Monday, April 15, 2013

NETGEAR Expects Q1 Revenue of $290-295 Million

NETGEAR expects its Q1 revenue to be in the range of $290 million to $295 million, which is an update to the previously estimated range, of $290 million to $305 million provided on February 12, 2013. GAAP operating margin for the first quarter to be in the range of 7.5% to 8%, and GAAP earnings per diluted share are expected to be between $0.35 and $0.39.

"During the first quarter, we experienced difficulty in the transitioning of our ReadyNAS line, which caused shipments to be lower than demand from our channel partners.  We are planning for a full recovery of supply for the second quarter onwards.  Lower than planned shipments of the new ReadyNAS resulted in an unfavorable mix of products shipped, which negatively impacted our gross margins," commented Patrick Lo, Chairman and CEO of NETGEAR.