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NETGEAR Inc

NETGEAR, Inc. provides networking technologies for businesses, homes, and service providers across the Americas, Europe, the Middle East, Africa, and the Asia Pacific. It operates in two segments: Enterprise and Consumer. The company offers Wi-Fi routers, mesh systems, hotspots, broadband modems, gateways, range extenders, powerline adapters, and network adapters, along with value-added services such as security and privacy, technical support, and parental controls. It also provides pro AV solutions, including Ethernet switches and Wi-Fi access points, NETGEAR Engage Controller, NETGEAR Insight Remote Management, Pro Routers, enterprise-grade cloud-managed or standalone access points, general purpose Ethernet switches, and NETGEAR Exium Security Solutions. Products are marketed and sold through wholesale distributors, traditional and online retailers, direct market resellers, value-added resellers, managed service providers, and broadband service providers, as well as through its direct online store. NETGEAR, Inc. was incorporated in 1996 and is headquartered in San Jose, California.

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Artificial Intelligence

Meta Jumps on AI Agent Launch, NETGEAR Surges

U.S. stock futures traded below the flatline on Wednesday as oil prices climbed above $100 a barrel and investors awaited inflation data that could reinforce expectations for the Federal Reserve to raise interest rates later this month. By 06:13 ET, S&P 500 futures had fallen 19 points, or 0.3%, while Nasdaq 100 futures were down 134 points, or 0.5%, and Dow Jones futures had slipped 206 points, or 0.4%. Meta Platforms shares surged 3.6% in premarket trading after the company launched Muse, its autonomous AI personal agent, and introduced a tiered AI subscription model with plans at $20 and $100 per month. Evommune shares fell 13.9% to $11.26 after its EVO756 drug candidate failed to meet primary and secondary endpoints in a Phase 2b trial for atopic dermatitis, and the company will not advance it in that indication. Braze shares tumbled 11.5% despite beating fiscal second-quarter estimates, as its third-quarter profit guidance fell short of consensus and growth showed signs of slowing. NETGEAR shares jumped 8.9% after the FCC banned imports of new consumer routers manufactured outside the U.S., a move that could benefit NETGEAR due to its existing FCC approval exemption.
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NTGR

Netgear guides Q3 revenue to $165M-$175M amid 200 bps second-half gross margin headwind

Netgear guided third-quarter net revenue to a range of $165 million to $175 million, with service provider and related products revenue expected to be around $22 million. Chief Financial Officer Bryan Murray said the company still expects approximately a 200 basis point headwind to combined gross margin in the second half compared to the first half, with the impact skewed to Q3 due to near-term supply constraints. The company reported second-quarter revenue of $168.6 million, with Enterprise segment revenue of $89 million and Consumer segment net revenue of $79.6 million. Non-GAAP gross margin was 41.4%, and non-GAAP earnings per share came in at $0.16. Murray noted that the memory cost challenge is expanding to other parts of the bill of materials, and the company is experiencing modest production delays.
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