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NETGEAR® Reports Second Quarter 2019 Results

July 24, 2019

SAN JOSE, Calif., July 24, 2019 (GLOBE NEWSWIRE) -- NETGEAR, Inc. (NASDAQ: NTGR), a global networking company that delivers innovative networking and Internet connected products to consumers and businesses, today reported financial results for the second quarter ended June 30, 2019.

  • Second quarter 2019 net revenue of $230.9 million, a decrease of 9.6% from the comparable prior year quarter.
  • Second quarter 2019 GAAP operating income of $0.3 million, or 0.1% of net revenue, as compared to net loss of $0.1 million, or (0.0%) of net revenue, in the comparable prior year quarter.
    ◦ Second quarter 2019 non-GAAP operating income of $10.0 million, or 4.4% of net revenue, as compared to $10.5 million, or 4.1% of net revenue in the comparable prior year quarter.
  • Second quarter 2019 GAAP net income per diluted share from continuing operations of $0.03, as compared to $0.02 in the comparable prior year quarter.
    ◦ Second quarter 2019 non-GAAP net income per diluted share from continuing operations of $0.28, as compared to $0.29 in the comparable prior year quarter.
  • Board authorizes incremental repurchase of up to 4,500,000 shares.

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, "During the second quarter of 2019, we saw improvement in the U.S. retail WiFi market driven by the continued roll out of our WiFi 6 Nighthawk routers and various channel marketing activities. The improved market demand allowed us to finish the quarter with healthy channel inventory levels. Our financial results for the quarter came in slightly above the high end of our guidance range for revenue, and in-line with the range for non-GAAP operating margin."

Mr. Lo continued, “We are pleased to report that we reached 11.2 million registered users in Q2, which represents the foundation for building our paid subscriber base. Furthermore, our number of registered app users reached 2.8 million in the second quarter. We recently launched NETGEAR Armor Cyber Threat Protection to our Orbi WiFi systems install base worldwide, and have been encouraged by the initial traction with trial users. We look forward to converting these users to paying customers in the coming quarters."

Bryan Murray, Chief Financial Officer of NETGEAR, added, "During the second quarter of 2019, we repurchased approximately 570,000 shares of common stock for $17.0 million. In addition, our Board of Directors has authorized the repurchase of up to an incremental 4,500,000 shares of the Company’s common stock, or approximately 14.5% of outstanding shares. We remain confident in our ability to generate meaningful levels of cash, and plan to continue to opportunistically repurchase shares in future quarters."

Business Outlook

Mr. Murray continued, "Looking ahead to the third quarter of 2019, in which we expect to launch more WiFi 6 products, net revenue is expected to be in the range of $265 million to $280 million. GAAP operating margin for the third quarter is expected to be in the range of 5.2% to 6.2%, and non-GAAP operating margin is expected to be in the range of 8.5% to 9.5%. Our GAAP tax rate is expected to be approximately 25.0%, and our non-GAAP tax rate is expected to be 22.0% for the third quarter of 2019.”

A reconciliation between the Business Outlook on a GAAP and non-GAAP basis is provided in the following table:

    Three months ending
    September 29, 2019
    Operating Margin Rate   Tax Rate
GAAP   5.2% - 6.2%   25.0%
Estimated adjustments for1:        
Amortization of intangibles   0.6%   __
Stock-based compensation expense   2.7%   __
Tax effects of non-GAAP adjustments   __   (3.0)%
Non-GAAP   8.5% - 9.5%   22.0%

1 Business outlook does not include estimates for any currently unknown income and expense items which, by their nature, could arise late in a quarter, including: litigation reserves, net; acquisition-related charges; impairment charges; and discrete tax benefits or detriments that cannot be forecasted (e.g., windfalls or shortfalls from equity awards or items related to the resolution of uncertain tax positions). New material income and expense items such as these could have a significant effect on our guidance and future GAAP results.

Investor Conference Call / Webcast Details
NETGEAR will review the second quarter results and discuss management's expectations for the third quarter of 2019 today, Wednesday, July 24, 2019 at 5 p.m. ET (2 p.m. PT). The toll free dial-in number for the live audio call is (844) 709-2008. The international dial-in number for the live audio call is (647) 253-8663. The conference ID for the call is 1959478. A live webcast of the conference call will be available on NETGEAR's Investor Relations website at http://investor.netgear.com. A replay of the call will be available via the web at http://investor.netgear.com.

About NETGEAR, Inc.
NETGEAR (NASDAQ: NTGR) is a global networking company that delivers innovative products to consumers, businesses and service providers. The Company's products are built on a variety of proven technologies such as wireless (WiFi and LTE), Ethernet and powerline, with a focus on reliability and ease-of-use. The product line consists of wired and wireless devices that enable networking, broadband access and network connectivity. These products are available in multiple configurations to address the needs of the end-users in each geographic region in which the Company's products are sold. NETGEAR products are sold in approximately 23,000 retail locations around the globe, and through approximately 21,000 value-added resellers, as well as multiple major cable, mobile and wireline service providers around the world. The company's headquarters are in San Jose, Calif., with additional offices in approximately 20 countries. 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.

© 2019 NETGEAR, Inc. NETGEAR, the NETGEAR logo, NETGEAR Armor, Orbi and Nighthawk are trademarks or registered trademarks of NETGEAR, Inc. and its affiliates 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.

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 regarding: NETGEAR’s future operating performance and financial condition, expected net revenue, GAAP and non-GAAP operating margins, and GAAP and non-GAAP tax rates; expectations regarding the timing, distribution, sales momentum and market acceptance of recent and anticipated new product introductions that position the Company for growth; expectations regarding NETGEAR's paid subscriber base, registered users and registered app users and their effect on NETGEAR's paid subscriber base; and expectations regarding seasonal changes in the Company’s business performance. These statements are based on management's current expectations and are subject to certain risks and uncertainties, including 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 grow its number of registered users and/or registered app users; the Company may be unable to grow its paid subscriber base; 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; changes in the level of NETGEAR's cash resources and the Company's planned usage of such resources, including potential repurchases of the Company’s common stock; 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” in the Company's quarterly report on Form 10-Q for the fiscal quarter ended March 31, 2019, filed with the Securities and Exchange Commission on May 3, 2019. Given these circumstances, you should not place undue reliance on these forward-looking statements. 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, except as required by law.

Non-GAAP Financial Information:

To supplement our unaudited selected financial data presented on a basis consistent with Generally Accepted Accounting Principles (“GAAP”), we disclose certain non-GAAP financial measures that exclude certain charges, including non-GAAP gross profit, non-GAAP gross margin, non-GAAP research and development, non-GAAP sales and marketing, non-GAAP general and administrative, non-GAAP total operating expenses, non-GAAP operating income, non-GAAP operating margin, Non-GAAP other income (expense), net, non-GAAP net income and non-GAAP net income per diluted share. These non-GAAP financial measures represent results from continuing operations. These supplemental measures exclude adjustments for amortization of intangibles, stock-based compensation expense, separation expense, restructuring and other charges, litigation reserves, net, impairment charges to investments, and the related tax effects. These non-GAAP measures are not in accordance with or an alternative for GAAP, and may be different from non-GAAP measures used by other companies. We believe that these non-GAAP measures have limitations in that they do not reflect all of the amounts associated with our results of operations as determined in accordance with GAAP and that these measures should only be used to evaluate our results of operations in conjunction with the corresponding GAAP measures. The presentation of this additional information is not meant to be considered in isolation or as a substitute for the most directly comparable GAAP measures. We compensate for the limitations of non-GAAP financial measures by relying upon GAAP results to gain a complete picture of our performance.

In calculating non-GAAP financial measures, we exclude certain items to facilitate a review of the comparability of our operating performance on a period-to-period basis because such items are not, in our view, related to our ongoing operational performance. We use non-GAAP measures to evaluate the operating performance of our business, for comparison with forecasts and strategic plans, and for benchmarking performance externally against competitors. In addition, management’s incentive compensation is determined using certain non-GAAP measures. Since we find these measures to be useful, we believe that investors benefit from seeing results “through the eyes” of management in addition to seeing GAAP results. We believe that these non-GAAP measures, when read in conjunction with our GAAP financials, provide useful information to investors by offering:

  • the ability to make more meaningful period-to-period comparisons of our on-going operating results;
  • the ability to better identify trends in our underlying business and perform related trend analyses;
  • a better understanding of how management plans and measures our underlying business; and
  • an easier way to compare our operating results against analyst financial models and operating results of competitors that supplement their GAAP results with non-GAAP financial measures.

The following are explanations of the adjustments that we incorporate into non-GAAP measures, as well as the reasons for excluding them in the reconciliations of these non-GAAP financial measures:

Amortization of intangibles consists primarily of non-cash charges that can be impacted by, among other things, the timing and magnitude of acquisitions. We consider our operating results without these charges when evaluating our ongoing performance and forecasting our earnings trends, and therefore exclude such charges when presenting non-GAAP financial measures. We believe that the assessment of our operations excluding these costs is relevant to our assessment of internal operations and comparisons to the performance of our competitors.

Stock-based compensation expense consists of non-cash charges for the estimated fair value of stock options, restricted stock units and shares under the employee stock purchase plan granted to employees. We believe that the exclusion of these charges provides for more accurate comparisons of our operating results to peer companies due to the varying available valuation methodologies, subjective assumptions and the variety of award types. In addition, we believe it is useful to investors to understand the specific impact stock-based compensation expense has on our operating results.

Other items consist of certain items that are the result of either unique or unplanned events, including, when applicable: separation expense, restructuring and other charges, litigation reserves, net, and impairment charges to investments. It is difficult to predict the occurrence or estimate the amount or timing of these items in advance. Although these events are reflected in our GAAP financial statements, these unique transactions may limit the comparability of our on-going operations with prior and future periods. The amounts result from events that often arise from unforeseen circumstances, which often occur outside of the ordinary course of continuing operations. Therefore, the amounts do not accurately reflect the underlying performance of our continuing business operations for the period in which they are incurred.

Tax effects consist of the various above adjustments that we incorporate into non-GAAP measures in order to provide a more meaningful measure on non-GAAP net income. We also believe providing financial information with and without the income tax effects relating to our non-GAAP financial measures provides our management and users of the financial statements with better clarity regarding the on-going performance of our business.

Source: NETGEAR-F

-Financial Tables Attached-


NETGEAR, INC. 
CONDENSED CONSOLIDATED BALANCE SHEETS 
(In thousands) 
(Unaudited)
 
  As of
  June 30,
 2019
  December 31,
 2018
ASSETS      
Current assets:      
Cash and cash equivalents $ 214,611     $ 201,047  
Short-term investments 3,700     73,317  
Accounts receivable, net 238,635     303,667  
Inventories 276,316     243,871  
Prepaid expenses and other current assets 38,687     35,997  
Total current assets 771,949     857,899  
Property and equipment, net 21,074     20,177  
Operating lease right-of-use assets, net 34,063      
Intangibles, net 13,297     17,146  
Goodwill 80,721     80,721  
Other non-current assets 71,403     67,433  
Total assets $ 992,507     $ 1,043,376  
       
LIABILITIES AND STOCKHOLDERS' EQUITY      
Current liabilities:      
Accounts payable $ 108,444     $ 139,748  
Accrued employee compensation 23,436     31,666  
Other accrued liabilities 171,873     199,472  
Deferred Revenue 10,093     11,086  
Income taxes payable 1,141     2,020  
Total current liabilities 314,987     383,992  
Non-current income taxes payable 18,278     19,600  
Non-current operating lease liabilities 29,263      
Other non-current liabilities 7,907     12,232  
Total liabilities 370,435     415,824  
Stockholders' equity:      
Common stock 31     32  
Additional paid-in capital 812,034     793,585  
Accumulated other comprehensive income (loss) 12     (15 )
Accumulated deficit (190,005 )   (166,050 )
Total stockholders' equity 622,072     627,552  
Total liabilities and stockholders' equity $ 992,507     $ 1,043,376  


 
NETGEAR, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share and percentage data)
(Unaudited)
 
  Three Months Ended   Six Months Ended
  June 30,
 2019
  March 31,
 2019
  July 1,
 2018
  June 30,
 2019
  July 1,
 2018
                   
Net revenue $ 230,852     $ 249,082     $ 255,276     $ 479,934     $ 500,477  
Cost of revenue 165,407     167,074     174,996     332,481     343,878  
Gross profit 65,445     82,008     80,280     147,453     156,599  
Gross margin 28.3 %   32.9 %   31.4 %   30.7 %   31.3 %
Operating expenses:                  
Research and development 18,814     18,832     21,946     37,646     43,137  
Sales and marketing 34,541     35,855     38,552     70,396     76,426  
General and administrative 10,463     13,117     18,458     23,580     34,219  
Separation expense     264         264      
Restructuring and other charges 1,291     (68 )   1,376     1,223     1,367  
Litigation reserves, net 10         5     10     5  
Total operating expenses 65,119     68,000     80,337     133,119     155,154  
Income (loss) from operations 326     14,008     (57 )   14,334     1,445  
Operating margin 0.1 %   5.6 %   (0.0 %)   3.0 %   0.3 %
Interest income, net 782     701     1,073     1,483     1,821  
Other income (expense), net 487     341     788     828     (530 )
Income before income taxes 1,595     15,050     1,804     16,645     2,736  
Provision for income taxes 756     2,207     1,271     2,963     1,185  
Net income from continuing operations 839     12,843     533     13,682     1,551  
Net loss from discontinued operations, net of tax (1)         (5,763 )       (1,191 )
Net income (loss) $ 839     $ 12,843     $ (5,230 )   $ 13,682     $ 360  
                   
Net income (loss) per share - basic:                  
Income from continuing operations $ 0.03     $ 0.41     $ 0.02     $ 0.44     $ 0.05  
Loss from discontinued operations         (0.19 )       (0.04 )
Net income (loss) $ 0.03     $ 0.41     $ (0.17 )   $ 0.44     $ 0.01  
                   
Net income (loss) per share - Diluted:                  
Income from continuing operations $ 0.03     $ 0.39     $ 0.02     $ 0.42     $ 0.05  
Loss from discontinued operations         (0.18 )       (0.04 )
Net income (loss) $ 0.03     $ 0.39     $ (0.16 )   $ 0.42     $ 0.01  
                   
Weighted average shares used to compute net income (loss) per share:                  
Basic 31,246     31,483     31,674     31,365     31,550  
Diluted 32,112     32,874     32,742     32,518     32,722  

(1)  Historical results of Arlo Technologies, Inc. are reflected as discontinued operations for the periods presented.

 
NETGEAR, INC. 
RECONCILIATIONS OF GAAP MEASURES TO NON-GAAP MEASURES 
(In thousands, except percentage data) 
(Unaudited)
 
STATEMENT OF OPERATIONS DATA:                
                   
  Three Months Ended   Six Months Ended
  June 30,
 2019
  March 31,
 2019
  July 1,
 2018
  June 30,
 2019
  July 1,
 2018
                   
GAAP gross profit $ 65,445     $ 82,008     $ 80,280     $ 147,453     $ 156,599  
GAAP gross margin 28.3 %   32.9 %   31.4 %   30.7 %   31.3 %
Amortization of intangibles 178     179     209     357     532  
Stock-based compensation expense 755     668     572     1,423     1,135  
Non-GAAP gross profit $ 66,378     $ 82,855     $ 81,061     $ 149,233     $ 158,266  
Non-GAAP gross margin 28.8 %   33.3 %   31.8 %   31.1 %   31.6 %
                   
GAAP research and development $ 18,814     $ 18,832     $ 21,946     $ 37,646     $ 43,137  
Stock-based compensation expense (1,288 )   (1,192 )   (1,122 )   (2,480 )   (2,134 )
Non-GAAP research and development $ 17,526     $ 17,640     $ 20,824     $ 35,166     $ 41,003  
                   
GAAP sales and marketing $ 34,541     $ 35,855     $ 38,552     $ 70,396     $ 76,426  
Amortization of intangibles (1,504 )   (1,831 )   (1,757 )   (3,335 )   (3,513 )
Stock-based compensation expense (2,085 )   (2,041 )   (2,188 )   (4,126 )   (4,393 )
Non-GAAP sales and marketing $ 30,952     $ 31,983     $ 34,607     $ 62,935     $ 68,520  
                   
GAAP general and administrative $ 10,463     $ 13,117     $ 18,458     $ 23,580     $ 34,219  
Stock-based compensation expense (2,611 )   (2,557 )   (3,364 )   (5,168 )   (6,448 )
Non-GAAP general and administrative $ 7,852     $ 10,560     $ 15,094     $ 18,412     $ 27,771  
                   
GAAP total operating expenses $ 65,119     $ 68,000     $ 80,337     $ 133,119     $ 155,154  
Amortization of intangibles (1,504 )   (1,831 )   (1,757 )   (3,335 )   (3,513 )
Stock-based compensation expense (5,984 )   (5,790 )   (6,674 )   (11,774 )   (12,975 )
Separation expense     (264 )       (264 )    
Restructuring and other charges (1,291 )   68     (1,376 )   (1,223 )   (1,367 )
Litigation reserves, net (10 )       (5 )   (10 )   (5 )
Non-GAAP total operating expenses $ 56,330     $ 60,183     $ 70,525     $ 116,513     $ 137,294  


 
NETGEAR, INC.
RECONCILIATIONS OF GAAP MEASURES TO NON-GAAP MEASURES (CONTINUED)
(In thousands, except percentage data)
(Unaudited)
 
STATEMENT OF OPERATIONS DATA (CONTINUED):            
           
  Three Months Ended   Six Months Ended
  June 30,
 2019
  March 31,
 2019
  July 1,
 2018
  June 30,
 2019
  July 1,
 2018
                   
GAAP operating income (loss) $ 326     $ 14,008     $ (57 )   $ 14,334     $ 1,445  
GAAP operating margin 0.1 %   5.6 %   (0.0 %)   3.0 %   0.3 %
Amortization of intangibles 1,682     2,010     1,966     3,692     4,045  
Stock-based compensation expense 6,739     6,458     7,246     13,197     14,110  
Separation expense     264         264      
Restructuring and other charges 1,291     (68 )   1,376     1,223     1,367  
Litigation reserves, net 10         5     10     5  
Non-GAAP operating income $ 10,048     $ 22,672     $ 10,536     $ 32,720     $ 20,972  
Non-GAAP operating margin 4.4 %   9.1 %   4.1 %   6.8 %   4.2 %
                   
GAAP other income (expense), net $ 487     $ 341     $ 788     $ 828     $ (530 )
Impairment charges to investments                 1,400  
Non-GAAP other income (expense), net $ 487     $ 341     $ 788     $ 828     $ 870  
                   
GAAP net income from continuing operations $ 839     $ 12,843     $ 533     $ 13,682     $ 1,551  
Amortization of intangibles 1,682     2,010     1,966     3,692     4,045  
Stock-based compensation expense 6,739     6,458     7,246     13,197     14,110  
Separation expense     264         264      
Restructuring and other charges 1,291     (68 )   1,376     1,223     1,367  
Litigation reserves, net 10         5     10     5  
Impairment charges to investments                 1,400  
Tax effects of above non-GAAP adjustments (1,707 )   (1,706 )   (1,546 )   (3,413 )   (4,432 )
Non-GAAP net income from continuing operations $ 8,854     $ 19,801     $ 9,580     $ 28,655     $ 18,046  


 
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   Six Months Ended
  June 30,
 2019
  March 31,
 2019
  July 1,
 2018
  June 30,
 2019
  July 1,
 2018
NET INCOME PER DILUTED SHARE:                  
GAAP net income per diluted share from continuing operations $ 0.03     $ 0.39     $ 0.02     $ 0.42     $ 0.05  
Amortization of intangibles 0.05     0.06     0.06     0.11     0.12  
Stock-based compensation expense 0.21     0.20     0.22     0.41     0.43  
Separation expense     0.01         0.01      
Restructuring and other charges 0.04     0.00     0.04     0.04     0.04  
Litigation reserves, net 0.00         0.00     0.00     0.00  
Impairment charges to investments                 0.04  
Tax effects of above non-GAAP adjustments (0.05 )   (0.06 )   (0.05 )   (0.11 )   (0.13 )
Non-GAAP net income per diluted share from continuing operations $ 0.28     $ 0.60     $ 0.29     $ 0.88     $ 0.55  


 
NETGEAR, INC.
SUPPLEMENTAL FINANCIAL INFORMATION
(In thousands, except per share data, DSO, inventory turns, weeks of channel inventory, headcount and percentage data)
(Unaudited)
 
  Three Months Ended
  June 30,
 2019
  March 31,
 2019
  December 31,
 2018
  September 30,
 2018
  July 1,
 2018
                   
Cash, cash equivalents and short-term investments $ 218,311     $ 212,652     $ 274,364     $ 341,968     $ 355,489  
Cash, cash equivalents and short-term investments per diluted share $ 6.80     $ 6.47     $ 8.36     $ 10.37     $ 10.86  
                   
Accounts receivable, net $ 238,635     $ 262,531     $ 303,667     $ 241,862     $ 232,770  
Days sales outstanding (DSO) 94     95     97     82     83  
                   
Inventories $ 276,316     $ 236,123     $ 243,871     $ 198,037     $ 168,263  
Ending inventory turns 2.4     2.8     3.3     3.5     4.2  
                                       
Weeks of channel inventory:                                      
U.S. retail channel 10.6     10.4     7.7     9.8     10.6  
U.S. distribution channel 5.5     5.7     5.2     4.1     4.3  
EMEA distribution channel 4.6     4.0     4.1     4.3     4.1  
APAC distribution channel 7.4     6.4     7.4     6.6     7.9  
                   
Deferred revenue (current and non-current) $ 12,047     $ 13,598     $ 11,865     $ 9,726     $ 5,577  
                   
Headcount 824     828     837     833     901  
Non-GAAP diluted shares 32,112     32,874     32,803     32,974     32,742  


NET REVENUE BY GEOGRAPHY

  Three Months Ended   Six Months Ended
  June 30,
 2019
  March 31,
 2019
  July 1,
 2018
  June 30,
 2019
  July 1,
 2018
Americas $ 157,170   68 %   $ 148,029   59 %   $ 174,414   68 %   $ 305,199   63 %   $ 334,426   67 %
EMEA 43,091   19 %   56,963   23 %   48,209   19 %   100,054   21 %   95,643   19 %
APAC 30,591   13 %   44,090   18 %   32,653   13 %   74,681   16 %   70,408   14 %
Total $ 230,852   100 %   $ 249,082   100 %   $ 255,276   100 %   $ 479,934   100 %   $ 500,477   100 %


NETGEAR, INC.
SUPPLEMENTAL FINANCIAL INFORMATION (CONTINUED)
(In thousands)
(Unaudited)

NET REVENUE BY SEGMENT

  Three Months Ended   Six Months Ended
  June 30,
 2019
  March 31,
 2019
  July 1,
 2018
  June 30,
 2019
  July 1,
 2018
Net revenue:                  
Connected Home $ 167,495     $ 169,365     $ 186,424     $ 336,860     $ 360,739  
SMB 63,357     79,717     68,852     143,074     139,738  
Total net revenue $ 230,852     $ 249,082     $ 255,276     $ 479,934     $ 500,477  

SERVICE PROVIDER NET REVENUE

  Three Months Ended   Six Months Ended
  June 30,
 2019
  March 31,
 2019
  July 1,
 2018
  June 30,
 2019
  July 1,
 2018
Connected Home $ 26,901     $ 36,818     $ 46,333     $ 63,719     $ 88,130  
SMB 922     1,476     700     2,398     1,763  
Total service provider net revenue $ 27,823     $ 38,294     $ 47,033     $ 66,117     $ 89,893  

 

Contact:
NETGEAR Investor Relations
Christopher Genualdi
netgearIR@netgear.com

NG-Logo_2018_web.jpg

Source: NETGEAR, Inc.

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