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Netgear (NTGR)

NETGEAR® has pioneered advanced networking technologies for homes, businesses, and service providers around the world since 1996 and leads the industry with a broad range of award-winning products designed to simplify and improve people’s lives. By enabling people to collaborate and connect to a world of information and entertainment, NETGEAR is dedicated to delivering innovative and advanced connected solutions ranging from mobile and cloud-based services for enhanced control and security, to smart networking products, video over Ethernet for Pro AV applications, easy-to-use WiFi solutions and performance gaming routers to enhance online game play. The company is headquartered out of San Jose, Calif. with offices located around the globe.

Company profile

Ticker
NTGR
Exchange
Website
CEO
Patrick Lo
Employees
Incorporated
Location
Fiscal year end
Former names
NETGEAR INC, NETGEAR, INC
SEC CIK
Subsidiaries
Infrant Technologies, LLC • SKIPJAM CORP • NETGEAR International, Inc. • Netgear Deutschland GmbH • NETGEAR FRANCE SAS • NETGEAR HOLDINGS LIMITED • NETGEAR INTERNATIONAL LTD • NETGEAR ASIA PTE. LIMITED • NETGEAR HONG KONG LIMITED • Netgear Switzerland GmbH ...
IRS number
770419172

NTGR stock data

Analyst ratings and price targets

Last 3 months

Calendar

5 Aug 22
12 Aug 22
31 Dec 22
Quarter (USD) Jul 22 Apr 22 Dec 21 Oct 21
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS
Annual (USD) Dec 21 Dec 20 Dec 19 Dec 18
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS
Cash burn rate (est.) Burn method: Change in cash Burn method: Operating income Burn method: FCF (opex + capex)
Last Q Avg 4Q Last Q Avg 4Q Last Q Avg 4Q
Cash on hand (at last report) 149.05M 149.05M 149.05M 149.05M 149.05M 149.05M
Cash burn (monthly) 19.26M 14.99M 3.62M 4.72M (no burn) 553.58K
Cash used (since last report) 25.6M 19.93M 4.82M 6.27M n/a 735.92K
Cash remaining 123.45M 129.12M 144.23M 142.78M n/a 148.31M
Runway (months of cash) 6.4 8.6 39.8 30.3 n/a 267.9

Beta Read what these cash burn values mean

Date Owner Security Transaction Code Indirect 10b5-1 $Price #Shares $Value #Remaining
2 Aug 22 Mehta Vikram Common Stock Sell Dispose S No Yes 25.57 2,759 70.55K 46,095
2 Aug 22 Westhead Martin Common Stock Sell Dispose S No Yes 25.57 2,759 70.55K 46,095
2 Aug 22 Cormack Heidi Common Stock Sell Dispose S No Yes 25.56 4,687 119.8K 52,047
2 Aug 22 Werdann Michael A Common Stock Sell Dispose S No Yes 25.58 5,454 139.51K 49,042
1 Aug 22 Falcon Michael F Common Stock Payment of exercise Dispose F No No 25.85 806 20.84K 89,865
92.1% owned by funds/institutions
13F holders Current Prev Q Change
Total holders 164 182 -9.9%
Opened positions 19 30 -36.7%
Closed positions 37 35 +5.7%
Increased positions 50 54 -7.4%
Reduced positions 69 66 +4.5%
13F shares Current Prev Q Change
Total value 652.5M 3.11B -79.0%
Total shares 26.51M 27.33M -3.0%
Total puts 69.5K 162.7K -57.3%
Total calls 15.6K 48.9K -68.1%
Total put/call ratio 4.5 3.3 +33.9%
Largest owners Shares Value Change
BLK Blackrock 5.59M $137.92M +3.0%
Vanguard 3.24M $79.95M +2.2%
Victory Capital Management 2.88M $70.87M +1.7%
Brandes Investment Partners 1.72M $42.42M +38.4%
Dimensional Fund Advisors 1.67M $41.23M +4.6%
STT State Street 1.22M $30.07M +5.4%
MCQEF Macquarie 871.28K $21.5M -11.2%
Allspring Global Investments 654.71K $16.16M -11.9%
LSV Asset Management 582.12K $14.37M -47.8%
Geode Capital Management 526.24K $12.99M -1.1%
Largest transactions Shares Bought/sold Change
LSV Asset Management 582.12K -532.05K -47.8%
Brandes Investment Partners 1.72M +477.19K +38.4%
Norges Bank 0 -248.92K EXIT
BLK Blackrock 5.59M +165.39K +3.0%
NTRS Northern Trust 377.99K -157.92K -29.5%
Assenagon Asset Management 38.02K -153.61K -80.2%
Renaissance Technologies 96.1K -110.2K -53.4%
MCQEF Macquarie 871.28K -109.87K -11.2%
Arrowstreet Capital, Limited Partnership 0 -89.97K EXIT
AV Aviva 0 -88.84K EXIT

Financial report summary

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Risks
  • * If disruptions in our transportation network occur or our shipping costs substantially increase, we may be unable to sell or timely deliver our products, and our net revenue and gross margin could decrease.
  • * If we do not effectively manage our sales channel inventory and product mix, we may incur costs associated with excess inventory, or lose sales from having too few products.
  • * We rely on a limited number of traditional and online retailers, wholesale distributors and service provider customers for a substantial portion of our sales, and our net revenue could decline if they refuse to pay our requested prices or reduce their level of purchases, if there are unforeseen disruptions in their businesses, or if there is significant consolidation in our customer base that results in fewer customers for our products.
  • * Some of our competitors have substantially greater resources than we do, and to be competitive we may be required to lower our prices or increase our sales and marketing expenses, which could result in reduced margins or loss of market share and revenue.
  • * Our sales and operations in international markets expose us to operational, financial and regulatory risks.
  • If we fail to continue to introduce or acquire new products and services that achieve broad market acceptance on a timely basis, we will not be able to compete effectively and we will be unable to increase or maintain net revenue and gross margins.
  • * We depend on a limited number of third-party manufacturers for substantially all of our manufacturing needs. If these third-party manufacturers experience any delay, disruption or quality control problems in their operations, we could lose revenue and our brand may suffer.
  • * Changes in trade policy in the United States and other countries, including the imposition of tariffs and the resulting consequences, may adversely impact our business, results of operations and financial condition.
  • We depend on large, recurring purchases from certain significant customers, and a loss, cancellation or delay in purchases by these customers could negatively affect our revenue.
  • If we fail to overcome the challenges associated with managing our broadband service provider sales channel, our net revenue and gross profit will be negatively impacted.
  • The average selling prices of our products typically decrease rapidly over the sales cycle of the product, which may negatively affect our net revenue and gross margins.
  • As part of growing our business, we have made and expect to continue to make acquisitions. If we fail to successfully select, execute or integrate our acquisitions, then our business and operating results could be harmed and our stock price could decline.
  • * We invest in companies for both strategic and financial reasons, but may not realize a return on our investments.
  • * Product security vulnerabilities, system security risks, data protection breaches and cyber-attacks could disrupt our products, services, internal operations or information technology systems, and any such disruption could increase our expenses, damage our reputation, harm our business and adversely affect our stock price.
  • We rely upon third parties for technology that is critical to our products, and if we are unable to continue to use this technology and future technology, our ability to develop, sell, maintain and support technologically innovative products would be limited.
  • *We have been and will be investing increased additional in-house resources on software research and development, which could disrupt our ongoing business and present distinct risks from our historically hardware-centric business.
  • *If our products contain defects or errors, we could incur significant unexpected expenses, experience product returns and lost sales, experience product recalls, suffer damage to our brand and reputation, and be subject to product liability or other claims.
  • Our user growth, engagement, and monetization of our subscription services on mobile devices depend upon effective operation with mobile operating systems, networks, technologies, products, and standards that we do not control.
  • If we are unable to secure and protect our intellectual property rights, our ability to compete could be harmed.
  • * We are currently involved in numerous litigation matters in the ordinary course and may in the future become involved in additional litigation, including litigation regarding intellectual property rights, consumer class actions and securities class actions, any of which could be costly and subject us to significant liability.
  • * We are exposed to adverse currency exchange rate fluctuations in jurisdictions where we transact in local currency, which could harm our financial results and cash flows.
  • * Changes in tax laws or exposure to additional income tax liabilities could affect our future profitability.
  • We are subject to, and must remain in compliance with, numerous laws and governmental regulations concerning the manufacturing, use, distribution and sale of our products, as well as any such future laws and regulations. Some of our customers also require that we comply with their own unique requirements relating to these matters. Any failure to comply with such laws, regulations and requirements, and any associated unanticipated costs, may adversely affect our business, financial condition and results of operations.
  • We could incur significant liability if the distribution of Arlo shares to our stockholders is determined to be a taxable transaction.
  • * We may be exposed to claims and liabilities as a result of the distribution of Arlo shares to our stockholders.
  • We must comply with indirect tax laws in multiple jurisdictions, as well as complex customs duty regimes worldwide. Audits of our compliance with these rules may result in additional liabilities for taxes, duties, interest and penalties related to our international operations which would reduce our profitability.
  • We are exposed to the credit risk of some of our customers and to credit exposures in weakened markets, which could result in material losses.
  • *If our goodwill and intangible assets become impaired, we may be required to record a significant charge to earnings.
  • Governmental regulations of imports or exports affecting Internet security could affect our net revenue.
  • We are exposed to credit risk and fluctuations in the market values of our investment portfolio.
  • * Global economic conditions could materially adversely affect our revenue and results of operations.
  • If we lose the services of our Chairman and Chief Executive Officer, Patrick C.S. Lo, or our other key personnel, we may not be able to execute our business strategy effectively.
  • * Political events, war, terrorism, public health issues, natural disasters, sudden changes in trade and immigration policies, and other circumstances could materially adversely affect us.
  • We are required to evaluate our internal controls under Section 404 of the Sarbanes-Oxley Act of 2002 and any adverse results from such evaluation, including restatements of our issued financial statements, could impact investor confidence in the reliability of our internal controls over financial reporting.
  • *Our stock price may be volatile and your investment in our common stock could suffer a decline in value.
Management Discussion
  • Net revenue in Americas decreased in fiscal 2021, compared to the prior year, primarily due to lower demand for Connected Home products, partially offset by higher demand for SMB products. Connected Home net revenue in Americas declined by 17.3% in fiscal 2021 with declines experienced across all product categories. Demand for Connected Home products subsided in 2021 as the heightened demand from the consumer and service provider channels brought on by the COVID-19 pandemic in 2020 declined, coinciding with the reopening of economies and vaccine rollouts. SMB net revenue in Americas rose by 22.7% in fiscal 2021, compared to the prior year. The growth in SMB net revenue was led by increased demand for Pro AV and wireless solutions and assisted by businesses reopening, new business formation, as well as demand for flexible working environments.

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