Netgear 1Q Profit Tops Expectations

By Cindy Waxer April 29, 2011

If Netgear’s first-quarter results are any indication, the tech sector is quickly recovering.

Networking solutions provider Netgear, Inc. has announced a 54 percent year-over-year surge in profit for the first quarter, as well as a 32 percent increase in revenues.

As for its second quarter, the San Jose, California-based company is projecting revenue of $270 million to $280 million. That’s compared to a Thomson Reuters analyst survey that estimated revenue of only $241 million.

In the meantime, net revenue for the first quarter ended April 3, 2011 was $278.8 million, as compared to $211.6 million for the first quarter ended March 28, 2010, and as compared to $258.5 million in the fourth quarter ended December 31, 2010.

Said Patrick Lo, chairman and chief executive officer of NETGEAR, in a statement, “We are extremely pleased with our first quarter 2011 performance, another quarter of record revenue and profit. We were carrying tremendous momentum out of a very strong fourth quarter, and our new products continue to exceed our expectations and enable us to gain market share.”

He continued, “Our impressive first quarter growth was driven by new products introduced in recent quarters. Particularly encouraging is the market's reception to our products in TV and mobile connectivity, Docsis 3.0 cable gateways, and business network storage. To continue the new product momentum, we introduced another 20 new products in Q1 2011, beefing up our portfolios in the areas of TV connectivity, Docsis 3.0 cable gateways, and security appliances.”

Earlier this week, Netgear unveiled its N750 Wireless Dual Band Gigabit Router (WNDR4000). The device handles intense wireless tasks such as streaming HD video, multiplayer gaming and large file transfers; and operates at a combined data rate of up to 750 megabits per second (Mbps).

Edited by Jennifer Russell

TechZone360 Contributing Editor

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