SAN JOSE, Calif. (AP) -- Networking equipment maker Netgear Inc. on Monday slashed its projected earnings for the just-ended quarter, saying that troubles with a new line of data storage products called ReadyNAS meant that shipments fell short of demand. Its shares dropped more than 4 percent in after-hours trading.
The company said it now sees adjusted earnings in the quarter through March 31 at between 45 cents and 50 cents per share. Analysts polled by FactSet were expecting 59 cents per share.
Netgear also said it expected revenue to be $290 million to $295 million, decreasing the top end of the range by $10 million from an earlier forecast made Feb. 12. Analysts were looking for revenue of $300 million.
CEO Patrick Lo said in a statement that the company "experienced difficulty in the transitioning of our ReadyNAS line, which caused shipments to be lower than demand from our channel partners."
Shipments were lower than planned, cutting into profit margins, he said. He added that supply would be restored starting in the second quarter.
Shares fell $1.22 to $29.66 in after-hours trading. In a declining market, shares ended the regular session down 3.8 percent at $30.88.