NEI (News – Alert), a provider of appliance deployment solutions and support services for software technology developers and OEMS around the world, recently revealed financial results for its second fiscal quarter, which ended March 31, 2011.
For this sixth month period, net revenue was $136.7 million, compared to $99.1 million for the same period in 2010, which was an increase of 38 percent. Gross profit was $15.1 million, or 11.0 percent gross margin, compared with a 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, the same as last year.
Net revenues were $65 million, an increase of 18 percent compared to $55 million for the second fiscal quarter last year. Gross profit margin was 11.6 percent, compared to 11.8 percent for the same quarter last year.
Operating expenses were $6.1 million, compared to $6.2 million in the year-ago second quarter.
Net income on a GAAP basis was $1.5 million, or $0.03 per share, compared to a net income of $236,000, or $0.01 per share in the same period a year ago. Non-GAAP net income was $2 million, or $0.05 per share, compared to non-GAAP net income of $907,000, or $0.02 per share in the second fiscal quarter of 2010.
Greg Shortell, president and chief executive officer of NEI, said in a statement, “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.”
Looking forward, NEI is forecasting the following results for its fiscal third quarter which ends June 30, 2011. Net revenues will be in the range of $61-$66 million, while the gross profit margin will fall in the range of 10.5-11.0 percent of net revenues.
Operating expenses will range between $5.9-$6.4 million, while the Net income on a GAAP basis will be in between $400,000-$900,000. Net income on a non-GAAP basis will fall in the range of $1.0- $1.5 million.
“Forecasts from our customers continue to drive our guidance,” stated Doug Bryant, chief financial officer in a statement. “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.”
Jamie Epstein is a TMCnet Web Editor. Previously she interned at News 12 Long Island as a reporter’s assistant. After working as an administrative assistant for a year, she joined TMC (News – Alert) as a Web editor for TMCnet. Jamie grew up on the North Shore of Long Island and holds a bachelor’s degree in mass communication with a concentration in broadcasting from Five Towns College. To read more of her articles, please visit her columnist page.
Edited by Rich Steeves
View the original article here