Old news at this point:
Network Engines, Inc. Expects Lower First Quarter Revenue
CANTON, Mass.--(BUSINESS WIRE)--Dec. 20, 2000--Network Engines (Nasdaq: NENG) today announced that the Company expects results for the fiscal quarter ending December 31, 2000 to be below analysts' expectations of approximately $19.5 million, primarily due to an industry-wide slowing in IT Internet infrastructure investments and an increase in the consolidation and shakeout of "new economy" businesses. Revenue for the first quarter is currently expected to be between $7 million and $10 million.
"As we said during our conference call in November, we expected license revenue to decline and that future Company revenues would be predominantly product-based. As a result of the reported softness in the economy, with a particular weakness in the high-tech sector, we are analyzing our models for the balance of fiscal 2001," said Lawrence Genovesi, chairman and CEO of Network Engines, Inc.
Mr. Genovesi commented, "In light of the current activity level, every aspect of the business is being scrutinized and appropriate strategies will be implemented to maximize sales. We anticipate reporting first quarter results the week of January 22, 2001 and will provide guidance for FY 2001 at that time."
Genovesi further stated, "With our new network attached storage product, StorageEngine Voyager, and the upcoming announcement of our next generation, high performance WebEngine platform, we expect to maintain our strong position in the server appliance market. With our excellent cash position, we believe we have the resources necessary to continue our growth. Nevertheless, we will be revising our spending models for the next year to reflect these changes in our overall business and the economy."
About Network Engines
Network Engines (Nasdaq: NENG) provides high-density, scalable Internet server appliances that support large Web-based applications for web hosting and service providers, content infrastructure providers, application service providers and larger enterprises. The company was founded in 1997 and is based in Canton, Massachusetts. For more information, visit the company's Web site at www.networkengines.com.
Some of the information in this release may contain statements regarding future expectations, plans, prospects or performance of the Company that constitute forward-looking statements for purposes of the safe harbor provisions of The Private Securities Litigation Reform Act of 1995. Network Engines cannot guarantee future results, levels of activity, performance or achievements. The numbers discussed in this press release also involve risks and uncertainties. The following factors, among others, could cause actual results to differ materially from those described by such statements: general market conditions, increased competition and technological changes in the markets in which Network Engines competes, quarterly fluctuations in operating results attributable to the timing and amount of orders for the Company's products and services, the timing and success of product development and new product introductions, market acceptance of the Company's products and services, customer concentration, the Company's ability to keep pace with changing product requirements and factors affecting the demand for storage, networking, and appliance solutions, dependence on a single contract manufacturer, component shortages, and those other factors contained in the section titled "Risk Factors" as outlined in the Company's Quarterly Report on Form 10Q for the period ending June 30, 2000, those outlined beginning on page 5 of the Company's Registration Statement on Form S-1 (File No. 333-34286) declared effective by the Securities and Exchange Commission on July 12, 2000, as well as other documents that may be filed by the Company from time to time with the Securities and Exchange Commission. The forward-looking statements and numbers contained herein represent the judgment of Network Engines, as of the date of this release, and Network Engines disclaims any intent or obligation to update such forward-looking statements to reflect any change in Network Engines expectations with regard thereto or any change in events, conditions, circumstances on which such statements are based.
Network Engines and the Network Engines logo are trademarks of Network Engines, Inc. All other trademarks are the property of their respective holders.
CONTACT:
Network Engines, Inc. (Investor Relations)
Nancy A. Miller, 781-332-1229
nancy.miller@networkengines.com
KEYWORD: MASSACHUSETTS |
