NETGEAR: Reduced Service Provider Shipments To Impact Q2 Revenue; Shares Down 8%

(RTTNews) - NETGEAR, Inc. (NTGR) announced, due to reduced service provider shipments, the company's second-quarter net revenue is expected to be in the range of $215 million to $230 million. Analysts polled by Thomson Reuters expect the company to report revenue of $256.15 million, for the quarter.

For the second-quarter, the company currently expects GAAP operating margin to be in the range of 0.0% to 1.0%, and non-GAAP operating margin to be in the range of 4.0% to 5.0%.

Bryan Murray, CFO of NETGEAR, said: "We expect our operating margin will significantly improve in the second half of the year when service provider revenue and marketing spend should both return to normal levels."

For the first-quarter, non-GAAP net income per diluted share from continuing operations was $0.60, compared to $0.26, prior year. Net revenue was $249.1 million, an increase of 1.6% from a year ago.

Shares of NETGEAR were down more than 8% after hours.