WASHINGTON (dpa-AFX) - Networking solutions provider Netgear, Inc. (NTGR) reported a profit for the fourth quarter that nearly doubled from last year, reflecting improved margins and 20 percent revenue growth. Both adjusted earnings per share and quarterly revenues topped analysts' expectations. The company also provided revenue guidance for the first quarter, in line with Street view.
'Q4 2011 represented another new record in quarterly revenue, and our full year 2011 revenue well exceeded the $1 billion mark. In the fourth quarter 2011 we benefited from strong holiday retail sales, specifically in North America. This is particularly encouraging after the strong back to school season we experienced in Q3,' Chairman and CEO Patrick Lo said in a statement.
The San Jose, California-based company reported net income of $22.84 million or $0.60 per share for the fourth quarter, higher than $13.62 million or $0.37 per share in the prior-year quarter.
Excluding items, adjusted net income for the quarter surged to $26.49 million or $0.69 per share from $16.05 million or $0.44 per share in the year-ago quarter.
On average, eight analysts polled by Thomson Reuters expected the company to report earnings of $0.64 per share for the quarter. Analysts' estimates typically exclude one-time items.
Net revenue for the quarter grew 20 percent to $309.16 million from $258.53 million in the same quarter last year, and topped eight Wall Street analysts' consensus estimate of $307.16 million.
'We also experienced healthy year-over-year growth in all three geographic regions as we continue to carry positive momentum out of a very strong third quarter. Our new products continue to exceed our expectations and enable us to gain market share,' Lo added.
Adjusted operating margin for the quarter expanded 100 basis points to 12.4 percent, while adjusted gross margin contracted 90 basis points to 31.1 percent from last year.
For fiscal 2011, the company reported net income of $91.37 million or $2.41 per share, higher than $50.91 million or $1.41 per share in the prior year.
Excluding items, adjusted net income for the year surged to $105.24 million or $2.77 per share from $62.93 million or $1.74 per share in the year ago. Analysts expected the company to report earnings of $2.71 per share for fiscal 2011.
Net revenues for the full year grew 31 percent to $1.18 billion from $902.05 million in the previous year. Street was looking for full-year 2011 revenues of $1.18 billion.
Looking ahead, Lo said, 'In these times of economic uncertainty, we continue to win market share on new product introductions. We believe our growth in 2012 will continue to be based on our strong new product pipeline and our expansion into new channels and emerging markets.'
For the first quarter, the company expects net revenue in a range of about $310 million to $325 million, with adjusted operating margin in the range of 11 to 12 percent. Street is currently looking for revenues of $312.41 million for the quarter.
NTGR closed Tuesday's regular trading session at $41.53, down $0.75 or 1.77% on a volume of 0.73 million shares. The stock dropped a further $0.82 or 1.97% in the after-hours trading.
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