Switching, routing and networking business Netgear reported record revenues for its Q2 period (to July 1st) up 10.9 per cent y-o-y and up 6.3 per cent sequentially. Netgear announced it would float its Arlo home security division into a separate business.
The California-headquartered company saw increased business flow from North America (up 14.5 per cent) and the EMEA region (24.4 per cent) y-o-y. APAC revenues were down 14.3 per cent q-o-q.
CFO Christine Gorjanc told analysts that for Q2, the company shipped a total of approximately 5.1 million units, including 4.1 million nodes of wireless products. “Shipments of our wired and wireless routers and gateways combined were about 1.6 million units for the second quarter of 2018. The net revenue split between home and business products was about 81 per cent and 19 per cent, respectively. The net revenue split between wireless and wired products was about 77 per cent and 23 per cent, respectively.”
Netgear finished the quarter-year with a cash balance of $355.6 million.
She added: “The Connected Home segment, which includes the industry leading Nighthawk, Nighthawk Pro gaming and Orbi brands, generated net revenue of $191.2 million during the quarter, which is up 2.8 per cent on a year-over-year basis and up 7.5 per cent sequentially. We are particularly excited about the sequential revenue uptick during a seasonally weak quarter. The Nighthawk Pro Gaming router is leading the growth. The Cable Modem and Gateway market is returning to year-over-year growth in Q2 and we’re gaining share.”
Netgear is enjoying strong sales of its ‘Arlo’ home security range including cameras and doorbells.
The company is in the middle of an IPO for its ‘Arlo’ division, and is offering 10.2 million shares in the range of $18-$20 per share in order to raise around $194 million.