FREMONT, Calif. -- Network Equipment Technologies, Inc. (NYSE:NWK) today reported its quarterly and annual results for the periods ended March 28, 2003. For the quarter, the company posted a profit of $0.02 per share and increased its cash position by $6.1 million. For the fourth quarter of fiscal 2003, total revenue was $33.8 million, up from $26.7 million in the same period of the prior year, a 27 percent increase, and up from $33.0 million posted in the third quarter of fiscal 2003. Product revenue for the fourth quarter of fiscal 2003 increased 39 percent to $28.8 million from $20.7 million in the same period of the prior year. Net income for the fourth quarter of fiscal 2003 was $537,000, or $0.02 per share, compared to a net loss for the same period of fiscal 2002 of $2.1 million, or $0.09 per share. For fiscal year 2003, total revenue increased 20 percent to $122.1 million from $101.5 million in fiscal 2002. Product revenue for the year increased to $101.9 million, up 36 percent from $74.8 million posted in fiscal 2002. Net loss for the fiscal year was $18.4 million, or $0.82 per share, compared to $37.4 million, or $1.69 per share, in fiscal 2002. In the first quarter of fiscal 2003, the company adopted SFAS 142, which resulted in a charge of $9.6 million taken in that quarter relating to the impairment of goodwill and other intangible assets. In the fourth quarter of fiscal 2003, the company posted a tax benefit of $15 million, a charge of $435,000 for the decline in value of fixed assets either sold or available for sale, and restructuring charges of $217,000. Finally, the company achieved positive cash flow of $6.1 million in the fourth quarter of fiscal 2003, ending the year with cash balances and investments of $94.6 million compared to $88.4 million at the end of the third quarter The ending cash balances were nearly flat year over year, compared to $94.9 million at the end of fiscal 2002. President and CEO Hubert "Bert" Whyte remarked, "We were delighted with our financial results for fiscal year 2003, despite the continued challenges in our industry. We have executed well on our strategy to return the company to financial health by focusing on the fundamentals, what we call our 'base hits' strategy. This strategy yielded an increase in total annual revenues of more than 20% and cash balances that ended the year nearly flat with last year. We continue to work on efforts to gain traction with our new products and are fortunate that the Company's strong customer base is already providing a rigorous testing ground for these new products. Demand for our legacy product remains strong, highlighted this quarter by several new large orders from government customers, for which we will take revenue over the next several quarters." Network Equipment Technologies Inc. (net.com)