Netgear Posts Revenue of $211.6 million, Beating Expectations

NETGEAR reported net revenue of $211.6 million, compared to $152.0 million in the comparable prior year quarter, 39% year-over-year growth, and as compared to $218.8 million in the fourth quarter ended December 31, 2009. Net income, computed in accordance with GAAP, for the first quarter of 2010 was $13.7 million, or $0.38 per diluted share. This compared to GAAP net loss of $3.8 million, or $0.11 per diluted share for the first quarter of 2009, and to GAAP net income of $7.9 million, or $0.22 per diluted share, in the fourth quarter of 2009.


Patrick Lo, Chairman and Chief Executive Officer of NETGEAR commented, "We are extremely pleased to report net revenue of $211.6 million for the first quarter 2010, exceeding our expectations. During the quarter, we experienced year-over-year revenue growth in all three geographic regions based on increased end market demand and further market share gains. We are happy to report that component shortages are largely behind us and channel inventory is up to very good levels in all regions. Our net revenue from service providers was approximately 19% of total net revenue in the first quarter 2010, as compared to 27% in the first quarter of 2009, and 28% in the fourth quarter of 2009. This lower percentage of service provider revenue on a relative basis was largely the result of record revenue from our retail business which exceeded our expectations.
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