Documents
Financial report Sept 2012
Oct. 23 2016 — 4:08 a.m.

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
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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
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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
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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
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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
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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
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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
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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

September – Renewed Support Revenue
Overview
Page 33
© Endace 2011 Public Distribution Permitted

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

September – Renewed Support Revenue
Overview
Page 38
© Endace 2011 Public Distribution Permitted

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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