NETGEAR, Inc. (NASDAQ: NTGR) opens with significant losses on Thursday due to their Q1 results, which reported 44.2 million loss (323.7 million Q1 2017) of net revenue from last quarter $367.9 million in Q4 2016. The GAAP net income per diluted share of $0.47, as compared to $0.50 in the Q1 2016 and a non-GAAP net income per diluted share was reported at $0.64, compared to last year’s Q1 of $0.74. NETGEARS’s Cash and Cash equivalent were down about 4.8 million dollars from last quarter and Net revenues in the Americas along were also down about 42 million dollars.
In addition to reporting on the financials of their books, the company also announced that its Board of Directors plans to repurchase up to 3,000,000 shares of the Company's common stock, or approximately 9.1% in outstanding shares. Which is in progression of 1,123,000 shares that is remaining from the repurchasing of stock from a previous program that was implemented.
Christine Gorjanc, Chief Financial Officer of NETGEAR stated,”We continue to believe that stock repurchases are an effective way of returning capital to shareholders, and plan to be opportunistic buyers of our stock in the coming quarters," and also added,” Looking forward to the second quarter of 2017, we expect net revenue to be in the range of $315 million to $330 million. GAAP operating margin is expected to be in the range of 5.3% to 6.3% and non-GAAP operating margin is expected to be in the range of 8.0% to 9.0%. Our GAAP tax rate is expected to be approximately 37.0% and our non-GAAP tax rate is expected to be 34.5% for the second quarter of 2017”
NETGEAR, Inc. designs, develops and markets networking solutions and smart connected products for consumers, businesses and service providers. The Company's product line consists of devices, such as network attached storage, Internet protocol (IP) security cameras, and home automation devices and services. The Company's segments include retail, commercial and service provider.