Network Engines (NEI)

[blueskywaves]

Network Engines (NENG) 
 Sales Trend 
 1Q02 to 3Q03 
 . 
 . 
            TidalWire    Centera     Others        Total 
 . 
 1Q02          -          $ 1.5M     $ 0.6M       $ 2.1M 
 2Q02          -            2.3M       0.7M         3.0M 
 3Q02          -            3.4M       0.7M         4.1M 
 4Q02          -            4.8M       0.5M         5.3M 
 . 
 FY02          -          $12.0M     $ 2.5M       $14.5M 
 . 
 1Q03*        0.3M          4.9M       0.8M         6.0M 
 2Q03       $10.2M          8.1M       1.1M        19.2M 
 . 
 3Q03(E)    $10.5M         10.4M       1.1M       $22.0M 
 3Q03(E)    $11.5M         11.4M       1.1M       $24.0M 
 . 
 *TidalWire acquisition closed late in 1Q03 
 . 
 Company Offers Financial Guidance  
 . 
 Based on current forecasts, the Company  
 anticipates net revenues in the third  
 fiscal quarter ending June 30, 2003 will 
 be between $22 million and $24 million.  
 The Company expects net revenues from  
 server appliance sales to be between 
 $11.5 million and $12.5 million and net 
 revenues from distribution operations to 
 be between $10.5 million and $11.5  
 million.  
 . 
 The Company anticipates third quarter  
 gross margins will be between 19.5 percent 
 and 21.5 percent, depending on sales  
 volumes and the mix of business during  
 the quarter.  
 . 
 Operating expenses in the third quarter  
 are expected to increase to between  
 $5 million and $5.3 million.  
 . 
 On a GAAP basis, the Company expects a  
 net loss of between $200,000 and $500,000, 
 or approximately $0.01 per share for the  
 third quarter. This projected net loss  
 includes approximately $254,000 for the 
 amortization of intangible assets related  
 to the TidalWire acquisition and $245,000  
 of stock compensation expense.  
 . 
 The cash position at the end of the third 
 quarter is expected to be between 
 $33 million and $35 million. This projected 
 decrease in cash is primarily due to  
 increased investments in working capital due 
 to the growth of the business.  
 . 
 http://investors.networkengines.com/ireye/ir_site.zhtml?ticker=neng&script=410&layout=-6&.... 
 . 
 OUTSTANDING SHARES (DILUTED) - 33.5M shares 
 . 
 SI Board 
 . 
 http://www.siliconinvestor.com/stocktalk/msg.gsp?msgid=18881871 
 . 
 .