NETGEAR® Registers $173.6 Million for the First Quarter of 2007 in Global Revenues
EMEA leads regional performance with 53% contribution to notable income increase
May 23, 2007 NETGEAR, Inc. (NASDAQ:NTGR), a worldwide provider of technologically advanced, branded networking products, reported impressive net revenues of $173.6 million for the first quarter of 2007, a 36 per cent increase as compared to $127.3 million for the same period last year. Robust sales in its various channels across the world, especially in the EMEA region where NETGEAR Middle East expanded into a highly-viable Qatari market, and its cutting-edge product range have ensured the sustained market stronghold of the company across the globe.
Commenting on the strong performance, Ahmad Zeidan, Channel Sales Manager, NETGEAR Middle East, said, "Revenue in the first quarter came in above guidance due to continued momentum across all channels. Product wise, there was good uptake on our RangeMax NEXT draft 11n products and ProSafe® Smart Switches, and the market acceptance of our industry leading stackable Gigabit Smart Switches introduced in the prior fourth quarter was also very encouraging."
NETGEAR Middle East further grew with the expansion into Qatar and appointment of a new channel partner in the Kingdom of Saudi Arabia, boosting the region's share in the consolidated earnings for the EMEA region. The EMEA market has been a top earner and in this quarter contributed USD 92,552 million or 53 per cent to the company cache. North America came second with USD 66,059 million followed by Asia Pacific with USD 14,961 million.
"The sustained economic phenomenon in the Middle East has been a huge factor in our strong market performance. We have benefited from robust demand and our strong brand pull in our core home and SMB markets has been fueled by the combination of continued broadband penetration along with our established alliances with content and service providers. As people continue to invest in creating, sharing and securely saving digital content, we believe we will remain a primary beneficiary," added Zeidan.
In addition to its regional expansion, NETGEAR Middle East bagged an AED 1.8 million contract to install wireless network solution in 350 schools in UAE. The company's product range was also enhanced by the launch of the NETGEAR WiFi Phones, the first publicly announced device certified to make Skype WiFi Internet calling a reality for millions of registered Skype users globally, which has generated keen market interest.
"We entered 2007 with a strong new product lineup: RangeMax NEXT draft 11n wireless, Powerline 85 and HD, Gigabit Stackable and PoE Smart Switches, SSL appliances, Skype phones, Digital Entertainers, Storage Central Turbo and 100Mbps cable modems. We are confident about our prospects for the coming quarters and year, and we expect the seasonally weaker second quarter net revenue to be approximately $165 million to $170 million," concluded Zeidan.
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About NETGEAR:
NETGEAR® (Nasdaq: NTGR) designs technologically advanced, branded networking products that address the specific needs of small and medium business and home users. The Company's product offerings enable users to share Internet access, peripherals, files, digital multimedia content and applications among multiple personal computers and other Internet-enabled devices. For more information, visit the company's Web site at www.netgear.com
For more information, please contact:
CommuniGate Middle East
PO Box 66861, Dubai, UAE
Tel: +971 4 3988134
Fax: +971 4 3988137
Email: info@communigateme.com
Website: www.communigateme.com
