Group 1: Acquisition and Strategic Focus - NETGEAR Inc. (NTGR) has signed a definitive agreement to acquire Exium, a cybersecurity company, emphasizing its commitment to cloud-based innovations and networking solutions for SMEs and MSPs [1][10] - The acquisition aims to create a fully integrated SASE platform, combining networking and cybersecurity functions to meet the evolving needs of SMEs [2][4] Group 2: Market Potential and Growth - The SASE market is projected to reach $25 billion by 2027, growing at a CAGR of 29%, driven by the shift towards cloud-driven networking and security solutions [3] - By integrating Exium's technology, NETGEAR for Business (NFB) plans to offer a comprehensive solution that combines wired and wireless connectivity with advanced security features [3][4] Group 3: Financial Performance and Outlook - Revenues in the NFB segment increased by 15.4% year over year to $79.2 million, with a gross margin improvement to 46.3%, reflecting a 440 basis point increase from the previous year [6] - NETGEAR reported $8.7 million in recurring revenues with a subscriber base of 559,000, which is crucial for long-term financial health [8] Group 4: Seasonal Trends and Challenges - The company's business follows a seasonal pattern, with higher sales typically in the third and fourth quarters due to back-to-school and holiday shopping [9] - Supply constraints for certain managed switch models are expected to improve starting in the second quarter of the year [7]

Industry Overview - The Zacks Computer - Networking industry is facing heightened uncertainty due to global macroeconomic conditions and volatile supply-chain dynamics, with telecom operators reducing or delaying capital expenditures [1][4] - Despite short-term challenges, the industry is expected to benefit from increased focus on cloud computing, network security, big data, and cloud storage, particularly with the rapid adoption of AI technology [1][5] Trends Influencing the Industry - The accelerated deployment of 5G technology is driving demand for robust networking infrastructure, including IoT, Advanced Driver Assistance Systems, AR/VR devices, and 5G smartphones [2][6] - The Wi-Fi 7 upgrade cycle is anticipated to further stimulate demand for innovative networking products, benefiting major players like Cisco, Extreme Networks, and NETGEAR [2][7] - Innovation in networking technologies, including network virtualization and Software-Defined Networking, is opening new business avenues as enterprises seek to manage fixed and wireless devices securely [5] Performance Metrics - The Zacks Computer - Networking industry has outperformed the S&P 500 Composite and the broader Zacks Computer and Technology sector, gaining 35% over the past year compared to the sector's 13% and the S&P 500's 12.7% [11] - The industry is currently trading at a forward 12-month price-to-earnings (P/E) ratio of 19.90X, below the S&P 500's 21.82X and the sector's 25.79X [14] Company Highlights - **Cisco Systems, Inc. (CSCO)**: The company is embedding AI across its security and collaboration platforms, with AI infrastructure orders exceeding $600 million in the third quarter of fiscal 2025, ahead of its $1 billion annual target [18][20] - **NETGEAR, Inc. (NTGR)**: The company reported a 15.4% revenue increase in its NETGEAR for Business segment, but overall revenues declined by 1.5% year-over-year, highlighting challenges in certain business units [25][26] - **Extreme Networks (EXTR)**: The company experienced a 35% year-over-year revenue growth, driven by strong demand for its AI-driven cloud networking solutions, and has raised its revenue guidance for fiscal 2025 [30][32]

Key Takeaways NTGR stock rose 15% in six months and nearing their 52-week high of $31.55. Growth in NFB segment and rising recurring revenues supported momentum despite top-line softness. Strategic realignment, cost cuts and inventory reductions have improved financial flexibility for NTGR.NETGEAR Inc.’s (NTGR) share price has appreciated 15% in the past six months, outperforming the Computer Networks Industry’s growth of 6.4%. Over the same time frame, the broader Zacks Computer and Technology and the S& ...

NETGEAR, Inc. (NTGR) reported first-quarter 2025 non-GAAP earnings per share of 2 cents, which beat the Zacks Consensus Estimate of a loss of 35 cents. The company reported a non-GAAP loss of 28 cents per share in the year-ago quarter.NETGEAR generated net revenues of $162.1 million, which beat the consensus estimate by 6.6%. The figure also surpassed the company's guidance of $145-$160 million. Revenues were down 1.5% on a year-over-year basis. The company added that the successful destocking plan in 2024 ...

NETGEAR (NTGR) Q1 2025 Earnings Call April 30, 2025 05:00 PM ET Company Participants Erik Bylin - Investor RelationsCharles Prober - CEO & DirectorBryan Murray - CFOAdam Tindle - Managing Director Operator Ladies and gentlemen, thank you for standing by. At this time, all participants are in a listen only mode. Later, we will conduct a question and answer session. I would now like to turn the conference over to Eric Bailin. Please go ahead, sir. Erik Bylin Thank you, operator. Good afternoon, and welcome to ...

NETGEAR (NTGR) Q1 2025 Earnings Call April 30, 2025 05:00 PM ET Company Participants Erik Bylin - Investor RelationsCharles Prober - CEO & DirectorBryan Murray - CFOAdam Tindle - Managing Director Operator Ladies and gentlemen, thank you for standing by. At this time, all participants are in a listen only mode. Later, we will conduct a question and answer session. I would now like to turn the conference over to Eric Bailin. Please go ahead, sir. Erik Bylin Thank you, operator. Good afternoon, and welcome to ...

NETGEAR (NTGR) Q1 2025 Earnings Call April 30, 2025 05:00 PM ET Speaker0 Ladies and gentlemen, thank you for standing by. At this time, all participants are in a listen only mode. Later, we will conduct a question and answer session. I would now like to turn the conference over to Eric Bailin. Please go ahead, sir. Speaker1 Thank you, operator. Good afternoon, and welcome to NETGEAR's first quarter of twenty twenty five financial results conference call. Joining us from the company are Mr. CJ Prober, CEO an ...

NETGEAR, Inc. (NTGR) shares soared 14.2% in the last trading session to close at $23.07. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 13.7% loss over the past four weeks.The increase in share price can attributed to President Trump’s announcement of a 90-day pause on reciprocal tariffs, barring China. This led to skyrocketing indices and subsequent increases for most stocks including NETGEAR. Apart from that, the company speci ...

NETGEAR Inc. (NTGR) has seen a significant rally in the past year, with its stock price appreciating 50.6%. The appreciation is better than the Computer Networks Industry, the broader Zacks Computer and Technology and the S&P 500 composite’s growth of 22.8%, 5.6% and 9.4%, respectivelyPrice PerformanceImage Source: Zacks Investment ResearchThe NTGR stock closed the last trading session at $22.11 and is down 30% from its 52-week high of $31.55.Investors may question whether this pullback from 52 week high pr ...