Budgeting, Planning & Forecasting

Budgeting, Planning & Forecasting

November 03, 2011

Network Equipment Technologies' Revenue Down in Q2 2011

Network Equipment Technologies (News - Alert), a provider of telecommunications equipment, posted revenue of $16.4 million in the second quarter of fiscal 2012, down from $20.2 million in Q2 fiscal 2011.

Though there was a year-on-year revenue decrease, the company reported a sequential increase in quarterly revenue primarily due to the Federal government's fiscal year end and continued strength in product revenue from unified communications sales to enterprise customers and other IP-based applications.

Network Equipment Technologies reported net loss of $7.5 million in the second quarter compared to a net loss of $3.4 million in the second quarter of the prior year.

The company’s cash and investment balances were $45.4 million at the end of the second quarter, down $8.7 million dollars from the end of the first quarter. The reduction resulted primarily from cash used for operations.

“As expected, our Federal Government business saw an uptick in the quarter as a result of the government's fiscal year end; however, budget and spending deferrals continue to impact business,” said C Nicholas Keating, Jr., president and CEO, Network Equipment Technologies, in a statement.

“Our enterprise business again saw revenue growth, both sequentially and year over year. Through our network of integrators and resellers, with significant direct touch by our sales and sales engineering professionals, our UC product portfolio continues to generate wins with key customers worldwide,” Keating added.

Recently, Network Equipment Technologies announced that it provides global services in support of large enterprise deployments of Microsoft Lync. Thanks to the new NET (News - Alert) global support offering, customers will have access to global support services via a single contact point.  

Network Equipment Technologies is offering the centralized global support hub on request 24 hours a day, 7 days a week through a Web-based platform. NET expert consultants around the world will process all customer support enquiries centrally.   

Rajani Baburajan is a contributing editor for TMCnet. To read more of Rajani's articles, please visit her columnist page.

Edited by Jennifer Russell

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