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NEBS Server Manufacturer NEI Posts Results for the Third Fiscal Quarter of 2010


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August 02, 2010

NEBS Server Manufacturer NEI Posts Results for the Third Fiscal Quarter of 2010

By Marisa Torrieri, TMCnet Editor

NEI, a Canton, Mass.-based provider of telecom equipment – including carrier-grade NEBS servers, ATCA platforms and SAN storage subsystems – on Thursday reported results for its third fiscal quarter, the period ended June 30, 2010.

Highlights included record revenues of $61.6 million in the third fiscal quarter of 2010, an increase of 12 percent compared sequentially to the $55.0 million in the second fiscal quarter and 85 percent compared to the $33.3 million for the third quarter of the prior fiscal year.

“The third quarter revenue was a record for NEI, as we delivered an 85 percent year-over-year increase supported by contribution from design wins secured in the last year,” said Greg Shortell, president and CEO of NEI. “However, customer product transitions, project delays and visibility related to certain customer programs resulted in lower revenues than the guidance we had issued last quarter. Even so, we are pleased with the double-digit year-over-year growth in this record quarter.”

In a press statement, NEI pointed to a number of milestones. In the first nine months of fiscal 2010, NEI added 18 new design wins, compared to 28 design wins last year. In a recent interview with TMCnet, Jeff Hudgins, vice president of marketing at NEI, discussed 4G and the company’s NEI’s N-1500 R2 and N-2500 R3 carrier-grade rack mount servers, which offer customers NEBS Level 3 certified products in a small 20-inch deep footprint. 

These platforms, according to NEI have passed the rigorous testing required by today’s telecommunication organizations. These 1U and 2U carrier-grade NEBS servers deliver the most up-to-date performance and reliability while also ensuring an estimated life cycle of nearly five years. 

“The rollout of 4G services promises to put even more strain on the network as these applications proliferate,” Hudgins told TMCnet. “By combining the latest ATCA multi-core packet processors, 40G switch devices, uplinks such as 40GbE and 100GbE, and the new 40G backplanes [such as 10G Kr], a fully integrated COTS-based ATCA frame can dramatically lower cost/bit and increase system density for 4G networks.”

And according to NEI, achieving NEBS certification for these high-density rack solutions is critical.

“NEBS Level 3 certification is the standard test for high-availability carrier class equipment,” Hudgins told TMCnet. “By undergoing rigorous testing and achieving NEBS certification. service providers and network equipment providers can be confident that the network equipment will maximize uptime and lifecycle control for their revenue-producing 4G services.”

Marisa Torrieri is a TMCnet Web editor, covering IP hardware and mobility, including IP phones, smartphones, fixed-mobile convergence and satellite technology. She also compiles and regularly contributes to TMCnet's gadgets and satellite e-Newsletters. To read more of Marisa's articles, please visit her columnist page.

Edited by Marisa Torrieri

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