NETGEAR Inc
NASDAQ:NTGR
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NETGEAR Inc
NETGEAR, Inc. engages in the provision of Internet connected products to consumers, businesses, and service providers. The company is headquartered in San Jose, California and currently employs 771 full-time employees. The company went IPO on 2003-07-31. The firm operates through two segments: Connected Home and Small and Medium Business (SMB). The Connected Home segment focuses on consumers and provides wireless fidelity (WiFi) Internet networking solutions such as WiFi 6 and WiFi 6E Tri-band and Quad-band mesh systems, routers, fourth generation/fifth generation (4G/5G) mobile products, smart devices such as Meural digital canvasses, and subscription services that provide consumers a range of value-added services. The SMB segment focuses on small and medium sized businesses and provides solutions for business networking, wireless local area network (LAN), audio and video over Ethernet for Pro AV applications, security, and remote management. The firm conducts business across three geographic regions: Americas; Europe, Middle East, and Africa (EMEA), and Asia Pacific (APAC).
NETGEAR, Inc. engages in the provision of Internet connected products to consumers, businesses, and service providers. The company is headquartered in San Jose, California and currently employs 771 full-time employees. The company went IPO on 2003-07-31. The firm operates through two segments: Connected Home and Small and Medium Business (SMB). The Connected Home segment focuses on consumers and provides wireless fidelity (WiFi) Internet networking solutions such as WiFi 6 and WiFi 6E Tri-band and Quad-band mesh systems, routers, fourth generation/fifth generation (4G/5G) mobile products, smart devices such as Meural digital canvasses, and subscription services that provide consumers a range of value-added services. The SMB segment focuses on small and medium sized businesses and provides solutions for business networking, wireless local area network (LAN), audio and video over Ethernet for Pro AV applications, security, and remote management. The firm conducts business across three geographic regions: Americas; Europe, Middle East, and Africa (EMEA), and Asia Pacific (APAC).
Strong Quarter: NETGEAR delivered its sixth consecutive quarter exceeding revenue and operating margin guidance, with especially strong performance from the Enterprise segment.
Enterprise Growth: Enterprise segment revenue grew nearly 16% year-over-year, driven by robust demand for ProAV managed switches and improved supply chain execution.
Gross Margin Record: Achieved a new record non-GAAP gross margin of 39.6%, up 180 basis points sequentially and 850 basis points year-over-year.
Profitability Milestone: NETGEAR reported non-GAAP EPS of $0.12 and expects to deliver positive non-GAAP EPS in every quarter this year, surpassing earlier expectations.
Share Repurchases: Repurchased $20 million of stock in Q3 at an average price of $24.55 per share, with plans to continue buybacks.
Segment Reporting Change: Starting Q4, NETGEAR will report results as two segments: Enterprise and Consumer, reflecting changes in product and market strategy.
Q4 Guidance: Q4 revenue is expected between $170 million and $185 million, with a forecasted gross margin headwind of 150 basis points due to rising memory costs.