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NETGEAR® Reports Fourth Quarter And Full Year 2012 Results



          NETGEAR® Reports Fourth Quarter And Full Year 2012 Results

- Fourth quarter 2012 net revenue of $310.4 million, as compared to $309.2
million in the comparable prior year quarter

- Fourth quarter 2012 non-GAAP net income of $21.5 million, as compared to
$26.5 million in the comparable prior year quarter, decrease of 18.9%
year-over-year

- Fourth quarter 2012 non-GAAP diluted earnings per share of $0.55, as
compared to $0.69 in the comparable prior year quarter, decrease of 20.3%
year-over-year

- 2012 net revenue was $1.27 billion, as compared to $1.18 billion in 2011,
7.7% year-over-year growth

- 2012 non-GAAP net income of $99.4 million, as compared to $105.2 million in
2011, decrease of 5.5% year-over-year

- 2012 non-GAAP diluted earnings per share of $2.57, as compared to $2.77 in
2011, decrease of 7.2% year-over-year

- Company expects first quarter 2013 net revenue to be in the range of $290
million to $305 million, with non-GAAP operating margin in the range of 11% to
12%

PR Newswire

SAN JOSE, Calif., Feb. 12, 2013

SAN JOSE, Calif., Feb. 12, 2013 /PRNewswire/ -- NETGEAR, Inc. (NASDAQGM:
NTGR), a global networking company that delivers innovative products to
consumers, businesses and service providers, today reported financial results
for the fourth quarter and full year ended December 31, 2012.

Net revenue for the fourth quarter ended December 31, 2012 was $310.4 million,
as compared to $309.2 million for the fourth quarter ended December 31, 2011,
and $315.2 million in the third quarter ended September 30, 2012.  Net income,
computed in accordance with GAAP, for the fourth quarter of 2012 was $16.1
million, or $0.41 per diluted share.  This compared to GAAP net income of
$22.8 million, or $0.60 per diluted share, for the fourth quarter of 2011, and
GAAP net income of $23.8 million, or 0.61 per diluted share, in the third
quarter of 2012. 

Gross margin on a non-GAAP basis in the fourth quarter of 2012 was 30.0%, as
compared to 31.1% in the year ago comparable quarter, and 31.6% in the third
quarter of 2012.  Non-GAAP operating margin was 11.4% in the fourth quarter of
2012, as compared to 12.4% in the fourth quarter of 2011, and 11.5% in the
third quarter of 2012. Non-GAAP net income was $0.55 per diluted share in the
fourth quarter of 2012, as compared to non-GAAP net income of $0.69 per
diluted share in the fourth quarter of 2011, and non-GAAP net income of $0.65
per diluted share in the third quarter of 2012.

Our non-GAAP tax rate was 39.4% in the fourth quarter 2012, as compared to
30.5% in the fourth quarter of 2011, and 30.3% in the third quarter of 2012.
The higher fourth quarter 2012 tax rate reflects a shift in revenues and
profits, to the Americas where tax rates are higher. The fourth quarter 2012
non-GAAP tax rate also did not include any one-time tax rate benefit which was
included in the tax rate for the third quarter of 2012, and which accounted
for an incremental $0.05 per diluted share of earnings for the third quarter
of 2012.

Net revenue for the full year 2012 was $1.27 billion, a 7.7% increase as
compared to $1.18 billion for 2011. Non-GAAP income from operations for the
full year 2012 was $147.7 million, as compared to non-GAAP income from
operations of $145.8 million for the full year 2011. Net income, computed in
accordance with GAAP, for 2012 was $86.5 million, or $2.23 per diluted share. 
This net income was a 5.4% decrease compared to net income of $91.4 million,
for 2011. Earnings per share, computed in accordance with GAAP, was $2.41 per
diluted share for the full year 2011.

The differences between GAAP and non-GAAP financial measures include
adjustments, net of any tax effect, for amortization of purchased intangibles,
stock-based compensation, restructuring and other charges, acquisition related
compensation and expense, impact to cost of sales from acquisition accounting
adjustments to inventory, litigation reserves, and gain on sale of cost method
investment. 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, "The
worldwide macroeconomic environment proved challenging for us during the
second half of 2012. In the fourth quarter, we witnessed reduced spending
among our service provider customers and Commercial Business Unit customers.
Despite this, our Retail Business Unit experienced the best fourth quarter
sequential growth in the last three years. We are very pleased with the share
gain against our retail competitors worldwide. We introduced 32 new products
in the fourth quarter of 2012 and once again, we were a double honoree this
year in the CES Innovations Design and Engineering Awards competition."

"Our fourth quarter 2012 Retail Business Unit net revenue was up 12%
sequentially, and up 5% for the full year. The fourth quarter was a record
quarter in terms of net revenue for our Retail Business Unit driven by strong
share gain in the U.S. and other international markets. Our fourth quarter
2012 Service Provider Business Unit net revenue was down 12% sequentially, but
up an impressive 25% year-over-year for the full year of 2012.  Upon closing,
we expect our recently announced acquisition of the Sierra Wireless, Inc.
AirCard business to drive global growth for our Service Provider Business Unit
by combining a world-class LTE engineering team with our world-class Wi-Fi
engineering team. We believe that fixed mobile broadband gateways will be the
internet access device of choice for the estimated four and a half billion
people currently not connected to high speed broadband internet because of
poor wireline telecommunications infrastructure. The AirCard acquisition is a
significant step forward in addressing this nascent market. Our fourth quarter
2012 Commercial Business Unit net revenue was down 7% sequentially and down 7%
for the full year due to cautious spending for information technology in the
uncertain business climate, especially in Europe."

Christine Gorjanc, Chief Financial Officer of NETGEAR, said, "While the
slowdown faced in the second half of 2012 has been challenging, we remain
committed to pursuing the growth opportunities we see in Smart Homes, Next
Generation Service Providers and 21^st Century SMBs. We are maintaining
financial discipline while continuing to drive innovation with historically
higher expenditures in research and development. Our research and development
expenditure allows us to execute our first-to-market strategy and consistently
meet the demand for next generation wireless connectivity products within the
markets that we serve. We maintain a strong balance sheet and continue to
closely manage our expenses, inventory and cash."

Mr. Lo added, "Looking forward, our plan for 2013 calls for organic growth in
revenue and profits with further incremental growth once the AirCard
acquisition is complete.  We expect the first half of 2013 to be tempered by
reduced spending from our service provider customers and macroeconomic
uncertainty with growth in the second half of the year.  Specifically, we
expect first quarter 2013 net revenue to be in the range of $290 to $305
million and non-GAAP operating margin between 11% and 12%, which does not
include revenues or costs associated with the AirCard acquisition. For the
full year 2013, we expect our annualized non-GAAP tax rate to be approximately
33%."

"In 2013, we expect to continue to drive growth via aggressive new product
introductions. We currently expect our 802.11ac WiFi equipment, 4G LTE fixed
mobile gateways, Home Automation and Monitoring systems, 10Gigabit Ethernet
switches, and Unified Storage to be key new revenue drivers. From a long-term
perspective, we are confident in the growth prospects we see in providing
Internet connectivity devices for homes, and small and medium businesses. As
the number of connected devices worldwide grows at an increasing rate, we
expect to expand our business to meet the demands of our customers in each of
the markets that we serve."

Investor Conference Call / Webcast Details
NETGEAR will review the fourth quarter and full year 2012 results and discuss
management's expectations for the first quarter of 2013 today, Tuesday,
February 12, 2013 at 5 p.m. EST (2 p.m. PST). The dial-in number for the live
audio call is (201) 689-8560. A live webcast of the conference call will be
available on NETGEAR's website at http://investor.netgear.com.  A replay of
the call will be available 2 hours following the call through midnight EST (9
p.m. PST) on Tuesday, February 19, 2013 by telephone at (858) 384-5517 and via
the web at http://investor.netgear.com.  The account number to access the
phone replay is 407607.

About NETGEAR, Inc.
NETGEAR (NASDAQGM: NTGR) is a global networking company that delivers
innovative products to consumers, businesses and service providers. For
consumers, the company makes high performance, dependable and easy to use home
networking, storage and digital media products to connect people with the
Internet and their content and devices. For businesses, NETGEAR provides
networking, storage and security solutions without the cost and complexity of
Big IT. The company also supplies top service providers with retail proven,
whole home solutions for their customers. NETGEAR products are built on a
variety of proven technologies such as wireless, Ethernet and powerline, with
a focus on reliability and ease-of-use. NETGEAR products are sold in
approximately 35,000 retail locations around the globe, and through over
41,000 value-added resellers. The company's headquarters are in San Jose,
Calif., with additional offices in over 25 countries. NETGEAR is an ENERGY
STAR partner. 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.

© 2013 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. 

Contact:
NETGEAR Investor Relations
Christopher Genualdi 
netgearIR@netgear.com  
(408) 890-3520

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, among others, regarding expectations on continuing to
drive growth via aggressive new product introductions and the key new revenue
drivers, expectations regarding our recent acquisition of the Sierra Wireless
AirCard business driving global growth for our Service Provider Business Unit,
expectations on fixed mobile broadband gateways, our commitment to pursuing
growth opportunities, higher research and development expenditures,
expectations on the 2013 non-GAAP tax rate, further reductions in spending
among our existing service provider customers in the first half of 2013,
growth in our Commercial Business Unit, expectations on our Retail Business
Unit, our plans for 2013, expected net revenue and non-GAAP operating margin,
and the expected expansion of our business to meet customer needs. These
statements are based on management's current expectations and are subject to
certain risks and uncertainties, including, without limitation, 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 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; channel inventory
information reported is estimated based on the average number of weeks of
inventory on hand on the last Saturday of the quarter, as reported by certain
of NETGEAR's customers; changes in the level of NETGEAR's cash resources and
the Company's planned usage of such resources; 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," pages 46 through 65, in the Company's Quarterly Report on Form 10-Q
for the fiscal quarter ended September 30, 2012, filed with the Securities and
Exchange Commission on November 6, 2012. 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.

Use of Non-GAAP Financial Information:
To supplement our consolidated financial statements presented on a GAAP basis,
NETGEAR uses non-GAAP financial measures, which are adjusted to exclude
certain expenses and tax benefits, where applicable.  We believe non-GAAP
financial measures are appropriate to enhance an overall understanding of our
past financial performance and also our prospects for the future. These
adjustments to our current period GAAP results are made with the intent of
providing both management and investors a more complete understanding of
NETGEAR's underlying operational results and trends and our marketplace
performance. For example, the non-GAAP results are an indication of our
baseline performance before charges that are considered by management to be
outside of our core operating results. In addition, these adjusted non-GAAP
results are among the primary indicators management uses as a basis for our
planning and forecasting of future periods. The presentation of this
additional information is not meant to be considered in isolation or as a
substitute for financial measures prepared in accordance with generally
accepted accounting principles in the United States.               

-Financial Tables Attached-

 

NETGEAR, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
                                           December 31,   December 31,
                                           2012           2011
ASSETS
Current assets:
Cash and cash equivalents                  $  149,032     $   208,898
Short-term investments                     227,845        144,797
Accounts receivable, net                   256,014        261,307
Inventories                                174,903        163,724
Deferred income taxes                      22,691         23,088
Prepaid expenses and other current assets  33,724         32,415
Total current assets                       864,209        834,229
Property and equipment, net                19,025         15,884
Intangibles, net                           27,621         20,956
Goodwill                                   100,880        85,944
Other non-current assets                   22,834         14,357
Total assets                               $  1,034,569   $   971,370
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable                           $  87,310      $   117,285
Accrued employee compensation              18,338         26,896
Other accrued liabilities                  126,255        120,480
Deferred revenue                           27,645         40,093
Income taxes payable                       1,382          4,207
Total current liabilities                  260,930        308,961
Non-current income taxes payable           13,735         18,657
Other non-current liabilities              5,293          4,995
Total liabilities                          279,958        332,613
Stockholders' equity:
Common stock                               38             38
Additional paid-in capital                 394,427        364,243
Cumulative other comprehensive income      4              23
Retained earnings                          360,142        274,453
Total stockholders' equity                 754,611        638,757
Total liabilities and stockholders' equity $  1,034,569   $   971,370

 

NETGEAR, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)
               Three Months Ended                             Year Ended
               December 31,         September    December     December 31,       December 31,
               2012                 30,          31,          2012               2011
                                    2012         2011
Net revenue    $          310,436   $  315,210   $  309,155   $      1,271,921   $  1,181,018
Cost of        219,058              217,522      214,182      888,368            811,572
revenue
Gross profit   91,378               97,688       94,973       383,553            369,446
Operating
expenses:
Research and   14,789               17,399       13,597       61,066             48,699
development
Sales and      35,519               37,600       39,278       149,766            154,562
marketing
General and    11,507               11,888       8,379        45,027             39,423
administrative
Restructuring
and other      1,190                —            —            1,190              2,094
charges
Litigation     (30)                 269          33           390                (201)
reserves, net
Total
operating      62,975               67,156       61,287       257,439            244,577
expenses
Income from    28,403               30,532       33,686       126,114            124,869
operations
Interest       154                  109          127          498                477
income
Other income   (153)                3,070        (198)        2,670              (1,136)
(expense), net
Income before  28,404               33,711       33,615       129,282            124,210
income taxes
Provision for  12,325               9,920        10,780       42,743             32,842
income taxes
Net income     $          16,079    $  23,791    $  22,835    $      86,539      $  91,368
Net income per
share:
Basic          $          0.42      $  0.62      $  0.61      $      2.27        $  2.46
Diluted        $          0.41      $  0.61      $  0.60      $      2.23        $  2.41
Weighted
average shares
outstanding
used to
compute net
income per
share:
Basic          38,293               38,162       37,590       38,057             37,121
Diluted        38,924               38,802       38,260       38,747             37,932
Stock-based
compensation
expense was
allocated as
follows:
Cost of        $          326       $  473       $  262       $      1,347       $  999
revenue
Research and   721                  778          603          2,787              2,476
development
Sales and      1,128                1,238        1,187        4,751              5,136
marketing
General and    1,391                1,530        1,376        5,487              5,151
administrative

 

 

NETGEAR, INC.

NON-GAAP CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Excluding amortization of purchased intangibles, stock-based compensation, restructuring and
other charges, acquisition related compensation and expense, impact to cost of sales from
acquisition accounting adjustments to inventory, litigation reserves, and gain on sale of cost
method investment, net of tax.

(In thousands, except per share data)
(Unaudited)
               Three Months Ended                             Year Ended
               December 31,         September    December     December 31,       December 31,
               2012                 30,          31,          2012               2011
                                    2012         2011
Net revenue    $          310,436   $  315,210   $  309,155   $      1,271,921   $  1,181,018
Cost of        217,286              215,695      212,872      882,258            805,306
revenue
Gross profit   93,150               99,515       96,283       389,663            375,712
Operating
expenses:
Research and   14,068               16,621       12,994       58,279             46,183
development
Sales and      34,391               36,362       38,091       145,015            149,426
marketing
General and    9,283                10,358       7,003        38,707             34,272
administrative
Total
operating      57,742               63,341       58,088       242,001            229,881
expenses
Income from    35,408               36,174       38,195       147,662            145,831
operations
Interest       154                  109          127          498                477
income
Other income   (153)                (56)         (198)        (456)              (1,136)
(expense), net
Income before  35,409               36,227       38,124       147,704            145,172
income taxes
Provision for  13,951               10,959       11,635       48,266             39,935
income taxes
Net income     $          21,458    $  25,268    $  26,489    $      99,438      $  105,237
Net income per
share:
Basic          $          0.56      $  0.66      $  0.70      $      2.61        $  2.83
Diluted        $          0.55      $  0.65      $  0.69      $      2.57        $  2.77
Weighted
average shares
outstanding
used to
compute net
income per
share:
Basic          38,293               38,162       37,590       38,057             37,121
Diluted        38,924               38,802       38,260       38,747             37,932

 
 

NETGEAR, INC.
RECONCILIATIONS OF GAAP MEASURES TO NON-GAAP MEASURES
(In thousands, except per share data)
(Unaudited)
STATEMENT OF OPERATIONS DATA:
               Three Months Ended                                      Year Ended
                         December 31,   September 30,   December 31,   December 31,      December 31,
                         2012           2012            2011           2012              2011
GAAP gross     $             91,378       $    97,688     $   94,973    $      383,553     $  369,446
profit
Amortization
of intangible  1,446                      1,354           1,048         4,763              4,658
assets
Stock-based
compensation   326                        473             262           1,347              999
expense
Impact to cost
of sales from
acquisition    —                          —               —             —                  609
accounting
adjustments to
inventory
Non-GAAP gross $             93,150       $    99,515     $   96,283    $      389,663     $  375,712
profit
Non-GAAP gross 30.0                   %   31.6        %   31.1       %  30.6           %   31.8       %
margin
GAAP research
and            $             14,789       $    17,399     $   13,597    $      61,066      $  48,699
development
Stock-based
compensation   (721)                      (778)           (603)         (2,787)            (2,476)
expense
Acquisition
related        —                          —               —             —                  (40)
compensation
and expense
Non-GAAP
research and   $             14,068       $    16,621     $   12,994    $      58,279      $  46,183
development
GAAP sales and $             35,519       $    37,600     $   39,278    $      149,766     $  154,562
marketing
Stock-based
compensation   (1,128)                    (1,238)         (1,187)       (4,751)            (5,136)
expense
Non-GAAP sales $             34,391       $    36,362     $   38,091    $      145,015     $  149,426
and marketing
GAAP general
and            $             11,507       $    11,888     $   8,379     $      45,027      $  39,423
administrative
Stock-based
compensation   (1,391)                    (1,530)         (1,376)       (5,487)            (5,151)
expense
Acquisition
related        (833)                      —               —             (833)              —
compensation
and expense
Non-GAAP
general and    $             9,283        $    10,358     $   7,003     $      38,707      $  34,272
administrative
GAAP total
operating      $             62,975       $    67,156     $   61,287    $      257,439     $  244,577
expenses
Stock-based
compensation   (3,240)                    (3,546)         (3,166)       (13,025)           (12,763)
expense
Restructuring
and other      (1,190)                    —               —             (1,190)            (2,094)
charges
Acquisition
related        (833)                      —               —             (833)              (40)
compensation
and expense
Litigation     30                         (269)           (33)          (390)              201
reserves, net
Non-GAAP total
operating      $             57,742       $    63,341     $   58,088    $      242,001     $  229,881
expenses

 

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                             Year Ended
               December 31,         September    December     December 31,      December
               2012                 30,          31,          2012              31,
                                    2012         2011                           2011
GAAP operating $          28,403    $  30,532    $  33,686    $      126,114    $  124,869
income
Amortization
of intangible  1,446                1,354        1,048        4,763             4,658
assets
Stock-based
compensation   3,566                4,019        3,428        14,372            13,762
expense
Restructuring 
and other      1,190                —            —            1,190             2,094
charges
Acquisition
related        833                  —            —            833               40
compensation
and expense
Impact to cost
of sales from
acquisition    —                    —            —            —                 609
accounting
adjustments to
inventory
Litigation     (30)                 269          33           390               (201)
reserves, net
Non-GAAP
operating      $          35,408    $  36,174    $  38,195    $      147,662    $  145,831
income
Non-GAAP
operating      11.4              %  11.5      %  12.4      %  11.6           %  12.3       %
margin
GAAP other
income         $          (153)     $  3,070     $  (198)     $      2,670      $  (1,136)
(expense),net
Gain on sale
of cost method —                    (3,126)      —            (3,126)           —
investment
Non-GAAP other
income         $          (153)     $  (56)      $  (198)     $      (456)      $  (1,136)
(expense), net
GAAP net       $          16,079    $  23,791    $  22,835    $      86,539     $  91,368
income
Amortization
of intangible  1,446                1,354        1,048        4,763             4,658
assets
Stock-based
compensation   3,566                4,019        3,428        14,372            13,762
expense
Restructuring 
and other      1,190                —            —            1,190             2,094
charges
Acquisition
related        833                  —            —            833               40
compensation
and expense
Impact to cost
of sales from
acquisition    —                    —            —            —                 609
accounting
adjustments to
inventory
Litigation     (30)                 269          33           390               (201)
reserves, net
Gain on sale
of cost method —                    (3,126)      —            (3,126)           —
investment
Tax effect     (1,626)              (1,039)      (855)        (5,523)           (7,093)
Non-GAAP net   $          21,458    $  25,268    $  26,489    $      99,438     $  105,237
income

 

 

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                       Year Ended
               December 31,      September   December   December      December
               2012              30,         31,        31,           31,
                                 2012        2011       2012          2011
NET INCOME PER DILUTED
SHARE:
GAAP net
income per     $          0.41   $    0.61   $   0.60   $      2.23   $   2.41
diluted share
Amortization
of intangible  0.04              0.03        0.03       0.12          0.12
assets
Stock-based
compensation   0.09              0.10        0.09       0.37          0.36
expense
Restructuring 
and other      0.03              —           —          0.03          0.06
charges
Acquisition
related        0.02              —           —          0.02          0.00
compensation
and expense
Impact to cost
of sales from
acquisition    —                 —           —          —             0.02
accounting
adjustments to
inventory
Litigation     0.00              0.01        0.00       0.01          (0.01)
reserves, net
Gain on sale
of cost method —                 (0.08)      —          (0.08)        —
investment
Tax effect     (0.04)            (0.02)      (0.03)     (0.13)        (0.19)
Non-GAAP net
income per     $          0.55   $    0.65   $   0.69   $      2.57   $   2.77
diluted share

 

SUPPLEMENTAL FINANCIAL INFORMATION
(In thousands, except per share data, DSO, inventory turns, weeks of channel inventory and
headcount)
(Unaudited)
             Three Months Ended
             December 31,                 September    July 1,      April 1,     December
             2012                         30,          2012         2012         31,
                                          2012                                   2011
Cash, cash
equivalents
and          $                  376,877   $  362,420   $  360,428   $  369,420   $  353,695
short-term
investments
Cash, cash
equivalents
and
short-term   $                  9.68      $  9.34      $  9.34      $  9.58      $  9.24
investments
per diluted
share
Accounts
receivable,  $                  256,014   $  248,862   $  271,769   $  249,208   $  261,307
net
Days sales
outstanding  76                           72           77           70           76
(DSO)
Inventories  $                  174,903   $  178,916   $  152,820   $  134,314   $  163,724
Ending
inventory    5.0                          4.9          5.9          6.7          5.2
turns
Weeks of
channel
inventory:
U.S. retail  8.8                          9.8          12.3         9.8          7.3
channel
U.S.
distribution 10.2                         8.4          8.6          8.6          9.0
channel
EMEA
distribution 4.4                          4.4          4.1          5.0          5.4
channel
APAC
distribution 7.2                          4.7          5.7          5.6          6.7
channel
Deferred     $                  27,645    $  28,205    $  25,478    $  25,156    $  40,093
revenue
Headcount    850                          854          818          810          791
Non-GAAP
diluted      38,924                       38,802       38,595       38,576       38,260
shares

 

 

NET REVENUE BY GEOGRAPHY
         Three Months Ended                                              Year Ended
         December 31,         September 30,         December 31,         December 31,         December 31,
         2012                 2012                  2011                 2012                 2011
Americas $  169,979    54  %  $  177,647     56  %  $  156,574    51  %  $ 679,419     53  %  $ 587,056     50  %
EMEA     110,460       36  %  104,368        33  %  125,027       40  %  457,724       36  %  477,713       40  %
APAC     29,997        10  %  33,195         11  %  27,554        9   %  134,778       11  %  116,249       10  %
Total    $  310,436    100 %  $  315,210     100 %  $  309,155    100 %  $ 1,271,921   100 %  $ 1,181,018   100 %

NET REVENUE BY SEGMENT
           Three Months Ended                                       Year Ended
           December           September          December           December             December
           31,                30,                31,                31,                  31,
           2012               2012               2011               2012                 2011
Retail     $ 138,539   44  %  $ 123,457   39  %  $ 129,719   42  %  $ 504,797     40  %  $ 481,795     41  %
Commercial 73,447      24  %  79,240      25  %  83,646      27  %  307,945       24  %  331,439       28  %
Service    98,450      32  %  112,513     36  %  95,790      31  %  459,179       36  %  367,784       31  %
Provider
Total      $ 310,436   100 %  $ 315,210   100 %  $ 309,155   100 %  $ 1,271,921   100 %  $ 1,181,018   100 %

SOURCE NETGEAR, Inc.

Website: http://www.netgear.com
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