Business
NETGEAR® Reports Second Quarter 2023 Results
Q2 net revenue of $173.4 million, above the high end of guidance Q2 GAAP gross margin of 31.3%; non-GAAP gross margin of 31.6% 804,000 paid subscribers for
About this update from Netgear, Inc.
[{"type":"text","content":"\nQ2 net revenue of $173.4 million, above the high end of guidance\n\n\nQ2 GAAP gross margin of 31.3%; non-GAAP gross margin of 31.6%\n\n\n804,000 paid subscribers for 22.9% growth year over year\n\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 July 2, 2023.\n\n\n\nSecond quarter 2023 net revenue of $173.4 million, a decrease of 22.3% from the comparable prior-year quarter.\n\n\n\nSecond quarter 2023 GAAP operating loss of $17.8 million, or (10.3)% of net revenue, as compared to operating loss of $10.1 million, or (4.5)% of net revenue, in the comparable prior-year quarter.\n\n\nSecond quarter 2023 non-GAAP operating loss of $10.7 million, or (6.2)% of net revenue, as compared to operating loss of $4.2 million, or (1.9)% of net revenue, in the comparable prior-year quarter.\n\n\n\n\n\n\nSecond quarter 2023 GAAP net loss per diluted share of $0.29, as compared to net loss per diluted share of $0.30 in the comparable prior-year quarter.\n\n\nSecond quarter 2023 non-GAAP net loss per diluted share of $0.16, as compared to net loss per diluted share of $0.19 in the comparable prior-year quarter.\n\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, “In the second quarter, NETGEAR delivered revenue of $173.4 million, above the high end of our guidance, and non-GAAP operating margin at the high end of our guidance. Sales to our service provider partners outperformed our original expectations and appear to be stabilizing due to increased demand as well as improved inventory carrying levels held by our largest partner. More importantly, momentum behind our premium CHP products, represented by our Orbi 8 and Orbi 9 and 5G mobile hotspots, again materially outperformed the broader market. As expected, CHP retail partners continued to reduce their inventory levels, but we believe the market is starting to stabilize. In the SMB business, while we continue to be challenged by channel inventory compression to historically low levels as partners navigat...