Wi-Fi provider Netgear reported a weak first quarter, with net revenue down 10% year-over-year.
Patrick Lo, chairman and CEO of NetGear, said that its performance for the quarter was due to difficulties in transitioning its product line to the new ReadyNAS solutions for the commercial business market, including making 10 models obsolete and replacing them with seven new models.
“The transition occurred late in the quarter and difficulty securing components and some last minute bug fixes led to unanticipated delays,” Lo said. He added that “The execution was much harder than anticipated and we learned a valuable lesson in engineering and manufacturing planning. The good news is that our supply is now in full swing and customer feedback on the new product line has been very positive.”
NetGear’s non-GAAP net income was $19.4 million, down more than 31% year-over-year.
Interphase, which manufactures connectivity products for customers including Alcatel-Lucent, Samsung, Genband and Oracle, reported quarterly results that “reflect a continued weakness in the telecom market worldwide,” according to CEO and president Gregory Kalush.
Interphase earned revenues of $3.3 million, which was $734,000 less than the same period last year. Both service revenues and telecom and enterprise product revenues were down, with the biggest loss in the product area. Interphase had a net loss for the quarter of $1.4 million, compared to a loss of $929,000 during 2012’s first quarter.
Kalush said that the company had sufficient orders in electronic manufacturing to grow sequentially, but a global parts shortage from one supplier kept the company from fulfilling the orders during the first quarter. He added that Interphase now has the parts and is working on its order for one customer who has already placed a second, larger order that will be filled during the second and third quarters of this year.
Wireless infrastructure and small cell enabler Radisys earned revenues of $68.2 million for the first quarter, down from more than $75 million during the same period last year; and had a net loss of about $6.6 million, greater than the $4.8 million reported in the first quarter of 2012.
Brian Bronson, Radisys’ president and CEO, said that the company is meeting product development and operational objectives as well as its financial guidance. Radisys reported that deep packet inspection and intelligent gateway platform design wins during the first quarter of this year among 19 customers (eight of which are new) are expected to generate about $60 million over the next five years. Radisys expects to generate positive cash flow next quarter.
