Network Equipment Technologies' CEO Comments On Company's Recent Actions And Near Term Strategy Conference Call (Transcript)

Network Equipment Technologies, Inc. ( NWK)

Recent Actions and Near Term Strategy Conference Call

April 02, 2012 5:30 pm ET

Executives

Leigh Salvo – Investor Relations

Dixon R. Doll – Chairman

David Wagenseller – Acting President and Chief Executive Officer

Presentation

Operator

Good day, ladies and gentlemen, and welcome to the Network Equipment Technologies Comments from Acting CEO. My name is Karis and I will be your coordinator for today. At this time, all participants are in a listen-only mode and will remain muted for the duration of the call. (Operator instructions)

At this time, I would now like to hand the call over to your host for today Ms. Leigh Salvo, Investor Relations. Please proceed.

Leigh Salvo

Thank you. Welcome, everyone, to our call this afternoon, during which NET’s Acting CEO, David Wagenseller will provide some [comments] following last week’s restructuring and Executive Officer changes announcement.

In keeping with the Safe Harbor provisions of the Private Securities Litigation Reform Act, I want to remind everyone that we’ll be making some forward-looking statements and projections today, including those relating to future revenue, operating results and financial conditions. Investors are cautioned that these statements are based on current estimates and assumptions that involve risks and uncertainties that might cause actual results to differ materially from those expressed or implied in the forward-looking statements.

These risks and uncertainties include our ability to develop and commercialize new products and product enhancements, success in building new sales channels, achieving broad market acceptance for our products, the status of relations with and performance by third-party technology providers, challenges of managing inventory and production of products, certifications for new and existing products, compliance with export controls and other government regulations, federal government budget matters and procurement decisions, circumstances regarding specific sales that can affect the recognition of revenue, and other risks, including those identified in the company's filings with the SEC, including Forms 10-K and 10-Q and in other press releases and communications.

The company disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise. Additionally, though an audio archive of this call will be available on the company's website for at least 60 days, the statements made on this conference call are only made as of April 2, 2012, and we disclaim any duty or intention to update forward-looking statements.

At this time, I’d like to turn the call over to NET’s Chairman of the Board, Dixon Doll. Dixon?

Dixon R. Doll

Yes, am I ready to go?

Leigh Salvo

Yes. Thank you.

Dixon R. Doll

Very well. Good afternoon, everyone. My name is Dixon Doll. I’m the Board Chairman of NET. I’ve joined the call today to give a quick introduction to David Wagenseller, who today is assuming the role of Acting President and Chief Executive Officer. In my role as Chairman, the Board and I have known and worked with David for many years here; in my case, [over the past] 15 years; and we all believe he is the right person at this time to lead NET as the company makes it a top priority to restore financial and fiscal stability to the company.

David has been a Vice President at NET for the past seven years and has served the company very capably as CFO for the past two and a half years. I can assure that he knows the NET business extremely well as a result of his years of service to the company up until now. I also wanted to assure everybody that the Board of Directors have been very actively involved in managing and executing and helping on this transition and we will continue to do everything in our power to help David and his management team to be successful in his new leadership role.

I’m pleased at this time to introduce David Wagenseller, CEO and President of NET.

David Wagenseller

Thank you, Dixon. I wanted to take this opportunity to introduce myself to you. I also want to share some views on where we are presently as a company and some near-term goals and objectives for NET as we move forward. Today begins a new fiscal year and a new chapter for NET, for its employees, shareholders and customers. I’m very grateful for the opportunity to be part of it. On this brief call today, I want to give everyone some insight on why we announced the restructure last week, how we move forward and some thoughts on our strategy and plan for the near-term.

Let me begin with some background. We now have significant relationships in place with large customers and major resellers; Microsoft, HP, Dell, BT, Orange Business Solutions, Di-Data, Distribution Central, TechLand, Q-KON and Tesas to name just a few. There are many more than these and we are regularly adding new names to the list. While we still have work to do to fulfill our channel sales strategy, much of the remaining work is more tactical, with a lot of heavy lifting now done. Platforms for our UX product are also now in place.

We invested in the development of a tremendous product and it’s a foundation for NET’s future. There are additional releases of key features still in the roadmap, but the foundation is done. Now, we must turn to financial stability and execution against our plan. Financial stability will eliminate the fear, uncertainty and doubt that might otherwise affect our ability to market and sell our products, to attract investors and to motivate employees. I want all fear, uncertainty and doubt removed as soon as possible, and financial stability is the cure.

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