NETGEAR reported net revenue for Q4 2007 of $198.3 million, a 21% increase as compared to $164.0 million a year earlier, and an increase of 3% as compared to $191.7 million in Q3 2007. Net income (GAAP) was $12.5 million, or $0.35 per diluted share.
Patrick Lo, Chairman and Chief Executive Officer of NETGEAR, commented, “We had a solid revenue quarter and we believe we made market share gains in all three regions. We continued to see steady growth in the adoption of broadband Internet services in our target customer base. Coupled with our differentiated product offerings and focused channel programs, we believe we continued to outgrow the market in Q4 and the entire year of 2007. We continued to make progress in expanding our channel reach. We increased our retail footprint by 20% in Q4 2007 to over 22,000 retail outlets worldwide, and increased the number of active Value Added Resellers by almost 10% to close to 40,000. In the fourth quarter our net revenue from service providers was approximately 23% of total net revenue, as compared to 22% in the third quarter of 2007, and 28% in the fourth quarter of 2006. We experienced unexpected higher costs of air freight in the fourth quarter, which contributed to the underperformance against our operating margin target. We are in the process of rebidding the air freight service and expect to bring the costs in line in coming quarters.”http://www.netgear.com
