New Tech Offerings Boost Netgear, Radware Quarterly Earnings
Networking company Netgear and application delivery company Radware both announced a successful Q1 2011, attributing their positive earnings to new and first-to-market products that are propelling their growth in the marketplace.
Netgear’s (non-GAAP) Q1 2011 net income hit $24.2 million, up from $17.1 million for Q1 2010, representing a 42 percent year-over-year growth. Netgear’s revenue of $278.8 million was up from $211.6 million for Q1 of 2010, which puts Netgear at a 32 percent gain year over year. CEO Patrick Lo noted adoption of Netgear’s new products are “exceed[ing] our expectations.” He also said the company’s strong Q4 2010 was part of its growth momentum. Wall Street found favor with Netgear’s fiscal results, with stocks rising to nearly $40 in after-hours trading, up 17 percent. Wall St. Cheat Sheet pegs Netgear as one of the companies generating lots of buzz as the tech sector continues to grow.
Radware, a Tel-Aviv application delivery company, reported Q1 2011 GAAP net income of $4.4 million, up from just $600,000 year over year. The company also posted a strong gain in revenues for Q1 2011, with $38.6 million, a 17 percent bump from $33.1 million in Q1 of 2010. Radware’s stocks jumped 2 percent, up to $35 a share, with no after-market changes. The Motley Fool suggested ahead of the Q1 results that Radware had healthy margins and was quality stock. CEO Roy Zisapel said Radware’s success is based in large part on its first-to-market application delivery virtualization adoption, citing big-name enterprise and customers including Papa John’s.