ODE hardware customers typically purchase Bronze – 95% Bronze – 2% Silver – 3% Gold • DAG customers typically purchase Bronze – 76% Bronze – 16% Silver – 8% Gold 400000 5761.1 10488 300000 421987.87 200000 Silver Gold Bronze 298074.2 100000 5542.01 2379.16 Accessories 0 93547.15 Cards ODE OSm -100000 900000 800000 700000 600000 93547.15 298074.2 OSm ODE Cards Accessories 500000 400000 300000 200000 421987.87 100000 0 -100000 Page 8 444665.78 Bronze © Endace 2011 Public Distribution Permitted 444665.78 10488 43207.04 Gold 65188.71 5761.1 89243.55 Silver

New Support – OSm Customer Purchasing Bronze • A1 Telekom Austria – never purchases support – acct team built Bronze into price • AT&T – lab probe • Constellation Energy – Customer wanted lower support cost – Account • • • • • • • • Team quoted Bronze GCHQ – special agreement, only takes Bronze for access to Engineering Interoute – lab probe sold through Axial JPMC – order error, being corrected Satlink – Simon Walter’s account, no longer here Softlab – Simon Walter’s account, no longer here Tipping Point – Lab equipment TR Instruments – Only equipment, single probe at list price for support ($46,530) Volkswagen – Only equipment, single probe (EP7010) Page 9 © Endace 2011 Public Distribution Permitted

New Support – Top 10 Customers 400000 3623 46309.41 2121.05 300000 200000 386844.16 275400 100000 0 6935 37784.71 0 88056.58 27404 0 57515.22 0 46530 0 46327.7 0 39000 0 0 0 Silver Gold Bronze Page 10 © Endace 2011 Public Distribution Permitted

New Support – Top 10 Customers – with HW Sales info 3000000 2500000 2000000 HW Sales New Suppo 1500000 2292703.5 2027130 1000000 1173074.81 500000 393779.16 275400 0 JPMorgan Chase Bank 91679.58 AT&T 373106.4 46309.41 324062.3 335463.6 46327.7 39000 Verizon Business 237171.19 39905.76 Ausgrid 156055 121240 149920 57515.22 46530 27404 Ymon Lantools Oy 0.3 0.2 0.17 0.14 0.12 0.1 0.08 0 JPMorgan Chase Bank AT&T Page 11 0.18 0.17 0.14 0.12 0.07 Verizon Business Ausgrid © Endace 2011 Public Distribution Permitted Ymon Lantools Oy 0.19

Regional Hardware Sales vs. Support Sales 0.14 0.12 0.1 0.1 0.09 0.09 0.07 0.07 0.08 0.06 0.04 New Support Vs Hardware Revenue New Support Vs Total NEW Revenue 0.02 0 Americas 0.11 APAC EMEA -0.02 EMEA; 4802204.44; 31.04% Americas; 9036772.21; 58.42% APAC; 1629858.62; 10.54% Overall New Support Vs Hardware Revenue : 9.57% New Support Vs Total NEW Revenue :8.73% 12000000 10000000 982433.31 EMEA; 344844.89; 23.31% 8000000 6000000 4000000 2000000 0 344844.89 9036772.21 152392.77 1629858.62 Americas APAC 4802204.44 EMEA New Support HW Revenue APAC; 152392.77; 10.30% Americas; 982433.31; 66.40%

September 2012 - New Support Revenue Overview

Forecast Monthly Hardware Revenue vs. Actual Monthly Hardware Revenue 9000000 1000000 8138591.5 8000000 900000 7000000 800000 700000 6000000 247415.4 600000 5000000 Forecast Actual 4000000 500000 400000 3000000 300000 2000000 200000 0 Silver Gold Bronze 561043.77 375647.43 100000 1000000 0 73845.41 0 4216846Monthly Forecast Actuals • September Hardware Sales were 93% ahead of the monthly forecast • September Support Sales were 24% ahead of the monthly forecast Page 14 © Endace 2011 Public Distribution Permitted

Forecast Monthly Hardware Revenue vs. Actual Monthly Hardware Revenue 4500000 4041527.1 4000000 3500000 3000000 • HW sales in Sept above forecast • Large DAG orders from AT&T, BOW, Verizon, Department of Air Forces and Lackland AFB – Department of Air Forces & Lackland AFB took no support • Large OSm orders from JPMC & Telstra – Telstra support at discounted rate – Chopper Trading support at $0 • Large ODE order for Canada DND Page 15 2358985 2500000 1949374.8 1838675.78 2000000 1500000 1086228 1000000 500000 0 Forecast Actual 309013.82 267197 Acc 504436 Cards ODE 450000 OSM 410155.19 400000 350000 292472.5 300000 244312.4 250000 200000 Forecast Actuals 158013.34 150000 100000 50000 30009.09 110 0 Acc © Endace 2011 Public Distribution Permitted 65606.22 55273.27 Cards ODE OSM

Monthly New Hardware, New Support & Support Type Overview 0.2 0.15 Overall % = 8.56% for September 0.1 0.09 0.13 Accessories; 309013.82; 3.80% Cards; 1838675.78; 22.59% OSm; 1949374.8; 23.95% 0.07 0.05 0 0 Accessories Cards ODE OSm Accessories Cards ODE OSm ODE; 4041527.1; 49.66% 0.2 0.15 Overall % = 7.87% for September 0.1 0.08 0.11 Accessories; 110; 0.02% Cards; 158013.34; 22.74% OSm; 244312.4; 35.16% 0.07 0.05 0 ODE; 292472.5; 42.09% 0 Accessories Cards ODE OSm Forecast - OSm = 18%, Ode = 11%, Cards = 6%, Accessories = 11% Page 16 © Endace 2011 Public Distribution Permitted Accessories Cards ODE OSm

Monthly New Hardware to New Support – Attachment Overview 350 300 250 • 98 new cards sold in September without support Avnet Technology Solutions Maryland Procurement Office Department of Air Forces Rsignia Lackland AFB Triveni Digital 200 Telstra – MSNG Project Probes – support to be purchased after deployed • No ODE hardware sold in September without support Page 17 No Support Support 150 100 194 1 0.9 0.8 0.7 0.6 0.5 0.4 0.3 0.2 0.1 0 6 118 50 0 • 6 OSm hardware sold in September without support 98 Cards ODE 1 29 OSM 0 1 Acc 0 0.17 0.34 0.5 No Support Support 1 0.83 0.66 0.5 Cards © Endace 2011 Public Distribution Permitted ODE OSM Acc

Monthly – New Support - Opportunity Lost 140000 120000 121583 100000 80000 54010 60000 40000 20000 783.97 0 Cards OSM *Revenue figures based on Bronze Support pricing Page 18 © Endace 2011 Public Distribution Permitted Acc

Monthly New Support – Overall Support Type to Product Family 600000 OSm hardware September Support Sale – Majority purchased Gold 3% Silver 97% Gold 3872.5 500000 400000 Silver Gold Bronze 300000 200000 ODE hardware September Support Sales - Majority purchased Gold 99% Bronze 1% Silver 100000 0 110 9954 Accessories 63011.91 0 85047.43 Cards 288600 6851 0 OSm ODE 400000 350000 300000 DAG hardware September Support Sales – Majority purchased Bronze 54% Bronze 40% Silver 6% Gold Page 19 250000 OSm ODE Cards Accessories 288600 200000 150000 239461.4 100000 50000 0 85047.43 Bronze © Endace 2011 Public Distribution Permitted 9954 Gold 6851 3872.5 63011.91 Silver

Monthly New Support – Top Customers 600000 550000 46309.41 500000 450000 400000 217365.4 350000 300000 250000 200000 150000 100000 275400 50000 0 1105 20096 32400 12367.5 9954 14427.29 0 13200 0 11859.6 0 0 0 0 0 Silver Gold Bronze • Top 10 Customers who purchased support in September Page 20 © Endace 2011 Public Distribution Permitted

September – New Support – Top Customers 3000000 2000000 1000000 0 2027130 275400 1253805 217365.4 373106.4 46309.41 285120 32400 194876.5 12964.6 121148 20096 90726.05 14427.29 92462.4 12367.5 85360 13200 54732.5 9954 HW Sales New Support 0.3 0.2 0.1 0.14 0.17 0.12 0.11 0.17 0.07 0 Page 21 © Endace 2011 Public Distribution Permitted 0.16 0.13 0.15 0.18

New Support – Regional Support Sales Overview Monthly APA HW revenue was 10% lower than monthly forecast APA support revenue was 44% lower than monthly forecast EMEA HW revenue was 92% higher than monthly forecast 0.14 0.12 0.12 Forecast % = 13% for September 0.1 0.08 EMEA; 3090045.53; 37.51% 0.07 0.06 Americas; 4608528.35; 55.95% 0.03 0.04 APAC; 538747.62; 6.54% 0.02 0 EMEA support revenue was 46% lower than monthly forecast *Large GCHQ order with no support revenue Americas HW revenue was 74% higher than monthly forecast Americas support revenue was 81% higher than monthly forecast *Large Page 22 Canada DND order with Bronze support Americas APAC EMEA 0.14 0.12 EMEA; 100559.71; 14.43% 0.1 Forecast % = 13% for September APAC; 38529.53; 5.53% 0.08 0.07 0.06 0.03 0.04 0.02 0 -0.02 0.11 Americas APAC EMEA © Endace 2011 Public Distribution Permitted Americas; 557819; 80.04%

New Support – Regional Commentary Americas • 12.10% of HWSP • 10.80% of Revenue EMEA • 3.25% of HWSP • 3.15% of Revenue APAC • 7.15% of HWSP • 6.67% of Revenue Page 23 Americas • Large Canada DND ODE sale took Bronze Support • Chopper Trading OSm sale with $0 support discount EMEA • Large GCHQ ODE sale took no support APAC • Telstra OSm sale with heavily discounted Gold Support © Endace 2011 Public Distribution Permitted

YTD Renewed Support - Forecast vs. Actual  Pending Large Renewals  Verizon ~$317,000 • AT&T ~$213,000 3500000 3000000 2500000 458117.03 20223 557735.44 Silver Gold+Tech Gold Bronze 2000000 1500000 1000000 2055292.53 500000 0 Page 25 0 282067.89 Forecast © Endace 2011 Public Distribution Permitted Actuals

YTD Available to Renew vs. Actual Renewals 1400000 1260015.8 1200000 1020555.85 • OSm – 80.01% renewed • EOTS probes impacting OSm renewals • ODE – 53.62% renewed • EOTS boxes impacting ODE renewals • DAG – 15.54% renewed 1008118.1 1000000 800000 Available to renew Actual renewals 600000 400000 238462.1 158576.83 127859.55 200000 • Pending AT&T renewal 29384.89 23296.88 0 Accessories Cards ODE OSM Forecast Renewals: OSM 90% , ODE 60%, Cards 50%, Acc 30% Units renewed may not be the same equipment available for renewals for that time period. Renewals are seldom invoiced the same time the original support expires *Revenue figures based on renewal at same level of support Page 26 © Endace 2011 Public Distribution Permitted

YTD Available to Renew vs. Actual Renewals 1200000 1122202.84 • Gold – 138% renewed* • Telstra quarterly renewal • Silver – 70.52% renewed* – AT&T pending • Bronze – 25% renewed* – DRW and BOW pending • Gold + Tech - 5.43% renewed* 1000000 800000 649656.8 600000 Available for Renewal Actual Renewals 557735.44 458117.03 404104 400000 372455 282067.89 – Telstra quarterly renewal 200000 20223 0 Bronze Gold Gold+Tech Silver *Units renewed may not be the same equipment available for renewals for that time period. Renewals are seldom invoiced the same time the original support expires *Revenue figures based on renewal at same level of support Page 27 © Endace 2011 Public Distribution Permitted

YTD Renewed Support – Unearned Revenue  OSM Renewals Outstanding 1000000 898246.35  Danish MOD, Verizon Business, BOW Technology and Dimension Data  Card Renewals Outstanding 800000 600000  AT&T, Bank of America, DRW Technology, Narus, Q1 Labs, Raytheon Paladion Networks and Verizon Business  ODE Renewals Outstanding  Canadian Dept of Defense, Kapsch CarrierCom AG, Tradeworx 507267.6 400000 200000 27992.1 16644.38 0 Acc Cards ODE OSM *Opportunity / Revenue figures based on renewal at same level of support Page 28 © Endace 2011 Public Distribution Permitted

Units Available for Renewal vs Actual Renewal 1000 900 0.99 1 894 0.8 800 700 600 0.6 500 Available for Renewal Actual Renewal 0.4 400 281 300 0.2 63 100 0 0.25 173 171 200 0.31 256 0 Americas APAC EMEA Americas APAC Units renewed may not be the same equipment due for renewals for that time period. Renewals are seldom invoiced the same time the original support expires Page 29 © Endace 2011 Public Distribution Permitted EMEA

Renewed Support – Overall Product Family Overview 1200000 1142502.43 Accessories; 23296.88; 1.77% 1008118.1 1000000 Cards; 158576.83; 12.03% ODE; 127859.55; 9.70% 800000 OSm; 1008118.1; 76.48% 600000 Accessories Cards ODE OSm Other Forecast Actuals 541739.8 400000 297885.2 200000 158576.83 Bronze; 282067.89; 21.40% Silver; 458117.03; 34.75% 127859.55 73165.1 23296.88 0 Page 30 Acc Gold+Tech; 20223; 1.53% Cards ODE OSM © Endace 2011 Public Distribution Permitted Gold; 557735.44; 42.31% Bronze Gold Gold+Tech Silver

Commentary - Renewed Support • ODE forecast may have been too aggressive • If all outstanding ODE equipment renewed at Gold the additional revenue would be $44,949 • Current forecast shows we are $170,025 behind in ODE renewals • With 100% renewals, the addition of $44,949, we would still be $125,076 behind forecast • Many of the ODE boxes go EOL in Dec 2012 & Mar 2013 • OSm • Osm renewals slightly lower than forecast mainly due to outstanding renewals for Verizon Business and Danish MOD combined with smaller accounts being TellMe Networks, BOW Technology and Dimension Data • Cards • Card renewals largely lower than forecast mainly due to large outstanding renewals for AT&T, BOW Technology, Australia Dept of Defense, DRW, Narus, Raytheon, Paladion Networks and Verizon Business Page 31 © Endace 2011 Public Distribution Permitted

Renewed Support – Top 10 Customers 500000 450000 400000 350000 132810 300000 250000 200000 193987 150000 100000 50000 105192.6 0 Page 32 70895 60840 176050 11900 50444.94 0 98023 0 23660 43897 0 0 17600 0 0 © Endace 2011 Public Distribution Permitted 0 0 0 Silver Gold Bronze

Monthly Available to Renew vs. Actual Renewals 450000 409217.75 400000 • OSm – 78% Renewed 350000 • Tradebot, Rabobank and Telstra Renewals Earned • ODE – 4% Renewed 300000 243863.2 250000 • Telstra Renewal Earned • DAG – 12% Renewed 310440 Available to Renew Actual Renewals 200000 • Outstanding renewals for AT&T, BOW Technology, Australia Dept of Defense, DRW, Narus, Raytheon, Paladion Networks and Verizon Business 150000 100000 50444.58 50000 0 19658.4 846.85 17132.94 2030.82 Acc Cards ODE OSM Expected renewals: OSM 90% , ODE 60%, Cards 50%, Acc 30% *Revenue figures based on renewal at same level of support Actual renewals may not be exactly the ones available for renewals in any given time period Page 34 © Endace 2011 Public Distribution Permitted

September Available to Renew vs. Actual Renewals 600000 522797.44 500000 400000 • Gold – 114% Renewed* • Telstra renewal from March came in 300000 • Silver – 96% Renewed • Verizon Business Pending 200000 165971.65 160565.79 • Bronze – 11% Renewed • BOW, DRW, Danish MOD and Verizon pending 100000 0 58819.66 67680 77800 Bronze Available to Renew Gold Silver Actual Renewals Revenue figures based on renewal at same level of support *Actual renewals may not be exactly the ones available for renewals in any given time period Page 35 © Endace 2011 Public Distribution Permitted

Monthly Renewed Support – Unearned Revenue 350000  Outstanding Opportunities      327762 300000 250000 AT&T DRW BOW Danish MOD Verizon 200000 181950 150000 100000 50000  EOTS Renewals Lost 19658.4 13997.06  Q1 Labs (DAGs)  United Healthcare Group (DAGs) 0 Acc Cards ODE OSM *EOTS renewal figures removed from chart *Revenue figures based on renewal at same level Page 36 © Endace 2011 Public Distribution Permitted

Renewed Support – Overall Support Type Overview Accessories; 2030.82; 0.68% Cards; 50444.58; 16.97% ODE; 846.85; 0.28% • OSm Telstra renewal earned • Silver renewal was Tradebot, BNY Convergex and Rabobank OSm; 243863.2; 82.06% Accessories Cards ODE OSm Bronze; 58819.66; 19.79% Silver; 160565.79; 54.03% Gold; 77800; 26.18% Page 37 © Endace 2011 Public Distribution Permitted Bronze Gold Silver

Renewed Support – Regional Support Sales Overview • Americas made up 31% of the September renewals • AT&T, DRW and Verizon renewals outstanding in the Americas • EMEA made up 32% of the September renewals EMEA; 96125.64; 32.35% • Danish MOD and some smaller DAG renewals outstanding in EMEA • APAC made up 37% of the September renewals • BOW, Paladion Networks and Australia Department of Defense outstanding in APAC Page 39 © Endace 2011 Public Distribution Permitted Americas Americas; 92723.83; 31.20% APAC EMEA APAC; 108335.98; 36.45%

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