Appliance Deployment Featured Article
NEI Shows Strong Performance in Second Quarter 2009
By Susan J. Campbell, TMCnet Contributing Editor
In this first half of 2009, design wins included eight new customers with run-rate business, three design wins for run-rate products with existing customers and five for new products with existing customers.
The company has enjoyed success thus far in fiscal 2009 in its ongoing effort to engage with customers that have established, revenue-generating solutions. Such an approach shortens time-to-revenue.
EMC (News - Alert) was the only customer that comprised more than 10 percent of NEI’s net revenues in the quarter. This company also comprised 38 percent of total revenues during the quarter, compared to 49 percent in the same quarter of the previous year.
NEI announced on March 16, 2009 that it was re-instituting its stock repurchase program. As a result, in the second quarter, it purchased roughly 96,000 shares for a total of $52,000.
The third quarter is also looking promising for NEI as the company expects to continue on its path of success. Its Business Outlook includes net revenues in the range of $30 million to $35 million; gross profit in the range of 13.5 percent to 15 percent of net revenues; operating expenses between $6.4 million and $6.9 million; net loss on a GAAP basis in the range of $1.7 million to $2.3 million; and a net loss on a non-GAAP basis in the range of $900,000 to $1.5 million.
We are doing everything we can to manage our way through this turbulent economy and maintain our cash flows. Additionally, we are gradually managing down our non-strategic, transactional-based revenues. We believe that as our new design wins begin to ramp up and as the economy begins to turn, we will be well positioned for future growth," added Bryant.
Susan J. Campbell is a contributing editor for TMCnet and has also written for eastbiz.com. To read more of Susan’s articles, please visit her columnist page.
Edited by Stefania Viscusi