Netgear Holds The Line While Others Do Not (NTGR)
January 21, 2009 by Douglas A. McIntyre
Netgear, Inc. (Nasdaq: NTGR) issued preliminary guidance for the fourth quarter ended December 31, 2008. The company said that it expects $155 million to $160 million in revenue. Thomson Reuters (First Call) has estimates at $157.2 million.
The Company also expects operating margin for the fourth quarter to be 5.0% to 6.0% on a non-GAAP basis. While it is good that it hit the top-line, the company was verycautious. The margin erosion is blamed on reduced profitability insome international markets against the U.S. dollar.
Netgear also expects other expenses of $6.5 million to $7.0 millionover the relation to re-measurement losses on transactions denominatedin foreign currencies, which is a result of the continuedstrengthening of the U.S. dollar.
The good news is that at least its top-line results are hanging inthere. That is better than what other tech companies. Be advised that this guidance is for the last quarter already ended, so there is no mention of the current climate. Formal earnings are now set for February 12 after the close.
Shares closed at $11.18 today and is hardly trading after the close. Its 52-week trading range is $8.21 to $28.35.
Jon C. Ogg
January 21, 2009
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