NETGEAR, Inc. (NTGR) recently enhanced its portfolio of WiFi 7 devices with the addition of the Nighthawk M7 Pro Mobile Hotspot (MR7400). Powered by the Qualcomm Snapdragon SDX75 chipset and operating on AT&T's 5G network, the M7 Pro offers an exceptional Internet experience, combining advanced WiFi 7 technology with 5G speeds. It is specifically designed to deliver high-speed, portable and secure connectivity, making it ideal for both consumers and businesses. The new M7 Pro delivers superfast Internet wit ...

NETGEAR, Inc. (NTGR) has collaborated with Samsung Electronics' System LSI Business to ensure smooth interoperability and roaming between NETGEAR's Business WiFi 7 access points and Samsung's WiFi 7 client chipset offering. Both companies were the early adopters of WiFi 7, with NTGR focusing on access points and Samsung on client solutions. NETGEAR noted that smooth connectivity in areas with many mobile devices is challenging due to WiFi roaming issues. While stationary devices stay connected to one access ...

Core Insights - NETGEAR, Inc reported a second-quarter 2024 non-GAAP loss of 74 cents per share, which is wider than the non-GAAP loss of 16 cents in the same quarter last year but narrower than the Zacks Consensus Estimate of a loss of 82 cents per share [1] - The company generated net revenues of $143.9 million, down 17% year over year, primarily due to weakness in the Connected Home Products (CHP) and NETGEAR for Business (NFB) segments, although the revenue beat the consensus estimate by 8.45% [2] Revenue Breakdown - Revenues from the Americas were $95.5 million, accounting for 66% of total revenues, down 18% year over year [3] - Europe, the Middle East, and Africa generated revenues of $27.3 million, down 24.3%, while revenues from the Asia Pacific region increased by 1.9% year over year to $21 million [3] - The Connected Home segment generated revenues of $84 million, down 14.6% year over year, but saw positive demand trends for new lower-priced Wi-Fi 7 products [4] - NFB revenues declined 20.2% year over year to $59.8 million despite record sales of ProAV managed switch products [5] Financial Performance - Adjusted gross margin decreased to 22.4% from 31.6% year over year, and non-GAAP operating loss was $31.1 million compared to a loss of $10.7 million in the previous year [6] - Non-GAAP operating expenses were $63.3 million, down 3.3% [6] Cash Flow and Liquidity - For the quarter ended June 30, 2024, NETGEAR generated $35.6 million in cash from operations, with cash and cash equivalents totaling $177.1 million [7] - Total current liabilities were $253 million, compared to $264.4 million in the same quarter last year [7] Share Repurchase Program - The company repurchased 799,800 shares worth $21.4 million during the quarter and has authorized an additional buyback of up to 3,000,000 shares, bringing the total program to 3,875,000 shares valued at approximately $62 million [8] Q3 Guidance - Management projects net revenues in the range of $160-$175 million for Q3, expecting more predictable performance following destocking efforts [9] - Anticipated revenues from the service provider channel are expected to be nearly $15 million in Q3, with new 5G mobile hotspots expected to launch in Q4 [9] Margin Forecast - Gross margins and operating margins are expected to be affected by ongoing inventory reduction efforts and elevated transportation costs [10] - GAAP operating margin is forecasted to be between (15.3)% and (12.3)%, while non-GAAP operating margin is estimated in the range of (11)% to (8)% [10] Tax Expense Projections - GAAP tax expense is expected to be between $1 million and $2 million, with a non-GAAP tax benefit projected to be between $1.5 million and $2.5 million for Q3 2024 [11]

Company Performance - NETGEAR, Inc. reported a quarterly loss of $0.74 per share, which was better than the Zacks Consensus Estimate of a loss of $0.82, but worse than a loss of $0.16 per share a year ago, indicating an earnings surprise of 9.76% [1] - The company posted revenues of $143.9 million for the quarter ended June 2024, surpassing the Zacks Consensus Estimate by 8.45%, although this represents a decline from year-ago revenues of $173.41 million [2] - Over the last four quarters, NETGEAR has surpassed consensus EPS estimates three times and topped consensus revenue estimates four times [2] Future Outlook - The sustainability of NETGEAR's stock price movement will depend on management's commentary during the earnings call and the earnings outlook for the coming quarters [3][4] - The current consensus EPS estimate for the upcoming quarter is -$0.25 on revenues of $165.16 million, and for the current fiscal year, it is -$1.57 on revenues of $631.13 million [7] Industry Context - The Computer - Networking industry, to which NETGEAR belongs, is currently ranked in the top 41% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact NETGEAR's performance [5]

Product Launch and Features - NETGEAR has introduced two new products: the Orbi 770 Tri-band Mesh System and the Nighthawk RS300 Router, which are positioned as the company's most affordable Wi-Fi 7 offerings to date [14] - The Orbi 770 provides multi-gigabit speeds up to 11Gbps across 2.4GHz, 5GHz, and 6GHz bands, while the Nighthawk RS300 offers speeds up to 9.3Gbps with the ultra-fast 6GHz band [16] - Both products come with NETGEAR Smart Parental Controls and a 30-day trial for NETGEAR Armor Powered by Bitdefender, enhancing security for connected devices [2][17] Market Demand and Trends - There is robust demand for premium products like Orbi 8 and 9, as well as 5G Nighthawk Mobile Hotspots, which is expected to benefit the company during the Wi-Fi 7 upgrade cycle [3] - The introduction of Wi-Fi 7 has made multi-gig internet speeds more affordable, contributing to increased adoption [8] Financial Performance and Challenges - The company is facing challenges due to tough macroeconomic conditions, inflation, and high interest rates, which are impacting topline performance and prompting inventory reduction efforts [11][18] - The company anticipates a revenue headwind of $25-$30 million in the current quarter due to destocking activities with channel partners [5] Stock Performance and Estimates - The Zacks Consensus Estimate for BMI's 2024 EPS is $3.89, reflecting a 9.9% increase over the past 60 days, with shares rising 22.2% in the past year [4] - For Woodward, the fiscal 2024 EPS estimate has increased by 11.4% to $5.88, with shares gaining 59.6% in the past year [7] - Arista Networks has a 2024 EPS estimate of $7.92, up 5.7%, with shares increasing by 80.8% in the past year [13]

Have you evaluated the performance of NETGEAR, Inc.'s (NTGR) international operations during the quarter that concluded in March 2024? Considering the extensive worldwide presence of this company, analyzing the patterns in international revenues is crucial for understanding its financial resilience and potential for growth.In today's increasingly interconnected global economy, a company's ability to tap into international markets can be a pivotal factor in shaping its overall financial health and growth tra ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. For the quarterly period ended March 31, 2024 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. For the transition period from to Commission file number: 000-50350 NETGEAR, Inc. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporati ...

NETGEAR, Inc (NTGR) reported first-quarter 2024 non-GAAP loss of 28 cents per share compared with non-GAAP loss of 19 cents recorded in the year-ago quarter. The reported figure was wider than the Zacks Consensus Estimate of a loss of 27 cents.NTGR generated net revenues of $164.6 million, down 9% year over year. However, the top line beat the consensus estimate by 0.4%.Management noted that tough macroeconomic conditions along with inflationary pressure and high interest rates compelled channel partners to ...

Financial Data and Key Metrics - Non-GAAP gross margin in Q1 2024 was 29.5%, down 410 basis points YoY and 550 basis points QoQ [17] - Non-GAAP operating expenses in Q1 were $64.6 million, down 4.8% YoY and up 2.1% sequentially [19] - Non-GAAP net loss in Q1 was $8.4 million, with a diluted loss per share of $0.28 [21] - Cash and short-term investments at the end of Q1 were $289.4 million, up $5.8 million from the prior quarter [103] - Inventory reduction efforts are ongoing, with a target of reaching three months of supply by the end of the year [23][71] Business Line Performance - Connected Home Products (CHP) segment revenue was $96 million in Q1, down 6.6% YoY and 18.9% sequentially [41] - NETGEAR for Business (NFB) segment revenue was $68.6 million in Q1, down 2.4% sequentially, with strong demand in pro AV managed switches [42] - Service provider channel revenue was $28 million in Q1, partially offsetting retail challenges [95] - Premium products accounted for over 25% of CHP retail sales, up 500 basis points YoY [106] Market Performance - Americas revenue in Q1 was $109.9 million, down 9.8% YoY and 11.9% sequentially [97] - EMEA revenue was $31.2 million, down 20.4% YoY and 17.7% sequentially [97] - APAC revenue was $23.5 million, up 18.5% YoY but down 9.6% sequentially [97] Strategy and Industry Competition - The company is shifting away from product bundles to improve margins and recurring revenue [6][87] - New partnerships with home security providers and professional audio companies aim to enhance customer experience and expand market reach [5][8] - The company is focusing on a "good, better, best" product strategy to compete more effectively, especially on Amazon [86] - Efforts are being made to streamline operations and improve organizational efficiency [11][118] Management Commentary on Operating Environment and Future Outlook - The macroeconomic environment remains challenging, with higher-than-expected inflation and interest rates impacting channel inventory levels [62][120] - The company expects to generate cash in Q2 and the rest of the year, driven by inventory reductions [23][38] - Long-term growth opportunities are seen in pro AV managed switches, premium Wi-Fi mesh systems, 5G mobile hotspots, and subscription services [101] - The company is accelerating destocking efforts, expecting a $25 million to $30 million revenue headwind in Q2 [83][108] Other Important Information - The company exited the Meural business, writing off $500,000 of non-finished goods inventory in Q1 [74] - Share repurchases totaled $11.4 million in Q1, with 783,000 shares bought at an average price of $14.62 [105] - The company is implementing AI transformation efforts to enhance operations and product development [118] Q&A Session Summary Question: Why the hard reset in strategy? - The company is acting quickly to address COVID-related market conditions and set up for long-term success, pulling forward challenges to improve the second half of the year [29] Question: State of the consumer and inventory build-up? - The company is not seeing trade-down activity but is struggling to pull customers up to premium products [32] - Slower-moving inventory includes wireless LAN products on the SMB side, with efforts to transition to Wi-Fi 7 [33][34] Question: Cash generation and share repurchases? - Cash generation in Q2 is expected to be around half of Q1 levels, with inventory reduction being a key driver [38] - The company remains committed to opportunistic share repurchases [56]

NETGEAR, Inc. (NTGR) came out with a quarterly loss of $0.28 per share versus the Zacks Consensus Estimate of a loss of $0.27. This compares to loss of $0.19 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -3.70%. A quarter ago, it was expected that this company would post earnings of $0.04 per share when it actually produced earnings of $0.09, delivering a surprise of 125%.Over the last four quarters, the company has surpasse ...