Network equipment maker Netgear Inc estimated first-quarter revenue and earnings below analysts’ expectations, citing lower-than-planned shipments of its new network attached storage product.<\/p>\n
Shares of Netgear fell as much as 8 percent in trading after the bell. They closed at $30.88 on the Nasdaq on Monday.<\/p>\n
“The late introduction (of ReadyNAS) was not expected to have such an impact on revenue in the quarter,” BWS Financial analyst Hamed Khorsand told Reuters.<\/p>\n
Netgear launched the latest ReadyNAS products on March 18, towards the end of its first quarter ended March 31.<\/p>\n
“Lower-than-planned shipments of the new ReadyNAS resulted in an unfavorable mix of products shipped, which negatively impacted our gross margins,” Chief Executive Patrick Lo said.<\/p>\n
“We are planning for a full recovery of supply for the second quarter onwards,” he said.<\/p>\n
Netgear cut its revenue estimate to $290 million-$295 million, from $290 million-$305 million.<\/p>\n
The company, which will report quarterly results on April 25, estimated adjusted earnings of 45 cents to 50 cents per share.<\/p>\n
Analysts on average were expecting earnings of 59 cents per share on revenue of $299.7 million, according to Thomson Reuters I\/B\/E\/S.<\/p>\n