Business
NETGEAR® Reports Third Quarter 2021 Results
Third Consecutive Quarter of Double-Digit SMB Growth Year over Year Board Authorizes Incremental Repurchase of up to 3,000,000 Shares SAN JOSE,
About this update from Netgear, Inc.
[{"type":"text","content":"\nThird Consecutive Quarter of Double-Digit SMB Growth Year over Year\n\nBoard Authorizes Incremental Repurchase of up to 3,000,000 Shares\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 third quarter ended October 3, 2021.\n\n\nThird quarter 2021 net revenue of $290.2 million, within guidance, a decrease of 23.3% from the comparable prior year quarter.\n\n\nThird quarter 2021 GAAP operating income of $12.9 million, or 4.5% of net revenue, as compared to $32.2 million, or 8.5% of net revenue, in the comparable prior year quarter.\n\n\nThird quarter 2021 non-GAAP operating income of $19.5 million, or 6.7% of net revenue, above guidance, as compared to $41.4 million, or 10.9% of net revenue, in the comparable prior year quarter.\n\n\n\n\nThird quarter 2021 GAAP net income per diluted share of $0.31, as compared to $0.83 in the comparable prior year quarter.\n\n\nThird quarter 2021 non-GAAP net income per diluted share of $0.50, as compared to $1.13 in the comparable prior year quarter.\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\nPatrick Lo, Chairman and Chief Executive Officer of NETGEAR, commented, “We delivered third quarter topline revenue within our guidance and came in above guidance on non-GAAP operating margin, primarily due to the performance of our SMB business. Although SMB products remained significantly supply constrained, we achieved SMB revenue growth of 3.4% quarter over quarter and 33% growth year over year. On the CHP side, the consumer retail WiFi market grew 15% above 2019 levels, which is lower than our prior expectations.”\n\nMr. Lo continued, “NETGEAR’s focus on premium WiFi, a higher margin segment of the market, remains our core long-term thesis as we enable the work from anywhere and hybrid work infrastructure of businesses and homes worldwide. We continue to see meaningful growth in our $1,000 and above high-end WiFi mesh systems. The recent introduction of our $1,500 Quadband WiFi 6E Orbi received enthusiastic support from the market, further validating our strategy of providing leading edge, uncomprom...