About NETGEAR

NETGEAR, Inc. operates as a global company that turns ideas into innovative, high-performance, and premium networking products that connect people, power businesses and advance the way it lives. Segments The company operates and reports in two segments: Connected Home, and NETGEAR for Business. The Connected Home segment focuses on consumers and provides high-performance, dependable and easy-to-use premium WiFi networking solutions such as WiFi 6, WiFi 6E and WiFi 7 Tri-band and Quad-band mesh systems and routers, 4G/5G mobile products, smart devices such as Meural digital displays, and subscription services that provide consumers a range of value-added services focused on performance, security, privacy and premium support. The NETGEAR for Business segment focuses on businesses and provides solutions for business networking, wireless local area network (LAN), audio and video over Ethernet for Pro AV applications, security and remote management providing enterprise-class functionality at an affordable price. The company conducts business across three geographic territories: Americas; Europe, Middle East and Africa (EMEA); and the Asia Pacific (APAC). Sales Channels The company sells its products through multiple sales channels worldwide, including wholesale distributors, traditional and online retailers, direct market resellers (DMRs), value-added resellers (VARs), broadband service providers and through its direct online store at www.netgear.com. Wholesale Distributors: The company’s distribution channel supplies its products to retailers, e-commerce resellers, DMRs, VARs and broadband service providers. The company sells directly to its distributors, the largest of which are Ingram Micro, Inc., TD Synnex, and D&H Distributing Company. Retailers: The company’s retail channel primarily supplies products that are sold into the consumer market. However, increasingly it is seeing products designed for businesses move through these channels. The company sells directly to, or enter into consignment arrangements with, a number of its traditional retailers, increasingly leveraging their online presence in addition to their in-store space and online retailers. The remaining traditional retailers, as well as the company’s online retailers, are fulfilled through wholesale distributors. The company works directly with its retail channels on market development activities, such as co-advertising, online promotions and video demonstrations, instant rebate programs, event sponsorship and sales associate training. The company’s largest retailers include Amazon.com, Inc, Best Buy Co., Inc., Wal-Mart Stores, Inc. and their respective affiliates. DMRs and VARs: The company sells into the business marketplace through an extensive network of DMRs and VARs. The company’s DMRs include companies such as CDW Corporation and Insight Corporation. VARs include the company’s network of registered NETGEAR Solution Partners. DMRs and VARs may receive sales incentives, marketing support and other program benefits from it. The company’s DMRs and VARs generally purchase its products through its wholesale distributors and audio-visual manufacturers that purchase its switches to include in their complete solutions. Broadband Service Providers: The company also supplies directly to broadband service providers in the United States and internationally providing DSL, WiFi and 4G/5G mobile broadband products. Service providers supply its products to their business and home subscribers. The company’s largest broadband service providers include AT&T and Telstra. Direct Online Store: The company sells directly online at www.netgear.com in the United States and internationally to consumers and businesses. Through its direct online store, the company provides high-performance and premium networking and internet connected products and subscription services, some of which are only available at www.netgear.com. The direct online store also allows the company to deliver curated rich content to supplement the purchase journey of customers, in addition to establishing a direct relationship with its customers. NETGEAR.com is a destination where the company delivers to early tech adopters and inexperienced audiences alike a premium and comprehensive product and brand experience. The largest portion of the company’s net revenues was derived from the Americas, representing approximately 68% of net revenue in the year ended December 31, 2023. The company has continuously committed resources to its international operations and sales channels. Product Offerings The company’s products are designed to simplify and improve people’s lives. The company is dedicated to delivering innovative and highly differentiated, connected solutions ranging from easy-to-use premium WiFi solutions, security and support services to protect and enhance home networks, to switching and wireless solutions to augment business networks and audio and video over Ethernet for Pro AV applications. The company’s products and services are built on a variety of technologies such as wireless (WiFi and 4G/5G mobile), Ethernet and powerline, with a focus on reliability and ease-of-use. Additionally, the company is continually invest in research and development to create new technologies and services and to capitalize on technological inflection points and trends, such as multi-Gigabit internet service to homes, WiFi 7, audio and video over Ethernet, non-fungible token (NFT) artwork, and future technologies. The company’s product line consists of devices that create and extend wired and wireless networks, devices that attach to the network, such as smart digital displays as well as services that complement and enhance its product line offerings. These products are available in multiple configurations to address the changing needs of the company’s customers in each geographic region. Connected Home: Includes premium connectivity solutions that create and extend wired and wireless networks in homes and small businesses to connect devices to the internet, enable connection to broadband networks and a suite of valuable subscription services enhancing such networks. These products meet the growing needs of the premium customer for always on, secure, highspeed internet connectivity for all of their devices anywhere in and around the home and on the road. They are sold primarily via its direct online store as well as traditional retailers, increasingly leveraging their online presence, in addition to their brick-and-mortar stores, and service provider channels and include: WiFi routers and home WiFi Mesh Systems, which create a local area network (LAN) for home or office computer, mobile and smart devices to connect and share a broadband internet connection; WiFi Hotspots, which create mobile WiFi Internet access that utilizes 4G/5G mobile and 5G data networks for secure use on the go, and at home in place of traditional wired broadband internet access; Value-added service offerings, such as security and privacy, technical support, and parental controls for consumers; Digital Displays, which enable users to showcase digital art and photos, including non-fungible token (NFT) artwork by supporting the most popular crypto wallets. Broadband modems, which are devices that convert the broadband signals into Ethernet data that feeds internet into homes and offices. The company provides modems that connect to DOCSIS 3.x, xDSL, and 4G/5G mobile; WiFi Gateways, which are WiFi routers with an integrated broadband modem, for broadband internet access; WiFi range extenders, which extend the range of an existing WiFi network to eliminate WiFi dead spots; Powerline adapters, which extend wired and WiFi internet connections to any AC outlet using existing electrical wiring; and WiFi network adapters, which enable computing devices to be connected to the network via WiFi. NETGEAR for Business solutions: These products and services are sold into the business marketplace through an extensive network of DMRs and VARs, NETGEAR.com, and through brick-and-mortar retail and e-commerce channels and include: Pro AV Solutions, which include high-performance, flexible Ethernet switches that are engineered for easy configuration of AV over IP for both commercial and high-end residential installations; Pro Routers, which provide the internet gateway for businesses and combine with access points, Ethernet switches, and its Insight cloud management software to create a Total Network Solution for businesses; Enterprise-grade, Cloud managed or standalone Pro WiFi access points, which are used to provide wide coverage areas and fast WiFi on a campus, boutique hotel, or an office, providing secure WiFi connections to smart phones, tablets, laptops and other computing devices; General purpose Ethernet switches, in a wide range of sizes which are used to connect devices that are networked together for exchanging information including IoT devices; NETGEAR Insight remote management software, which help VARs and small businesses remotely deploy, monitor, manage and secure their networks easily and seamlessly; and NETGEAR Engage Controller which provides quick, profile-based configuration for audio and video signals over a network to integrate the company’s products with those from a myriad of AV end point manufacturers for fast, easy deployments that help eliminate cost and complexity. The company’s products and services are designed to meet the specific needs of the consumer, business and service provider markets. The company tailors various elements of the software interface, product design, including component specification, physical characteristics such as casing, design and coloration, and specific user interface features to meet the needs of these markets. The company also leverages many of its technological developments, high volume manufacturing, technical support and engineering infrastructure across its markets to maximize business efficiencies. In its Connected Home business, the company’s core long-term strategy focuses on the premium and higher-margin segments of the market, where it demonstrates its highly differentiated technology leadership. The company’s products that target the business market are generally designed with an industrial appearance, including metal cases and, for some product categories, the ability to mount the product within standard data networking racks, as well as unique mounting solutions for other uses. These products typically include higher port counts, higher data transfer rates and other performance characteristics designed to meet the needs of a modern business. For example, the company’s business products provide data transfer rates up to 100 gigabits per second to meet the higher capacity requirements. The company’s newest Power over Ethernet (PoE) switches, including cloud managed and unmanaged switches, provide elevated power budgets and uninterrupted PoE power for businesses of all sizes to address the growing need for deployment of multiple PoE devices with more power, due to the widespread adoption of IP communication, security cameras, WiFi access points, proximity sensors, and various other new applications. Some of these products are also designed to support transmission modes, such as fiber optic cabling, which is common in more sophisticated business environments. As a result of the hybrid work model, there continues to be a shift in the demand and use cases for NETGEAR for Business products as more small businesses now run out of homes or remote offices. This shift has contributed to growing the market for lower port count switches and its NETGEAR for Business wireless offerings. In addition, the company continues to see a shift from traditional AV applications utilizing HDMI technology to Ethernet switching driven by a transition from the 1080p to 4K to 8K resolution video, and broadcast moving towards multicast streaming. IP provides an economical path to building high performance, scalable AV networks. Security requirements within the company’s products for business broadband access include firewall and VPN capabilities that allow for secure interactions between remote offices and business headquarter locations over the internet. The company’s connectivity product offerings for the business market include enhanced security and remote configurability often required in a business setting. The company’s Connected Home business continues to make progress on its core long-term strategy of focusing on the premium and higher-margin segments of the market, where it demonstrates highly differentiated technology. The company’s focus is to continue to introduce new products and services that are high margin, technologically differentiated, software rich with IP unique to or patented by NETGEAR into growth areas that form the basis of smart homes. Competition The company’s principal competitors include: within the consumer markets, companies such as ARRIS, ASUS, AVM, Devolo, D-Link, Eero (owned by Amazon), Linksys (owned by Foxconn), Minim (Motorola licensee), Google WiFi, Samsung, and TP- Link; within the business markets, companies such as Allied Telesys, Barracuda, Buffalo, Cisco Systems, Dell, D-Link, Extreme, Fortinet, Hewlett-Packard Enterprise, Palo Alto Networks, QNAP Systems, SonicWall, Snap AV, Synology, TP- Link, Ubiquiti, and WatchGuard; and within the service provider markets, companies such as Actiontec, Airties, Arcadyan, ARRIS, ASUS, AVM, Compal Broadband, D-Link, Eero (owned by Amazon), Franklin, Google, Hitron, Huawei, Inseego, Nokia, Plume, Sagem, Sercomm, SMC Networks, TechniColor, TP-Link, Ubee, ZTE and ZyXEL. Other competitors include numerous local vendors such as Xiaomi in China, AVM in Germany and Buffalo in Japan. Manufacturing The company’s primary manufacturers are Cloud Network Technology (more commonly known as Hon Hai Precision or Foxconn Corporation), Delta Electronics Incorporated, Senao Networks, Inc., and Pegatron Corporation, all of which are headquartered in Taiwan. The company also manufactures in Haiphong, Vietnam at a facility owned by Shenzhen Gongjin Electronics Co., Ltd. (more commonly known as T&W), which is headquartered in China. The company outsources warehousing and distribution logistics to four main third-party providers who are responsible for warehousing, distribution logistics and order fulfillment. In addition, these parties are also responsible for some configuration and re-packaging of its products including bundling components to form kits, inserting appropriate documentation, disk drive configuration, and adding power adapters. APL Logistics Americas, Ltd. in City of Industry, California serves the Americas region, Kerry Logistics Ltd. in Singapore serves the Asia Pacific region, DSV Solutions B.V. Netherlands serves the EMEA region, and Likewize Logistics Pty Ltd. in Melbourne, VIC, Australia serves Australia and New Zealand. Sales and Marketing The company works directly with its retail partners on market development activities, such as co-advertising, online promotions and video demonstrations, live and virtual event sponsorships and sales associate training. The company also participates in major industry trade shows and marketing events. The company’s marketing department consists of its channel marketing, product marketing and corporate marketing groups. The company’s product marketing group focuses on product and service strategy, product and service development roadmaps, the new product introduction process, product lifecycle management, demand assessment and competitive analysis. The group works closely with the company’s sales and research and development groups to align its product development roadmap to meet customer technology demands from a strategic perspective. The group also ensures that product and services development activities, product and services launches, and ongoing demand and supply planning for the company’s products occur in a well-managed, timely manner in coordination with its development, manufacturing, and sales groups, as well as its ODM and sales channel partners. The company’s corporate marketing group is responsible for defining and building its corporate brand, supporting the business units with creative marketing strategies and driving awareness, education and demand for its products by way of its online and in-app platforms. The group focuses on defining the company’s brand promise and marketing messages on a worldwide basis. This group is also responsible for targeted full-funnel marketing, including paid, earned and owned channels; delivering a seamless purchase journey reaching and acquiring new customers as well as leveraging its loyal customers to advocate for the NETGEAR brand. Marketing tactics include driving the social media and online marketing strategy, public relations, installed base marketing programs, community engagement programs, sponsorships and events, and corporate websites worldwide, as well as creative production for all product categories. The company conducts most of its international sales and marketing operations through wholly-owned subsidiaries, which operate via sales and marketing subsidiaries and branch offices worldwide. Customer Support The company designs its products with ease-of-use top of mind. The company responds globally to customer inquiries through a variety of channels, including phone, chat, community, social media, and email. Customers can also get self-help service through the comprehensive knowledge base, chatbot and user forums on its website. Customer support is provided through a combination of a limited number of permanent employees and use of subcontracted, out-sourced resources. The company utilizes the information gained from customers by its customer support organization to enhance its product offerings, including further simplifying the installation process. Intellectual Property The company primarily relies on a combination of copyright, trademark, trade secret, and patent laws, nondisclosure agreements with employees, consultants and suppliers and other contractual provisions to establish, maintain and protect its proprietary rights. The company holds approximately 225 issued United States patents that expire between years 2024 and 2040 and 36 foreign patents that expire between 2024 and 2035. The company has approximately 21 pending United States and foreign patent applications related to technology and products offered by it. The company has trade secret rights for its products, consisting mainly of product design, technical product documentation and software. The company also owns, or has applied for registration of trademarks, in connection with its products in the United States and internationally, including NETGEAR, NETGEAR Armor, NETGEAR Insight, NPG, NPG logo, Orbi, Nighthawk, FASTLANE3, Meural, Trueart, Digital Canvas, and ProSafe. The company has registered a number of internet domain names that it uses for electronic interaction with its customers including dissemination of product information, marketing programs, product registration, sales activities, and other commercial uses. Seasonal Business The company has historically experienced increased net sales in its third and fourth fiscal quarters as compared to the first and second quarters in its fiscal year due to seasonal demand from consumer markets primarily relating to the beginning of the school year and the holiday season. Governmental Regulations As a company with global operations, the company is subject to complex foreign and U.S. laws and regulations, including trade regulations, tariffs, import and export regulations, anti-bribery and corruption laws, antitrust or competition laws, data privacy laws, such as the EU General Data Protection Regulation (the GDPR), and environmental regulations, among others. History NETGEAR, Inc. was founded in 1996. The company was incorporated in Delaware in 1996.