NETGEAR Reports Growth in Unit Shipments

NETGEAR reported Q3 revenue of $75.8 million, up 10% over the prior quarter and up 18% compared to the same quarter last year. The was a net loss (GAAP) of $4.0 million, as compared to net income of $2.3 million for the same period last year. Excluding special charges, pro forma net income per share was $0.09 per basic share and $0.08 per diluted share.


NETGEAR said unit shipments in all its product categories (Ethernet switching, wireless, and wired routers and gateways) grew sequentially from Q2 2003 to Q3 2003. Ethernet switching products, primarily for small businesses grew 16% sequentially in units, and wireless products, including wireless cards, access points, routers, firewalls and home gateways, grew 25% sequentially in units. Wireless shipments increased from 628,000 nodes in Q2 2003 to nearly 800,000 nodes in Q3 2003. As expected, unit shipment growth of wired routers and firewalls was up 7% sequentially because of the ongoing accelerated adoption of more popular wireless technologies.


Reported net revenue in North America grew 8% to $46.2 million in Q3 2003, compared to $42.8 million in the second quarter of 2003. The company said sales in North America were buoyant due to strong back-to-school seasonal promotions.
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