NTGR - Old RF Fav has accounting issues!

NETGEAR misses by $0.01, beats on revs; guides Q3 revs in-line, announces restatement (16.53 +0.68) Reports Q2 (Jun) loss of $0.02 per share, $0.01 worse than the First Call consensus of ($0.01); revenues fell 29.2% year/year to $144.7 mln vs the $141.8 mln consensus. Co issues in-line guidance for Q3, sees Q3 revs of $150-160 mln vs. $151.89 mln consensus; sees non-GAAP operating margins of 5-7%. Non-GAAP operating margin was 3.7% in the second quarter of 2009, compared to 11.5% in the second quarter of 2008, and 3.7% in the first quarter of 2009. We are also pleased to announce that our current year-to-date operating expense cost reductions is approximately $6.6 million, as compared to our total 2009 operating expense cost reduction target of $10.0 million, which was based on our annualized fourth quarter 2008 run rate." NETGEAR also announced today that the Company will restate its financial statements for the first quarter ended March 29, 2009, due to a misapplication of FASB Interpretation No. 18, Accounting for Income Taxes in Interim Periods. As a result, the Audit Committee of the Board of Directors today has concluded that investors should no longer rely on the Company's previously filed financial statements for the quarter ended March 29, 2009. Consequently, for the quarter ended March 29, 2009, the Company expects net income and earnings per share computed in accordance with GAAP to be negatively impacted by $3.8 million and $0.11 per share, respectively, and non-GAAP net income and earnings per share to decrease by $431,000 and $0.01 per share, respectively. "With inventory at healthy levels and currency exchange rates becoming more favorable, we expect improvement in both gross and operating margin in the third quarter of 2009