Netgear sees more predictable performance that is aligned with the market

CFO Bryan Murray said, “We expect to continue to see more predictable performance that is aligned with the market for all of our businesses. Within NFB, end user demand for our ProAV line of managed switches is expected to remain strong, and, although we expect to continue to make improvements in our supply position, we continue to face lengthy lead times for supply, which may limit our ability to capture the full topline potential of this growing business. On the Home Networking side, we are seeing signs of the benefit of our broader product portfolio to address the market and expect to experience normal seasonality in this business. On the Mobile side, we expect revenue to be in line with Q1 as we await our new product introductions to round out the portfolio later in the year. Accordingly, we expect second quarter net revenue to be in the range of $155 million to $170 million. In the second quarter we expect our gross margin to be in line or decrease slightly from the first quarter level, and we expect to ramp our planned investments, with focus on insourcing software development capabilities and enhancing our go to market capabilities supporting our NFB business, accordingly we expect our second quarter GAAP operating margin to be in the range of (10.4)% to (7.4)%, and non-GAAP operating margin to be in the range of (6.5)% to (3.5)%. Our GAAP tax expense is expected to be in the range of $0.5 million to $1.5 million, and our non-GAAP tax expense is expected to be in the range of $1.0 million to $2.0 million for the second quarter of 2025. It’s worth noting that we don’t manufacture any of our products in China, the biggest target of the evolving U.S. trade policy, and the vast majority of our products are exempt from the recently announced tariffs, thus we don’t expect any associated impact from them to our Q2 financial results. As these policies continue to be fluid, our team continues to refine response plans should they be necessary.”