Network Engines (NEI)

[dmlabuda]

We should at least see a nice bounce back to the top of the Gap if nothing else. By then, we'll have a clearer indication how strong a rally (if it does break out) will be. Breakout Could happen today! We would need a close at or above $1.15 for it to be good. NEI - 30 min Candlesticks

[Hedge Starz]

Thanks for the chart. I think $NEI is a no brainer. LOVEEEEEEE this stability during a terrible day in the market. Analysts have gone neutral-upgrade as well..

NEI will run big i think.

[dmlabuda]

Special Situation - Upside Breakout very probable here ...
NEI - Daily Candlesticks

[Hedge Starz]

just got in today. I can handle a small downturn. I think in 2 weeks or less we finally get a BIG run to 1.35s+

[scmfinance]

Needed to hold 1.08 (25MA) and it did. Would have liked to have seen green on the day, but the most recent uptrend has not been broken yet. 10MA is about to cross 20MA so hopefully it holds the 10MA and we see it gradually move up more tomorrow.

[scmfinance]

lots of churning at 1.11 today. has held the 25MA at 1.08 strongly all day so far. each time it hit it, it bounces up hard. need to get thru 1.12 to get some sort of run going again.

[BooDog]

good question.
NEI Network Engines, Inc (NEI) After Hours Trading Pre-Market Charts | After Hours Charts Jun. 24, 2011 Market Close: $ 1.16 After Hours Last:
Net / % Change $ 1.1603

.0003 (.03%) After Hours High: $ 1.1606
After Hours Volume: 1,841,814 After Hours Low: $ 1.11


Read more: http://www.nasdaq.com/aspxcontent/ExtendedTradingTrades.aspx?selected=NEI&mkttype=after#ixzz1QTX9kxH5

[scmfinance]

yep, a great move. what i can't figure out now is what's going on with all the volume in after-hours. over 4M shares have traded since the bell! mind you, average volume is only around 600k daily. any ideas on why this is spiking after-hours so much?

[StkMktPirate]

Finally a nice move!


JER1

[scmfinance]

I agree. It's gotta soon.

[Hedge Starz]

i want to get into something else at the moment........but we are DAYS away from explosion here. i can feel it. holding nicely in crap market and it is JUST that 1.06 sma that is fighting this off. we will run next week. guaranteed

[Hedge Starz]

1.07 close would help our cause.

[Hedge Starz]

thinned out. they may let this run just yet today. 20sma break looks inevitable. tomorrow we run if market is flat or rebounds

[scmfinance]

well, it touched 1.10 again. but couldn't hold the 20MA. held the 10MA so far tho. not sure who would be selling at this level...here's some love for it though: http://www.smallcapnetwork.com/Small-Young-and-Profitable-NEI-GTN-JOEZ-Do-What-Most-Small-Caps-Cant/s/via/1789/article/view/p/mid/3/id/10/

[Hedge Starz]

too bad. someone made a wall at 1.07-1.08 all day and blocked it. lame

[scmfinance]

printed 1.10. 25MA is at 1.11. if it gets past that, it could really move.

[scmfinance]

NEI prints 1.08. back above the 20MA.

[scmfinance]

Was hoping to close at HOD, but I guess we'll see what tomorrow brings. Added a few more today.

[Hedge Starz]

true. end of day always tell the story. stocks make their setups at beginning and end of day. as long as the market doesnt drop 200 points in a day i think we get a nice breakout over the next few days. MACD reversal on Weekly chart and we are obvi near a 20sma cross on daily chart with buyback announcement being some decent news.

closing that gap real quickly at 1.55 would be fun eh

[scmfinance]

1.06 proving more stubborn than i would have thought.

[Hedge Starz]

it will run this week i think. yep a close over 1.07 would be nice. it didn't hold the first 20sma cross at close last week.

[scmfinance]

crossed $1.05. needs to cross above the 20MA again (which is currently at $1.07)

[Hedge Starz]

bought some today.

[StkMktPirate]

Same here. I think this will make a move up soon.


JER1

[scmfinance]

added more yesterday and today. was looking for a close above the 10MA today and it closed at the 20MA :)

[scmfinance]

took a starter position. looks like it bottomed and due for a bounce.

[BooDog]

Nice. Still here too, just been a bit busy. eom.

[StkMktPirate]

( NEI ) INFO/DD-->

Been watching for a while Huge news out today!

Amazing Fundamentals

Got in for LONG term today at .97, this is another huge one here,

NEI Announces Stock Repurchase Program

http://investor.nei.com/releasedetail.cfm?ReleaseID=584249

Web Site: http://www.nei.com/

About:
Network Engines, Inc. is a Delaware Corporation. The Company designs and manufactures server-based platforms and appliance solutions on which software applications are applied for both enterprise and telephony information technology (IT) networks. It also provides support services related to solution design, integration control, global logistics, ‘Smart Services’ and support and maintenance programs. Application platforms are pre-configured server-based network infrastructure devices engineered to deliver specific software application functionality, ease deployment challenges, improve integration and manageability, accelerate time-to-market and increase the security of that software application in an end user's network.The Company produces and fulfills devices branded for its customers, and derives its revenues primarily from the sale of value-added hardware platforms to these customers. These customers subsequently resell and support the platforms under their own brands to their customer bases. The Company markets its application platform solutions to original equipment manufacturers, or OEMs, and independent software vendors, or ISVs that then deliver their software applications in the form of a network-ready device. The Company’s customers subsequently resell and support these platforms under their own brands to their customer bases.The Company’s customers include, but are not limited to: ArcSight, Inc., AVST, Inc., Bomgar, Inc., Bradford Networks, EMC Corporation, Sepaton, Inc., Sophos, Plc.,Tekelec, and Tektronix, Inc. The Company’s competitors include companies who market general-purpose servers, server virtualization software, specific-purpose servers and application platforms as well as companies that sell custom integration services utilizing hardware produced by other companies.

COMPANY HAS NO DEBT, 221.6 MIL IN REV, HUGE Institutional
Ownership & low float

Mr. Gregory A. Shortell CEO
Mr. Douglas G. Bryant CFO
Employees: 226
Network Engines, Inc.
25 Dan Road
Canton MA 02021-2817
Phone: [phone]
Fax: [phone]

FINANCIAL HIGHLIGHTS
Sales 259.20 Mil
Income 3.92 Mil
Sales Growth +49.00%
Income Growth+147.80%
Net Profit Margin 1.51%
Debt/Equity Ratio 0.00
Beta 1.22
EPS 0.09
Forward P/E 24.25
P/E 12.13
Market Cap 43.38 Mil
Shares Outstanding 42.95 Mil

Financial Condition Company Industry S&P 500
Debt/Equity Ratio 0.00 0.45 1.18
Current Ratio 2.7 1.3 1.4
Quick Ratio 1.9 1.0 1.0
Interest Coverage 67.0 6.0 83.7
Leverage Ratio 1.6 2.3 3.8
Book Value/Share 1.36 7.93 25.47


Growth Rates % Company Industry S&P 500Sales (Qtr vs year ago qtr) 18.00 18.50 12.10
Net Income (YTD vs YTD) 381.70 18.00 15.80
Net Income (Qtr vs year ago qtr) 525.80 43.00 60.30


NEI Institutional Ownership Shares Held


HarbourVest Partners, L.L.C. 5,890,926
BlackRock Institutional Trust Company, N.A. 2,075,259
Essex Investment Management Company, LLC 1,637,642
Renaissance Technologies Corp 1,542,300
Royce & Associates, LLC 864,094
Vanguard Group, Inc. 814,906
Dimensional Fund Advisors, LP 749,301
Dane, Falb, Stone, & Co. Inc 641,089
State Street Global Advisors (US) 586,624
Northern Trust Investments, N.A. 330,580
TIAA-CREF 251,188
California Public Employees' Retirement System 217,700
TFS Capital LLC 203,217
D. E. Shaw & Co., L.P. 170,628
BNY Mellon Asset Management 132,619



JER1

NEI

[StkMktPirate]

NEI Institutional Ownership Shares Held

HarbourVest Partners, L.L.C. 5,890,926

BlackRock Institutional Trust Company, N.A. 2,075,259

Essex Investment Management Company, LLC 1,637,642

Renaissance Technologies Corp 1,542,300

Royce & Associates, LLC 864,094

Vanguard Group, Inc. 814,906

Dimensional Fund Advisors, LP 749,301

Dane, Falb, Stone, & Co. Inc 641,089

State Street Global Advisors (US) 586,624

Northern Trust Investments, N.A. 330,580

TIAA-CREF 251,188

California Public Employees' Retirement System 217,700

TFS Capital LLC 203,217

D. E. Shaw & Co., L.P. 170,628

BNY Mellon Asset Management 132,619



JER1


NEI

[StkMktPirate]

NEI Announces Stock Repurchase Program

Board of Directors Authorizes Resumption of Plan Enacted in June of 2008; Up to $2 Million Authorized for Repurchase



CANTON, Mass., June 13, 2011 /PRNewswire/ -- NEI (Nasdaq: NEI), a leading provider of server-based application platforms, appliances, and lifecycle support services for software developers and OEMs worldwide, announced today that its Board of Directors has authorized the repurchase of up to $2 million of its outstanding shares of common stock from time to time on the open market or in non-solicited privately negotiated transactions. This authorization is the continuation of a repurchase plan initially announced on June 12, 2008. The plan does not obligate NEI to acquire any particular amount of common stock, and can be suspended at any time at the Company's sole discretion.

The timing and amount of shares repurchased will be determined based on a 10b5-1 plan and will depend upon market conditions and other factors, including compliance with applicable legal requirements. The Company plans to use existing working capital and future cash generation to finance the repurchases. As of March 31, 2011, NEI reported $15.1 million in cash and cash equivalents on its balance sheet and approximately 43 million shares of common stock outstanding with a tangible net book value of about $1.21 per share.

Greg Shortell, President and Chief Executive Officer of NEI, commented, "Under certain market conditions, we believe that the repurchase of our common stock represents an effective use of our capital and underscores our commitment to maximizing value for our shareholders."



JER1


NEI

[StkMktPirate]

NEI bounce coming? L2 looks nice for it

NEI - Daily Candlesticks


JER1

NEI

[BooDog]

NEI Launches New Application Update Service for Physical, Virtual and Cloud Deployments
Newly Patented Technology Helps Secure and Automate the Delivery of Application, OS and Server Software Updates

http://finance.yahoo.com/news/NEI-Launches-New-Application-prnews-3141534822.html?x=0&.v=1

[BooDog]

looking to see if accumulation starts to make a come back.
Part of the question is just where the value should be even with the duel sourcing by EMC.



pincher radar also.


my disclosure; long/accumulating

[Wrinkles]

Now we know what some others must have known and why the share price had come so low unexpectedly and without bouncing, all makes sense now. Quite the game we play. Will keep on watch though.

[Wrinkles]

News for 'NEI' - (*DJ Network Engines: Dual Sourcing To Result In $5M-$7M Reduction In Rev)



News for 'NEI' - (NEI Announces Largest Customer's Plan to Dual Source Specific Product Line No Impact on Current Quarter Guidance; Dual Sourcing Expected to Commence in September 2011 Quarter)


CANTON, Mass., May 19, 2011 /PRNewswire via COMTEX/ -- NEI (Nasdaq: NEI), a
leading provider of server-based application platforms, deployment solutions and
lifecycle support services for software technology developers and OEMs
worldwide, today announced that it has been notified by EMC that, as part of a
strategic initiative, the integration of EMC's Avamar product line will be dual
sourced beginning in the quarter ending September 30, 2011. Although this does
not impact the financial guidance that NEI provided on April 28, 2011 for the
quarter ending June 30, 2011, it will impact financial results beginning in the
quarter ending September 30, 2011. Based on the current customer forecast and
estimates, the impact of this change is expected to be a $5 million to $7
million reduction in this program's revenues to NEI and a $500,000 to $700,000
reduction in Net Income for the quarter ending September 30, 2011. The Company
expects the impact on future quarters, beginning in the quarter ending December
31, 2011, to be a $9 million to $11 million reduction in this program's
quarterly revenues to NEI and a $90 0,000 to $1.1 million reduction in Net
Income. NEI expects to remain profitable.

Greg Shortell, President and Chief Executive Officer of NEI, commented, "we are
naturally disappointed at the revenue reduction and bottom line impact of this
particular program being dual sourced. However, we've been informed that this
decision is not performance-related and we believe that NEI will have the
opportunity to participate in additional EMC programs as a proven, trusted
supplier to EMC."

About NEI

NEI is a leading provider of server-based application platforms and lifecycle
support services for software developers and OEMs worldwide. Through its
expertise and comprehensive suite of solution design, system integration,
application management, global logistics, support, and maintenance services, NEI
is redefining application deployment solutions to provide customers with a
sustainable competitive advantage. More than a decade of appliance innovation
with the ability to provide physical, virtual and cloud-ready solutions makes
NEI one of the most trusted software deployment partners in the industry.
Founded in 1997, NEI is headquartered in Canton, Massachusetts, with facilities
in Plano, Texas and Galway, Ireland, and trades on the NASDAQ exchange under the
symbol NEI. For more information, visit www.nei.com.

Safe Harbor for Forward-Looking Statements

Statements in this press release regarding the Company's future financial
performance, including statements regarding future revenues, net income and
profitability and any other statements about the future expectations, beliefs,
goals, plans or prospects of the Company or the Company's management, constitute
forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995. The Company's actual results could differ
materially from those stated or implied in forward-looking statements due to a
number of factors, including those factors con tained in the Company's most
recent Annual Report on Form 10-K for the year ended September 30, 2010 and the
most recent Form 10-Q for the quarter ended March 31, 2011 under the sections
entitled "Risk Factors" in such reports as well as other documents that may be
filed by the Company from time to time with the Securities and Exchange
Commission. Forward-looking statements include statements regarding the
Company's expectations, beliefs, intentions or strategies regarding the future
and can be identified by forward-looking words such as "anticipate," "believe,"
"could," "estimate," "expect," "intend," "may," "should," "will," and "would" or
similar words. The Company assumes no obligations to update the information
included in this press release.

Contact:

Hayden IR Peter Seltzberg 646-415-8972 [e-mail] [e-mail]

SOURCE NEI



www.prnewswire.com


Copyright (C) 2011 PR Newswire. All rights reserved

-0-




KEYWORD: Massachusetts

INDUSTRY KEYWORD: STW

CPR

NET

SUBJECT CODE: ERP

[Wrinkles]

Ouch, not good news at all.

[equity2all]

just dropped like a stone rolling off a cliff. eom

[equity2all]

from your mouth to God's ears ! thx for responding . eom

[Wrinkles]

NEI closed at $1.62, did not think it would come this low, sure looks like great buying opportunity to me. This share price should drift up over $2 again for the next quarters numbers. Should provide a nice flip opp....

[equity2all]

any observations regarding todays action here ? eom

[DADDY FAT SAXX]

Off topic thanks for the NEOP PM. I think we are going to be very happy there over the next year. Buzz is building IMO.

[equity2all]

dump continues this am ....

[equity2all]

CC seemed to be the catalyst for yesterdays market activity. i did see downward pressure from one MM . imo

[luisalmeidapt]

Hi have just an email to Ir to get more information what happened in CC, after received the respond i will tell!

Thanks

[luisalmeidapt]

Hi Wrinkles,

after read the results to be sincerous if somebody tell me that NEI, will close at $1.89 to be honest i problably do not believe!

The market have always reason !!

In my opinion, the results are very good and don't have opportunity yet to listen the CC(i will try to listen!).

But in a quick view in Yahoo board the CC don't occurred as expect and problably the reason for the closed!

I continue long!! One day we will see the stock above $3!

The fundamentals are there!

[Wrinkles]

NEI kicked some arz on the bottom line $$$, disappointing though how the market reacted to guidance I guess. Did not listen to CCall this morning, but NEI was doing great til that call. Archived, will have to listen later and see what caused the dumpfest. Sitting on the 50 day avg right now $1.97 range.....

[luisalmeidapt]

Results are out - They beat on revenue and EPS....Outlook within range...

NEI Announces Financial Results for the Second Fiscal Quarter of 2011

Achieves 18% Year-over-Year Increase in Revenues of $65.0 Million and Delivers Sixth Consecutive Quarterly Profit





CANTON, Mass., April 28, 2011 /PRNewswire/ -- NEI (Nasdaq: NEI), a leading provider of server-based application platforms, deployment solutions and lifecycle support services for software technology developers and OEMs worldwide, today reported financial results for its second fiscal quarter, the period ended March 31, 2011.

Second Quarter Financial Performance
•Net revenues were $65.0 million, an increase of 18% compared to $55 million for the second fiscal quarter last year. The results were at the top end of the guidance of $60 to $65 million.
•Gross profit margin was 11.6 percent of net revenues, better than the guidance of 10.0 to 10.5 percent and compared to 11.8 percent for the second fiscal quarter of the prior year.
•Operating expenses were $6.1 million, including $202,000 of stock-based compensation expense and $332,000 of amortization expense, and within the guidance range of $5.8 million to $6.4 million. Operating expenses compared to $6.2 million in the year-ago second quarter, which included $243,000 of stock-based compensation expense and $389,000 of amortization expense.
•Net income on a GAAP basis was $1.5 million, or $0.03 per share, which included $236,000 of stock-based compensation expense and $332,000 of amortization expense. The results were better than guidance of $200,000 to $800,000 and compared to net income of $236,000, or $0.01 per share, which included $282,000 of stock-based compensation expense and $389,000 of amortization expense in the same period a year ago.
•Non-GAAP net income, which excludes stock-based compensation and amortization expenses, was $2.0 million, or $0.05 per share, better than the expected range of non-GAAP profit of $700,000 to $1.3 million. The non-GAAP net income compared to non-GAAP net income of $907,000, or $0.02 per share in the second fiscal quarter of 2010.
•EMC comprised 59 percent of total revenues during the quarter unchanged from 59 percent in the first fiscal quarter of 2011 and compared to 44 percent in the year-ago quarter. Tektronix comprised 11 percent of net revenues during the quarter, compared to 12 percent of net revenues during the first fiscal quarter of 2011 and 25 percent in the year-ago quarter.


Greg Shortell, President and Chief Executive Officer of NEI, commented, "NEI's results met or exceeded our guidance and represent our sixth consecutive quarter of profitability. Our pre-tax profit was roughly equal to the December quarter as we benefited from a more favorable mix of custom products which drove slightly higher gross margin dollars despite seasonally adjusted lower revenues. We also continue to carefully manage our expenses and leverage our infrastructure to increase profitability."

"Our new facility in Galway, Ireland has been fully integrated and is up and running as planned," Mr. Shortell continued. "With surging fuel costs, we are already experiencing competitive benefits from producing and shipping product from this facility to customers in Europe."

For the sixth month period ended March 31, 2011, net revenue was $136.7 million, compared to $99.1 million for the same period in 2010, an increase of 38 percent. Gross profit was $15.1 million, or 11.0 percent gross margin, compared with gross profit of $12.6 million, or 12.7 percent gross margin, for the same period last year. Total operating expenses were $12.1 million, or 8.8 percent of net revenue, compared with $12.1 million last year, or 12.2 percent of net revenue in the same period last year. On a GAAP basis, the Company reported net income of $2.8 million, or $0.06 per share, compared with net income of $434,000, or $0.01 per share, in the same period last year. The Company's non-GAAP net income, which excludes stock-based compensation and amortization expenses, was $4.0 million compared to non-GAAP net income of $1.8 million for the same period last year.

Balance Sheet

NEI finished the quarter with $15.1 million in cash and cash equivalents and $53.4 million in working capital. Accounts receivable decreased to $38.8 million and inventory levels increased to $26.5 million compared to $43.0 million and $25.8 million as of December 31, 2010, primarily due to the lower revenues. NEI also has a $10 million bank credit facility that it has yet to utilize.

Business Outlook

NEI currently anticipates the following results for its fiscal third quarter ending June 30, 2011, based on current forecasts from certain customers and historical trends.
•Net revenues in the range of $61 million to $66 million.
•Gross profit margin in the range of 10.5 percent to 11.0 percent of net revenues.
•Operating expenses between $5.9 million and $6.4 million, including an estimated $202,000 of stock-based compensation expense and amortization expense of $332,000.
•Net income on a GAAP basis in the range of $400,000 to $900,000.
•Net income on a non-GAAP basis in the range of $1.0 million to $1.5 million.


"Forecasts from our customers continue to drive our guidance," stated Doug Bryant, Chief Financial Officer. "The projected gross profit margin range is based on our current estimates for product and customer mix. However, the integration of standard, off-the-shelf appliances, which comprise a large percentage of our total revenues, continues to produce margins in the 9-12 percent range. We remain focused primarily on large, run-rate design wins, allowing us to better leverage our existing operating infrastructure and improve our profitability, as we have done in the last several quarters."

[Wrinkles]

volume preceeds price...

[luisalmeidapt]

To be sincerous the closed wasn't the best, but sometimes isn't what we expect, but let's see the results and will be the day!

But what a like more is the volume 1,307,700, who can see here:

http://finance.yahoo.com/q/hp?s=NEI+Historical+Prices

Could be a good signal!

[Wrinkles]

I missed the last half hr today, wonder why she closed poorly, thought for sure $2.10 plus. Oh well, tomorrow and rest of week should be dark green, jmo.