The following is a summary of the NETGEAR, Inc. (NTGR) Q1 2024 Earnings Call Transcript:
Financial Performance:
NETGEAR reported Q1 2024 revenue of $164.6 million, marking a 9% decrease year-over-year due to changes in inventory control, product mix, and increased promotional spending.
Over $17 million of cash was generated from operations in Q1 2024, with a non-GAAP net loss reported of $8.4 million.
Non-GAAP gross margin for Q1 2024 stood at 29.5%, dropping by 410 basis points from the previous year.
The company ended the quarter with a total of $289.4 million in cash and short-term investments.
Business Progress:
NETGEAR is shifting its strategy to serve a broader market segment, including striking partnerships for value addition.
Steps to address inventory challenges are underway with a plan to reduce inventory to three months' worth of supply and an expected revenue decrease of $25 -$30 million due to identified costs.
Service revenue experienced a year-over-year increase of 21.2%, concluding the quarter at $11.7 million.
Focus on long-term growth sectors such as pro AV managed switches, Orbi Wi-Fi mesh systems, 5G mobile hotspots, and subscription services, resulted in a quarter-end total of 928,000 paid subscribers.
More details: Netgear IR
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