UPDATE 1-Netgear estimates profit below analyst expectations
April 15 (Reuters) - Network equipment maker Netgear Inc estimated first-quarter revenue and earnings below analysts' expectations, citing lower-than-planned shipments of its new network attached storage product.
Shares of Netgear fell as much as 8 percent in trading after the bell. They closed at $30.88 on the Nasdaq on Monday.
"The late introduction (of ReadyNAS) was not expected to have such an impact on revenue in the quarter," BWS Financial analyst Hamed Khorsand told Reuters.
Netgear launched the latest ReadyNAS products on March 18, towards the end of its first quarter ended March 31.
"Lower-than-planned shipments of the new ReadyNAS resulted in an unfavorable mix of products shipped, which negatively impacted our gross margins," Chief Executive Patrick Lo said.
"We are planning for a full recovery of supply for the second quarter onwards," he said.
Netgear cut its revenue estimate to $290 million-$295 million, from $290 million-$305 million.
The company, which will report quarterly results on April 25, estimated adjusted earnings of 45 cents to 50 cents per share.
Analysts on average were expecting earnings of 59 cents per share on revenue of $299.7 million, according to Thomson Reuters I/B/E/S.
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