WASHINGTON (dpa-AFX) - Netgear Inc. (NTGR) on Monday slashed its revenue outlook for the first quarter and detailed some weak earnings outlook for the period.
The networking products maker said results were mainly hurt by lower-than-planned shipments of its new ReadyNAS line of products which led to an unfavorable product mix and impacted margin.
In February, Netgear warned of some soft revenues for the first quarter, citing reduced spending from its service provider customers. At that time, the company said it expects first half of 2013 to be tempered by reduced spending from service provider customers amid economic volatility.
The San Jose, California-based company now expects first-quarter net revenues in the range of $290 million to $295 million, compared to its prior guidance of $290 million to $305 million. Netgear expects net earnings of $0.35 to $0.39 per share and adjusted earnings of $0.45 to $0.50 per share for the quarter.
Analysts polled by Thomson Reuters currently expect revenues of $299.66 million and earnings of $0.59 per share for the quarter. Analysts' estimates typically exclude special items.
The company expects operating margin for the quarter to be 7.5 to 8 percent. Adjusted margin is expected to be 9.5 to 10 percent, down from prior guidance of 11 to 12 percent.
Netgear said it is planning for a full recovery in the supply of ReadyNAS line of products in the second quarter.
Netgear closed Monday at $30.88, down 3.80%, on the Nasdaq. In after hours, the stock dropped 0.02%.
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