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Segment Information (Tables)
3 Months Ended
Mar. 31, 2024
Segment Reporting [Abstract]  
Schedule of Reportable Segments and Reconciliation of Segment Contribution Income (Loss) to Income (Loss) Before Income Taxes Financial information for each reportable segment and a reconciliation of segment contribution income (loss) to loss before income taxes is as follows:

 

 

 

Three Months Ended

 

(In thousands)

 

March 31, 2024

 

 

April 2, 2023*

 

Net Revenue:

 

 

 

 

 

 

Connected Home

 

$

95,963

 

 

$

102,746

 

NETGEAR for Business

 

 

68,623

 

 

 

78,162

 

Total net revenue

 

$

164,586

 

 

$

180,908

 

 

 

 

 

 

 

Contribution Income (loss):

 

 

 

 

 

 

Connected Home

 

$

(6,140

)

 

$

(1,756

)

Contribution margin

 

 

(6.4

)%

 

 

(1.7

)%

NETGEAR for Business

 

$

9,904

 

 

$

14,057

 

Contribution margin

 

 

14.4

 %

 

 

18.0

 %

Total segment contribution income

 

$

3,764

 

 

$

12,301

 

Corporate and unallocated costs

 

 

(19,806

)

 

 

(19,374

)

Amortization of intangibles

 

 

 

 

 

(129

)

Stock-based compensation expense

 

 

(4,544

)

 

 

(4,665

)

Restructuring and other charges

 

 

(1,032

)

 

 

(108

)

Litigation reserves, net

 

 

(30

)

 

 

 

Other income, net (1)

 

 

2,850

 

 

 

1,406

 

Loss before income taxes

 

$

(18,798

)

 

$

(10,569

)

 

 

(1)
Amounts included gain/(loss), net from derivatives not designated as hedging instruments of $1.5 million and $(0.2) million, for the three months ended March 31, 2024 and April 2, 2023, respectively.

* Financial information for each reportable segment were recast to conform to the current reportable segment structure.

Schedule of Net Revenue by Geography

The following table shows net revenue by geography:

 

 

 

Three Months Ended

 

(In thousands)

 

March 31, 2024

 

 

April 2, 2023

 

United States (U.S.)

 

$

107,289

 

 

$

117,798

 

Americas (excluding U.S.)

 

 

2,639

 

 

 

4,124

 

EMEA (1)

 

 

31,187

 

 

 

39,178

 

APAC (1)

 

 

23,471

 

 

 

19,808

 

Total net revenue

 

$

164,586

 

 

$

180,908

 

 

 

(1)
No individual foreign country represented more than 10% of the Company’s total net revenue in the periods presented.
Schedule of Long-Lived Asset By Geographic Region

The following table presents the Company’s long-lived assets located in geographic areas, which consist of property and equipment, net, and operating lease right-of-use assets:

 

(In thousands)

 

March 31, 2024

 

 

December 31, 2023

 

United States (U.S.)

 

$

23,757

 

 

$

25,051

 

Canada

 

 

4,712

 

 

 

4,714

 

Americas (excluding U.S. and Canada)

 

 

64

 

 

 

68

 

EMEA

 

 

3,582

 

 

 

3,739

 

Singapore

 

 

5,995

 

 

 

6,218

 

APAC (excluding Singapore) (1)

 

 

5,956

 

 

 

5,768

 

Total

 

$

44,066

 

 

$

45,558

 

 

 

(1)
No individual country represented more than 10% of the Company’s total long-lived assets in the periods presented.