Netgear stock drops 12% as company posts wider loss, orders dry up

Shares of Netgear Inc. (NTGR) tanked more than 12% in the extended session Wednesday after network-hardware maker reported a wider-than-expected quarterly loss and revenue that missed the mark, saying it faced an "unprecedented" inventory reduction by its largest service provider partner and similar reductions by its largest e-commerce partner. Netgear lost $9.7 million, or 33 cents a share, in the first quarter, compared with a loss of $57 million, or $1.95 a share, in the year-ago period. Adjusted for one-time items, Netgear lost 19 cents a share. Revenue dropped 14% to $180.9 million, Netgear said. Analysts polled by FactSet forecast an adjusted loss of 8 cents a share on sales of $193 million. "As a result of the uncertain macroeconomic environment and concerns over their own operations, our channel partners continue to materially reduce their inventory to historically low levels, greatly impacting our top line and resulting in lost operating leverage," Netgear said in a statement. The company guided for second-quarter revenue between $150 million and $165 million. The analysts surveyed by FactSet expect revenue around $205 million. Shares of Netgear ended the regular trading day up 0.8%.

-Claudia Assis

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04-26-23 1649ET

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