NETGEAR Announces Fourth Quarter and Full Year 2011 Results

NETGEAR, Inc. has released its financial results for the fourth quarter and full year ended December 31, 2011.

The results shows that the company had an increase in its revenue with $309.2 million earnings for the quarter ending December 31, 2011, as compared to $258.5 million for the fourth quarter ended December 31, 2010, and $301.8 million in the third quarter ended October 2, 2011.

The fourth quarter 2011 non-GAAP net income is said to be $26.5 million, as compared to $16.1 million in the comparable prior year quarter, 65 percent year-over-year growth.

Patrick Lo, chairman and chief executive officer of NETGEAR said that they are extremely pleased with their full year 2011 business performance amid a challenging macroeconomic environment and Q4 2011 represented another new record in quarterly revenue as the full year 2011 revenue well exceeded the $1 billion mark.

“In the fourth quarter 2011 we benefited from strong holiday retail sales, specifically in North America. This is particularly encouraging after the strong back to school season we experienced in Q3. We also experienced healthy year-over-year growth in all three geographic regions as we continue to carry positive momentum out of a very strong third quarter. Our new products continue to exceed our expectations and enable us to gain market share,” Lo added.

The company has also introduced 18 new exciting products in the fourth quarter 2011 such as brand new desktop 2 and 4 Bay ReadyNAS Duo and NV+ which were instant hits.

In January, at the Las Vegas International Consumer Electronics Show, the company announced 8 new products, three of which were recipients of 2012 Innovations Design and Engineering awards: the Media Storage Router, the Wi-Fi Dual Band Gigabit DSL Modem Router, and the mobile version of the NETGEAR Genie home network configuration and management tool.

Christine Gorjanc, chief financial officer of NETGEAR, said, “We ended the fourth quarter of 2011 with $353.7 million in cash, cash equivalents and short-term investments driven by cash flow from operations of $32.9 million.  Our net inventory ended at $163.7 million, with 5.2 turns, and DSO's of 76 days in the fourth quarter 2011 in line with seasonal trends.”  

In other news from March 2011, NETGEAR announced its agreement to acquire the assets of the Customer Networking Solutions (CNS) division of Westell Technologies (News - Alert), for $33.5 million.