Network Engines (NENG)
Sales Trend
1Q02 to 1Q04

Quarter  TidalWire     Centera    Others     Total   Q2Q(%)

1Q02        -        $  1.5M    $  0.6M    $  2.1M     -
2Q02        -           2.3M       0.7M       3.0M    42.8%
3Q02        -           3.4M       0.7M       4.1M    36.7%
4Q02        -           4.8M       0.5M       5.3M    29.3%

FY02        -        $ 12.0M    $  2.5M    $ 14.5M

1Q03     $ 0.3M         4.9M       0.8M       6.0M    13.2%
2Q03      10.2M         8.1M       1.1M      19.4M   223.3%
3Q03      12.6M        13.0M       1.4M      27.0M    39.2%
4Q03      14.8M        12.1M       1.9M      28.8M     6.7%

FY03    $ 37.9M      $ 38.1M     $ 4.2M    $ 81.2M
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1Q04(E)   15.0M       ~12.9M      ~2.1M      30.0M     4.2%
1Q04(E)   16.0M       ~15.5M*     ~2.5M      34.0M    18.1%
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Business Outlook 

Based on current forecasts from certain partners
and historical and seasonal trends, the Company 
anticipates the following for its first fiscal
quarter ending December 31, 2003: 

- Net revenues in the range of $30 million to $34 million.

- OEM appliance revenues between $15 million and $18 million.

- Distribution revenues between $15 million and $16 million.

- Operating expenses between $5.5 million and $5.8 million.

- Gross profit in the range of 19 percent to 21 percent.

- Net income on a GAAP basis in the range of $500,000 to $1.5 million.

- Cash position between $33 million and $35 million

biz.yahoo.com

O/S (diluted) - 39.9M shares as of 9/30/2003