Strong Signal at Netgear

The stock surges 10%.
Author:
Publish date:

Netgear (NTGR) - Get Report surged 10% late Wednesday after the home-router maker posted a solid first quarter and guided toward second-quarter sales gains.

The Santa Clara, Calif., company also said finance chief Jonathan Mather will leave in October to pursue jobs closer to his home in Southern California. Netgear said it will search for a successor.

For the first quarter ended April 2, Netgear made $9.9 million, or 29 cents a share, up from the year-ago $7.9 million, or 24 cents. Revenue rose 17% from a year ago to $127 million.

On a pro forma basis, excluding certain costs, earnings rose to 31 cents in the latest quarter from 25 cents a year earlier, breezing past the 26-cent Thomson Financial estimate.

"Demand in the first quarter continued to be strong across all three regions, maintaining the momentum of the fourth quarter," said CEO Patrick Lo. "Channel supply experienced continued constraints due to component shortages on our most popular products: RangeMax 240 in the U.S. and DSL2+ gateways in Europe and in Australia. We expect component shortages will last until the middle of the second quarter due to sustained high market-demand levels."

The company forecast second-quarter sales of $125 million to $130 million, well above the $122 million Thomson Financial forecast.

Late Wednesday, Netgear rose $1.98 to $21.78.