NETGEAR, Inc. (NTGR) has reported a 3.59 percent fall in profit for the quarter ended Apr. 02, 2017. The company has earned $15.99 million, or $0.47 a share in the quarter, compared with $16.59 million, or $0.50 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $21.69 million, or $0.64 a share compared with $24.60 million or $0.74 a share, a year ago. Revenue during the quarter grew 4.32 percent to $323.66 million from $310.26 million in the previous year period. Gross margin for the quarter contracted 246 basis points over the previous year period to 29.95 percent. Total expenses were 92.96 percent of quarterly revenues, up from 91.74 percent for the same period last year. That has resulted in a contraction of 121 basis points in operating margin to 7.04 percent.
Operating income for the quarter was $22.79 million, compared with $25.61 million in the previous year period.
However, the adjusted operating income for the quarter stood at $32.34 million compared to $36.88 million in the prior year period. At the same time, adjusted operating margin contracted 190 basis points in the quarter to 9.99 percent from 11.89 percent in the last year period.
Patrick Lo, Chairman and Chief Executive Officer of NETGEAR, commented, "The first quarter of 2017 marks a strong start to the new year for NETGEAR, driven by an impressive 150% year-over-year growth in our Arlo segment. We believe we can continue to outpace this fast growing market with continued strong investment in R&D, channel and brand marketing."
For the second-quarter, NETGEAR, Inc. projects revenue to be in the range of $315 million to $330 million. The company projects operating income to grow in the range of 5.30 percent to 6.30 percent. The company projects adjusted operating income to grow in the range of 8 percent to 9 percent.
Working capital increases NETGEAR, Inc. has recorded an increase in the working capital over the last year. It stood at $622.35 million as at Apr. 02, 2017, up 17.93 percent or $94.64 million from $527.71 million on Apr. 03, 2016. Current ratio was at 3.06 as on Apr. 02, 2017, up from 2.92 on Apr. 03, 2016. Cash conversion cycle (CCC) has decreased to 97 days for the quarter from 136 days for the last year period. Days sales outstanding went up to 79 days for the quarter compared with 77 days for the same period last year.
Days inventory outstanding has decreased to 54 days for the quarter compared with 96 days for the previous year period. At the same time, days payable outstanding was almost stable at 37 days for the quarter, when compared with the previous year period.
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