NETGEAR reported net revenue for the fourth quarter ended December 31, 2005 was $121.8 million, a 15.9% increase as compared to $105.1 million for the fourth quarter ended December 31, 2004, and $111.3 million in the third quarter of 2005. Net income, computed in accordance with GAAP, for the fourth quarter of 2005 was $8.9 million or $0.26 per diluted share.
Net revenue for the fiscal year 2005 was $449.6 million, a 17.4% increase as compared to $383.1 million for the fiscal year 2004. Net income, computed in accordance with GAAP, for the fiscal year 2005 was $33.6 million or $0.99 per diluted share. This net income was a 43.0% increase compared to net income of $23.5 million for the fiscal year 2004 or $0.72 per diluted share.
Patrick Lo, Chairman and Chief Executive Officer of NETGEAR, commented, “Demand for our products in the fourth quarter was strong across all three geographic regions. Unfortunately, the demand mix was weighted more than we expected towards our RangeMax and Super G DSL gateways and our 802.11g wireless routers, which limited our ability to meet demand and therefore negatively impacted our net revenue. Our supply constraints also resulted in the company’s inability to replenish the channel towards the end of the quarter. Compared to the end of 2004, we ended the year with significantly fewer weeks of inventory in the channel in the U.S. Despite these challenges, we believe we gained share in all three markets, US, Europe and Asia Pacific for Q4 and fiscal year 2005.”http://www.netgear.com
