Financial: N.E.T. Q3 FY99 Results - Company Financial Information

EDGE, On & About AT&T, Jan 18, 1999

N.E.T. (NYSE:NWK) Wednesday reported revenue of $65.9 million and net loss of $.7 million, or .03 cents loss per share, for the third quarter ended December 27, 1998. For the nine month period ended December 27, 1998, N.E.T. reported revenue of $212.7 million and net income of $5.7 million, or .26 cents per share.

"We were disappointed by the overall results for the third quarter," said Joseph J. Francesconi, president and CEO, N.E.T. "However, our domestic business showed improvement substantially driven by the emerging global carrier segment of the market. Unfortunately, it did not offset a dramatic falloff in international business. In addition, the U.S. Federal business also came up short of our plan. "As we mentioned in our previous release, N.E.T. offers a variety of financing options to help open new business opportunities, similar to many of our competitors. This normally does not significantly impact our income statement. However, we chose to defer approximately $2 million in revenue due to the extended payment terms of some financing agreements during the third quarter. "Our Promina 4000 ATM switch development program progressed to plan during the third quarter. We completed two trials and are expanding the number of trials in the fourth quarter. The initial feedback has been good and we are finding that the advanced traffic management capabilities are of prime interest to our clients. We expect to release the Promina 4000 ATM switch for revenue by the end of the fourth quarter," added Francesconi. While it is still early in the fourth quarter, the company's initial view is that the overall business outlook is similar to the third quarter, and the company expects overall operating results to continue at or near the break-even level. Network Equipment Technologies, Inc. (N.E.T.), headquartered in Fremont, Calif., is a leading worldwide supplier of multiservice wide area networks used by enterprises, government organizations and carriers in more than 75 countries. N.E.T. multiservice WANs and ATM products integrate voice, data, and video traffic with ATM, frame relay, IP and ISDN capabilities. The company is certified to the worldwide ISO 9001 standard for design, manufacturing and service. FMI: http://www.net.com.