Network Engines Reports Record Results for The Third
Quarter of 2000; Q3 Revenues Grow to $14.5 Million, Up 140%
From Preceding Quarter
CANTON, Mass.--(BUSINESS WIRE)--Aug. 9, 2000--Network Engines, Inc.
(Nasdaq: NENG), a leading provider of scalable Internet server appliances,
today reported financial results for its third quarter ended June 30, 2000.
Net revenues for the quarter ended June 30, 2000 were $14.5 million, which
represented an increase of approximately 140 percent over net revenues of
$6.1 million for the quarter ended March 31, 2000, and an increase of
approximately 1,500 percent over net revenues of $0.9 million for the quarter
ended June 30, 1999. Net loss attributable to common stockholders was
$7.3 million, or $1.66 per share, for the quarter ended June 30, 2000 as
compared to $7.7 million, or $2.11 per share, for the quarter ended March
31, 2000 and $1.8 million, or $0.53 per share, for the quarter ended June 30,
1999.
Network Engines' net loss attributable to common stockholders includes
non-cash charges for the amortization of stock-based compensation and
accretion of redeemable convertible preferred stock. Excluding these
non-cash charges, Network Engines' adjusted net loss attributable to
common stockholders was $2.9 million, or $0.65 per share, for the quarter
ended June 30, 2000, as compared with $3.5 million, or $0.97 per share, for
the quarter ended March 31, 2000, and $1.7 million, or $0.52 per share, for
the quarter ended June 30, 1999.
Including common stock issued upon the automatic conversion of
redeemable convertible preferred stock, which occurred upon Network
Engines' initial public offering, Network Engines' pro forma adjusted net loss
attributable to common stockholders was $0.11 per share for the quarter
ended June 30, 2000 as compared with $0.14 per share for the quarter
ended March 31, 2000, and $0.13 per share for the quarter ended June 30,
1999.
For the nine months ended June 30, 2000, Network Engines had revenues
of $25.0 million, an increase of approximately 1,134 percent over the $2.0
million of revenue recorded for the nine months ended June 30, 1999. Net
loss attributable to common stockholders was $17.4 million, or $4.59 per
share, for the nine months ended June 30, 2000 as compared to $4.9
million, or $1.50 per share, for the nine months ended June 30, 1999.
In the nine months ended June 30, 2000, Network Engines' net loss
attributable to common stockholders included non-cash charges totaling
$9.6 million for the amortization of stock compensation and the accretion of
redeemable convertible preferred stock.
On July 18, 2000, Network Engines completed its initial public offering of
7,475,000 shares of common stock, raising net proceeds of $117.0 million,
which includes the proceeds from the exercise of the underwriters'
over-allotment.
"This has been a great quarter for Network Engines," said Larry Genovesi,
president and CEO of Network Engines, Inc. "Our revenue growth is a clear
reflection of the customer demand for server appliances and we're rapidly
gaining momentum and market share in this dynamic and growing new
market. The successful IPO in July was an important milestone for Network
Engines as a company, as well as for our partners and customers." |
