NENG SALES
2Q02-2Q03
           TidalWire    Centera     Others        Total

2Q02          -          $ 2.3M     $ 0.7M       $ 3.0M
3Q02          -            3.4M       0.7M         4.1M
4Q02          -            4.8M       0.5M         5.3M
1Q03          -            4.9M       1.1M         6.0M
2Q03       $10.2M          8.1M       1.1M        19.2M
<font color=blue>
3Q03(E)    $10.5M         10.4M       1.1M       $22.0M
3Q03(E)    $11.5M         11.4M       1.1M       $24.0M
</font>

Company Offers Financial Guidance 

Based on current forecasts, the Company 
anticipates net revenues in the third 
fiscal quarter ending June 30, 2003 will
be between $22 million and $24 million. 
The Company expects net revenues from 
server appliance sales to be between
$11.5 million and $12.5 million and net
revenues from distribution operations to
be between $10.5 million and $11.5 
million. 

The Company anticipates third quarter 
gross margins will be between 19.5 percent
and 21.5 percent, depending on sales 
volumes and the mix of business during 
the quarter. 

Operating expenses in the third quarter 
are expected to increase to between 
$5 million and $5.3 million. 

On a GAAP basis, the Company expects a 
net loss of between $200,000 and $500,000,
or approximately $0.01 per share for the 
third quarter. This projected net loss 
includes approximately $254,000 for the
amortization of intangible assets related 
to the TidalWire acquisition and $245,000 
of stock compensation expense. 

The cash position at the end of the third
quarter is expected to be between
$33 million and $35 million. This projected
decrease in cash is primarily due to 
increased investments in working capital due
to the growth of the business. 

biz.yahoo.com

OUTSTANDING SHARES (DILUTED) - 33.5M shares