Wednesday, Netgear, Inc. (NTGR), a designer of networking products, reported a loss for the second quarter compared with a profit last year, hurt by lower revenues due to the worldwide macroeconomic downturn.
Net loss for the second quarter was $3.28 million or $0.10 per share, compared to net income of $11.06 million or $0.31 per share in the previous year.
Excluding amortization of purchased intangibles, stock-based compensation, restructuring, acquisition-related compensation, and litigation reserves, net loss for the quarter was $0.52 million or $0.02 per share, compared to net income of $14.52 million or $0.41 per share a year ago.
On average, six analysts polled by Thomson Reuters expected the company to report a loss of $0.01 per share for the second quarter. Analysts' estimates typically exclude special items.
Net revenue for the quarter declined to $144.67 million from $204.46 million a year ago. Eight analysts had a consensus revenue estimate of $141.84 million for the company.
For the six-month period, net loss was $7.05 million or $0.21 per share, compared to net income of $22.29 million or $0.62 per share in the same period of the previous year. Net revenue declined to $296.69 million from $402.62 million.
Looking forward, the company expects net revenue for the third quarter in the range of approximately $150 million to $160 million and non-GAAP operating margin to be in the range of 5% to 7%. "With inventory at healthy levels and currency exchange rates becoming more favorable, we expect improvement in both gross and operating margin in the third quarter of 2009," said Patrick Lo, chairman and chief executive Officer of Netgear.
Analysts are expecting the compay to report revenues of $151.89 million for the third quarter.
The company also said that it will restate its financial statements for the first quarter ended March 29, 2009 to correct the tax expense for the first quarter.
NTGR is trading at $15.71 in the after hours session, down 4.96%.
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