Business
NETGEAR® Reports Second Quarter 2020 Results
Delivers Double Digit Revenue Growth to $280 million Expects Strong Demand Trend to Continue in 2H2020 SAN JOSE, Calif.--(BUSINESS WIRE)-- NETGEAR, Inc.
About this update from Netgear, Inc.
[{"type":"text","content":"\nDelivers Double Digit Revenue Growth to $280 million\nExpects Strong Demand Trend to Continue in 2H2020\n\n SAN JOSE, Calif.--(BUSINESS WIRE)--\nNETGEAR, 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 second quarter ended June 28, 2020.\n\n\n\nSecond quarter 2020 net revenue of $280.1 million, an increase of 21.3% from the comparable prior year quarter.\n\n\nSecond quarter 2020 GAAP operating income of $8.9 million, or 3.2% of net revenue, as compared to operating income of $0.3 million, or 0.1% of net revenue, in the comparable prior year quarter.\n\n\nSecond quarter 2020 non-GAAP operating income of $21.0 million, or 7.5% of net revenue, as compared to $10.0 million, or 4.4% of net revenue in the comparable prior year quarter.\n\n\n\n\nSecond quarter 2020 GAAP net income per diluted share of $0.20, as compared to $0.03 in the comparable prior year quarter.\n\n\nSecond quarter 2020 non-GAAP net income per diluted share of $0.54, as compared to $0.28 in the comparable prior year quarter.\n\n\n\n\n\nThe accompanying schedules provide a reconciliation of financial measures computed on a GAAP basis to financial measures computed on a non-GAAP basis.\n\n\nPatrick Lo, Chairman and Chief Executive Officer of NETGEAR, commented, “The NETGEAR team navigated challenging conditions to accommodate the robust end demand we saw during the quarter, all while working remotely. Driven by the CHP side of the business, we achieved revenue growth of 21% and more than doubled our operating profit over the prior year. The surge in demand that began in March continued throughout the entire quarter and resulted in strong growth in both the retail and service provider channels for the CHP business. The work-from-home transition taking place worldwide is driving the adoption of high performance WiFi at home as an indispensable necessity and, as the leader in WiFi 6 technology, we stand well positioned to enable this new reality. In conjunction with the increased penetration of high-end WiFi 6 mesh systems and routers into the market, we accelerated the acquisition of new service subscribers, particularly in cybersecurity protection and parental control services, growing our paid subscriber base 28% sequentially an...