NENG just had a "Blow" out Quarter! Listen to the conference call and read the earnings release. You can "come" to only one conclusion!

NEI Announces Financial Results for the Fourth Fiscal Quarter 2009
Q4 Results Meet or Exceed Guidance
2009 Design Wins Create Optimism for FY2010

Net revenues of $40.7 million, more than $2 million above the top-end of the guidance of $33 to $38 million and an increase of 22 percent sequentially compared to the $33.3 million reported in the third fiscal quarter. The Q4 revenue represented a decrease of less than 1 percent compared to the $40.9 million reported for the fourth quarter last year. The slight year-over-year decrease in net revenues for the fourth fiscal quarter of 2009 was primarily due to the impact of the economic slowdown on certain of the Company's customers, offsetting revenue from new customers.
Gross profit was 15.0 percent of net revenues, at the top end of guidance of 13.5 percent to 15.0 percent and compared to 14.8 percent in the fourth fiscal quarter of 2008 and 15.1 percent in the third fiscal quarter of 2009.
Operating expenses were $6.9 million, including $276,000 of stock-based compensation expense, $439,000 of amortization expense and a $393,000 charge related to the settlement of an acquisition dispute, within guidance of between $6.4 million to $6.9 million. Operating expenses compared to $15.8 million in the year-ago quarter, which included a goodwill impairment charge of $8.7 million and restructuring charges of $444,000.
Non-GAAP net income, which excludes stock-based compensation, amortization expenses and the charge related to the settlement of an acquisition dispute was $326,000 or $0.01 per share, much better than the guidance of a non-GAAP net loss of $(150,000) to $(750,000). The non-GAAP net income compares sequentially to a non-GAAP net loss of $(485,000) in the third quarter and compared to non-GAAP net income of $299,000, or $0.01 per share, in the fourth fiscal quarter of 2008.
The Company ended the quarter with approximately $21.0 million in cash and cash equivalents. Subsequent to the end of the quarter, and not included in the $21.0 million, the Company settled on and received approximately $3.6 million of its $4.0 million claim regarding the disputed merger consideration. The difference of $393,000 has been recorded as a non-recurring charge for "settlement of acquisition dispute" in the fourth fiscal quarter.

Business Outlook

Net revenues in the range of $39 million to $44 million.
Gross profit in the range of 13.5 percent to 15 percent of net revenues.
Operating expenses between $6.2 million and $6.7 million, including an estimated $272,000 of stock-based compensation expense and an estimated amortization expense of $389,000.
Net income (loss) on a GAAP basis in the range of $(600,000) to breakeven.
Net income on a non-GAAP basis in the range of $100,000 to $700,000.

"We are continuing our practice of providing guidance one quarter at a time based on current customer forecasts," stated Doug Bryant, Chief Financial Officer. "The visibility in our customers' forecasts remains limited. Our quarterly guidance does not include a meaningful contribution from the Dell DC powered server design win or the large design win that we previously announced as booked during the fiscal fourth quarter which should begin to impact our financials in our second fiscal quarter of 2010. Our goal is to be profitable for our fiscal 2010, as we expect to leverage our existing operating infrastructure to offset lower gross margins related to aggressive pricing on higher volume opportunities."

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http://finance.yahoo.com/news/NEI-Announ...