Sam Boughedda

Investing.com — NETGEAR Inc (NASDAQ:) stock fell more than 10% premarket after it reported preliminary results for the quarter that ended April 3, but it is now regaining some of its losses from earlier in the session.

Netgear stock traded at $22.05, or -4.7%, after hitting a low price of $20.55.

According to the company, net revenue is expected to range between $200 million and $212million in its first quarter 2022. This compares with prior guidance that was $225 million to $240 millions.

The company stated that the US consumer WiFi markets declined during the first quarter of 2022. This was roughly equal to 2019, and the decrease in market size adversely affected CHP’s performance, leading to a drop in revenue.

Due to Covid-related Lockdowns in Shenzhen (China), March caused disruptions in supply chains to factories, Netgear was also affected. Netgear stated that the company lost a significant opportunity to generate higher SMB revenues in this quarter.