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Dec 31, 2019
NETGEAR Q4 2019 Earnings Report
Netgear's financial performance decreased compared to the prior year quarter due to a heavily promotional holiday season.
Key Takeaways
NETGEAR reported a decrease in net revenue and operating loss for the fourth quarter of 2019. The company experienced a heavily promotional holiday season and is shifting its channel to WiFi 6 products. Despite the competitive environment, the company drove strong increases in registered users and app users, leading to growth in the paid subscriber base.
Fourth quarter net revenue was $253.0 million, a decrease of 12.4% from the comparable prior year quarter.
GAAP operating loss was $0.2 million, or (0.1)% of net revenue, as compared to operating income of $17.4 million, or 6.0% of net revenue, in the comparable prior year quarter.
GAAP net loss per diluted share from continuing operations was $0.01, as compared to net loss of $0.02 in the comparable prior year quarter.
Non-GAAP net income per diluted share from continuing operations was $0.34, as compared to $0.68 in the comparable prior year quarter.
Revenue by Geographic Location
Forward Guidance
Due to reduced service provider shipments and efforts to rebalance channel inventory towards WiFi 6 products, first quarter net revenue is expected to be in the range of $205 million to $220 million. GAAP operating margin is expected to be in the range of (1.8)% to (0.8)%, and non-GAAP operating margin is expected to be in the range of 2.0% to 3.0%. GAAP tax rate is expected to be approximately (16.0)%, and non-GAAP tax rate is expected to be 25.0%.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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