Network Engines (NEI)

[blueskywaves]

NENG vs HIL 
 Recreational 'Ritmethic 
 2002 to 2003 
 . 
 . 
           NENG   NENG   NENG    NENG   HIL   HIL    HIL     HIL 
 Quarter   Stock  TTM    Market   TTM   TTM  Market  TTM    Stock  
 Ending    Price  Sales   CAP     PSR   PSR   Cap   Sales   Price 
 . 
 03/31/02  $0.92 $ 9.2M $ 30.3M  3.3x  1.4x $ 69.4M $ 48.6M $ 2.80 
 06/30/02   1.07  10.9M   34.5M  2.2x  2.2x   98.6M   44.9M   3.96 
 09/30/02   0.96  14.5M   29.3M  2.0x  1.5x   62.3M   41.2M   2.50 
 12/31/02   1.00  18.4M   30.6M  1.7x  1.7x   78.1M   47.0M   3.10 
 03/31/03   1.49  34.6M   49.9M  1.4x  2.4x  159.7M   66.7M   6.12 
 . 
 06/20/03   4.34  34.6M  145.4M  4.2x  5.9x  391.2M   66.7M  12.15 
 . 
 06/30/03    -    52.5M  145.4M  2.8x  4.5x  391.2M   86.8M    - 
 09/30/03    -    71.2M  145.4M  2.0x  2.9x  391.2M  132.8M    - 
 12/30/03    -    91.2M  145.4M  1.6x  2.3x  391.2M  171.5M    - 
 . 
 . 
 NENG - Quarterly sales of $22M in 3Q03  
 (3Q3 guidance - low-end), $24M in 4Q03 
 (3Q3 guidance - high-end) and $26M in  
 1Q04 (my estimte).  NENG's fiscal year  
 ends on September 30.  O/S assumed  
 constant at 33.5M until 12/30/03. 
 . 
 HIL - Quarterly sales of $40M in 2Q03  
 (guidance), $46M in 3Q03 (guidance),  
 and $55M in 4Q03 (guidance).  HIL's  
 fiscal year ends on December 31.  O/S 
 assumed constant at 32.2M until 12/30/03. 
 . 
 . 
 . 
 TTM - Trailing Twelve Months 
 PSR - Price to Sales Ratio 
 .