NETGEAR, Inc (NTGR) has reported 1.38 percent rise in profit for the quarter ended Dec. 31, 2016. The company has earned $22.11 million, or $0.65 a share in the quarter, compared with $21.81 million, or $0.66 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $29.87 million, or $0.88 a share compared with $27.50 million or $0.83 a share, a year ago. Revenue during the quarter went up marginally by 1.96 percent to $367.93 million from $360.86 million in the previous year period. Gross margin for the quarter expanded 88 basis points over the previous year period to 30.09 percent. Total expenses were 91.02 percent of quarterly revenues, down from 91.51 percent for the same period last year. This has led to an improvement of 49 basis points in operating margin to 8.98 percent.
Operating income for the quarter was $33.04 million, compared with $30.64 million in the previous year period.
However, the adjusted operating income for the quarter stood at $41.97 million compared to $39.14 million in the prior year period. At the same time, adjusted operating margin improved 56 basis points in the quarter to 11.41 percent from 10.85 percent in the last year period.
Patrick Lo, Chairman and Chief Executive Officer of NETGEAR, commented, "2016 was another successful year for NETGEAR, as we delivered many new and exciting products to our customers, gained share in the key markets that we serve and delivered compelling earnings growth for our shareholders. We're also pleased to announce that our Retail
For the first-quarter, Netgear forecasts revenue to be in the range of $300 million to $315 million. The company forecasts operating income to grow in the range of 6.30 percent to 7.30 percent for the first-quarter. The company forecasts adjusted operating income to grow in the range of 9.50 percent to 10.50 percent for the first-quarter.
Working capital increases
NETGEAR, Inc has recorded an increase in the working capital over the last year. It stood at $606.13 million as at Dec. 31, 2016, up 19.94 percent or $100.76 million from $505.37 million on Dec. 31, 2015. Current ratio was at 2.70 as on Dec. 31, 2016, up from 2.60 on Dec. 31, 2015.
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