Fourth Quarter Revenue of $367 Million - 45%
Growth Year over Year SMB Returns to Year over Year Growth in
Fourth Quarter
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
fourth quarter and full year ended December 31, 2020.
- Fourth quarter 2020 net revenue of $367.1 million, an increase
of 45.1% from the comparable prior year quarter.
- Fourth quarter 2020 GAAP operating income of $33.8 million, or
9.2% of net revenue, as compared to operating loss of $0.2 million,
or (0.1)% of net revenue, in the comparable prior year quarter.
- Fourth quarter 2020 non-GAAP operating income of $40.3 million,
or 11.0% of net revenue, as compared to $11.0 million, or 4.4% of
net revenue in the comparable prior year quarter.
- Fourth quarter 2020 GAAP net income per diluted share of $0.99,
as compared to net loss per diluted share of $0.01 in the
comparable prior year quarter.
- Fourth quarter 2020 non-GAAP net income per diluted share of
$0.99, as compared to $0.34 in the comparable prior year
quarter.
- Fiscal 2020 net revenue of $1.26 billion, an increase of 25.7%
from the prior year.
- Fiscal 2020 GAAP operating income of $75.5 million, or 6.0% of
net revenue, as compared to $26.2 million, or 2.6% of net revenue,
in the prior year.
- Fiscal 2020 non-GAAP operating income of $110.8 million, or
8.8% of net revenue, as compared to $64.5 million, or 6.5% of net
revenue in the prior year.
- Fiscal 2020 GAAP net income per diluted share of $1.90, as
compared to $0.81 in the prior year.
- Fiscal 2020 non-GAAP net income per diluted share of $2.88, as
compared to $1.87 in the prior year.
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, “NETGEAR ended 2020 with another outstanding quarter,
delivering 45% revenue growth and 11% non-GAAP operating margin. In
a year without parallel, the NETGEAR team rallied against countless
obstacles to continually surpass our expectations while remaining
efficient to produce strong operating leverage on our growth. At
the heart of the strong demand for our products are families
working and learning from home – these families need to solve for
high speed, high-capacity bandwidth that stretches to every corner
of the home. This is fueling rapid growth of a new premium segment
that is defined by a WiFi 6 mesh system with tri-band architecture.
At the forefront of this technology, NETGEAR has commanding share
in this segment. We continued our pace of adding new subscribers,
which were up by 68,000 in Q4 to 437,000 paid subscribers, and far
surpassed our goal for the year. As a long-tenured market leader
NETGEAR will continue to innovate to deliver the leading products
and services that customers increasingly demand.”
Mr. Lo continued, “We sustained our strong momentum in Q4 in
Connected Home and delivered more than 60% year over year growth in
both the retail and service provider channels. On the SMB side, we
continued to execute on our strategy to offer high performance
ProAV and work-from-home solutions, with leading edge WiFi access
points plus plug-and-play switches. This produced another quarter
of strong sequential growth, coming in at 16%, and a return to year
over year growth. We feel NETGEAR is on a great trajectory and are
excited about 2021.”
Bryan Murray, Chief Financial Officer of NETGEAR, added, “We had
another impressive quarter of strong cash flow, generating $46.1
million in cash from operations in the fourth quarter. Preserving
strong liquidity and generating cash are paramount as the pandemic
continues into 2021.”
Business Outlook
Mr. Murray continued, “As supply is expected to remain
constrained, and with an anticipated sequential step-down in sales
to service providers, our first quarter net revenue is expected to
be in the range of $300 million to $315 million. Our GAAP operating
margin for the first quarter is expected to be in the range of 4.5%
to 5.5%, and non-GAAP operating margin is expected to be in the
range of 8.0% to 9.0%. Our GAAP tax rate is expected to be
approximately 28%, and our non-GAAP tax rate is expected to be
24.5% for the first quarter of 2021. While we are confident in our
ability to provide guidance at this time, we do so with the caveat
that considerable uncertainty remains in the market due to the
COVID-19 pandemic, and should unforeseen events occur, in
particular related to transportation delays in Southern California
where our main distribution center is located, our actual results
could differ from the foregoing guidance.”
A reconciliation between the Business Outlook on a GAAP and
non-GAAP basis is provided in the following table:
Three months ending
March 28, 2021
Operating Margin Rate
Tax Rate
GAAP
4.5% - 5.5%
28.0%
Estimated adjustments for1:
Amortization of intangibles
0.5%
-
Stock-based compensation expense
2.3%
-
Restructuring and other charges
0.7%
-
Non-GAAP tax adjustments
-
(3.5)%
Non-GAAP
8.0% - 9.0%
24.5%
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; restructuring and other 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 fourth quarter and full year results and
discuss management's expectations for the first quarter of 2021
today, Wednesday, February 3, 2021 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 7797905. 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.
For more than 25 years, NETGEAR® (NASDAQ: NTGR) has been the
innovative leader in connecting the world to the internet with
advanced networking technologies for homes, businesses and service
providers around the world. As staying connected has become more
important than ever, NETGEAR delivers award-winning network
solutions for remote work, distance learning, ultra high def
streaming, online game play and more. To enable people to
collaborate and connect to a world of information and
entertainment, NETGEAR is dedicated to providing a range of
connected solutions. From ultra-premium Orbi Mesh WiFi systems and
high performance Nighthawk routers, to high-speed cable modems and
5G mobile wireless products to cloud-based subscription services
for network management and security, to smart networking products
and Video over Ethernet for Pro AV applications, NETGEAR keeps you
connected. NETGEAR is headquartered in San Jose, California. Learn
more on the NETGEAR Investor Page or by calling (408) 907-8000.
Connect with NETGEAR: Twitter, Facebook, Instagram, LinkedIn and
the NETGEAR blog at NETGEAR.com.
© 2021 NETGEAR, Inc. NETGEAR and the NETGEAR logo 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, including
expectations regarding continued profitability and cash generation;
expectations regarding continuing market demand for the Company’s
products and the Company’s ability to innovate and respond to this
demand; the timing, distribution, sales momentum and market
acceptance of recent and anticipated new product introductions that
position the Company for growth and market share gain; and
expectations regarding NETGEAR's paid subscriber base growth. These
statements are based on management's current expectations and are
subject to certain risks and uncertainties, including the
following: uncertainty surrounding the duration and impact of the
global COVID-19 pandemic, including with respect to the Company’s
supply chain and potential disruptions in the Company’s
transportation network, including with respect to the Company’s
main distribution center located in Southern California; future
demand for the Company's products may be lower than anticipated;
the Company may be unsuccessful, or experience delays, in
manufacturing and distributing its new and existing products;
consumers may choose not to adopt the Company's new product
offerings or adopt competing products; the Company may be unable to
continue to grow its number of registered users, its number of
registered app users and/or its paid subscriber base; product
performance may be adversely affected by real world operating
conditions; 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, including the Company’s ability to collect
receivables as they become due. 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 September 27, 2020, filed with the
Securities and Exchange Commission on October 30, 2020. 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 other
operating expenses, net, 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 supplemental measures exclude
adjustments for amortization of intangibles, stock-based
compensation expense, separation expense, change in fair value of
contingent consideration, restructuring and other charges,
litigation reserves, net, gain/loss on investments, net, and adjust
for effects related to non-GAAP tax adjustments. 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, performance shares 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, change in fair value of contingent
consideration, restructuring and other charges, litigation
reserves, net, and gain/loss on investments, net. 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.
Non-GAAP tax adjustments consist of 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
NETGEAR, INC.
CONDENSED CONSOLIDATED BALANCE
SHEETS
(In thousands)
(Unaudited)
As of
December 31, 2020
December 31, 2019
ASSETS
Current assets:
Cash and cash equivalents
$
346,460
$
190,208
Short-term investments
6,858
5,499
Accounts receivable, net
337,052
277,168
Inventories
172,112
235,489
Prepaid expenses and other current
assets
30,696
35,745
Total current assets
893,178
744,109
Property and equipment, net
16,080
17,683
Operating lease right-of-use assets,
net
29,411
28,917
Intangibles, net
3,899
10,104
Goodwill
80,721
80,721
Other non-current assets
82,750
74,279
Total assets
$
1,106,039
$
955,813
LIABILITIES AND STOCKHOLDERS’
EQUITY
Current liabilities:
Accounts payable
$
90,902
$
80,531
Accrued employee compensation
35,020
20,024
Other accrued liabilities
218,375
189,547
Deferred revenue
13,458
6,450
Income taxes payable
7,318
1,839
Total current liabilities
365,073
298,391
Non-current income taxes payable
19,174
15,307
Non-current operating lease
liabilities
25,512
25,434
Other non-current liabilities
6,896
7,988
Total liabilities
416,655
347,120
Stockholders’ equity:
Common stock
30
30
Additional paid-in capital
882,709
831,365
Accumulated other comprehensive income
(loss)
(35
)
21
Accumulated deficit
(193,320
)
(222,723
)
Total stockholders’ equity
689,384
608,693
Total liabilities and stockholders’
equity
$
1,106,039
$
955,813
NETGEAR, INC.
CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS
(In thousands, except per
share and percentage data)
(Unaudited)
Three Months Ended
Twelve Months Ended
December 31, 2020
September 27, 2020
December 31, 2019
December 31, 2020
December 31, 2019
Net revenue
$
367,073
$
378,114
$
252,971
$
1,255,202
$
998,763
Cost of revenue
255,957
264,620
183,388
883,050
704,535
Gross profit
111,116
113,494
69,583
372,152
294,228
Gross margin
30.3
%
30.0
%
27.5
%
29.6
%
29.5
%
Operating expenses:
Research and development
23,376
24,529
20,799
88,788
77,982
Sales and marketing
40,645
39,794
34,263
147,854
138,150
General and administrative
16,066
16,467
13,965
61,148
49,432
Other operating expenses (income), net
(2,813
)
538
767
(1,182
)
2,476
Total operating expenses
77,274
81,328
69,794
296,608
268,040
Income (loss) from operations
33,842
32,166
(211
)
75,544
26,188
Operating margin
9.2
%
8.5
%
(0.1
)%
6.0
%
2.6
%
Interest income
27
98
417
436
2,539
Other income (expense), net
(390
)
(515
)
419
(5,177
)
844
Income before income taxes
33,479
31,749
625
70,803
29,571
Provision for income taxes
2,531
6,214
1,045
12,510
3,780
Net income (loss)
$
30,948
$
25,535
$
(420
)
$
58,293
$
25,791
Net income (loss) per share:
Basic
$
1.02
$
0.85
$
(0.01
)
$
1.95
$
0.83
Diluted
$
0.99
$
0.83
$
(0.01
)
$
1.90
$
0.81
Weighted average shares used to compute
net income (loss) per share:
Basic
30,331
30,037
30,103
29,897
30,936
Diluted
31,235
30,741
30,103
30,640
31,965
NETGEAR, INC.
RECONCILIATIONS OF GAAP
MEASURES TO NON-GAAP MEASURES
(In thousands, except
percentage data)
(Unaudited)
STATEMENT OF OPERATIONS DATA:
Three Months Ended
Twelve Months Ended
December 31, 2020
September 27, 2020
December 31, 2019
December 31, 2020
December 31, 2019
GAAP gross profit
$
111,116
$
113,494
$
69,583
$
372,152
$
294,228
GAAP gross margin
30.3
%
30.0
%
27.5
%
29.6
%
29.5
%
Amortization of intangibles
178
179
178
714
714
Stock-based compensation expense
962
923
714
4,091
2,843
Non-GAAP gross profit
$
112,256
$
114,596
$
70,475
$
376,957
$
297,785
Non-GAAP gross margin
30.6
%
30.3
%
27.9
%
30.0
%
29.8
%
GAAP research and development
$
23,376
$
24,529
$
20,799
$
88,788
$
77,982
Stock-based compensation expense
(1,304
)
(1,138
)
(2,556
)
(5,183
)
(6,532
)
Non-GAAP research and development
$
22,072
$
23,391
$
18,243
$
83,605
$
71,450
GAAP sales and marketing
$
40,645
$
39,794
$
34,263
$
147,854
$
138,150
Amortization of intangibles
(1,266
)
(1,291
)
(1,341
)
(5,238
)
(6,017
)
Stock-based compensation expense
(2,038
)
(1,927
)
(2,846
)
(7,634
)
(9,069
)
Non-GAAP sales and marketing
$
37,341
$
36,576
$
30,076
$
134,982
$
123,064
GAAP general and administrative
$
16,066
$
16,467
$
13,965
$
61,148
$
49,432
Stock-based compensation expense
(3,475
)
(3,230
)
(2,838
)
(13,597
)
(10,693
)
Non-GAAP general and administrative
$
12,591
$
13,237
$
11,127
$
47,551
$
38,739
GAAP other operating expenses (income),
net
$
(2,813
)
$
538
$
767
$
(1,182
)
$
2,476
Separation expense
—
—
—
—
(264
)
Change in fair value of contingent
consideration
3,204
(187
)
224
2,928
25
Restructuring and other charges
(391
)
(329
)
(931
)
(1,702
)
(2,077
)
Litigation reserves, net
—
(22
)
(60
)
(44
)
(160
)
Non-GAAP other operating expenses, net
$
—
$
—
$
—
$
—
$
—
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
Twelve Months Ended
December 31, 2020
September 27, 2020
December 31, 2019
December 31, 2020
December 31, 2019
GAAP total operating expenses
$
77,274
$
81,328
$
69,794
$
296,608
$
268,040
Amortization of intangibles
(1,266
)
(1,291
)
(1,341
)
(5,238
)
(6,017
)
Stock-based compensation expense
(6,817
)
(6,295
)
(8,240
)
(26,414
)
(26,294
)
Separation expense
—
—
—
—
(264
)
Change in fair value of contingent
consideration
3,204
(187
)
224
2,928
25
Restructuring and other charges
(391
)
(329
)
(931
)
(1,702
)
(2,077
)
Litigation reserves, net
—
(22
)
(60
)
(44
)
(160
)
Non-GAAP total operating expenses
$
72,004
$
73,204
$
59,446
$
266,138
$
233,253
GAAP operating income (loss)
$
33,842
$
32,166
$
(211
)
$
75,544
$
26,188
GAAP operating margin
9.2
%
8.5
%
(0.1
)%
6.0
%
2.6
%
Amortization of intangibles
1,444
1,470
1,519
5,952
6,731
Stock-based compensation expense
7,779
7,218
8,954
30,505
29,137
Separation expense
—
—
—
—
264
Change in fair value of contingent
consideration
(3,204
)
187
(224
)
(2,928
)
(25
)
Restructuring and other charges
391
329
931
1,702
2,077
Litigation reserves, net
—
22
60
44
160
Non-GAAP operating income
$
40,252
$
41,392
$
11,029
$
110,819
$
64,532
Non-GAAP operating margin
11.0
%
10.9
%
4.4
%
8.8
%
6.5
%
GAAP other income (expense), net
$
(390
)
$
(515
)
$
419
$
(5,177
)
$
844
Gain/loss on investments, net
850
842
—
6,222
223
Non-GAAP other income (expense), net
$
460
$
327
$
419
$
1,045
$
1,067
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
Twelve Months Ended
December 31, 2020
September 27, 2020
December 31, 2019
December 31, 2020
December 31, 2019
GAAP net income (loss)
$
30,948
$
25,535
$
(420
)
$
58,293
$
25,791
Amortization of intangibles
1,444
1,470
1,519
5,952
6,731
Stock-based compensation expense
7,779
7,218
8,954
30,505
29,137
Separation expense
—
—
—
—
264
Change in fair value of contingent
consideration
(3,204
)
187
(224
)
(2,928
)
(25
)
Restructuring and other charges
391
329
931
1,702
2,077
Litigation reserves, net
—
22
60
44
160
Gain/loss on investments, net
850
842
—
6,222
223
Non-GAAP tax adjustments
(7,246
)
(912
)
(460
)
(11,447
)
(4,598
)
Non-GAAP net income
$
30,962
$
34,691
$
10,360
$
88,343
$
59,760
NET INCOME (LOSS) PER DILUTED
SHARE:
GAAP net income (loss) per diluted
share
$
0.99
$
0.83
$
(0.01
)
$
1.90
$
0.81
Amortization of intangibles
0.05
0.05
0.05
0.19
0.21
Stock-based compensation expense
0.25
0.23
0.29
1.00
0.91
Separation expense
—
—
—
—
0.01
Change in fair value of contingent
consideration
(0.10
)
0.01
(0.01
)
(0.10
)
(0.00)
Restructuring and other charges
0.01
0.01
0.03
0.06
0.06
Litigation reserves, net
—
0.00
0.00
0.00
0.01
Gain/loss on investments, net
0.03
0.03
—
0.20
0.01
Non-GAAP tax adjustments
(0.24
)
(0.03
)
(0.01
)
(0.37
)
(0.15
)
Non-GAAP net income per diluted share
1
$
0.99
$
1.13
$
0.34
$
2.88
$
1.87
Shares used in computing GAAP net income
(loss) per diluted share
31,235
30,741
30,103
30,640
31,965
Shares used in computing non-GAAP net
income per diluted share
31,235
30,741
30,800
30,640
31,965
1 The per share reconciliation of GAAP to
non-GAAP may not aggregate due to both calculations utilizing a
different share basis. The GAAP net loss per diluted share
calculation uses a lower share count as it excludes potentially
dilutive shares included in the non-GAAP net income per diluted
share calculation.
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
December 31, 2020
September 27, 2020
June 28, 2020
March 29, 2020
December 31, 2019
Cash, cash equivalents and short-term
investments
$
353,318
$
306,818
$
258,552
$
209,714
$
195,707
Cash, cash equivalents and short-term
investments per diluted share
$
11.31
$
9.98
$
8.60
$
6.98
$
6.35
Accounts receivable, net
$
337,052
$
340,004
$
277,490
$
257,582
$
277,168
Days sales outstanding (DSO)
87
82
90
100
102
Inventories
$
172,112
$
144,302
$
150,585
$
180,602
$
235,489
Ending inventory turns
5.9
7.3
5.3
3.6
3.1
Weeks of channel inventory:
U.S. retail channel
8.6
5.7
6.4
7.0
8.0
U.S. distribution channel
4.9
2.8
4.2
5.7
4.5
EMEA distribution channel
5.7
6.8
4.7
6.7
5.9
APAC distribution channel
8.2
10.1
11.9
8.3
9.6
Deferred revenue (current and
non-current)
$
16,623
$
13,813
$
10,792
$
8,963
$
8,511
Headcount
818
803
788
797
809
Non-GAAP diluted shares
31,235
30,741
30,070
30,045
30,800
NET REVENUE BY GEOGRAPHY
Three Months Ended
Twelve Months Ended
December 31, 2020
September 27, 2020
December 31, 2019
December 31, 2020
December 31, 2019
Americas
$
259,644
71
%
$
277,891
73
%
$
169,128
67
%
$
897,971
71
%
$
653,006
65
%
EMEA
67,453
18
%
63,705
17
%
50,491
20
%
221,665
18
%
200,099
20
%
APAC
39,976
11
%
36,518
10
%
33,352
13
%
135,566
11
%
145,658
15
%
Total
$
367,073
100
%
$
378,114
100
%
$
252,971
100
%
$
1,255,202
100
%
$
998,763
100
%
NETGEAR, INC.
SUPPLEMENTAL FINANCIAL
INFORMATION (CONTINUED)
(In thousands)
(Unaudited)
NET REVENUE BY SEGMENT
Three Months Ended
Twelve Months Ended
December 31,
2020
September 27,
2020
December 31,
2019
December 31,
2020
December 31,
2019
Connected Home
$
296,126
$
316,739
$
183,859
$
1,007,545
$
711,391
SMB
70,947
61,375
69,112
247,657
287,372
Total net revenue
$
367,073
$
378,114
$
252,971
$
1,255,202
$
998,763
SERVICE PROVIDER NET REVENUE
Three Months Ended
Twelve Months Ended
December 31,
2020
September 27,
2020
December 31,
2019
December 31,
2020
December 31,
2019
Connected Home
$
48,532
$
73,343
$
29,651
$
192,714
$
128,852
SMB
770
712
1,095
3,150
4,465
Total service provider net revenue
$
49,302
$
74,055
$
30,746
$
195,864
$
133,317
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210203005881/en/
NETGEAR Investor Relations Erik Bylin investors@netgear.com
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