Netgear Sales Jump 28%

Patrick Lo, chairman and CEO of the Santa Clara, Calif.-based company, said during a conference call that Netgear's strength in the small business market helped offset a seasonally slower retail market.

Lo said the company expects its overall business momentum to continue into the third quarter, noting that expectations for growth and market-share gains should be fueled by new product introductions.

"We will continue to introduce new products that will push the envelope of both the speed as well as the range," Lo said, of the company's Wi-Fi technology plans. "On top of that, you should expect us to roll out lines of voice-over-IP products in the coming quarters," he said.

For the quarter ended June 27, the networking vendor reported revenue of $88.4 million, up from $69 million the same quarter a year ago.

Sponsored post

Earnings for the quarter dropped to $4.9 million, down from $11.5 million a year ago. Income for the prior year quarter included a $9.8 million reversal of deferred tax-valuation allowance.

Pro forma income, excluding compensation expenses, was $5.3 million, or 17 cents per share, up from $2.2 million, or 9 cents per share, the same quarter last year.

Financial analysts expected the company to report earnings of 14 cents per share on revenue of $87.7 million. The company reported earnings of 15 cents per share.

For the third quarter, Netgear expects to report revenue in the range of approximately $98 million to $101 million.

Shares of Netgear closed up 11 cents at $9.10 Thursday prior to the announcement.