WANdisco has chance to turn up the volume, says Panmure
12:10 pm by Giles Gwinnett O'Connor explained how WANdisco software (WAN standing for "wide area network") enabled distributed servers to stay "synchronised" at all times, solving data problems for firms who may be geographically apart but working collaboratively There are big opportunities for the recently AIM listed software specialist WANdisco (LON:WAND) to grow, says City broker Panmure, which retains its 'buy' rating.
It comes after a highly positive trading update today from the firm, which basically develops and sells infrastructure software, which showed strong trading in the first half.
Investors liked the news too and the shares rose 2.32 per cent. As at 11.15 am, they stood at 220.5 pence each.
In the six months to June 30 this year, subscription bookings, on which the firm's business model is based, were up 60 per cent, year-on-year, to stand at $3.38 million.
New customers in the period included Ricoh, which purchased WANdisco's new uberSVN product and Pitney Bowes, which has adopted the firm's subversion MultiSite product, it revealed.
Meanwhile, notable renewals of the firm's technology came from Juniper Networks, Cisco Systems, Vanguard, McGraw Hill, Telenav, McAfee, ING and Disney.
The company, whose technolgy is included in such everyday items as mobile phones, also made its first product sale in China with Huawei and sold two significant deals to existing customers - John Deere and Syniverse.
"WANdisco has achieved 60 per cent YOY growth in subscription bookings, generated cash in addition to its US$23mln IPO funds and describes trading as "strong"", said Panmure analyst George O'Connor.
The analyst also highlighted the firm's shares had put on 18 per cent since the IPO last month and today's statement supported investor confidence.
He said the firm was in a strong position to accelerate growth further by enlarging its sales team and investing in new products.
O'Connor explained how WANdisco software (WAN standing for "wide area network") enabled distributed servers to stay "synchronised" at all times, solving data problems for firms who may be geographically apart but working collaboratively.
He added that the firm's technology could now be developed to feed into other areas, such as database replication.
In exploiting "big data" (the term given to large amounts of information which are difficult to work with) the firm also has much potential, said the analyst.
The Hadoop software framework is the database of choice for many, including giant social media giant Facebook, he noted. Others such as eBay and JP Morgan, it is suggested, use Hadoop, he said.
He said Hadoop was designed to 'scale up' data from single servers to thousands of machines but that WANdisco's technology could have a role in directing the traffic between different sources in a big database.
It could also have potential in making sure data was secure, he noted.
Panmure has upped its target price for WANdisco shares to 261 pence on the back of currency moves