October 27, 2011

NETGEAR® Reports Record Third Quarter 2011 Results

  • Record third quarter 2011 net revenue of $301.8 million, as compared to $236.0 million in the comparable prior year quarter, 28% year-over-year growth
  • Third quarter 2011 non-GAAP net income of $29.9 million, as compared to $16.1 million in the comparable prior year quarter, 86% year-over-year growth
  • Third quarter 2011 non-GAAP diluted earnings per share of $0.79, as compared to $0.45 in the comparable prior year quarter, 76% year-over-year growth
  • Company expects fourth quarter 2011 net revenue to be in the range of $300 million to $310 million, with non-GAAP operating margin in the range of 11% to 12%

SAN JOSE, California - October 27, 2011 - NETGEAR, Inc. (NASDAQGM: NTGR), a global networking company that delivers innovative products to consumers, businesses and service providers, today reported financial results for the third quarter ended October 2, 2011.

Net revenue for the third quarter ended October 2, 2011 was $301.8 million, as compared to $236.0 million for the third quarter ended October 3, 2010, and as compared to $291.2 million in the second quarter ended July 3, 2011. Net income, computed in accordance with GAAP, for the third quarter of 2011 was $26.7 million, or $0.70 per diluted share. This compared to GAAP net income of $13.1 million, or $0.36 per diluted share, for the third quarter of 2010, and to GAAP net income of $20.6 million, or $0.54 per diluted share, in the second quarter of 2011.

Gross margin on a non-GAAP basis in the third quarter of 2011 was 32.4%, as compared to 32.7% in the year ago comparable quarter, and 31.7% in the second quarter of 2011. Non-GAAP operating margin was 12.5% in the third quarter of 2011, as compared to 11.0% in the third quarter of 2010, and 11.9% in the second quarter of 2011. Non-GAAP net income was $0.79 per diluted share in the third quarter of 2011, as compared to non-GAAP net income of $0.45 per diluted share in the third quarter of 2010, and non-GAAP net income of $0.65 per diluted share in the second quarter of 2011.

The differences between GAAP and non-GAAP financial measures include adjustments, net of any tax effect, for amortization of purchased intangibles, stock-based compensation, restructuring charges, acquisition related compensation and transitional expenses, impact to cost of sales from acquisition accounting adjustments to inventory, and litigation reserves. The accompanying schedules provide a reconciliation of financial measures computed on a GAAP basis to financial measures computed on a non-GAAP basis.

Patrick Lo, Chairman and Chief Executive Officer of NETGEAR commented, "We are extremely pleased with our Q3 2011 financial performance amid a challenging macroeconomic environment. Despite the uncertainty in Europe, we were able to achieve record revenue, profit and EPS, based on our strength in new product innovation and distribution. We are particularly pleased with our 9% sequential revenue growth in Europe and our double digit sequential revenue growth worldwide in our Retail and Commercial businesses. Our European retail consumer business was led by an uptake in home networking products, following the trend in the U.S., as more tablets and WiFi enabled devices are being used at home. Our strength in the commercial business was led by the strong market reception of our switches with 10 Gigabit or Power over Ethernet capabilities, and our innovative Plus switches which are manageable via simple PC utility software."

"Our Retail Business Unit revenue was up 18% sequentially, and up 10% over the prior year quarter, while the Commercial Business Unit revenue was up 18% sequentially, and up 21% over the prior year quarter. As expected, the Service Provider Business Unit revenue was down 21% sequentially, reflective of a one-time order from a major service provider in the previous quarter. On a year-over-year basis, service provider revenue was up 85%."

"We introduced another 22 new exciting products in the third quarter 2011 as we continue to build on our new product momentum. Notable new products include: the industry's first 900 Megabits per second WiFi router; the new WiFi router with ReadySHARE® Cloud storage which enables smartphone access to content stored on USB drives at home; the NETGEAR NeoTV™ Player which streams Netflix, Vudu, YouTube and many other online content sources to TVs; the Universal Push2TV® which transposes any laptop screen display wirelessly to a TV; the NETGEAR ProSecure® UTM9S, the industry's first Unified Threat Management (UTM) gateway with both vDSL and WiFi capability, and the 52 port high density Power over Ethernet Smart switch."

Christine Gorjanc, Chief Financial Officer of NETGEAR, said, "We ended the third quarter of 2011 with $321.1 million in cash, cash equivalents and short-term investments driven by a record quarter of cash flow from operations of $43.2 million. Our net inventory ended at $136.0 million, with 6.0 turns, and DSO's of 66 days in the third quarter 2011 remained at the low end of our historical range of 65 to 75 days. Additionally, our tax rate in the third quarter 2011 reflects a one-time benefit which accounts for an incremental $0.09 per diluted share of earnings."

Looking forward, Mr. Lo added, "Our success through turbulent economic times has been driven by product innovation and we will continue to focus on new product introductions in the fourth quarter 2011 with another 20 new products expected. We are cautiously optimistic on holiday sales in both North America and Europe. Specifically, for the fourth quarter of 2011, we expect net revenue in the range of approximately $300 million to $310 million, with non-GAAP operating margin to be in the range of 11% to 12%."

Investor Conference Call / Webcast Details
NETGEAR will review the third quarter 2011 results and discuss management's expectations for the fourth quarter of 2011 today, Thursday, October 27, 2011 at 5 p.m. EDT (2 p.m. PDT). The dial-in number for the live audio call is (201) 689-8471. A live webcast of the conference call will be available on NETGEAR's website at http://investor.netgear.com. A replay of the call will be available 2 hours following the call through midnight EDT (9 p.m. PDT) on Thursday, November 3, 2011 by telephone at (858) 384-5517 and via the web at http://investor.netgear.com. The account number to access the phone replay is 380966.

About NETGEAR, Inc.
NETGEAR (NASDAQGM: NTGR) is a global networking company that delivers innovative products to consumers, businesses and service providers. For consumers, the company makes high performance, dependable and easy to use home networking, storage and digital media products to connect people with the Internet and their content and devices. For businesses, NETGEAR provides networking, storage and security solutions without the cost and complexity of Big IT. The company also supplies top service providers with retail proven, whole home solutions for their customers. NETGEAR products are built on a variety of proven technologies such as wireless, Ethernet and powerline, with a focus on reliability and ease-of-use. NETGEAR products are sold in approximately 27,500 retail locations around the globe, and through more than 37,000 value-added resellers. The company's headquarters are in San Jose, Calif., with additional offices in 25 countries. NETGEAR is an ENERGY STAR partner. More information is available at http://investor.netgear.com or by calling (408) 907-8000. Connect with NETGEAR at http://twitter.com/NETGEAR and http://www.facebook.com/NETGEAR.

© 2011 NETGEAR, Inc. NETGEAR, the NETGEAR logo, ReadySHARE, NeoTV, Push2TV and ProSecure are trademarks or registered trademarks of NETGEAR, Inc. in the United States and/or other countries. Other brand and product names are trademarks or registered trademarks of their respective holders. The information contained herein is subject to change without notice. NETGEAR shall not be liable for technical or editorial errors or omissions contained herein. All rights reserved.

Contact:
Joseph Villalta
The Ruth Group
(646) 536-7003
jvillalta@theruthgroup.com

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995 for NETGEAR, Inc.:
This press release contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. The words "anticipate", "expect", "believe", "will", "may", "should", "estimate", "project", "outlook", "forecast" or other similar words are used to identify such forward-looking statements. However, the absence of these words does not mean that the statements are not forward-looking. The forward-looking statements represent NETGEAR, Inc.'s expectations or beliefs concerning future events based on information available at the time such statements were made and include statements, among others, regarding NETGEAR's expected revenue and operating margin , our ability and intent to launch new product offerings and continue product development efforts, current and future demand for the Company's existing and anticipated new products, our outlook for holiday sales for the 2011 holiday season, and our expectation of an increase in revenue for the fourth quarter of 2011. These statements are based on management's current expectations and are subject to certain risks and uncertainties, including, without limitation, the following: future demand for the Company's products may be lower than anticipated; consumers may choose not to adopt the Company's new product offerings or adopt competing products; product performance may be adversely affected by real world operating conditions; the Company may be unsuccessful or experience delays in manufacturing and distributing its new and existing products; telecommunications service providers may choose to slow their deployment of the Company's products or utilize competing products; the Company may be unable to collect receivables as they become due; the Company may fail to manage costs, including the cost of developing new products and manufacturing and distribution of its existing offerings; the Company may fail to successfully continue to effect operating expense savings; channel inventory information reported is estimated based on the average number of weeks of inventory on hand on the last Saturday of the quarter, as reported by certain of NETGEAR's customers; changes in the level of NETGEAR's cash resources and the Company's planned usage of such resources; changes in the Company's stock price and developments in the business that could increase the Company's cash needs, fluctuations in foreign exchange rates, and the actions and financial health of the Company's customers. Further, certain forward-looking statements are based on assumptions as to future events that may not prove to be accurate. Therefore, actual outcomes and results may differ materially from what is expressed or forecast in such forward-looking statements. Further information on potential risk factors that could affect NETGEAR and its business are detailed in the Company's periodic filings with the Securities and Exchange Commission, including, but not limited to, those risks and uncertainties listed in the section entitled "Part II - Item 1A. Risk Factors," pages 46 through 63, in the Company's Quarterly Report on Form 10-Q for the quarter ended July 3, 2011, filed with the Securities and Exchange Commission on August 9, 2011. NETGEAR undertakes no obligation to release publicly any revisions to any forward-looking statements contained herein to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.

Use of Non-GAAP Financial Information:
To supplement our consolidated financial statements presented on a GAAP basis, NETGEAR uses non-GAAP financial measures, which are adjusted to exclude certain expenses and tax benefits, where applicable. We believe non-GAAP financial measures are appropriate to enhance an overall understanding of our past financial performance and also our prospects for the future. These adjustments to our current period GAAP results are made with the intent of providing both management and investors a more complete understanding of NETGEAR's underlying operational results and trends and our marketplace performance. For example, the non-GAAP results are an indication of our baseline performance before charges that are considered by management to be outside of our core operating results. In addition, these adjusted non-GAAP results are among the primary indicators management uses as a basis for our planning and forecasting of future periods. The presentation of this additional information is not meant to be considered in isolation or as a substitute for financial measures prepared in accordance with generally accepted accounting principles in the United States

-Financial Tables Attached-

-Financial Tables Attached-

 

 

NETGEAR, INC.

 

CONDENSED CONSOLIDATED BALANCE SHEETS

 

(In thousands)

 

(Unaudited)

 
         
         
 

October 2,

 

December 31,

 
 

2011

 

2010

 
         

ASSETS

       

Current assets:

       

Cash and cash equivalents

$   174,278

 

$         126,173

 

Short-term investments

146,781

 

144,564

 

Accounts receivable, net

218,653

 

226,731

 

Inventories

135,963

 

127,394

 

Deferred income taxes

21,020

 

19,332

 

Prepaid expenses and other current assets

29,919

 

23,850

 

Total current assets

726,614

 

668,044

 

Property and equipment, net

16,079

 

17,503

 

Intangibles, net

22,034

 

6,241

 

Goodwill

85,944

 

74,198

 

Other non-current assets

13,617

 

14,335

 

Total assets

$   864,288

 

$         780,321

 
         

LIABILITIES AND STOCKHOLDERS' EQUITY

       

Current liabilities:

       

Accounts payable

$     75,672

 

$           89,155

 

Accrued employee compensation

23,190

 

24,130

 

Other accrued liabilities

107,826

 

110,413

 

Deferred revenue

23,934

 

27,538

 

Income taxes payable

-

 

3,487

 

Total current liabilities

230,622

 

254,723

 

Non-current income taxes payable

18,685

 

19,719

 

Other non-current liabilities

5,150

 

5,443

 

Total liabilities

254,457

 

279,885

 

Stockholders' equity:

       

Common stock

38

 

36

 

Additional paid-in capital

358,162

 

316,108

 

Cumulative other comprehensive income (loss)

(14)

 

281

 

Retained earnings

251,645

 

184,011

 

Total stockholders' equity

609,831

 

500,436

 

Total liabilities and stockholders' equity

$   864,288

 

$         780,321

 
       

 

 

 

NETGEAR, INC.

 

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

 

(In thousands, except per share data)

 

(Unaudited)

 
                     
 

Three months ended

 

Nine months ended

 
 

October 2,

 

July 3,

 

October 3,

 

October 2,

 

October 3,

 
 

2011

 

2011

 

2010

 

2011

 

2010

 
                     

Net revenue

$   301,800

 

$ 291,240

 

$   236,017

 

$   871,863

 

$   643,521

 

Cost of revenue

205,490

 

200,863

 

160,310

 

597,390

 

425,428

 

Gross profit

96,310

 

90,377

 

75,707

 

274,473

 

218,093

 
                     

Operating expenses:

                   

Research and development

12,738

 

11,350

 

10,564

 

35,102

 

29,814

 

Sales and marketing

39,600

 

39,036

 

34,069

 

115,284

 

95,216

 

General and administrative

10,851

 

10,548

 

9,358

 

31,044

 

26,697

 

Restructuring and other charges

-

 

2,094

 

(8)

 

2,094

 

(76)

 

Litigation reserves, net

44

 

(225)

 

-

 

(234)

 

211

 
                     

          Total operating expenses

63,233

 

62,803

 

53,983

 

183,290

 

151,862

 

Income from operations

33,077

 

27,574

 

21,724

 

91,183

 

66,231

 

Interest income

115

 

106

 

132

 

350

 

302

 

Other income (expense), net

(267)

 

(341)

 

(326)

 

(938)

 

(388)

 

Income before income taxes

32,925

 

27,339

 

21,530

 

90,595

 

66,145

 

Provision for income taxes

6,178

 

6,742

 

8,435

 

22,062

 

28,858

 

Net income

$     26,747

 

$   20,597

 

$     13,095

 

$     68,533

 

$     37,287

 
                     

Net income per share:

                   

Basic

$         0.71

 

$       0.56

 

$         0.37

 

$         1.85

 

$         1.06

 

Diluted

$         0.70

 

$       0.54

 

$         0.36

 

$         1.81

 

$         1.04

 
                     

Weighted average shares outstanding used to compute net income per share:

                   

Basic

37,483

 

37,017

 

35,441

 

36,967

 

35,218

 

Diluted

38,080

 

37,968

 

36,009

 

37,812

 

35,891

 
                     

Stock-based compensation expense was allocated as follows:

                   

Cost of revenue

$          259

 

$        243

 

$          202

 

$          737

 

$          708

 

Research and development

606

 

606

 

556

 

$       1,873

 

1,709

 

Sales and marketing

1,264

 

1,384

 

1,134

 

$       3,949

 

3,539

 

General and administrative

1,325

 

1,275

 

1,055

 

$       3,775

 

3,255

 
                   

 

 

 

NETGEAR, INC.

 

NON-GAAP CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

 

Excluding amortization of purchased intangibles, stock-based compensation, restructuring, acquisition related compensation, impact to cost of sales from acquisition accounting adjustments to inventory, and litigation reserves, net of tax.

 

(In thousands, except per share data)

 

(Unaudited)

 
                     
 

Three months ended

 

Nine months ended

 
 

October 2,

 

July 3,

 

October 3,

 

October 2,

 

October 3,

 
 

2011

 

2011

 

2010

 

2011

 

2010

 
                     

Net revenue

$   301,800

 

$ 291,240

 

$   236,017

 

$   871,863

 

$   643,521

 

Cost of revenue

204,167

 

198,822

 

158,764

 

592,434

 

420,750

 

Gross profit

97,633

 

92,418

 

77,253

 

279,429

 

222,771

 
                     

Operating expenses:

                   

Research and development

12,132

 

10,724

 

9,988

 

33,189

 

27,439

 

Sales and marketing

38,336

 

37,652

 

32,935

 

111,335

 

91,677

 

General and administrative

9,526

 

9,273

 

8,303

 

27,269

 

23,442

 
                     

          Total operating expenses

59,994

 

57,649

 

51,226

 

171,793

 

142,558

 

Income from operations

37,639

 

34,769

 

26,027

 

107,636

 

80,213

 

Interest income

115

 

106

 

132

 

350

 

302

 

Other income (expense), net

(267)

 

(341)

 

(326)

 

(938)

 

(388)

 

Income before income taxes

37,487

 

34,534

 

25,833

 

107,048

 

80,127

 

Provision for income taxes

7,561

 

9,873

 

9,747

 

28,300

 

33,254

 

Net income

$     29,926

 

$   24,661

 

$     16,086

 

$     78,748

 

$     46,873

 
                     

Net income per share:

                   

Basic

$         0.80

 

$       0.67

 

$         0.45

 

$         2.13

 

$         1.33

 

Diluted

$         0.79

 

$       0.65

 

$         0.45

 

$         2.08

 

$         1.31

 
                     

Weighted average shares outstanding used to compute net income per share:

                   

Basic

37,483

 

37,017

 

35,441

 

36,967

 

35,218

 

Diluted

38,080

 

37,968

 

36,009

 

37,812

 

35,891

 
                   

 

 

 

NETGEAR, INC.

 

RECONCILIATIONS OF GAAP MEASURES TO NON-GAAP MEASURES

 

(In thousands, except per share data)

 

(Unaudited)

 
                     

STATEMENT OF OPERATIONS DATA:

                   
 

Three months ended

 

Nine months ended

 
 

October 2,

 

July 3,

 

October 3,

 

October 2,

 

October 3,

 
 

2011

 

2011

 

2010

 

2011

 

2010

 
                     

GAAP gross profit

$     96,310

 

$ 90,377

 

$     75,707

 

$   274,473

 

$   218,093

 

Amortization of intangible assets

1,064

 

1,189

 

1,344

 

3,610

 

3,970

 

Stock-based compensation expense

259

 

243

 

202

 

737

 

708

 

Impact to cost of sales from acquisition accounting adjustments to inventory

-

 

609

 

-

 

609

 

-

 

Non-GAAP gross profit

$     97,633

 

$ 92,418

 

$     77,253

 

$   279,429

 

$   222,771

 

Non-GAAP gross margin

32.4%

 

31.7%

 

32.7%

 

32.0%

 

34.6%

 
                     

GAAP research and development

$     12,738

 

$ 11,350

 

$     10,564

 

$     35,102

 

$     29,814

 

Stock-based compensation expense

(606)

 

(606)

 

(556)

 

(1,873)

 

(1,709)

 

Acquisition related compensation

-

 

(20)

 

(20)

 

(40)

 

(666)

 

Non-GAAP research and development

$     12,132

 

$ 10,724

 

$       9,988

 

$     33,189

 

$     27,439

 
                     

GAAP sales and marketing

$     39,600

 

$ 39,036

 

$     34,069

 

$   115,284

 

$     95,216

 

Stock-based compensation expense

(1,264)

 

(1,384)

 

(1,134)

 

(3,949)

 

(3,539)

 

Non-GAAP sales and marketing

$     38,336

 

$ 37,652

 

$     32,935

 

$   111,335

 

$     91,677

 
                     

GAAP general and administrative

$     10,851

 

$ 10,548

 

$       9,358

 

$     31,044

 

$     26,697

 

Stock-based compensation expense

(1,325)

 

(1,275)

 

(1,055)

 

(3,775)

 

(3,255)

 

Non-GAAP general and administrative

$       9,526

 

$   9,273

 

$       8,303

 

$     27,269

 

$     23,442

 
                     

GAAP total operating expenses

$     63,233

 

$ 62,803

 

$     53,983

 

$   183,290

 

$   151,862

 

Stock-based compensation expense

(3,195)

 

(3,265)

 

(2,745)

 

(9,597)

 

(8,503)

 

Restructuring and other charges

-

 

(2,094)

 

8

 

(2,094)

 

76

 

Acquisition related compensation

-

 

(20)

 

(20)

 

(40)

 

(666)

 

Litigation reserves, net

(44)

 

225

 

-

 

234

 

(211)

 

Non-GAAP total operating expenses

$     59,994

 

$ 57,649

 

$     51,226

 

$   171,793

 

$   142,558

 
                   

 

 

 

NETGEAR, INC.

 

RECONCILIATIONS OF GAAP MEASURES TO NON-GAAP MEASURES (CONTINUED)

 

(In thousands, except per share data)

 

(Unaudited)

 
                     

STATEMENT OF OPERATIONS DATA (CONTINUED):

                   
 

Three months ended

 

Nine months ended

 
 

October 2,

 

July 3,

 

October 3,

 

October 2,

 

October 3,

 
 

2011

 

2011

 

2010

 

2011

 

2010

 
                     

GAAP operating income

$     33,077

 

$ 27,574

 

$     21,724

 

$     91,183

 

$     66,231

 

Amortization of intangible assets

1,064

 

1,189

 

1,344

 

3,610

 

3,970

 

Stock-based compensation expense

3,454

 

3,508

 

2,947

 

10,334

 

9,211

 

Restructuring  and other charges

-

 

2,094

 

(8)

 

2,094

 

(76)

 

Acquisition related compensation

-

 

20

 

20

 

40

 

666

 

Impact to cost of sales from acquisition accounting adjustments to inventory

-

 

609

 

-

 

609

 

-

 

Litigation reserves, net

44

 

(225)

 

-

 

(234)

 

211

 

Non-GAAP operating income

$     37,639

 

$ 34,769

 

$     26,027

 

$   107,636

 

$     80,213

 

Non-GAAP operating margin

12.5%

 

11.9%

 

11.0%

 

12.3%

 

12.5%

 
                     

GAAP net income

$     26,747

 

$ 20,597

 

$     13,095

 

$     68,533

 

$     37,287

 

Amortization of intangible assets

1,064

 

1,189

 

1,344

 

3,610

 

3,970

 

Stock-based compensation expense

3,454

 

3,508

 

2,947

 

10,334

 

9,211

 

Restructuring and other charges

-

 

2,094

 

(8)

 

2,094

 

(76)

 

Acquisition related compensation

-

 

20

 

20

 

40

 

666

 

Impact to cost of sales from acquisition accounting adjustments to inventory

-

 

609

 

-

 

609

 

-

 

Litigation reserves, net

44

 

(225)

 

-

 

(234)

 

211

 

Tax effect

(1,383)

 

(3,131)

 

(1,312)

 

(6,238)

 

(4,396)

 

Non-GAAP net income

$     29,926

 

$ 24,661

 

$     16,086

 

$     78,748

 

$     46,873

 
                     
                     

NET INCOME PER DILUTED SHARE:

                   
 

Three months ended

 

Nine months ended

 
 

October 2,

 

July 3,

 

October 3,

 

October 2,

 

October 3,

 
 

2011

 

2011

 

2010

 

2011

 

2010

 
                     

GAAP net income per diluted share

$         0.70

 

$     0.54

 

$         0.36

 

$         1.81

 

$         1.04

 

Amortization of intangible assets

0.03

 

0.03

 

0.04

 

0.10

 

0.11

 

Stock-based compensation expense

0.09

 

0.09

 

0.08

 

0.27

 

0.26

 

Restructuring and other charges

-

 

0.06

 

(0.00)

 

0.06

 

(0.00)

 

Acquisition related compensation

-

 

0.00

 

0.00

 

0.00

 

0.02

 

Impact to cost of sales from acquisition accounting adjustments to inventory

-

 

0.02

 

-

 

0.02

 

-

 

Litigation reserves, net

0.00

 

(0.01)

 

-

 

(0.01)

 

0.01

 

Tax effect

(0.03)

 

(0.08)

 

(0.03)

 

(0.17)

 

(0.13)

 

Non-GAAP net income per diluted share

$         0.79

 

$     0.65

 

$         0.45

 

$         2.08

 

$         1.31

 
                   

 

 

 

NETGEAR, INC.

     

SUPPLEMENTAL FINANCIAL INFORMATION

     

(In thousands, except per share data)

     

(Unaudited)

     
                         
                         
 

Three months ended

     
 

October 2,

 

July 3,

 

April 3,

 

December 31,

 

October 3,

     
 

2011

 

2011

 

2011

 

2010

 

2010

     
                         

Cash, cash equivalents and short-term investments

$  321,059

 

$ 277,896

 

$ 279,173

 

$        270,737

 

$  243,509

     

Cash, cash equivalents and short-term investments per diluted share

$        8.43

 

$       7.32

 

$       7.48

 

$              7.35

 

$        6.76

     
                         

Accounts receivable, net

$  218,653

 

$ 209,960

 

$ 197,622

 

$        226,731

 

$  175,599

     

Days sales outstanding (DSO)

66

 

66

 

66

 

78

 

73

     
                         

Inventories

$  135,963

 

$ 137,789

 

$ 140,113

 

$        127,394

 

$  110,394

     

Ending inventory turns

6.0

 

5.8

 

5.5

 

5.6

 

5.8

     
                         

Weeks of channel inventory:

                       

U.S. retail channel

10.0

 

10.6

 

9.3

 

9.0

 

10.0

     

U.S. distribution channel

6.6

 

6.6

 

5.4

 

4.7

 

6.7

     

EMEA distribution channel

4.3

 

5.5

 

4.2

 

3.6

 

4.5

     

APAC distribution channel

3.9

 

5.1

 

4.0

 

5.5

 

5.9

     
                         

Deferred revenue

$    23,934

 

$   22,843

 

$   18,381

 

$          27,538

 

$    20,957

     
                         

Headcount

756

 

731

 

686

 

654

 

646

     

Non-GAAP Diluted shares

38,080

 

37,968

 

37,340

 

36,843

 

36,009

     
                         

Net Revenue By Geography and Segment:

                       
 

October 2,

 

July 3,

 

October 3,

 
 

2011

 

2011

 

2010

 

Americas

$  149,009

 

49%

 

$ 149,526

 

51%

 

$  121,408

 

51%

 

Europe, Middle-East and Africa

119,735

 

40%

 

110,331

 

38%

 

89,565

 

38%

 

Asia Pacific

33,056

 

11%

 

31,383

 

11%

 

25,044

 

11%

 

Total

$  301,800

 

100%

 

$ 291,240

 

100%

 

$  236,017

 

100%

 
                         
                         
                         
 

October 2,

 

July 3,

 

October 3,

 
 

2011

 

2011

 

2010

 

Retail

$  127,082

 

42%

 

$ 107,869

 

37%

 

$  115,165

 

49%

 

Commercial

91,059

 

30%

 

77,112

 

26%

 

75,532

 

32%

 

Service Provider

83,659

 

28%

 

106,259

 

37%

 

45,320

 

19%

 

Total

$  301,800

 

100%

 

$ 291,240

 

100%

 

$  236,017

 

100%

 
                       

 


Close window | Back to top

Copyright 2017 NETGEAR, Inc.