NETGEAR, Inc. (NTGR) stock surged 30.8% yesterday and closed the session at $20.84. The stock rallied after the company announced an agreement with TP-Link Systems Inc., settling the companies' pending U.S. International Trade Commission and patent infringement litigation and TP-Link's breach of contract claims and patent challenges. NTGR has received a $135 million payment as consideration for resolving the litigation. As a result, all the legal disputes between the two parties will be dismissed per the te ...

Investment Thesis - NETGEAR provided positive guidance for the upcoming quarter and received a $90 million cash benefit from a legal settlement after fees and taxes [2] - The company is considered optically cheap with over 60% of its market cap consisting of cash and no debt [2] - The business is shrinking and largely unprofitable, but the financial position is strong [2] Business Overview - NETGEAR provides networking products for businesses and consumers, focusing on internet connectivity through devices like Wi-Fi routers, modems, and switches [3] - The company is expanding in two key areas: ProAV managed switches for enterprise customers and consumer Wi-Fi products for home use [3] - NETGEAR aims to offer a broader range of products at different price points while focusing on innovation [3] Litigation Update - NETGEAR settled legal disputes with TP-Link, receiving a $135 million payment [4] - After fees and taxes, the company will receive $90 million in cash, boosting its financial position [5] - The settlement also eliminates further legal costs and uncertainties [5] Financial Performance - NETGEAR expects a negative 11% year-over-year revenue growth for Q3 2024, marking the 12th consecutive quarter of revenue decline [6][7] - The company generated $16 million in free cash flow and executed $10 million in share repurchases in the last quarter [8] - NETGEAR exited the quarter with over $294 million in cash and expects to continue generating cash in the second half of 2024 [8] Valuation and Cash Position - NETGEAR's net cash position is estimated at 64% of its market cap, with $385 million in cash and marketable securities and no debt [8] - The company's market cap is close to $600 million with approximately 28.6 million shares outstanding [9] Operating Margin Guidance - NETGEAR revised its non-GAAP operating margin guidance for Q3 2024 from -11% to -8% to a range of -4% to -1% [8] - The improvement in operating margin is primarily driven by the legal settlement and expected revenue increase [8] Conclusion - NETGEAR has made progress with the $135 million settlement and increased cash reserves to $385 million, but the business remains largely unprofitable [10] - The company continues to struggle with declining revenue, projecting a negative 11% year-over-year revenue growth for Q3 2024 [10] - Despite improvements in non-GAAP operating margin guidance, much of the progress is linked to the settlement rather than operational improvements [11]

I H II I E T Sundry Photography On July 31, 2024, NETGEAR, Inc. (NASDAQ:NTGR) reported second-quarter revenue that fell by 12%. It reported a loss, worse than the year before. After the markets closed yesterday, the networking equipment firm raised its sales guidance for the third quarter. How is it that the previous quarter's results are in steep contrast to the current quarter for this under-performing firm? Netgear Second-Quarter Results Last quarter, Netgear reported revenue of $143.9 million (-12.6% Y/ ...

NETGEAR, Inc. (NTGR) recently enhanced its portfolio of WiFi 7 devices with the addition of the Nighthawk M7 Pro Mobile Hotspot (MR7400). Powered by the Qualcomm Snapdragon SDX75 chipset and operating on AT&T's 5G network, the M7 Pro offers an exceptional Internet experience, combining advanced WiFi 7 technology with 5G speeds. It is specifically designed to deliver high-speed, portable and secure connectivity, making it ideal for both consumers and businesses. The new M7 Pro delivers superfast Internet wit ...

NETGEAR, Inc. (NTGR) has collaborated with Samsung Electronics' System LSI Business to ensure smooth interoperability and roaming between NETGEAR's Business WiFi 7 access points and Samsung's WiFi 7 client chipset offering. Both companies were the early adopters of WiFi 7, with NTGR focusing on access points and Samsung on client solutions. NETGEAR noted that smooth connectivity in areas with many mobile devices is challenging due to WiFi roaming issues. While stationary devices stay connected to one access ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. For the quarterly period ended June 30, 2024 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. | --- | --- | |-------------------------------------------------------------------------------|---------------------------------------| | | | | For the transition period from | | | ...

NETGEAR, Inc (NTGR) reported a second-quarter 2024 non-GAAP loss of 74 cents per share compared with the non-GAAP loss of 16 cents in the year-ago quarter. The reported figure was narrower than the Zacks Consensus Estimate of a loss of 82 cents per share. NETGEAR generated net revenues of $143.9 million, down 17% year over year. The downtick resulted from weakness across the CHP and NFB businesses. Also, it experienced significant impacts from channel inventory destocking and costs associated with reducing ...

NETGEAR Inc (NASDAQ:NTGR) Q2 2024 Results Conference Call July 31, 2024 5:00 PM ET Company Participants Erik Bylin - IR C.J. Prober - CEO Bryan Murray - CFO Conference Call Participants Adam Tindle - Raymond James Operator Ladies and gentlemen, thank you for standing by. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session. [Operator Instructions]. I would now like to turn the conference over to Erik Bylin. Please go ahead. Erik Bylin Thank you, oper ...

NETGEAR, Inc. (NTGR) came out with a quarterly loss of $0.74 per share versus the Zacks Consensus Estimate of a loss of $0.82. This compares to loss of $0.16 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 9.76%. A quarter ago, it was expected that this company would post a loss of $0.27 per share when it actually produced a loss of $0.28, delivering a surprise of -3.70%. Over the last four quarters, the company has surpassed ...

Exhibit 99.1 NEWS RELEASE NETGEAR® REPORTS SECOND QUARTER 2024 RESULTS Q2 net revenue of $143.9 million, above the high end of guidance Completed destocking of channel, with approximately $30 million reduction Fourth consecutive quarter of FCF generation New Board member appointed and President of B2B business unit hired SAN JOSE, California – July 31, 2024 - NETGEAR, Inc. (NASDAQ: NTGR), a global networking company that delivers innovative products to global consumers and businesses, today reported financi ...