NETGEAR Announces Preliminary Results for First Quarter of 2013

       NETGEAR Announces Preliminary Results for First Quarter of 2013

PR Newswire

SAN JOSE, Calif., April 15, 2013

SAN JOSE, Calif., April 15, 2013 /PRNewswire/ --NETGEAR®, Inc. (NASDAQGM:
NTGR), announced today that based on preliminary data available at this time,
the Company expects net revenue for the first quarter ended March 31, 2013 to
be in the range of $290 million to $295 million, which is an update to the
previously estimated range, of $290 million to $305 million provided on
February 12, 2013. The Company expects GAAP operating margin for the first
quarter to be in the range of 7.5% to 8%, and expects GAAP earnings per
diluted share for the first quarter to be between $0.35 and $0.39. The Company
expects non-GAAP operating margin for the first quarter to be in the range of
9.5% to 10%, below the previously estimated range of 11% to 12% provided on
February 12, 2013. Non-GAAP earnings per diluted share for the first quarter
of 2013 is expected to be in the range of $0.45 to $0.50.

"During the first quarter, we experienced difficulty in the transitioning of
our ReadyNAS line, which caused shipments to be lower than demand from our
channel partners. We are planning for a full recovery of supply for the
second quarter onwards. Lower than planned shipments of the new ReadyNAS
resulted in an unfavorable mix of products shipped, which negatively impacted
our gross margins," commented Patrick Lo, Chairman and CEO of NETGEAR.

These expected first quarter operating results are preliminary and subject to
NETGEAR's completion of quarterly closing review procedures.

The news release announcing the first quarter 2013 results will be
disseminated on April 25, 2013 after the market close. NETGEAR will hold its
regularly scheduled earnings conference call with investors and analysts on
Thursday, April 25, 2013 at 5:00 p.m. Eastern (2:00 p.m. Pacific) to discuss
results for the Company's first quarter 2013, the recent acquisition of the
AirCard business and its second quarter 2013 business outlook.

The dial-in number for the live audio call beginning at 5:00 p.m. Eastern
(2:00 p.m. Pacific) on Thursday, April 25, 2013 is (201) 689-8471. A live
webcast of the conference call will be available on NETGEAR's Investor
Relations website at http://investor.netgear.com.

A replay of the call will be available 2 hours following the call through
midnight Eastern (9:00 p.m. Pacific) on Thursday, May 2, 2013 by telephone at
(858) 384-5517 and via the web at http://investor.netgear.com. The conference
ID to access the phone replay is 412249.

A reconciliation of the company's anticipated GAAP and non-GAAP earnings is
provided in the following table:

                                              Low        High
GAAP operating income                         $  21.8    $  23.7
Amortization of intangible assets             1.5        1.5
Stock-based compensation expense              3.6        3.6
Restructuring and other charges               (0.0)      (0.0)
Acquisition related compensation and expense  0.7        0.7
Litigation reserves, net                      0.0        0.0
Non-GAAP operating income                     $  27.6    $  29.5
GAAP operating margin                         7.5     %  8.0     %
Non-GAAP operating margin                     9.5     %  10.0    %
GAAP net income                               $  13.7    $  15.3
Amortization of intangible assets             1.5        1.5
Stock-based compensation expense              3.6        3.6
Restructuring and other charges               (0.0)      (0.0)
Acquisition related compensation and expense  0.7        0.7
Litigation reserves, net                      0.0        0.0
Tax effect                                    (1.8)      (1.7)
Non-GAAP net income                           $  17.7    $  19.4
GAAP net income per share - diluted           $  0.35    $  0.39
Non-GAAP net income per share - diluted       $  0.45    $  0.50

About NETGEAR, Inc.

NETGEAR (NASDAQGM: NTGR) is a global networking company that delivers
innovative products to consumers, businesses and service providers. For
consumers, the company makes high performance, dependable and easy to use home
networking, storage and digital media products to connect people with the
Internet and their content and devices. For businesses, NETGEAR provides
networking, storage and security solutions without the cost and complexity of
big IT. The company also supplies top service providers with retail proven,
whole home solutions for their customers. NETGEAR products are built on a
variety of proven technologies such as wireless, Ethernet and Powerline, with
a focus on reliability and ease-of-use. NETGEAR products are sold in
approximately 35,000 retail locations around the globe, and through
approximately 41,000 value-added resellers. The company's headquarters are in
San Jose, Calif., with additional offices in over 25 countries. NETGEAR is an
ENERGY STAR® partner. More information is available at www.NETGEAR.com or by
calling (408) 907-8000. Connect with NETGEAR at twitter.com/NETGEAR and
www.facebook.com/NETGEAR.

© 2013 NETGEAR, Inc. NETGEAR and the NETGEAR logo are trademarks or registered
trademarks of NETGEAR, Inc. and its affiliates in the United States and/or
other countries. The information contained herein is subject to change without
notice. NETGEAR shall not be liable for technical or editorial errors or
omissions contained herein. All rights reserved.

Contact:
NETGEAR Investor Relations
Christopher Genualdi
netgearIR@netgear.com
(408) 890-3520

Safe Harbor Statement under the Private Securities Litigation Reform Act of
1995 for NETGEAR, Inc.:

This press release contains forward-looking statements within the meaning of
the U.S. Private Securities Litigation Reform Act of 1995. The words "expect",
"will" or other similar words are used to identify such forward-looking
statements. However, the absence of these words does not mean that the
statements are not forward-looking. The forward-looking statements represent
NETGEAR, Inc.'s expectations or beliefs concerning future events based on
information available at the time such statements were made and include
statements regarding expected first quarter financial results such as net
revenue, GAAP operating margin, GAAP earnings per diluted share, non-GAAP
operating margin, non-GAAP earnings per diluted share, and our plans for a
full recovery of supply for the second quarter onwards. These statements are
based on management's current expectations and are subject to certain risks
and uncertainties, including, without limitation, the following: future demand
for the Company's products may be lower than anticipated; consumers may choose
not to adopt the Company's new product offerings or adopt competing products;
product performance may be adversely affected by real world operating
conditions; the Company may be unsuccessful or experience delays in
manufacturing and distributing its new and existing products;
telecommunications service providers may choose to slow their deployment of
the Company's products or utilize competing products; and the actions and
financial health of the Company's customers. Further, certain forward-looking
statements are based on assumptions as to future events that may not prove to
be accurate. Therefore, actual outcomes and results may differ materially from
what is expressed or forecast in such forward-looking statements. Further
information on potential risk factors that could affect NETGEAR and its
business are detailed in the Company's periodic filings with the Securities
and Exchange Commission, including, but not limited to, those risks and
uncertainties listed in the section entitled "Part I - Item 1A. Risk Factors,"
pages 10 through 29, in the Company's Annual Report on Form 10-K for the
fiscal year ended December 31, 2012, filed with the Securities and Exchange
Commission on February 26, 2013. NETGEAR undertakes no obligation to release
publicly any revisions to any forward-looking statements contained herein to
reflect events or circumstances after the date hereof or to reflect the
occurrence of unanticipated events.

Use of Non-GAAP Financial Information:

To supplement our consolidated financial statements presented on a GAAP basis,
NETGEAR uses non-GAAP financial measures, which are adjusted to exclude
certain expenses and tax benefits, where applicable. We believe non-GAAP
financial measures are appropriate to enhance an overall understanding of our
past financial performance and also our prospects for the future. These
adjustments to our current period GAAP results are made with the intent of
providing both management and investors a more complete understanding of
NETGEAR's underlying operational results and trends and our marketplace
performance. For example, the non-GAAP results are an indication of our
baseline performance before charges that are considered by management to be
outside of our core operating results. In addition, these adjusted non-GAAP
results are among the primary indicators management uses as a basis for our
planning and forecasting of future periods. The presentation of this
additional information is not meant to be considered in isolation or as a
substitute for financial measures prepared in accordance with generally
accepted accounting principles in the United States.

SOURCE NETGEAR, Inc.

Website: http://www.netgear.com
 
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