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Last Update: 16-Apr-13 07:41 ET
NetGear shares fall 4% following lowered Q1 guidance
NETGEAR (NTGR $29.66 -1.22) announced that based on preliminary data available at this time, the Company expects net revenue for the first quarter ended March 31, 2013 to be in the range of $290 million to $295 million (vs $299.99 mln Capital IQ Consensus Estimate), which is an update to the previously estimated range, of $290 million to $305 million provided on February 12, 2013. The Company expects GAAP operating margin for the first quarter to be in the range of 7.5% to 8%, and expects GAAP earnings per diluted share for the first quarter to be between $0.35 and $0.39. The Company expects non-GAAP operating margin for the first quarter to be in the range of 9.5% to 10%, below the previously estimated range of 11% to 12% provided on February 12, 2013. Non-GAAP earnings per diluted share for the first quarter of 2013 is expected to be in the range of $0.45 to $0.50 (vs $0.58 Capital IQ Consensus Estimate). "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.
