Netgear Profit Misses Estimates, Q2 Revenue Outlook Weak; Stock Down 5%

(RTTNews) - Networking products company Netgear Inc (NTGR) on Thursday reported first-quarter net earnings of $8 million or $0.23 per share compared with $14.4 million or $0.39 per share last year.

Excluding items, adjusted earnings for the quarter were $0.46 per share compared with $0.59 per share a year ago.

Revenues for the quarter were lower at $309.2 million compared with $349.4 million in the prior year.

Analysts polled by Thomson Reuters estimated earnings of $0.51 per share on revenues of $307.3 million for the quarter. Analysts' estimates typically exclude special items.

CEO Patrick Lo said, "Our revenues and operating margin for the first quarter of 2015 were in line with guidance, which was heavily influenced by our service provider business restructuring as well as the strengthening of the U.S. dollar. This is especially evident in the decline of our EMEA revenues and the flattening of our APAC revenues."

For the second quarter, the company expects revenues of $270 million to $285 million, while analysts expect $300.4 million.