Netgear forecasts revenue below analysts' estimates, shares fall
(Reuters) - Network equipment maker Netgear Inc forecast current-quarter revenue below analysts' estimates as telecom service providers cut spending, sending its shares down 7.5 percent after the bell.
The company forecast revenue of $290 million to $305 million for the first quarter. Analysts on average were looking for $317.6 million, according to Thomson Reuters I/B/E/S.
Netgear, which bought a part of Canadian wireless communication equipment maker Sierra Wireless Inc's mobile broadband business for $100 million last month, said it expected the first half of 2013 to be tempered by reduced spending from service providers.
The company's net income fell to $16.1 million, or 41 cents per share, in the fourth quarter, from $22.8 million, or 60 cents per share, a year earlier. Excluding items, the company earned 55 cents per share.
Revenue rose marginally to $310.4 million.
Analysts had expected earnings 54 cents per share on revenue of $307.6 million.
Shares of the San Jose, California-based company closed at $36.50 on the Nasdaq on Tuesday.
(Reporting By Aditya Kondalamahanty in Bangalore; Editing by Don Sebastian)
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