Netgear’s Q1 profit drops
Netgear reported net revenues of $152 million in the first quarter of 2009, ended March 29, compared with net revenues of $198.2 million in the prior-year quarter, a decrease of 23 percent. Net revenue in the previous quarter was $161.4 million.
Net income for the first quarter of 2009 was $42,000, compared with net income of $11.2 million in the first quarter of 2008 and a net loss of $7.3 million in the fourth quarter of 2008.
Patrick Lo, chairman and CEO of Netgear, said: "In the first quarter of 2009, as expected, we experienced continued weakening in the macroeconomic environment and end-market demand. . . . During the quarter, we experienced stabilization in consumer retail sales and an incremental decline in SMB sales. Product-wise, we continued to see a strong market shift to 11n Wi-Fi products. Our net revenue from service providers was approximately 27 percent of total net revenue, as compared to 18 percent in the fourth quarter of 2008 and 28 percent in the first quarter of 2008.
“In spite of the present economic environment,” Lo continued, “we are confident that with our winning combination of consistent innovation, variety in product offerings and focused channel programs, we will continue to gain on our competitors and further our market share."