Print
Email
Network Engines Inc (NENG) filed Annual Report for the period ended 2011-09-30.
Network Engines Inc has a market cap of $32.81 million; its shares were traded at around $0 with a P/E ratio of 13.5.
This is the annual revenues and earnings per share of NENG over the last 10 years. For detailed 10-year financial data and charts, go to 10-Year Financials of NENG.
Highlight of Business Operations:
The increase in net revenues during the year ended September 30, 2011 as compared to the year ended September 30, 2010 was primarily due to increased sales volumes with EMC, which increased by $49.5 million during the year ended September 30, 2011. This increase in sales to EMC was primarily the result of increased sales volumes as a result of our high volume business. Revenues from all other customers, excluding EMC and Tektronix, increased by $16.9 million during the year ended September 30, 2011, as compared to the year ended September 30, 2010, of which $10.6 million was attributable to revenues from new customers and $6.3 million was attributable to revenues from existing customers. These increases were partially offset by a $15.6 million decrease in sales to Tektronix. This decrease was due to their completion of a communications project during fiscal year 2010. Our sales to Tektronix are largely project-driven and are therefore volatile from period to period.The benefit from income taxes for the year ended September 30, 2011 was $(30,613,000) as compared to a benefit of $(11,000) recorded for the year ended September 30, 2010. The benefit from income taxes recorded for the year ended September 30, 2011 was primarily the result of the reversal of our deferred income tax valuation allowance. In accordance with authoritative guidance related to income taxes, we evaluated the positive and negative evidence of the realizability of our deferred income taxes, which are comprised primarily of federal net operating loss ("NOL") carryforwards. Prior to September 30, 2011 we had a full valuation allowance recorded on our deferred income taxes as we did not expect to realize the benefits of our deferred income taxes. As of September 30, 2011, we expected to realize the benefits of our NOL carryforwards in future periods based upon our cumulative profits over the past three years as well as our projected future earnings. As such, we removed our deferred tax asset valuation allowance as of September 30, 2011. The benefit from income taxes recorded for the year ended September 30, 2010 was primarily related to estimated tax refunds associated with federal alternative minimum tax payments made in previous fiscal years.
The $72.9 million increase in net revenues during the year ended September 30, 2010 as compared to the year ended September 30, 2009 was primarily the result of increased sales volume to our largest customers, in particular with EMC, combined with lower overall sales volumes in the year ended September 30, 2009 due to the global economic downturn. Our sales to EMC increased $60.8 million in the year ended September 30, 2010 as compared to the year ended September 30, 2009, which was primarily the result of our 2009 design win, which began in the year ended September 30, 2010. Our sales to Tektronix increased by $25.5 million in the year ended September 30, 2010, which was primarily the result of a large telecommunications project that Tektronix was completing during the year ended September 30, 2010. The increase in revenues from EMC and Tektronix was partially offset by a decrease of $9.0 million in revenues from other customers and an additional decrease of $4.4 million in
Robert M. Wadsworth, one of our directors, is a managing director of the limited liability corporation that controls HarbourVest Partners (and its affiliates, collectively, "HarbourVest"), one of our significant stockholders. HarbourVest is also a stockholder in Sepaton, Inc. ("Sepaton"). During the years ended September 30, 2011, 2010 and 2009, we recorded revenues of $2.2 million, $3.7 million and $2.0 million related to sales of application platform solutions and services to Sepaton, respectively. We had $0.1 million and $1.4 million in accounts receivable outstanding from Sepaton at September 30, 2011 and 2010, respectively.
John A. Blaeser, Chairman of the Board of Directors, also serves as a director of Imprivata, Inc. ("Imprivata"). During the years ended September 30, 2011, 2010 and 2009, we recorded revenues of $709,000, $752,000 and $861,000 respectively, related to sales of application platform solutions and services to Imprivata. We had $89,000 and $115,000 in accounts receivable outstanding from Imprivata at September 30, 2011 and 2010, respectively.
Subscribe RSS
