Netgear guided third-quarter net revenue to a range of $165 million to $175 million, with service provider and related products revenue expected to be around $22 million. Chief Financial Officer Bryan Murray said the company still expects approximately a 200 basis point headwind to combined gross margin in the second half compared to the first half, with the impact skewed to Q3 due to near-term supply constraints. The company reported second-quarter revenue of $168.6 million, with Enterprise segment revenue of $89 million and Consumer segment net revenue of $79.6 million. Non-GAAP gross margin was 41.4%, and non-GAAP earnings per share came in at $0.16. Murray noted that the memory cost challenge is expanding to other parts of the bill of materials, and the company is experiencing modest production delays.
NETGEAR IncNear-term supply constraints and production delays create a 200 bps gross margin headwind in Q3.
