Netgear sees net income rise but revenue drop in Q3

Results show market gain in US - CEO
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Netgear’s net income was up 64 per cent in Q3 2009, rising to $8.5 million from 3.1 million in the same period last year.

The figure, computed in accordance with GAAP, is also a huge leap from the company’s $3.3 million loss in the second quarter of the year.

Net revenue for Q3 2009, which ended on September 27, was $171.1 million, down from $179.4 million for the third quarter of 2008.

Patrick Lo, Netgear’s chairman and CEO, said: "We are extremely pleased with our business performance this quarter. The third quarter showed robust back to school demand and market share gain in the US, resulting in year-over-year growth in US net revenue.

“Small and medium-sized business demand improved with quarter-over-quarter growth across all geographic regions. Combined with our continued cost savings, this net revenue growth resulted in significant operating margin improvement which exceeded our expectations.”

Netgear’s chief financial officer, Christine Gorjanc, added that the company ended Q3 with $234.5 million in cash, cash equivalents and short-term investments, compared to $202.2 million at the same time last year.

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