TECHNOLOGY - Dec. 29, 1998

* Network Equipment Technologies Inc. said its fiscal third-quarter earnings will be “significantly below” forecasts because its Asian sales are weak and it is financing more purchases of its products. The Fremont-based company makes equipment used by phone companies and businesses to combine voice and data communications on corporate networks and the Internet. NET was expected to earn 20 cents a share for the quarter ended Dec. 27, the average estimate of analysts polled by First Call Corp. The company said that it is selling more equipment to “emerging global carriers,” and that those new phone companies require leasing arrangements to make the purchases. Revenue from those lease arrangements is “generally recognized over several quarters” after the sale is made, NET said. The company said it would provide more details during a conference call with analysts after it reports earnings on Jan. 13. Network Equipment shares rose $1.13 to close at $13.25 on the NYSE.