Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Oct. 02, 2022 | Oct. 28, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Oct. 02, 2022 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | NTGR | |
Entity Registrant Name | NETGEAR, Inc. | |
Entity Current Reporting Status | Yes | |
Entity Central Index Key | 0001122904 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Smaller Reporting Company | false | |
Entity Shell Company | false | |
Entity Emerging Growth Company | false | |
Entity Tax Identification Number | 77-0419172 | |
Entity File Number | 000-50350 | |
Entity Incorporation, State or Country Code | DE | |
Entity Address, Address Line One | 350 East Plumeria Drive | |
Entity Address, City or Town | San Jose | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 95134 | |
City Area Code | (408) | |
Local Phone Number | 907-8000 | |
Security Exchange Name | NASDAQ | |
Title of 12(b) Security | Common Stock, $0.001 par value | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity Interactive Data Current | Yes | |
Entity Common Stock, Shares Outstanding (In shares) | 28,899,105 |
Unaudited Condensed Consolidate
Unaudited Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Oct. 02, 2022 | Dec. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 132,928 | $ 263,772 |
Short-term investments | 100,269 | 7,744 |
Accounts receivable, net of allowance for doubtful accounts of $396 and $399 as of October 2, 2022, and December 31, 2021, respectively | 259,908 | 261,158 |
Inventories | 298,090 | 315,667 |
Prepaid expenses and other current assets | 38,851 | 34,752 |
Total current assets | 830,046 | 883,093 |
Property and equipment, net | 10,230 | 13,335 |
Operating lease right-of-use assets | 37,371 | 23,176 |
Intangibles, net | 1,457 | 1,856 |
Goodwill | 36,279 | 80,721 |
Other non-current assets | 89,835 | 76,350 |
Total assets | 1,005,218 | 1,078,531 |
Current liabilities: | ||
Accounts payable | 87,432 | 73,729 |
Accrued employee compensation | 20,375 | 24,704 |
Other accrued liabilities | 202,208 | 224,584 |
Deferred revenue | 19,293 | 16,500 |
Income taxes payable | 1,089 | 1,528 |
Total current liabilities | 330,397 | 341,045 |
Non-current income taxes payable | 16,737 | 18,990 |
Non-current operating lease liabilities | 31,577 | 18,569 |
Other non-current liabilities | 3,580 | 3,112 |
Total liabilities | 382,291 | 381,716 |
Commitments and contingencies (Note 8) | ||
Stockholders’ equity: | ||
Common stock | 29 | 29 |
Additional paid-in capital | 941,655 | 923,228 |
Accumulated other comprehensive income (loss) | (115) | 149 |
Accumulated deficit | (318,642) | (226,591) |
Total stockholders’ equity | 622,927 | 696,815 |
Total liabilities and stockholders’ equity | $ 1,005,218 | $ 1,078,531 |
Unaudited Condensed Consolida_2
Unaudited Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Oct. 02, 2022 | Dec. 31, 2021 |
Statement Of Financial Position [Abstract] | ||
Accounts receivable, net of allowance for doubtful accounts of $396 and $399 as of October, 2022, and December 31, 2021, respectively | $ 396 | $ 399 |
Unaudited Condensed Consolida_3
Unaudited Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Oct. 02, 2022 | Oct. 03, 2021 | Oct. 02, 2022 | Oct. 03, 2021 | ||
Income Statement [Abstract] | |||||
Net revenue | [1] | $ 249,587 | $ 290,150 | $ 683,369 | $ 916,886 |
Cost of revenue | 181,058 | 203,309 | 494,516 | 625,748 | |
Gross profit | 68,529 | 86,841 | 188,853 | 291,138 | |
Operating expenses: | |||||
Research and development | 22,167 | 23,472 | 68,193 | 69,887 | |
Sales and marketing | 34,203 | 36,176 | 104,335 | 109,731 | |
General and administrative | 13,949 | 14,056 | 41,698 | 45,084 | |
Goodwill impairment charge | 0 | 0 | 44,442 | 0 | |
Other operating expenses, net | 361 | 222 | 931 | 690 | |
Total operating expenses | 70,680 | 73,926 | 259,599 | 225,392 | |
Income (loss) from operations | (2,151) | 12,915 | (70,746) | 65,746 | |
Other income (expenses), net | [2] | 638 | (132) | (1,164) | 15 |
Income (loss) before income taxes | (1,513) | 12,783 | (71,910) | 65,761 | |
Provision for (benefit from) income taxes | (4,314) | 3,199 | (8,967) | 15,383 | |
Net income (loss) | $ 2,801 | $ 9,584 | $ (62,943) | $ 50,378 | |
Net income (loss) per share | |||||
Basic | $ 0.10 | $ 0.32 | $ (2.17) | $ 1.65 | |
Diluted | $ 0.10 | $ 0.31 | $ (2.17) | $ 1.61 | |
Weighted average shares used to compute net income (loss) per share: | |||||
Basic | 28,891 | 30,301 | 29,023 | 30,495 | |
Diluted | 29,029 | 30,798 | 29,023 | 31,356 | |
[1] No individual country represented more than 10% of the Company's total net revenue in the periods presented. |
Unaudited Condensed Consolida_4
Unaudited Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 02, 2022 | Oct. 03, 2021 | Oct. 02, 2022 | Oct. 03, 2021 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net income (loss) | $ 2,801 | $ 9,584 | $ (62,943) | $ 50,378 |
Other comprehensive income (loss), before tax: | ||||
Change in unrealized gains and losses on derivatives | 192 | (81) | 86 | 53 |
Change in unrealized gains and losses on available-for-sale investments | (471) | 0 | (459) | 0 |
Other comprehensive income (loss), before tax | (279) | (81) | (373) | 53 |
Tax benefit (provision) related to derivatives | (23) | 10 | (6) | (7) |
Tax benefit related to available-for-sale investments | 118 | 0 | 115 | 0 |
Other comprehensive income (loss), net of tax | (184) | (71) | (264) | 46 |
Comprehensive income (loss) | $ 2,617 | $ 9,513 | $ (63,207) | $ 50,424 |
Unaudited Condensed Consolida_5
Unaudited Condensed Consolidated Statements of Stockholder's Equity - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Income (Loss) | Accumulated Deficit |
Beginning balance at Dec. 31, 2020 | $ 689,384 | $ 30 | $ 882,709 | $ (35) | $ (193,320) |
Beginning balance (in shares) at Dec. 31, 2020 | 30,399 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Change in unrealized gains and losses on derivatives, net of tax | 41 | 41 | |||
Net income (loss) | 22,960 | 22,960 | |||
Stock-based compensation | 6,960 | 6,960 | |||
Restricted stock unit withholdings | (1,964) | (1,964) | |||
Restricted stock unit withholdings (in shares) | (48) | ||||
Issuance of common stock under stock-based compensation plans | 7,042 | $ 1 | 7,041 | ||
Issuance of common stock under stock-based compensation plans (in shares) | 407 | ||||
Ending balance at Mar. 28, 2021 | 724,423 | $ 31 | 896,710 | 6 | (172,324) |
Ending balance (in shares) at Mar. 28, 2021 | 30,758 | ||||
Beginning balance at Dec. 31, 2020 | 689,384 | $ 30 | 882,709 | (35) | (193,320) |
Beginning balance (in shares) at Dec. 31, 2020 | 30,399 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income (loss) | 50,378 | ||||
Repurchase of common stock | $ (57,500) | ||||
Repurchase of common stock (in shares) | (1,600) | ||||
Restricted stock unit withholdings (in shares) | (197) | ||||
Ending balance at Oct. 03, 2021 | $ 708,856 | $ 30 | 916,678 | 11 | (207,863) |
Ending balance (in shares) at Oct. 03, 2021 | 29,776 | ||||
Beginning balance at Mar. 28, 2021 | 724,423 | $ 31 | 896,710 | 6 | (172,324) |
Beginning balance (in shares) at Mar. 28, 2021 | 30,758 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Change in unrealized gains and losses on derivatives, net of tax | 76 | 76 | |||
Net income (loss) | 17,834 | 17,834 | |||
Stock-based compensation | 6,902 | 6,902 | |||
Repurchase of common stock | (24,999) | (24,999) | |||
Repurchase of common stock (in shares) | (654) | ||||
Restricted stock unit withholdings | (3,951) | (3,951) | |||
Restricted stock unit withholdings (in shares) | (106) | ||||
Issuance of common stock under stock-based compensation plans | 2,715 | 2,715 | |||
Issuance of common stock under stock-based compensation plans (in shares) | 497 | ||||
Ending balance at Jun. 27, 2021 | 723,000 | $ 31 | 906,327 | 82 | (183,440) |
Ending balance (in shares) at Jun. 27, 2021 | 30,495 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Change in unrealized gains and losses on derivatives, net of tax | (71) | (71) | |||
Net income (loss) | 9,584 | 9,584 | |||
Stock-based compensation | 6,210 | 6,210 | |||
Repurchase of common stock | (32,467) | $ (1) | (32,466) | ||
Repurchase of common stock (in shares) | (953) | ||||
Restricted stock unit withholdings | (1,541) | (1,541) | |||
Restricted stock unit withholdings (in shares) | (44) | ||||
Issuance of common stock under stock-based compensation plans | 4,141 | 4,141 | |||
Issuance of common stock under stock-based compensation plans (in shares) | 278 | ||||
Ending balance at Oct. 03, 2021 | 708,856 | $ 30 | 916,678 | 11 | (207,863) |
Ending balance (in shares) at Oct. 03, 2021 | 29,776 | ||||
Beginning balance at Dec. 31, 2021 | 696,815 | $ 29 | 923,228 | 149 | (226,591) |
Beginning balance (in shares) at Dec. 31, 2021 | 29,286 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Change in unrealized gains and losses on available-for-sale investments, net of tax | (37) | (37) | |||
Change in unrealized gains and losses on derivatives, net of tax | 44 | 44 | |||
Net income (loss) | (57,210) | (57,210) | |||
Stock-based compensation | 4,697 | 4,697 | |||
Repurchase of common stock | (9,377) | (9,377) | |||
Repurchase of common stock (in shares) | (354) | ||||
Restricted stock unit withholdings | (1,262) | (1,262) | |||
Restricted stock unit withholdings (in shares) | (46) | ||||
Issuance of common stock under stock-based compensation plans | 3,351 | 3,351 | |||
Issuance of common stock under stock-based compensation plans (in shares) | 275 | ||||
Ending balance at Apr. 03, 2022 | 637,021 | $ 29 | 931,276 | 156 | (294,440) |
Ending balance (in shares) at Apr. 03, 2022 | 29,161 | ||||
Beginning balance at Dec. 31, 2021 | 696,815 | $ 29 | 923,228 | 149 | (226,591) |
Beginning balance (in shares) at Dec. 31, 2021 | 29,286 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income (loss) | (62,943) | ||||
Repurchase of common stock | $ (24,400) | ||||
Repurchase of common stock (in shares) | (1,000) | ||||
Restricted stock unit withholdings (in shares) | (198) | ||||
Ending balance at Oct. 02, 2022 | $ 622,927 | $ 29 | 941,655 | (115) | (318,642) |
Ending balance (in shares) at Oct. 02, 2022 | 28,899 | ||||
Beginning balance at Apr. 03, 2022 | 637,021 | $ 29 | 931,276 | 156 | (294,440) |
Beginning balance (in shares) at Apr. 03, 2022 | 29,161 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Change in unrealized gains and losses on available-for-sale investments, net of tax | 46 | 46 | |||
Change in unrealized gains and losses on derivatives, net of tax | (133) | (133) | |||
Net income (loss) | (8,534) | (8,534) | |||
Stock-based compensation | 5,129 | 5,129 | |||
Repurchase of common stock | (15,000) | (15,000) | |||
Repurchase of common stock (in shares) | (678) | ||||
Restricted stock unit withholdings | (2,319) | (2,319) | |||
Restricted stock unit withholdings (in shares) | (107) | ||||
Issuance of common stock under stock-based compensation plans | 19 | 19 | |||
Issuance of common stock under stock-based compensation plans (in shares) | 356 | ||||
Ending balance at Jul. 03, 2022 | 616,229 | $ 29 | 936,424 | 69 | (320,293) |
Ending balance (in shares) at Jul. 03, 2022 | 28,732 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Change in unrealized gains and losses on available-for-sale investments, net of tax | (353) | (353) | |||
Change in unrealized gains and losses on derivatives, net of tax | 169 | 169 | |||
Net income (loss) | 2,801 | 2,801 | |||
Stock-based compensation | 3,440 | 3,440 | |||
Restricted stock unit withholdings | (1,150) | (1,150) | |||
Restricted stock unit withholdings (in shares) | (45) | ||||
Issuance of common stock under stock-based compensation plans | 1,791 | 1,791 | |||
Issuance of common stock under stock-based compensation plans (in shares) | 212 | ||||
Ending balance at Oct. 02, 2022 | $ 622,927 | $ 29 | $ 941,655 | $ (115) | $ (318,642) |
Ending balance (in shares) at Oct. 02, 2022 | 28,899 |
Unaudited Condensed Consolida_6
Unaudited Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Oct. 02, 2022 | Oct. 03, 2021 | |
Cash flows from operating activities: | ||
Net income (loss) | $ (62,943) | $ 50,378 |
Adjustments to reconcile net income (loss) to net cash used in operating activities: | ||
Depreciation and amortization | 7,845 | 10,922 |
Stock-based compensation | 13,266 | 20,072 |
Loss on investments, net | 342 | 174 |
Goodwill impairment | 44,442 | 0 |
Change in fair value of contingent consideration | 0 | (3,003) |
Deferred income taxes | (13,895) | 4,838 |
Provision for excess and obsolete inventory | 3,005 | 3,045 |
Changes in assets and liabilities: | ||
Accounts receivable, net | 1,250 | 70,526 |
Inventories | 14,572 | (136,062) |
Prepaid expenses and other assets | (2,858) | (5,678) |
Accounts payable | 13,432 | (15,344) |
Accrued employee compensation | (4,329) | (12,654) |
Other accrued liabilities | (23,504) | 6,193 |
Deferred revenue | 3,268 | 2,061 |
Income taxes payable | (2,692) | (3,966) |
Net cash used in operating activities | (8,799) | (8,498) |
Cash flows from investing activities: | ||
Purchases of short-term investments | (143,933) | (145) |
Proceeds from maturities of short-term investments | 50,418 | 165 |
Purchases of property and equipment | (4,133) | (6,918) |
Purchases of long-term investments | (450) | (535) |
Net cash used in investing activities | (98,098) | (7,433) |
Cash flows from financing activities: | ||
Repurchases of common stock | (24,377) | (53,634) |
Restricted stock unit withholdings | (4,731) | (7,456) |
Proceeds from exercise of stock options | 743 | 8,912 |
Proceeds from issuance of common stock under employee stock purchase plan | 4,418 | 4,916 |
Net cash used in financing activities | (23,947) | (47,262) |
Net decrease in cash and cash equivalents | (130,844) | (63,193) |
Cash and cash equivalents, at beginning of period | 263,772 | 346,460 |
Cash and cash equivalents, at end of period | 132,928 | 283,267 |
Supplemental Cash Flow Information: | ||
Unpaid property and equipment | $ 735 | $ 2,019 |
The Company and Basis of Presen
The Company and Basis of Presentation | 9 Months Ended |
Oct. 02, 2022 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
The Company and Basis of Presentation | Note 1. The Company and Basis of Presentation NETGEAR, Inc. (“NETGEAR” or the “Company”) is a global company, incorporated in Delaware in January 1996. The Company turns ideas into innovative, high-performance and premium networking products that connect people, power businesses and service providers. The Company's products are designed to simplify and improve people’s lives. The Company's goal is to enable people to collaborate and connect to a world of information and entertainment at or outside of the home. The Company is dedicated to delivering innovative and advanced connected solutions ranging from easy-to-use premium WiFi solutions, performance gaming routers to enhance console and online-game play, security and support services to protect and enhance home networks, to switching and wireless solutions to augment business networks and audio and video over Ethernet for Pro AV applications . The Company sells networking products through multiple sales channels worldwide, including traditional retailers, online retailers, wholesale distributors, direct market resellers (“DMRs”), value-added resellers (“VARs”), broadband service providers and its direct online store at www.netgear.com . The accompanying unaudited condensed consolidated financial statements include the accounts of NETGEAR, Inc. and its wholly owned subsidiaries. They have been prepared in accordance with established guidelines for interim financial reporting and the instructions of Form 10-Q and Article 10 of Regulation S-X. All significant intercompany balances and transactions have been eliminated in consolidation. The balance sheet dated December 31, 2021, has been derived from audited financial statements at such date. These unaudited condensed consolidated financial statements do not include all of the information and footnotes typically found in the audited consolidated financial statements and footnotes thereto included in the Annual Report on Form 10-K. In the opinion of management, the unaudited condensed consolidated financial statements reflect all normal recurring adjustments considered necessary to fairly state the Company's financial position, results of operations, comprehensive income (loss), stockholder's equity and cash flows for the periods indicated. These unaudited condensed consolidated financial statements should be read in conjunction with the notes to the audited consolidated financial statements included in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2021 (the “Annual Report”). The Company's fiscal year begins on January 1 of the year stated and ends on December 31 of the same year. The Company reports its results on a fiscal quarter basis rather than on a calendar quarter basis. Under the fiscal quarter basis, each of the first three fiscal quarters ends on the Sunday closest to the calendar quarter end, with the fourth quarter ending on December 31. The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect (i) the reported amounts of assets and liabilities, (ii) the disclosure of contingent assets and liabilities at the date of the financial statements, and (iii) the reported amounts of net revenue and expenses during the reported period. The Company bases these estimates on historical and anticipated results, trends and various other assumptions that it believes are reasonable under the circumstances. As of the date of issuance of these condensed consolidated financial statements, the Company is not aware of any specific event or circumstance that would require it to update its estimates, judgments or revise the carrying value of its assets or liabilities. These estimates may change, as new events occur and additional information is obtained, and are recognized in the condensed consolidated financial statements as soon as they become known. Actual results could differ materially from those estimates and operating results for the three and nine months ended October 2, 2022 are not necessarily indicative of the results that may be expected for the year ending December 31, 2022, or any future period. COVID-19 Pandemic The COVID-19 pandemic has had widespread and unpredictable impacts on global economies, including inflation, and supply chain disruption, while significantly increasing volatility and disruption in financial markets. The pandemic continues to impact the supply chain in its ability to timely procure finished goods due to , and has led to meaningfully increased costs of freight transportation and increased material and component costs for its products. Continued and extended periods of global supply chain, and economic disruption could continue to significantly affect the business and statement of financial condition. The duration of the disruption from the pandemic remains uncertain due to the dynamic nature of the virus and makes it difficult to reasonably estimate the impact of the COVID-19 pandemic on the business operations |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Oct. 02, 2022 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note 2. Summary of Significant Accounting Policies No material changes have been made to the Company’s significant accounting policies disclosed in Note 1, The Company and Summary of Significant Accounting Policies Recent Accounting Pronouncements The Company has considered all recent accounting pronouncements issued, but not yet effective, and does not expect any to have a material effect on the Company’s unaudited condensed consolidated financial statements. |
Revenue
Revenue | 9 Months Ended |
Oct. 02, 2022 | |
Revenue From Contract With Customer [Abstract] | |
Revenue | Note 3. Revenue Revenue from contracts with customers is recognized when control of the promised goods or services is transferred to the customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. Transaction Price Allocated to the Remaining Performance Obligations Remaining performance obligations represent the transaction price allocated to performance obligations that are unsatisfied or partially unsatisfied, which are primarily from hardware and, to a lesser extent, subscription and support services, as of the end of the reporting period. Unsatisfied and partially unsatisfied performance obligations consist of contract liabilities, in-transit orders with destination terms, and non-cancellable backlog. Non-cancellable backlog includes goods for which customer purchase orders have been accepted that are scheduled or in the process of being scheduled for shipment, and that are not yet invoiced. The following table summarizes estimated revenue expected to be recognized in the future related to performance obligations that were unsatisfied (or partially unsatisfied) as of October 2, 2022: (In thousands) Less than 1 year 1 to 2 years Beyond 2 years Total Performance obligations $ 158,447 $ 2,166 $ 1,685 $ 162,298 Contract Balances The Company records accounts receivable when it has an unconditional right to consideration. Contract liabilities are recorded when cash payments are received or due in advance of performance. Contract liabilities consist of advance payments and deferred revenue, where the Company has unsatisfied performance obligations. Contract liabilities are mainly classified as Deferred revenue on the unaudited condensed consolidated balance sheets. Payment terms vary by customer. The time between invoicing and when payment is due is not significant. For certain products or services and customer types, payment is required before the products or services are delivered to the customer. The following table reflects the contract balances: (In thousands) Balance Sheet Location October 2, 2022 December 31, 2021 Accounts receivable, net Accounts receivable, net $ 259,908 $ 261,158 Contract liabilities - current Deferred revenue $ 19,293 $ 16,500 Contract liabilities - non-current Other non-current liabilities $ 3,575 $ 3,100 The difference in the balances of the Company's contract assets and liabilities as of October 2, 2022 and December 31, 2021, primarily results from the timing difference between the Company's performance and the customer’s payment. During the nine months ended October 2, 2022, $27.6 million of revenue was deferred primarily due to remaining performance obligations for service contracts, $24.4 million of revenue was recognized for the satisfaction of performance obligations and $14.8 million of this recognized revenue was included in the contract liability balance at the beginning of the period. There were no significant changes in estimates during the period that would affect the contract balances. Disaggregation of Revenue In the following tables, net revenue is disaggregated by geographic region and sales channel. The Company conducts business across three geographic regions: Americas; Europe, Middle East and Africa (“EMEA”); and Asia Pacific (“APAC”). The tables also include reconciliations of the disaggregated revenue by reportable segment. The Company operates and reports in two segments: Connected Home, and Small and Medium Business (“SMB”). Sales and usage-based taxes are excluded from net revenue. Three Months Ended October 2, 2022 October 3, 2021 (In thousands) Connected Home SMB Total Connected Home SMB Total Geographic regions (1) Americas $ 120,168 $ 49,192 $ 169,360 $ 158,888 $ 36,235 $ 195,123 EMEA 12,545 32,282 44,827 28,253 28,687 56,940 APAC 17,868 17,532 35,400 21,398 16,689 38,087 Total $ 150,581 $ 99,006 $ 249,587 $ 208,539 $ 81,611 $ 290,150 Sales channels: Service provider $ 40,448 $ 1,171 $ 41,619 $ 41,726 $ 449 $ 42,175 Non-service provider 110,133 97,835 207,968 166,813 81,162 247,975 Total $ 150,581 $ 99,006 $ 249,587 $ 208,539 $ 81,611 $ 290,150 Nine Months Ended October 2, 2022 October 3, 2021 (In thousands) Connected Home SMB Total Connected Home SMB Total Geographic regions (1) Americas $ 327,372 $ 130,664 $ 458,036 $ 523,008 $ 103,899 $ 626,907 EMEA 34,230 92,413 126,643 91,975 87,827 179,802 APAC 48,185 50,505 98,690 64,337 45,840 110,177 Total $ 409,787 $ 273,582 $ 683,369 $ 679,320 $ 237,566 $ 916,886 Sales channels: Service provider $ 92,544 $ 3,515 $ 96,059 $ 99,355 $ 1,770 $ 101,125 Non-service provider 317,243 270,067 587,310 579,965 235,796 815,761 Total $ 409,787 $ 273,582 $ 683,369 $ 679,320 $ 237,566 $ 916,886 (1) No individual country represented more than 10% of the Company's total net revenue in the periods presented. |
Balance Sheet Components
Balance Sheet Components | 9 Months Ended |
Oct. 02, 2022 | |
Balance Sheet Related Disclosures [Abstract] | |
Balance Sheet Components | Note 4. Balance Sheet Components Available-for-sale investments Amortized cost and estimated fair market value of investments classified as available-for-sale, excluding cash equivalents, as of October 2, 2022 , and December 31, 2021, were as follows: October 2, 2022 (In thousands) Amortized Cost Unrealized Gains Unrealized Losses Estimated Fair Value U.S. treasury securities $ 94,028 $ — $ (459 ) $ 93,569 Convertible debt (1) 346 — — 346 Certificates of deposit 6 — — 6 Total $ 94,380 $ — $ (459 ) $ 93,921 December 31, 2021 (In thousands) Amortized Cost Unrealized Gains Unrealized Losses Estimated Fair Value Corporate equity securities $ 751 $ — $ — $ 751 Convertible debt (1) 518 — — 518 Certificates of deposit 6 — — 6 Total $ 1,275 $ — $ — $ 1,275 (1) On the Company’s unaudited condensed consolidated balance sheets, $173,000 and $172,000 included in Short-term investments as of October 2, 2022, and December 31, 2021, respectively, and $173,000 and $346,000 included in Other non-current assets as of October 2, 2022, and December 31, 2021, respectively. The contractual maturities on the U.S. treasury securities as of October 2, 2022 , are all due within one year. Accrued interest receivable as of October 2, 2022 , was $0.2 million and was recorded within Prepaid expenses and other current assets on the unaudited condensed consolidated balance sheet. The Company had no investments classified as available-for-sale in a continuous unrealized loss position for which an allowance for credit losses was not recorded as of December 31, 2021 Less Than 12 Months 12 Months or Longer Total (In thousands) Estimated Fair Market Value Gross Unrealized Losses Estimated Fair Market Value Gross Unrealized Losses Estimated Fair Market Value Gross Unrealized Losses U.S. treasury securities $ 93,569 $ (459 ) $ — $ — $ 93,569 $ (459 ) Total $ 93,569 $ (459 ) $ — $ — $ 93,569 $ (459 ) In the three and nine months ended October 2, 2022 , and October 3, 2021 , no unrealized losses on available-for-sale securities were recognized in income. There were no other-than-temporary impairments for these securities during the three and nine months ended October 2, 2022, and October 3, 2021. Refer to Note 12, Fair Value Measurements, for detailed disclosures regarding fair value measurements. Inventories (In thousands) October 2, 2022 December 31, 2021 Raw materials $ 7,806 $ 12,269 Finished goods 290,284 303,398 Total $ 298,090 $ 315,667 The Company records provisions for excess and obsolete inventory based on assumptions about future demand and market conditions and the amounts incurred were $0.4 million and $3.0 million for the three and nine months ended October 2, 2022, respectively, and $0.7 million and $3.0 million for the three and nine months ended October 3, 2021, respectively. While management believes the estimates and assumptions underlying its current forecasts are reasonable, there is risk that additional charges may be necessary if current forecasts are greater than actual demand. Property and equipment, net (In thousands) October 2, 2022 December 31, 2021 Computer equipment $ 9,663 $ 9,979 Furniture, fixtures, and leasehold improvements 18,419 18,364 Software 30,467 30,280 Machinery and equipment 76,188 75,559 Total property and equipment, gross 134,737 134,182 Accumulated depreciation (124,507 ) (120,847 ) Total $ 10,230 $ 13,335 Intangibles, net October 2, 2022 December 31, 2021 (In thousands) Gross Accumulated Amortization Net Gross Accumulated Amortization Net Technology $ 59,799 $ (58,585 ) $ 1,214 $ 59,799 $ (58,263 ) $ 1,536 Other 10,345 (10,102 ) 243 10,345 (10,025 ) 320 Total $ 70,144 $ (68,687 ) $ 1,457 $ 70,144 $ (68,288 ) $ 1,856 Amortization of purchased intangibles was $0.1 million and $0.4 million for the three and nine months ended October 2, 2022, respectively, and $0.2 million and $1.9 million for the three and nine months ended October 3, 2021, respectively. During the three months ended April 3, 2022, the Company identified a triggering event for assessing impairment of the intangibles (Refer to below “ Goodwill determined that the carrying amount of such assets was recoverable. Goodwill (In thousands) Connected Home SMB Total As of December 31, 2021 $ 44,442 $ 36,279 $ 80,721 Goodwill impairment charge (44,442 ) — (44,442 ) As of October 2, 2022 $ — $ 36,279 $ 36,279 Each year on the first day of fourth fiscal quarter, the Company assesses its goodwill for potential impairment. This impairment testing is applied more frequently than once a year if the Company is aware of changed conditions or circumstances since the last impairment testing that might call into question whether the current balances are fairly recorded. the market price of the Company’s common stock and its market capitalization declined significantly. In addition, with a decline in the size of the U.S. WiFi market, sales of the Company’s Connected Home products in the first fiscal quarter of 2022 were significantly lower than anticipated. Due to these factors, the Company determined that a triggering event had occurred, . The Company elected to bypass the qualitative goodwill impairment assessment and proceeded directly to the quantitative test, measured as of April 3, 2022. The fair value of the reporting units, namely Connected Home and SMB, was determined using an income and market approach. Under the income approach, the Company calculated the fair value of its reporting units based on the present value of estimated future cash flows. Cash flow projections were based on management's estimates of revenue growth rates and net operating income margins, taking into consideration market and industry conditions. The discount rate used was based on the weighted-average cost of capital adjusted for the risk, size premium, and business-specific characteristics related to the business's ability to execute on the projected cash flows. Under the market approach, the Company evaluated the fair value based on forward-looking earnings multiples derived from comparable publicly-traded companies with similar market position and size as the reporting unit. The underlying unobservable inputs used to measure the fair value included projected revenue growth rates, the weighted average cost of capital, the normalized working capital level, capital expenditures assumptions, profitability projections, control premium, the determination of appropriate market comparison companies and terminal growth rates. The two approaches generated similar results and indicated that the fair value of the Connected Home reporting unit was less than its carry ing amount, including goodwill, and the difference between the carry ing amount and the fair value was greater than the carrying amount of the goodwill allocated to the reporting unit. Therefore, in the first fiscal quarter of 2022, the Company recognized an impairment charge of $ 44.4 million for its Connected Home reporting unit. The results of the quantitative test indicated that the fair value of the SMB reporting unit substantially exceeded its carry ing amount, including goodwill, thus no goodwill impairment was recognized . Other non-current assets (In thousands) October 2, 2022 December 31, 2021 Non-current deferred income taxes $ 77,685 $ 63,795 Long-term investments 7,749 7,575 Other 4,401 4,980 Total $ 89,835 $ 76,350 Long-term equity investments The Company's long-term investments are comprised of equity investments without readily determinable fair values, investments in convertible debt securities and investments in limited partnership funds. The changes in the carrying value of equity investments without readily determinable fair values were as follows: Nine Months Ended (In thousands) October 2, 2022 October 3, 2021 Carrying value as of the beginning of the period (1) $ 6,303 $ 7,758 Additions from purchase of investments — 340 Disposal — (778 ) Impairment (250 ) (549 ) Carrying value as of the end of the period (1) $ 6,053 $ 6,771 (1) The balances excluded an investment in limited partnership funds of $1.5 million as of October 2, 2022, $0.8 million as of October 3, 2021, $0.9 million as of December 31, 2021, and $0.6 million as of December 31, 2020. Additionally, the balance excluded an investment in convertible debt securities of $0.2 million as of October 2, 2022, $0.3 million as of October 3, 2021, and $0.3 million as of December 31, 2021. For equity investments without readily determinable fair values as of October 2, 2022, the cumulative downward adjustments for price changes and impairment was $8.7 million and cumulative upward adjustments for price changes was $0.4 million. Other accrued liabilities (In thousands) October 2, 2022 December 31, 2021 Current operating lease liabilities $ 9,857 $ 9,220 Sales and marketing 94,234 104,549 Warranty obligations 6,144 6,861 Sales returns (1) 40,241 42,869 Freight and duty 9,301 22,126 Other 42,431 38,959 Total $ 202,208 $ 224,584 (1 ) Inventory expected to be received from future sales returns amounted to $19.8 million and $21.8 million as of October 2, 2022 and December 31, 2021, respectively. Provisions to write down expected returned inventory to net realizable value amounted to $9.7 million and $13.2 million as of October 2, 2022, and December 31, 2021, respectively. |
Derivative Financial Instrument
Derivative Financial Instruments | 9 Months Ended |
Oct. 02, 2022 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Note 5. Derivative Financial Instruments The Company's subsidiaries have material future cash flows related to revenue and expenses denominated in currencies other than the U.S. dollar, the Company's functional currency worldwide. The Company executes currency forward contracts that typically mature in less than 6 months to mitigate its currency risk, in currencies including Australian dollars, British pounds, euros, Canadian dollars, and Japanese yen. The Company does not enter into derivatives transactions for trading or speculative purposes. The Company's foreign currency forward contracts do not contain any credit-risk-related contingent features. The Company enters into derivative contracts with high-quality financial institutions and limits the amount of credit exposure to any individual counterparty. The Company typically executes ten cash flow hedges per quarter with maturities under six months and with an average USD notional amount of approximately $6.0 million that are designated as cash flow hedges. The Company enters into non-designated hedges that are generally expected to offset the changes in value of its net non-functional currency asset and liability position resulting from foreign exchange rate fluctuations. The Company adjusts its non-designated hedges monthly and typically executes about ten non-designated forwards per quarter with maturities less than three months and an average USD notional amount of approximately $2.0 million. Fair Value of Derivative Instruments The fair values of the Company's derivative instruments and the line items on the unaudited condensed consolidated balance sheets to which they were recorded were summarized as follows: Balance Sheet Balance Sheet (In thousands) Location October 2, 2022 December 31, 2021 Location October 2, 2022 December 31, 2021 Derivatives not designated as hedging instruments Prepaid expenses and other current assets $ 2,650 $ 1,214 Other accrued liabilities $ 443 $ 321 Derivatives designated as hedging instruments Prepaid expenses and other current assets 178 158 Other accrued liabilities 16 23 Total $ 2,828 $ 1,372 $ 459 $ 344 Refer to Note 12, Fair Value Measurements Stockholders' Equity Segment Information |
Net Income (Loss) Per Share
Net Income (Loss) Per Share | 9 Months Ended |
Oct. 02, 2022 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) Per Share | Note 6. Net Income (Loss) Per Share Basic net income (loss) per share is computed by dividing the net income (loss) for the period by the weighted average number of common shares outstanding during the period. Diluted net income (loss) per share is computed by dividing the net income (loss) for the period by the weighted average number of shares of common stock and potentially dilutive common stock outstanding during the period. Potentially dilutive common shares include common shares issuable upon exercise of stock options, vesting of Restricted Stock Units (“RSUs”) and performance shares, and issuances of shares under the Employee Stock Purchase Plan (the "ESPP"), which are reflected in diluted net income (loss) per share by application of the treasury stock method. Potentially dilutive common shares are excluded from the computation of diluted net income (loss) per share when their effect is anti-dilutive. Net income (loss) per share consisted of the following: Three Months Ended Nine Months Ended (In thousands, except per share data) October 2, 2022 October 3, 2021 October 2, 2022 October 3, 2021 Numerator: Net income (loss) $ 2,801 $ 9,584 $ (62,943 ) $ 50,378 Denominator: Weighted average common shares - basic 28,891 30,301 29,023 30,495 Potentially dilutive common share equivalent 138 497 — 861 Weighted average common shares - dilutive 29,029 30,798 29,023 31,356 Basic net income (loss) per share $ 0.10 $ 0.32 $ (2.17 ) $ 1.65 Diluted net income (loss) per share $ 0.10 $ 0.31 $ (2.17 ) $ 1.61 Anti-dilutive employee stock-based awards, excluded 1,539 1,036 1,582 389 |
Income Taxes
Income Taxes | 9 Months Ended |
Oct. 02, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 7. Income Taxes The income tax benefit for the three and nine months ended October 2, 2022 was $4.3 million, or an effective tax rate of 285.1%, and $9.0 million, or an effective tax rate of 12.5%, respectively. The income tax provision for the three and nine months ended October 3, 2021 was $3.2 million, or an effective tax rate of 25.0%, and $15.4 million, or an effective tax rate of 23.4%, respectively. The change in taxes for the three months ended October 2, 2022, compared to the prior year period, was primarily due to the pre-tax loss of $1.5 million during the period coupled with the impact of changes in estimate for the effective tax rate resulting in a true-up in tax benefit for the prior periods. Additionally, the Company recorded a tax benefit for favorable changes in estimates recorded during the quarter upon completion of the 2021 US federal tax return. For the nine months ended October 2, 2022, the tax benefit recorded for favorable changes in estimates recorded during the quarter upon completion of the 2021 US federal tax return was offset by the tax impact of a goodwill impairment that is not deductible for tax purposes. For the three and nine months ended October 3, 2021, tax expenses were partially offset by tax benefits related to stock-based compensation and non-taxable income related to adjustments to acquisition-related contingent accruals. Additionally, the Company recorded a tax benefit for favorable changes in estimates recorded during the fiscal quarter upon completion of the 2020 US federal tax return. The Company is subject to income taxes in the U.S. and numerous foreign jurisdictions. The future foreign tax rate could be affected by changes in the composition in earnings in countries with tax rates differing from the U.S. federal rate. The Company is under examination in various U.S. and foreign jurisdictions. The Company files income tax returns in the U.S. federal jurisdiction as well as various state, local, and foreign jurisdictions. Due to the uncertain nature of ongoing tax audits, the Company has recorded its liability for uncertain tax positions as part of its long-term liability as payments cannot be anticipated over the next twelve months. The existing tax positions of the Company continue to generate an increase in the liability for uncertain tax positions. The liability for uncertain tax positions may be reduced for liabilities that are settled with taxing authorities or on which the statute of limitations could expire without assessment from tax authorities. The possible reduction in liabilities for uncertain tax positions in multiple jurisdictions in the next twelve months is approximately $ million, excluding the interest, penalties and the effect of any related deferred tax assets or liabilities. The Company is currently under examination by the U.S. Internal Revenue Service for its fiscal year ended December 31, 2018 as well as other state, local and foreign jurisdictions for different years . On March 11, 2021, the American Rescue Plan Act of 2021, also known as the COVID-19 Stimulus Package, was signed into law. The provisions of the American Rescue Plan do not have a material impact on income taxes or liquidity in the current year. On August 16, 2022, the “Inflation Reduction Act” (“IRA”) was signed into law. IRA includes a new corporate minimum tax on certain large corporations, a 1% exercise tax on stock repurchases, numerous green energy credits, other tax provisions, and significantly increased enforcement resources. The Company does not expect the IRA will have a material impact to the Company's financial statements when it becomes effective for the tax years after December 31, 2022. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Oct. 02, 2022 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 8. Commitments and Contingencies Purchase Obligations The Company has entered into various inventory-related purchase agreements with suppliers. Generally, under these agreements, 50% of orders are cancelable by giving notice 46 to 60 days prior to the expected shipment date and 25% of orders are cancelable by giving notice 31 to 45 days prior to the expected shipment date. As of October 2, 2022, the Company had approximately $120.7 million, as compared to $94.8 million as of December 31, 2021, in short-term non-cancelable purchase commitments with suppliers or where the suppliers had procured unique materials and components upon receipts of the Company’s purchase orders. The Company continues to experience an elongation of the time from order placement to production primarily due to component shortages and supply chain disruption brought about by the COVID-19 pandemic. In response, as of October 2, 2022, a further $664.7 million of purchase orders beyond contractual termination periods have been issued to supply chain partners in anticipation of demand requirements. Consequently, the Company may incur expenses for materials and components, such as chipsets purchased by the supplier to fulfill the purchase order if the purchase order is cancelled. Expenses incurred in respect of cancelled purchase orders has historically not been significant relative to the original order value. For those orders not governed by master purchase agreements, the commitments are governed by the commercial terms on the Company’s purchase orders subject to acknowledgment from its suppliers. The Company establishes a loss liability for all products it does not expect to sell or orders it anticipates cancelling for which it has committed purchases from suppliers. Such loss liability is included in Other accrued liabilities on the Company's unaudited condensed consolidated balance sheets. Losses incurred in relation to purchase commitments, including unique materials and components, amounted to $1.6 million and $4.6 million for the three and nine months ended October 2, 2022, respectively, and $0.9 million and $2.9 million for the three and nine months ended October 3, 2021, respectively. Non-Trade Commitments As of October 2, 2022, the Company had non-cancellable purchase commitments of $14.8 million pertaining to non-trade activities. Warranty Obligations Changes in the Company's warranty obligations, which is included in Other accrued liabilities on the unaudited condensed consolidated balance sheets, were as follows: Three Months Ended Nine Months Ended (In thousands) October 2, 2022 October 3, 2021 October 2, 2022 October 3, 2021 Balance as of beginning of the period $ 6,523 $ 7,180 $ 6,861 $ 9,240 Provision for warranty liability made 1,052 1,258 3,706 3,019 Settlements made (1,431 ) (1,575 ) (4,423 ) (5,396 ) Balance as of the end of the period $ 6,144 $ 6,863 $ 6,144 $ 6,863 Litigation and Other Legal Matters The Company is involved in disputes, litigation, and other legal actions, including, but not limited to, the matters described below. In all cases, at each reporting period, the Company evaluates whether or not a potential loss amount or a potential range of loss is probable and reasonably estimable under the provisions of the authoritative guidance that addresses accounting for contingencies. In such cases, the Company accrues for the amount, or if a range, the Company accrues the low end of the range, only if there is not a better estimate than any other amount within the range, as a component of legal expense within litigation reserves, net. The Company monitors developments in these legal matters that could affect the estimate the Company had previously accrued. In relation to such matters, the Company currently believes that there are no existing claims or proceedings that are likely to have a material adverse effect on its financial position within the next twelve months, or the outcome of these matters is currently not determinable. There are many uncertainties associated with any litigation, and these actions or other third-party claims against the Company may cause the Company to incur costly litigation and/or substantial settlement charges. In addition, the resolution of any intellectual property litigation may require the Company to make royalty payments, which could have an adverse effect in future periods. If any of those events were to occur, the Company's business, financial condition, results of operations, and cash flows could be adversely affected. The actual liability in any such matters may be materially different from the Company's estimates, which could result in the need to adjust the liability and record additional expenses. Huawei v. NETGEAR Inc., NETGEAR Deutschland GmbH, and Exertis-Connect GmbH On or around March of 2022, Huawei filed two patent infringement lawsuits at the District Court of Dusseldorf, Germany, against NETGEAR Inc., NETGEAR Deutschland GmbH, and Exertis-Connect GmbH, a third-party webstore selling NETGEAR products in Germany. Huawei asserts one EU patent in each suit, EP 3 337 077 B1 (the ’077 Patent) in case no. 08/22 and EP 3 143 741 B1 (the ’741 Patent) in case no. 09/22. In its Complaints, Huawei alleges that the Company’s WiFi 6 products infringe the two patents, which Huawei further claims are standard-essential patents. On or around May 10, 2022, the Company was served with two suits that Huawei filed before the Jinan Intermediate People’s Court of China asserting Patent Nos. ZL 201811536087.9 (case no 407) and ZL 201810757332.2 (case no. 408) against the Company’s WiFi 6 products. The Company is appealing the Jinan Court’s denial of the Company’s jurisdictional challenges in both cases. In the German cases, the Company filed its Statements of Defense relating to FRAND (Fair, Reasonable and Non-Discriminatory) licensing issues on July 4, 2022. The Company further filed its technical Statements of Defense on August 15, 2022. Huawei filed its technical reply briefs on October 21, 2022. The Company at this time is not able to reasonably estimate any financial impact to the Company resulting from these litigation matters. The Company does not believe that it is reasonably possible that a material loss has been incurred for any of the matters disclosed above, and consequently has not established any loss provisions. |
Stockholders' Equity
Stockholders' Equity | 9 Months Ended |
Oct. 02, 2022 | |
Stockholders Equity Note [Abstract] | |
Stockholders' Equity | Note 9. Stockholders' Equity Stock Repurchases From time to time, the Company's Board of Directors has authorized programs under which the Company may repurchase shares of its common stock, depending on market conditions, in the open market or through privately negotiated transactions. Under the authorizations, the timing and actual number of shares subject to repurchase are at the discretion of management and are contingent on a number of factors, such as levels of cash generation from operations, cash requirements for acquisitions and the price of the Company's common stock. During the nine As of The Company repurchased, reported based on trade date, approximately 198,000 and 197,000 shares of common stock, at a cost of approximately $4.7 million and $7.5 million, during the nine months ended October 2, 2022, and October 3, 2021, respectively, to administratively facilitate the withholding and subsequent remittance of personal income and payroll taxes for individuals receiving RSU s . These shares were retired upon repurchase. The Company's policy related to repurchases of its common stock is to charge the excess of cost over par value to retained earnings. All repurchases were made in compliance with Rule 10b-18 under the Securities Exchange Act of 1934, as amended. Accumulated Other Comprehensive Income The following tables set forth the changes in accumulated other comprehensive income ("AOCI") by component: (In thousands) Unrealized gains (losses) on available -for-sale investments Unrealized gains (losses) on derivatives Estimated tax benefit (provision) Total Balance as of December 31, 2021 $ (2 ) $ 173 $ (22 ) $ 149 Other comprehensive income (loss) before reclassifications (459 ) 1,340 (154 ) 727 Less: Amount reclassified from accumulated other comprehensive income (loss) — 1,254 (263 ) 991 Net current period other comprehensive income (loss) (459 ) 86 109 (264 ) Balance as of October 2, 2022 $ (461 ) $ 259 $ 87 $ (115 ) (In thousands) Unrealized gains (losses) on available -for-sale investments Unrealized gains (losses) on derivatives Estimated tax benefit (provision) Total Balance as of December 31, 2020 $ (2 ) $ (42 ) $ 9 $ (35 ) Other comprehensive income (loss) before reclassifications — (235 ) 53 (182 ) Less: Amount reclassified from accumulated other comprehensive income (loss) — (288 ) 60 (228 ) Net current period other comprehensive income (loss) — 53 (7 ) 46 Balance as of October 3, 2021 $ (2 ) $ 11 $ 2 $ 11 The following table provides details about significant amounts reclassified out of each component of AOCI: Three Months Ended Nine Months Ended (In thousands) October 2, 2022 October 3, 2021 October 2, 2022 October 3, 2021 Amount Reclassified from AOCI Gains (losses) on cash flow hedge: Foreign currency forward contracts Affected line item in the statement of operations Net revenue $ 683 $ 545 $ 1,395 $ (407 ) Cost of revenue — (1 ) — — Research and development (3 ) 12 (18 ) 56 Sales and marketing (64 ) (27 ) (97 ) 50 General and administrative (22 ) (4 ) (26 ) 13 Total before tax 594 525 1,254 (288 ) Tax impact (124 ) (110 ) (263 ) 60 Total, net of tax $ 470 $ 415 $ 991 $ (228 ) |
Employee Benefit Plans
Employee Benefit Plans | 9 Months Ended |
Oct. 02, 2022 | |
Employee Benefits And Share Based Compensation [Abstract] | |
Employee Benefit Plans | Note 10. Employee Benefit Plans The Company grants options, RSUs and performance shares under the 2016 Incentive Plan (the "2016 Plan"), under which awards may be granted to all employees. Vesting periods under this plan are generally four years for options and RSUs and three years for performance shares. As of October 2, 2022, approximately 0.9 million shares were reserved for future grants under the 2016 Plan. Additionally, the Company sponsors an Employee Stock Purchase Plan (the “ESPP”), pursuant to which eligible employees may contribute up to 10% of compensation, subject to certain income limits, to purchase shares of the Company's common stock. The terms of the plan include a look-back feature that enables employees to purchase stock semi-annually at a price equal to 85% of the lesser of the fair market value at the beginning of the offering period or the purchase date. The duration of each offering period is generally six-months. In 2022, the Company approved an amendment to the 2003 Employee Stock Purchase Plan to increase the number of shares of common stock authorized for sale under the Purchase Plan by 1,000,000 shares to a total of 3,000,000 shares. Option Activity Stock option activity was as follows: (In thousands, except per share amounts) Number of Shares Weighted Average Exercise Price Per Share Outstanding as of December 31, 2021 912 $ 30.19 Exercised (37 ) $ 20.16 Expired (3 ) $ 20.30 Outstanding as of October 2, 2022 872 $ 30.64 RSU Activity RSU activity was as follows: (In thousands, except per share amounts) Number of Shares Weighted Average Grant Date Fair Value Per Share Outstanding as of December 31, 2021 1,555 $ 33.86 Granted 804 $ 22.21 Vested (611 ) $ 34.60 Cancelled (145 ) $ 30.92 Outstanding as of October 2, 2022 1,603 $ 28.00 Performance Shares Activity In July 2020, July 2021 and April 2022, the Company's executive officers were granted performance shares with vesting occurring at the end of a three-year At the end of each reporting period, the Company evaluates the probability of achieving the performance conditions and records the related stock-based compensation expense based on performance to date over the service period . Performance shares activity was as follows: (In thousands, except per share amounts) Number of Shares Weighted Average Grant Date Fair Value Per Share Outstanding as of December 31, 2021 293 $ 33.07 Granted 145 22.37 Vested — — Cancelled (8 ) 27.17 Outstanding as of October 2, 2022 430 $ 29.38 Valuation and Expense Information The following table sets forth the stock-based compensation expense resulting from stock options, RSUs, performance shares and the ESPP included in the Company's unaudited condensed consolidated statements of operations: Three Months Ended Nine Months Ended (In thousands) October 2, 2022 October 3, 2021 October 2, 2022 October 3, 2021 Cost of revenue $ 283 $ 430 $ 1,027 $ 1,626 Research and development 968 1,414 3,150 3,832 Sales and marketing 1,249 2,008 4,275 5,741 General and administrative 940 2,358 4,814 8,873 Total $ 3,440 $ 6,210 $ 13,266 $ 20,072 As of October 2, 2022, $0.4 million of unrecognized compensation cost related to stock options was expected to be recognized over a weighted-average period of 0.8 years and $38.4 million of unrecognized compensation cost related to unvested RSUs and performance shares was expected to be recognized over a weighted-average period of 2.5 years. |
Segment Information
Segment Information | 9 Months Ended |
Oct. 02, 2022 | |
Segment Reporting [Abstract] | |
Segment Information | Note 11. Segment Information Operating segments are components of an enterprise about which separate financial information is available and is evaluated quarterly by management, namely the Chief Operating Decision Maker (“CODM”) of an organization, in order to determine operating and resource allocation decisions. By this definition, the Company has identified its CEO as the CODM. The Company operates and reports in two segments: Connected Home and SMB: • Connected Home: Focuses on consumers and provides high-performance, dependable, and easy-to-use premium WiFi internet networking solutions such as WiFi 6, WiFi 6E Tri-band and Quad-band mesh systems, routers, 4G/5G mobile products, smart devices such as Meural digital canvasses, and subscription services that provide consumers with a range of value-added services focused on performance, security, privacy and premium support; and • SMB: focuses on small and medium sized businesses and provides solutions for business networking, wireless local area network (“LAN”), audio and video over Ethernet for Pro AV applications , security and remote management providing enterprise-class functionality at an affordable price. The Company believes that this structure reflects its current operational and financial management, and that it provides the best structure for the Company to focus on growth opportunities while maintaining financial discipline. The leadership team of each segment is focused on product and service development efforts, both from a product marketing and engineering standpoint, to service the unique needs of their customers. The results of the reportable segments are derived directly from the Company's management reporting system. The results are based on the Company's method of internal reporting and are not necessarily in conformity with accounting principles generally accepted in the United States. Management measures the performance of each segment based on several metrics, including contribution income (loss). Segment contribution income (loss) includes all product line segment revenues less the related cost of sales, research and development and sales and marketing costs. Contribution income (loss) is used, in part, to evaluate the performance of, and allocate resources to, each of the segments. Certain operating expenses are not allocated to segments because they are separately managed at the corporate level. These unallocated indirect costs include corporate costs, such as corporate research and development, corporate marketing expense and general and administrative costs, amortization of intangibles, st ock-based compensation expense , change in fair value of contingent consideration, goodwill impairment charge, restructuring and other charges, litigation rese rves, net , and other income (expense s ), net. Financial information for each reportable segment and a reconciliation of segment contribution income (loss) to income (loss) before income taxes is as follows: Three Months Ended Nine Months Ended (In thousands) October 2, 2022 October 3, 2021 October 2, 2022 October 3, 2021 Net Revenue: Connected Home $ 150,581 $ 208,539 $ 409,787 $ 679,320 SMB 99,006 81,611 273,582 237,566 Total net revenue $ 249,587 $ 290,150 $ 683,369 $ 916,886 Contribution Income (loss): Connected Home $ (512 ) $ 22,558 $ (3,033 ) $ 101,189 Contribution margin (0.3 )% 10.8 % (0.7 )% 14.9 % SMB $ 23,683 $ 17,137 $ 53,844 $ 49,831 Contribution margin 23.9 % 21.0 % 19.7 % 21.0 % Total segment contribution income $ 23,171 $ 39,695 $ 50,811 $ 151,020 Corporate and unallocated costs (21,392 ) (20,203 ) (62,532 ) (62,744 ) Amortization of intangibles (1) (129 ) (145 ) (386 ) (1,768 ) Stock-based compensation expense (3,440 ) (6,210 ) (13,266 ) (20,072 ) Change in fair value of contingent consideration — — — 3,003 Goodwill impairment charge — — (44,442 ) — Restructuring and other charges (361 ) (222 ) (911 ) (3,378 ) Litigation reserves, net — — (20 ) (315 ) Other income (expenses), net (2) 638 (132 ) (1,164 ) 15 Income (loss) before income taxes $ (1,513 ) $ 12,783 $ (71,910 ) $ 65,761 (1) (2) The CODM does not evaluate operating segments using discrete asset information. Operations by Geographic Region For reporting purposes, revenue is generally attributed to each geographic region based on the location of the customer. The following table shows net revenue by geography: Three Months Ended Nine Months Ended (In thousands) October 2, 2022 October 3, 2021 October 2, 2022 October 3, 2021 United States (U.S.) $ 164,890 $ 188,009 $ 445,170 $ 606,735 Americas (excluding U.S.) 4,470 7,114 12,866 20,172 EMEA (1) 44,827 56,940 126,643 179,802 APAC (1) 35,400 38,087 98,690 110,177 Total net revenue $ 249,587 $ 290,150 $ 683,369 $ 916,886 (1) No individual foreign country represented more than 10% of the Company's total net revenue in the periods presented Long-lived assets 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) October 2, 2022 December 31, 2021 United States (U.S.) $ 30,640 $ 14,564 Americas (excluding U.S.) 2,540 3,283 EMEA 1,246 2,465 Singapore 3,936 4,767 APAC (excluding Singapore) (1) 9,239 11,432 Total $ 47,601 $ 36,511 (1) No individual |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Oct. 02, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Note 12. Fair Value Measurements The following tables summarize assets and liabilities measured at fair value on a recurring basis: October 2, 2022 (In thousands) Total Quoted market prices in active markets (Level 1) Significant other observable inputs (Level 2) Assets: Cash equivalents: money-market funds $ 14,961 $ 14,961 $ — Available-for-sale investments: U.S. treasury securities ( 1) 93,569 — 93,569 Trading securities: mutual funds ( 1) 6,521 6,521 — Available-for-sale investments: certificates of deposit ( 1) 6 — 6 Available-for-sale investments: convertible debt securities ( 2) 346 — 346 Foreign currency forward contracts ( 3) 2,828 — 2,828 Total assets measured at fair value $ 118,231 $ 21,482 $ 96,749 Liabilities: Foreign currency forward contracts ( 4) $ 459 $ — $ 459 Total liabilities measured at fair value $ 459 $ — $ 459 December 31, 2021 (In thousands) Total Quoted market prices in active markets (Level 1) Significant other observable inputs (Level 2) Assets: Cash equivalents: money-market funds $ 108,441 $ 108,441 $ — Trading securities: mutual funds ( 1) 6,814 6,814 — Available-for-sale investments: corporate equity securities ( 1) 751 751 — Available-for-sale investments: certificates of deposit ( 1) 6 — 6 Available-for-sale investments: convertible debt securities ( 2) 518 — 518 Foreign currency forward contracts ( 3) 1,372 — 1,372 Total assets measured at fair value $ 117,902 $ 116,006 $ 1,896 Liabilities: Foreign currency forward contracts ( 4) $ 344 $ — $ 344 Total liabilities measured at fair value $ 344 $ — $ 344 (1) Included in Short-term investments on the Company's unaudited condensed consolidated balance sheets. (2) On the Company’s unaudited condensed consolidated balance sheets, $173,000 and $172,000 included in Short-term investments as of October 2, 2022 and December 31, 2021, respectively, and $173,000 and $346,000 included in Other non-current assets as of October 2, 2022 and December 31, 2021, respectively. (3) Included in Prepaid expenses and other current assets on the Company's unaudited condensed consolidated balance sheets. (4) Included in Other accrued liabilities on the Company's unaudited condensed consolidated balance sheets The Company’s investments in money-market funds, corporate equity securities and mutual funds are classified within Level 1 of the fair value hierarchy because they are valued based on quoted market prices in active markets. The Company’s investments in U.S. treasury securities are classified within Level 2 of the fair value hierarchy because they are valued based on readily available pricing sources for comparable or identical instruments in less active markets. issued by a publicly held company and certificates of deposits |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Oct. 02, 2022 | |
Accounting Policies [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements The Company has considered all recent accounting pronouncements issued, but not yet effective, and does not expect any to have a material effect on the Company’s unaudited condensed consolidated financial statements. |
Revenue Recognition | Revenue from contracts with customers is recognized when control of the promised goods or services is transferred to the customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. Transaction Price Allocated to the Remaining Performance Obligations Remaining performance obligations represent the transaction price allocated to performance obligations that are unsatisfied or partially unsatisfied, which are primarily from hardware and, to a lesser extent, subscription and support services, as of the end of the reporting period. Unsatisfied and partially unsatisfied performance obligations consist of contract liabilities, in-transit orders with destination terms, and non-cancellable backlog. Non-cancellable backlog includes goods for which customer purchase orders have been accepted that are scheduled or in the process of being scheduled for shipment, and that are not yet invoiced. Contract Balances The Company records accounts receivable when it has an unconditional right to consideration. Contract liabilities are recorded when cash payments are received or due in advance of performance. Contract liabilities consist of advance payments and deferred revenue, where the Company has unsatisfied performance obligations. Contract liabilities are mainly classified as Deferred revenue on the unaudited condensed consolidated balance sheets. |
Net Income (Loss) Per Share | Basic net income (loss) per share is computed by dividing the net income (loss) for the period by the weighted average number of common shares outstanding during the period. Diluted net income (loss) per share is computed by dividing the net income (loss) for the period by the weighted average number of shares of common stock and potentially dilutive common stock outstanding during the period. Potentially dilutive common shares include common shares issuable upon exercise of stock options, vesting of Restricted Stock Units (“RSUs”) and performance shares, and issuances of shares under the Employee Stock Purchase Plan (the "ESPP"), which are reflected in diluted net income (loss) per share by application of the treasury stock method. Potentially dilutive common shares are excluded from the computation of diluted net income (loss) per share when their effect is anti-dilutive. |
Revenue (Tables)
Revenue (Tables) | 9 Months Ended |
Oct. 02, 2022 | |
Revenue From Contract With Customer [Abstract] | |
Schedule of Remaining Performance Obligations | The following table summarizes estimated revenue expected to be recognized in the future related to performance obligations that were unsatisfied (or partially unsatisfied) as of October 2, 2022: (In thousands) Less than 1 year 1 to 2 years Beyond 2 years Total Performance obligations $ 158,447 $ 2,166 $ 1,685 $ 162,298 |
Schedule of Contract Balances | The following table reflects the contract balances: (In thousands) Balance Sheet Location October 2, 2022 December 31, 2021 Accounts receivable, net Accounts receivable, net $ 259,908 $ 261,158 Contract liabilities - current Deferred revenue $ 19,293 $ 16,500 Contract liabilities - non-current Other non-current liabilities $ 3,575 $ 3,100 |
Schedule of Net Revenue Disaggregated by Geographical Region and Sales Channel | In the following tables, net revenue is disaggregated by geographic region and sales channel. The Company conducts business across three geographic regions: Americas; Europe, Middle East and Africa (“EMEA”); and Asia Pacific (“APAC”). The tables also include reconciliations of the disaggregated revenue by reportable segment. The Company operates and reports in two segments: Connected Home, and Small and Medium Business (“SMB”). Sales and usage-based taxes are excluded from net revenue. Three Months Ended October 2, 2022 October 3, 2021 (In thousands) Connected Home SMB Total Connected Home SMB Total Geographic regions (1) Americas $ 120,168 $ 49,192 $ 169,360 $ 158,888 $ 36,235 $ 195,123 EMEA 12,545 32,282 44,827 28,253 28,687 56,940 APAC 17,868 17,532 35,400 21,398 16,689 38,087 Total $ 150,581 $ 99,006 $ 249,587 $ 208,539 $ 81,611 $ 290,150 Sales channels: Service provider $ 40,448 $ 1,171 $ 41,619 $ 41,726 $ 449 $ 42,175 Non-service provider 110,133 97,835 207,968 166,813 81,162 247,975 Total $ 150,581 $ 99,006 $ 249,587 $ 208,539 $ 81,611 $ 290,150 Nine Months Ended October 2, 2022 October 3, 2021 (In thousands) Connected Home SMB Total Connected Home SMB Total Geographic regions (1) Americas $ 327,372 $ 130,664 $ 458,036 $ 523,008 $ 103,899 $ 626,907 EMEA 34,230 92,413 126,643 91,975 87,827 179,802 APAC 48,185 50,505 98,690 64,337 45,840 110,177 Total $ 409,787 $ 273,582 $ 683,369 $ 679,320 $ 237,566 $ 916,886 Sales channels: Service provider $ 92,544 $ 3,515 $ 96,059 $ 99,355 $ 1,770 $ 101,125 Non-service provider 317,243 270,067 587,310 579,965 235,796 815,761 Total $ 409,787 $ 273,582 $ 683,369 $ 679,320 $ 237,566 $ 916,886 (1) No individual country represented more than 10% of the Company's total net revenue in the periods presented. |
Balance Sheet Components (Table
Balance Sheet Components (Tables) | 9 Months Ended |
Oct. 02, 2022 | |
Balance Sheet Related Disclosures [Abstract] | |
Schedule of Amortized Cost and Estimated Fair Market Value of Investments Classified as Available-for-Sale Excluding Cash Equivalents | Amortized cost and estimated fair market value of investments classified as available-for-sale, excluding cash equivalents, as of October 2, 2022 , and December 31, 2021, were as follows: October 2, 2022 (In thousands) Amortized Cost Unrealized Gains Unrealized Losses Estimated Fair Value U.S. treasury securities $ 94,028 $ — $ (459 ) $ 93,569 Convertible debt (1) 346 — — 346 Certificates of deposit 6 — — 6 Total $ 94,380 $ — $ (459 ) $ 93,921 December 31, 2021 (In thousands) Amortized Cost Unrealized Gains Unrealized Losses Estimated Fair Value Corporate equity securities $ 751 $ — $ — $ 751 Convertible debt (1) 518 — — 518 Certificates of deposit 6 — — 6 Total $ 1,275 $ — $ — $ 1,275 (1) On the Company’s unaudited condensed consolidated balance sheets, $173,000 and $172,000 included in Short-term investments as of October 2, 2022, and December 31, 2021, respectively, and $173,000 and $346,000 included in Other non-current assets as of October 2, 2022, and December 31, 2021, respectively. |
Schedule of Investments Classified as Available-for-Sale in Continuous Unrealized Loss Position | The following table summarizes investments classified as available-for-sale in a continuous unrealized loss position for which an allowance for credit losses was not recorded as of October 2, 2022: Less Than 12 Months 12 Months or Longer Total (In thousands) Estimated Fair Market Value Gross Unrealized Losses Estimated Fair Market Value Gross Unrealized Losses Estimated Fair Market Value Gross Unrealized Losses U.S. treasury securities $ 93,569 $ (459 ) $ — $ — $ 93,569 $ (459 ) Total $ 93,569 $ (459 ) $ — $ — $ 93,569 $ (459 ) |
Schedule of Inventories | Inventories (In thousands) October 2, 2022 December 31, 2021 Raw materials $ 7,806 $ 12,269 Finished goods 290,284 303,398 Total $ 298,090 $ 315,667 |
Schedule of Property and Equipment, Net | Property and equipment, net (In thousands) October 2, 2022 December 31, 2021 Computer equipment $ 9,663 $ 9,979 Furniture, fixtures, and leasehold improvements 18,419 18,364 Software 30,467 30,280 Machinery and equipment 76,188 75,559 Total property and equipment, gross 134,737 134,182 Accumulated depreciation (124,507 ) (120,847 ) Total $ 10,230 $ 13,335 |
Schedule of Intangibles, Net | Intangibles, net October 2, 2022 December 31, 2021 (In thousands) Gross Accumulated Amortization Net Gross Accumulated Amortization Net Technology $ 59,799 $ (58,585 ) $ 1,214 $ 59,799 $ (58,263 ) $ 1,536 Other 10,345 (10,102 ) 243 10,345 (10,025 ) 320 Total $ 70,144 $ (68,687 ) $ 1,457 $ 70,144 $ (68,288 ) $ 1,856 |
Schedule of Goodwill | Goodwill (In thousands) Connected Home SMB Total As of December 31, 2021 $ 44,442 $ 36,279 $ 80,721 Goodwill impairment charge (44,442 ) — (44,442 ) As of October 2, 2022 $ — $ 36,279 $ 36,279 |
Schedule of Other Non-Current Assets | Other non-current assets (In thousands) October 2, 2022 December 31, 2021 Non-current deferred income taxes $ 77,685 $ 63,795 Long-term investments 7,749 7,575 Other 4,401 4,980 Total $ 89,835 $ 76,350 |
Schedule of Changes in Carrying Value of Long-term Equity Investments | The Company's long-term investments are comprised of equity investments without readily determinable fair values, investments in convertible debt securities and investments in limited partnership funds. The changes in the carrying value of equity investments without readily determinable fair values were as follows: Nine Months Ended (In thousands) October 2, 2022 October 3, 2021 Carrying value as of the beginning of the period (1) $ 6,303 $ 7,758 Additions from purchase of investments — 340 Disposal — (778 ) Impairment (250 ) (549 ) Carrying value as of the end of the period (1) $ 6,053 $ 6,771 (1) The balances excluded an investment in limited partnership funds of $1.5 million as of October 2, 2022, $0.8 million as of October 3, 2021, $0.9 million as of December 31, 2021, and $0.6 million as of December 31, 2020. Additionally, the balance excluded an investment in convertible debt securities of $0.2 million as of October 2, 2022, $0.3 million as of October 3, 2021, and $0.3 million as of December 31, 2021. |
Schedule of Other Accrued Liabilities | Other accrued liabilities (In thousands) October 2, 2022 December 31, 2021 Current operating lease liabilities $ 9,857 $ 9,220 Sales and marketing 94,234 104,549 Warranty obligations 6,144 6,861 Sales returns (1) 40,241 42,869 Freight and duty 9,301 22,126 Other 42,431 38,959 Total $ 202,208 $ 224,584 (1 ) Inventory expected to be received from future sales returns amounted to $19.8 million and $21.8 million as of October 2, 2022 and December 31, 2021, respectively. Provisions to write down expected returned inventory to net realizable value amounted to $9.7 million and $13.2 million as of October 2, 2022, and December 31, 2021, respectively. |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 9 Months Ended |
Oct. 02, 2022 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Schedule of Fair Values of the Company's Derivative Instruments and the Line Items on the Unaudited Condensed Consolidated Balance Sheets | The fair values of the Company's derivative instruments and the line items on the unaudited condensed consolidated balance sheets to which they were recorded were summarized as follows: Balance Sheet Balance Sheet (In thousands) Location October 2, 2022 December 31, 2021 Location October 2, 2022 December 31, 2021 Derivatives not designated as hedging instruments Prepaid expenses and other current assets $ 2,650 $ 1,214 Other accrued liabilities $ 443 $ 321 Derivatives designated as hedging instruments Prepaid expenses and other current assets 178 158 Other accrued liabilities 16 23 Total $ 2,828 $ 1,372 $ 459 $ 344 |
Net Income (Loss) Per Share (Ta
Net Income (Loss) Per Share (Tables) | 9 Months Ended |
Oct. 02, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of Net Income (Loss) Per Share | Net income (loss) per share consisted of the following: Three Months Ended Nine Months Ended (In thousands, except per share data) October 2, 2022 October 3, 2021 October 2, 2022 October 3, 2021 Numerator: Net income (loss) $ 2,801 $ 9,584 $ (62,943 ) $ 50,378 Denominator: Weighted average common shares - basic 28,891 30,301 29,023 30,495 Potentially dilutive common share equivalent 138 497 — 861 Weighted average common shares - dilutive 29,029 30,798 29,023 31,356 Basic net income (loss) per share $ 0.10 $ 0.32 $ (2.17 ) $ 1.65 Diluted net income (loss) per share $ 0.10 $ 0.31 $ (2.17 ) $ 1.61 Anti-dilutive employee stock-based awards, excluded 1,539 1,036 1,582 389 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Oct. 02, 2022 | |
Commitments And Contingencies Disclosure [Abstract] | |
Schedule of Changes in Warranty Obligations | Changes in the Company's warranty obligations, which is included in Other accrued liabilities on the unaudited condensed consolidated balance sheets, were as follows: Three Months Ended Nine Months Ended (In thousands) October 2, 2022 October 3, 2021 October 2, 2022 October 3, 2021 Balance as of beginning of the period $ 6,523 $ 7,180 $ 6,861 $ 9,240 Provision for warranty liability made 1,052 1,258 3,706 3,019 Settlements made (1,431 ) (1,575 ) (4,423 ) (5,396 ) Balance as of the end of the period $ 6,144 $ 6,863 $ 6,144 $ 6,863 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 9 Months Ended |
Oct. 02, 2022 | |
Stockholders Equity Note [Abstract] | |
Schedule of Accumulated Other Comprehensive Income | The following tables set forth the changes in accumulated other comprehensive income ("AOCI") by component: (In thousands) Unrealized gains (losses) on available -for-sale investments Unrealized gains (losses) on derivatives Estimated tax benefit (provision) Total Balance as of December 31, 2021 $ (2 ) $ 173 $ (22 ) $ 149 Other comprehensive income (loss) before reclassifications (459 ) 1,340 (154 ) 727 Less: Amount reclassified from accumulated other comprehensive income (loss) — 1,254 (263 ) 991 Net current period other comprehensive income (loss) (459 ) 86 109 (264 ) Balance as of October 2, 2022 $ (461 ) $ 259 $ 87 $ (115 ) (In thousands) Unrealized gains (losses) on available -for-sale investments Unrealized gains (losses) on derivatives Estimated tax benefit (provision) Total Balance as of December 31, 2020 $ (2 ) $ (42 ) $ 9 $ (35 ) Other comprehensive income (loss) before reclassifications — (235 ) 53 (182 ) Less: Amount reclassified from accumulated other comprehensive income (loss) — (288 ) 60 (228 ) Net current period other comprehensive income (loss) — 53 (7 ) 46 Balance as of October 3, 2021 $ (2 ) $ 11 $ 2 $ 11 |
Schedule of Reclassification out of AOCI | The following table provides details about significant amounts reclassified out of each component of AOCI: Three Months Ended Nine Months Ended (In thousands) October 2, 2022 October 3, 2021 October 2, 2022 October 3, 2021 Amount Reclassified from AOCI Gains (losses) on cash flow hedge: Foreign currency forward contracts Affected line item in the statement of operations Net revenue $ 683 $ 545 $ 1,395 $ (407 ) Cost of revenue — (1 ) — — Research and development (3 ) 12 (18 ) 56 Sales and marketing (64 ) (27 ) (97 ) 50 General and administrative (22 ) (4 ) (26 ) 13 Total before tax 594 525 1,254 (288 ) Tax impact (124 ) (110 ) (263 ) 60 Total, net of tax $ 470 $ 415 $ 991 $ (228 ) |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 9 Months Ended |
Oct. 02, 2022 | |
Employee Benefits And Share Based Compensation [Abstract] | |
Schedule of Stock Option Activity | Stock option activity was as follows: (In thousands, except per share amounts) Number of Shares Weighted Average Exercise Price Per Share Outstanding as of December 31, 2021 912 $ 30.19 Exercised (37 ) $ 20.16 Expired (3 ) $ 20.30 Outstanding as of October 2, 2022 872 $ 30.64 |
Schedule of RSU Activity | RSU activity was as follows: (In thousands, except per share amounts) Number of Shares Weighted Average Grant Date Fair Value Per Share Outstanding as of December 31, 2021 1,555 $ 33.86 Granted 804 $ 22.21 Vested (611 ) $ 34.60 Cancelled (145 ) $ 30.92 Outstanding as of October 2, 2022 1,603 $ 28.00 |
Schedule of Performance Shares Activity | Performance shares activity was as follows: (In thousands, except per share amounts) Number of Shares Weighted Average Grant Date Fair Value Per Share Outstanding as of December 31, 2021 293 $ 33.07 Granted 145 22.37 Vested — — Cancelled (8 ) 27.17 Outstanding as of October 2, 2022 430 $ 29.38 |
Schedule of Total Stock-Based Compensation Expense Resulting from Stock Options, RSUs, Performance Shares and the ESPP | Valuation and Expense Information The following table sets forth the stock-based compensation expense resulting from stock options, RSUs, performance shares and the ESPP included in the Company's unaudited condensed consolidated statements of operations: Three Months Ended Nine Months Ended (In thousands) October 2, 2022 October 3, 2021 October 2, 2022 October 3, 2021 Cost of revenue $ 283 $ 430 $ 1,027 $ 1,626 Research and development 968 1,414 3,150 3,832 Sales and marketing 1,249 2,008 4,275 5,741 General and administrative 940 2,358 4,814 8,873 Total $ 3,440 $ 6,210 $ 13,266 $ 20,072 |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Oct. 02, 2022 | |
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 income (loss) before income taxes is as follows: Three Months Ended Nine Months Ended (In thousands) October 2, 2022 October 3, 2021 October 2, 2022 October 3, 2021 Net Revenue: Connected Home $ 150,581 $ 208,539 $ 409,787 $ 679,320 SMB 99,006 81,611 273,582 237,566 Total net revenue $ 249,587 $ 290,150 $ 683,369 $ 916,886 Contribution Income (loss): Connected Home $ (512 ) $ 22,558 $ (3,033 ) $ 101,189 Contribution margin (0.3 )% 10.8 % (0.7 )% 14.9 % SMB $ 23,683 $ 17,137 $ 53,844 $ 49,831 Contribution margin 23.9 % 21.0 % 19.7 % 21.0 % Total segment contribution income $ 23,171 $ 39,695 $ 50,811 $ 151,020 Corporate and unallocated costs (21,392 ) (20,203 ) (62,532 ) (62,744 ) Amortization of intangibles (1) (129 ) (145 ) (386 ) (1,768 ) Stock-based compensation expense (3,440 ) (6,210 ) (13,266 ) (20,072 ) Change in fair value of contingent consideration — — — 3,003 Goodwill impairment charge — — (44,442 ) — Restructuring and other charges (361 ) (222 ) (911 ) (3,378 ) Litigation reserves, net — — (20 ) (315 ) Other income (expenses), net (2) 638 (132 ) (1,164 ) 15 Income (loss) before income taxes $ (1,513 ) $ 12,783 $ (71,910 ) $ 65,761 (1) (2) |
Schedule of Net Revenue by Geography | The following table shows net revenue by geography: Three Months Ended Nine Months Ended (In thousands) October 2, 2022 October 3, 2021 October 2, 2022 October 3, 2021 United States (U.S.) $ 164,890 $ 188,009 $ 445,170 $ 606,735 Americas (excluding U.S.) 4,470 7,114 12,866 20,172 EMEA (1) 44,827 56,940 126,643 179,802 APAC (1) 35,400 38,087 98,690 110,177 Total net revenue $ 249,587 $ 290,150 $ 683,369 $ 916,886 (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) October 2, 2022 December 31, 2021 United States (U.S.) $ 30,640 $ 14,564 Americas (excluding U.S.) 2,540 3,283 EMEA 1,246 2,465 Singapore 3,936 4,767 APAC (excluding Singapore) (1) 9,239 11,432 Total $ 47,601 $ 36,511 (1) No individual |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Oct. 02, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value, Assets and Liabilities Measured on Recurring Basis | The following tables summarize assets and liabilities measured at fair value on a recurring basis: October 2, 2022 (In thousands) Total Quoted market prices in active markets (Level 1) Significant other observable inputs (Level 2) Assets: Cash equivalents: money-market funds $ 14,961 $ 14,961 $ — Available-for-sale investments: U.S. treasury securities ( 1) 93,569 — 93,569 Trading securities: mutual funds ( 1) 6,521 6,521 — Available-for-sale investments: certificates of deposit ( 1) 6 — 6 Available-for-sale investments: convertible debt securities ( 2) 346 — 346 Foreign currency forward contracts ( 3) 2,828 — 2,828 Total assets measured at fair value $ 118,231 $ 21,482 $ 96,749 Liabilities: Foreign currency forward contracts ( 4) $ 459 $ — $ 459 Total liabilities measured at fair value $ 459 $ — $ 459 December 31, 2021 (In thousands) Total Quoted market prices in active markets (Level 1) Significant other observable inputs (Level 2) Assets: Cash equivalents: money-market funds $ 108,441 $ 108,441 $ — Trading securities: mutual funds ( 1) 6,814 6,814 — Available-for-sale investments: corporate equity securities ( 1) 751 751 — Available-for-sale investments: certificates of deposit ( 1) 6 — 6 Available-for-sale investments: convertible debt securities ( 2) 518 — 518 Foreign currency forward contracts ( 3) 1,372 — 1,372 Total assets measured at fair value $ 117,902 $ 116,006 $ 1,896 Liabilities: Foreign currency forward contracts ( 4) $ 344 $ — $ 344 Total liabilities measured at fair value $ 344 $ — $ 344 (1) Included in Short-term investments on the Company's unaudited condensed consolidated balance sheets. (2) On the Company’s unaudited condensed consolidated balance sheets, $173,000 and $172,000 included in Short-term investments as of October 2, 2022 and December 31, 2021, respectively, and $173,000 and $346,000 included in Other non-current assets as of October 2, 2022 and December 31, 2021, respectively. (3) Included in Prepaid expenses and other current assets on the Company's unaudited condensed consolidated balance sheets. (4) Included in Other accrued liabilities on the Company's unaudited condensed consolidated balance sheets |
Revenue (Schedule of Remaining
Revenue (Schedule of Remaining Performance Obligations) (Details) $ in Thousands | Oct. 02, 2022 USD ($) |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Performance obligations, amount | $ 162,298 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2022-10-03 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Performance obligations, amount | $ 158,447 |
Performance obligations, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2023-10-03 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Performance obligations, amount | $ 2,166 |
Performance obligations, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2024-10-03 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Performance obligations, amount | $ 1,685 |
Performance obligations, period |
Revenue (Schedule of Remainin_2
Revenue (Schedule of Remaining Performance Obligations) (Details 1) $ in Thousands | Oct. 02, 2022 USD ($) |
Revenue From Contract With Customer [Abstract] | |
Performance obligations, amount | $ 162,298 |
Revenue (Schedule of Contract B
Revenue (Schedule of Contract Balances) (Details) - USD ($) $ in Thousands | Oct. 02, 2022 | Dec. 31, 2021 |
Revenue From Contract With Customer [Abstract] | ||
Accounts receivable, net | $ 259,908 | $ 261,158 |
Contract liabilities - current | 19,293 | 16,500 |
Contract liabilities - non-current | $ 3,575 | $ 3,100 |
Revenue (Narrative) (Details)
Revenue (Narrative) (Details) $ in Millions | 9 Months Ended |
Oct. 02, 2022 USD ($) region segment | |
Revenue From Contract With Customer [Abstract] | |
Revenue deferred due to unsatisfied performance obligations | $ 27.6 |
Revenue recognized for satisfaction of performance obligations | 24.4 |
Contract with Customer, Liability Included In Beginning Balance, Revenue Recognized | $ 14.8 |
Number of geographic regions in which the Company conducts business | region | 3 |
Number of operating segments | segment | 2 |
Number of reportable segments | segment | 2 |
Revenue (Schedule of Net Revenu
Revenue (Schedule of Net Revenue Disaggregated by Geographical Region and Sales Channel) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Oct. 02, 2022 | Oct. 03, 2021 | Oct. 02, 2022 | Oct. 03, 2021 | ||
Disaggregation of Revenue [Line Items] | |||||
Total net revenue | [1] | $ 249,587 | $ 290,150 | $ 683,369 | $ 916,886 |
Service provider | |||||
Disaggregation of Revenue [Line Items] | |||||
Total net revenue | 41,619 | 42,175 | 96,059 | 101,125 | |
Non-service provider | |||||
Disaggregation of Revenue [Line Items] | |||||
Total net revenue | 207,968 | 247,975 | 587,310 | 815,761 | |
Connected Home | |||||
Disaggregation of Revenue [Line Items] | |||||
Total net revenue | [1] | 150,581 | 208,539 | 409,787 | 679,320 |
Connected Home | Service provider | |||||
Disaggregation of Revenue [Line Items] | |||||
Total net revenue | 40,448 | 41,726 | 92,544 | 99,355 | |
Connected Home | Non-service provider | |||||
Disaggregation of Revenue [Line Items] | |||||
Total net revenue | 110,133 | 166,813 | 317,243 | 579,965 | |
SMB | |||||
Disaggregation of Revenue [Line Items] | |||||
Total net revenue | [1] | 99,006 | 81,611 | 273,582 | 237,566 |
SMB | Service provider | |||||
Disaggregation of Revenue [Line Items] | |||||
Total net revenue | 1,171 | 449 | 3,515 | 1,770 | |
SMB | Non-service provider | |||||
Disaggregation of Revenue [Line Items] | |||||
Total net revenue | 97,835 | 81,162 | 270,067 | 235,796 | |
Americas | |||||
Disaggregation of Revenue [Line Items] | |||||
Total net revenue | [1] | 169,360 | 195,123 | 458,036 | 626,907 |
Americas | Connected Home | |||||
Disaggregation of Revenue [Line Items] | |||||
Total net revenue | [1] | 120,168 | 158,888 | 327,372 | 523,008 |
Americas | SMB | |||||
Disaggregation of Revenue [Line Items] | |||||
Total net revenue | [1] | 49,192 | 36,235 | 130,664 | 103,899 |
EMEA | |||||
Disaggregation of Revenue [Line Items] | |||||
Total net revenue | [1] | 44,827 | 56,940 | 126,643 | 179,802 |
EMEA | Connected Home | |||||
Disaggregation of Revenue [Line Items] | |||||
Total net revenue | [1] | 12,545 | 28,253 | 34,230 | 91,975 |
EMEA | SMB | |||||
Disaggregation of Revenue [Line Items] | |||||
Total net revenue | [1] | 32,282 | 28,687 | 92,413 | 87,827 |
APAC | |||||
Disaggregation of Revenue [Line Items] | |||||
Total net revenue | [1] | 35,400 | 38,087 | 98,690 | 110,177 |
APAC | Connected Home | |||||
Disaggregation of Revenue [Line Items] | |||||
Total net revenue | [1] | 17,868 | 21,398 | 48,185 | 64,337 |
APAC | SMB | |||||
Disaggregation of Revenue [Line Items] | |||||
Total net revenue | [1] | $ 17,532 | $ 16,689 | $ 50,505 | $ 45,840 |
[1] No individual country represented more than 10% of the Company's total net revenue in the periods presented. |
Revenue (Schedule of Net Reve_2
Revenue (Schedule of Net Revenue Disaggregated by Geographical Region and Sales Channel) (Parenthetical) (Details) - Maximum | 3 Months Ended | 9 Months Ended |
Oct. 02, 2022 | Oct. 02, 2022 | |
Americas | ||
Disaggregation of Revenue [Line Items] | ||
Percentage of net revenue | 10% | 10% |
EMEA | ||
Disaggregation of Revenue [Line Items] | ||
Percentage of net revenue | 10% | 10% |
APAC | ||
Disaggregation of Revenue [Line Items] | ||
Percentage of net revenue | 10% | 10% |
Balance Sheet Components (Sched
Balance Sheet Components (Schedule of Amortized Cost and Estimated Fair Market Value of Investments Classified as Available-for-Sale Excluding Cash Equivalents) (Details) - USD ($) $ in Thousands | Oct. 02, 2022 | Dec. 31, 2021 | |
Schedule Of Available For Sale Securities [Line Items] | |||
Amortized Cost | $ 94,380 | $ 1,275 | |
Unrealized Gains | 0 | 0 | |
Unrealized Losses | (459) | 0 | |
Estimated Fair Value | 93,921 | 1,275 | |
U.S. Treasury Securities | |||
Schedule Of Available For Sale Securities [Line Items] | |||
Amortized Cost | 94,028 | ||
Unrealized Gains | 0 | ||
Unrealized Losses | (459) | ||
Estimated Fair Value | 93,569 | ||
Corporate Equity Securities | |||
Schedule Of Available For Sale Securities [Line Items] | |||
Amortized Cost | 751 | ||
Unrealized Gains | 0 | ||
Unrealized Losses | 0 | ||
Estimated Fair Value | 751 | ||
Convertible Debt | |||
Schedule Of Available For Sale Securities [Line Items] | |||
Amortized Cost | [1] | 346 | 518 |
Unrealized Gains | [1] | 0 | 0 |
Unrealized Losses | [1] | 0 | 0 |
Estimated Fair Value | [1] | 346 | 518 |
Certificates of Deposit | |||
Schedule Of Available For Sale Securities [Line Items] | |||
Amortized Cost | 6 | 6 | |
Unrealized Gains | 0 | 0 | |
Unrealized Losses | 0 | 0 | |
Estimated Fair Value | $ 6 | $ 6 | |
[1]On the Company’s unaudited condensed consolidated balance sheets, $173,000 and $172,000 included in Short-term investments as of October 2, 2022, and December 31, 2021, respectively, and $173,000 and $346,000 included in Other non-current assets as of October 2, 2022, and December 31, 2021, respectively. |
Balance Sheet Components (Sch_2
Balance Sheet Components (Schedule of Amortized Cost and Estimated Fair Market Value of Investments Classified as Available-for-Sale Excluding Cash Equivalents) (Details) (Parentheticals) (Details) - USD ($) $ in Thousands | Oct. 02, 2022 | Dec. 31, 2021 |
Schedule Of Available For Sale Securities [Line Items] | ||
Short-term investments | $ 100,269 | $ 7,744 |
Other non-current assets | 89,835 | 76,350 |
Convertible Debt | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Short-term investments | 173 | 172 |
Other non-current assets | $ 173 | $ 346 |
Balance Sheet Components (Narra
Balance Sheet Components (Narrative) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||||
Oct. 02, 2022 | Apr. 03, 2022 | Oct. 03, 2021 | Oct. 02, 2022 | Oct. 03, 2021 | Dec. 31, 2021 | |
Balance Sheet Related Disclosures [Table] | ||||||
Accrued interest receivable | $ 200,000 | $ 200,000 | ||||
Investments classified as available-for-sale in continuous unrealized loss position | 459,000 | 459,000 | $ 0 | |||
Unrealized losses on available-for-sale securities | 0 | $ 0 | 0 | $ 0 | ||
Other-than-temporary impairments | 0 | 0 | 0 | 0 | ||
Provisions for excess and obsolete inventory | 400,000 | 700,000 | 3,005,000 | 3,045,000 | ||
Amortization expense | 100,000 | 200,000 | 400,000 | 1,900,000 | ||
Impairment of intangible assets | 0 | 0 | 0 | 0 | ||
Goodwill impairment charge | 0 | $ 0 | 44,442,000 | $ 0 | ||
Equity securities without readily determinable fair value, cumulative downward adjustments for price change and impairment loss | 8,700,000 | 8,700,000 | ||||
Cumulative upward adjustments for price changes | $ 400,000 | 400,000 | ||||
Connected Home | ||||||
Balance Sheet Related Disclosures [Table] | ||||||
Goodwill impairment charge | $ 44,400,000 | 44,442,000 | ||||
SMB | ||||||
Balance Sheet Related Disclosures [Table] | ||||||
Goodwill impairment charge | $ 0 | $ 0 |
Balance Sheet Components (Sch_3
Balance Sheet Components (Schedule of Investments Classified as Available-for-Sale in Continuous Unrealized Loss Position) (Details) - USD ($) | Oct. 02, 2022 | Dec. 31, 2021 |
Schedule Of Investment Income Reported Amounts By Category [Line Items] | ||
Estimated Fair Market Value, Less Than 12 Months | $ 93,569,000 | |
Gross Unrealized Losses, Less Than 12 Months | (459,000) | |
Estimated Fair Market Value, 12 Months or Longer | 0 | |
Gross Unrealized Losses, 12 Months or Longer | 0 | |
Estimated Fair Market Value, Total | 93,569,000 | |
Gross Unrealized Losses, Total | (459,000) | $ 0 |
U.S. Treasury Securities | ||
Schedule Of Investment Income Reported Amounts By Category [Line Items] | ||
Estimated Fair Market Value, Less Than 12 Months | 93,569,000 | |
Gross Unrealized Losses, Less Than 12 Months | (459,000) | |
Estimated Fair Market Value, 12 Months or Longer | 0 | |
Gross Unrealized Losses, 12 Months or Longer | 0 | |
Estimated Fair Market Value, Total | 93,569,000 | |
Gross Unrealized Losses, Total | $ (459,000) |
Balance Sheet Components (Sch_4
Balance Sheet Components (Schedule of Inventories) (Details) - USD ($) $ in Thousands | Oct. 02, 2022 | Dec. 31, 2021 |
Balance Sheet Related Disclosures [Abstract] | ||
Raw materials | $ 7,806 | $ 12,269 |
Finished goods | 290,284 | 303,398 |
Total | $ 298,090 | $ 315,667 |
Balance Sheet Components (Sch_5
Balance Sheet Components (Schedule of Property and Equipment, Net) (Details) - USD ($) $ in Thousands | Oct. 02, 2022 | Dec. 31, 2021 |
Total property and equipment, gross | $ 134,737 | $ 134,182 |
Accumulated depreciation | (124,507) | (120,847) |
Total | 10,230 | 13,335 |
Computer equipment | ||
Total property and equipment, gross | 9,663 | 9,979 |
Furniture, fixtures and leasehold improvements | ||
Total property and equipment, gross | 18,419 | 18,364 |
Software | ||
Total property and equipment, gross | 30,467 | 30,280 |
Machinery and equipment | ||
Total property and equipment, gross | $ 76,188 | $ 75,559 |
Balance Sheet Components (Sch_6
Balance Sheet Components (Schedule of Intangibles, Net) (Details) - USD ($) $ in Thousands | Oct. 02, 2022 | Dec. 31, 2021 |
Intangible Assets [Line Items] | ||
Gross | $ 70,144 | $ 70,144 |
Accumulated Amortization | (68,687) | (68,288) |
Net | 1,457 | 1,856 |
Technology | ||
Intangible Assets [Line Items] | ||
Gross | 59,799 | 59,799 |
Accumulated Amortization | (58,585) | (58,263) |
Net | 1,214 | 1,536 |
Other | ||
Intangible Assets [Line Items] | ||
Gross | 10,345 | 10,345 |
Accumulated Amortization | (10,102) | (10,025) |
Net | $ 243 | $ 320 |
Balance Sheet Components (Sch_7
Balance Sheet Components (Schedule of Goodwill) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Oct. 02, 2022 | Apr. 03, 2022 | Oct. 03, 2021 | Oct. 02, 2022 | Oct. 03, 2021 | |
Goodwill [Line Items] | |||||
As of December 31, 2021 | $ 80,721 | $ 80,721 | |||
Goodwill impairment charge | $ 0 | $ 0 | (44,442) | $ 0 | |
As of October 2, 2022 | 36,279 | 36,279 | |||
Connected Home | |||||
Goodwill [Line Items] | |||||
As of December 31, 2021 | 44,442 | 44,442 | |||
Goodwill impairment charge | (44,400) | (44,442) | |||
As of October 2, 2022 | 0 | 0 | |||
SMB | |||||
Goodwill [Line Items] | |||||
As of December 31, 2021 | 36,279 | 36,279 | |||
Goodwill impairment charge | $ 0 | 0 | |||
As of October 2, 2022 | $ 36,279 | $ 36,279 |
Balance Sheet Components (Sch_8
Balance Sheet Components (Schedule of Other Non-Current Assets) (Details) - USD ($) $ in Thousands | Oct. 02, 2022 | Dec. 31, 2021 |
Balance Sheet Related Disclosures [Abstract] | ||
Non-current deferred income taxes | $ 77,685 | $ 63,795 |
Long-term investments | 7,749 | 7,575 |
Other | 4,401 | 4,980 |
Total | $ 89,835 | $ 76,350 |
Balance Sheet Components (Sch_9
Balance Sheet Components (Schedule of Changes in Carrying Value of Long-term Equity Investments) (Details) - USD ($) $ in Thousands | 9 Months Ended | ||
Oct. 02, 2022 | Oct. 03, 2021 | ||
Balance Sheet Related Disclosures [Abstract] | |||
Beginning Balance | [1] | $ 6,303 | $ 7,758 |
Additions from purchase of investments | 0 | 340 | |
Disposal | 0 | (778) | |
Impairment | (250) | (549) | |
Ending Balance | [1] | $ 6,053 | $ 6,771 |
[1]The balances excluded an investment in limited partnership funds of $1.5 million as of October 2, 2022, $0.8 million as of October 3, 2021, $0.9 million as of December 31, 2021, and $0.6 million as of December 31, 2020. Additionally, the balance excluded an investment in convertible debt securities of $0.2 million as of October 2, 2022, $0.3 million as of October 3, 2021, and $0.3 million as of December 31, 2021. |
Balance Sheet Components (Sc_10
Balance Sheet Components (Schedule of Changes in Carrying Value of Long-term Equity Investments) (Parentheticals) (Details) - USD ($) $ in Thousands | Oct. 02, 2022 | Dec. 31, 2021 | Oct. 03, 2021 | Dec. 31, 2020 |
Balance Sheet Related Disclosures [Line Items] | ||||
Equity investments | $ 7,749 | $ 7,575 | ||
Limited partnership funds | ||||
Balance Sheet Related Disclosures [Line Items] | ||||
Equity investments | 1,500 | 900 | $ 800 | $ 600 |
Convertible debt securities | ||||
Balance Sheet Related Disclosures [Line Items] | ||||
Equity investments | $ 200 | $ 300 | $ 300 |
Balance Sheet Components (Sc_11
Balance Sheet Components (Schedule of Other Accrued Liabilities) (Details) - USD ($) $ in Thousands | Oct. 02, 2022 | Dec. 31, 2021 | |
Balance Sheet Related Disclosures [Abstract] | |||
Current operating lease liabilities | $ 9,857 | $ 9,220 | |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Total | Total | |
Sales and marketing | $ 94,234 | $ 104,549 | |
Warranty obligations | 6,144 | 6,861 | |
Sales returns | [1] | 40,241 | 42,869 |
Freight and duty | 9,301 | 22,126 | |
Other | 42,431 | 38,959 | |
Total | $ 202,208 | $ 224,584 | |
[1]Inventory expected to be received from future sales returns amounted to $19.8 million and $21.8 million as of October 2, 2022 and December 31, 2021, respectively. Provisions to write down expected returned inventory to net realizable value amounted to $9.7 million and $13.2 million as of October 2, 2022, and December 31, 2021, respectively. |
Balance Sheet Components (Sc_12
Balance Sheet Components (Schedule of Other Accrued Liabilities) (Parentheticals) (Details) - USD ($) $ in Millions | Oct. 02, 2022 | Dec. 31, 2021 |
Balance Sheet Related Disclosures [Abstract] | ||
Inventory expected to be received from future sales returns | $ 19.8 | $ 21.8 |
Provisions to write down expected returned inventory to net realizable value | $ 9.7 | $ 13.2 |
Derivative Financial Instrume_3
Derivative Financial Instruments (Narrative) (Details) - Foreign currency forward contracts $ in Millions | 9 Months Ended |
Oct. 02, 2022 USD ($) derivative_instrument | |
Derivatives not designated as hedging instruments | |
Derivative [Line Items] | |
Approximate number of derivatives per quarter | derivative_instrument | 10 |
Notional amount | $ | $ 2 |
Cash Flow Hedges | |
Derivative [Line Items] | |
Approximate number of derivatives per quarter | derivative_instrument | 10 |
Notional amount | $ | $ 6 |
Maximum | |
Derivative [Line Items] | |
Term of derivative contracts | 6 months |
Maximum | Derivatives not designated as hedging instruments | |
Derivative [Line Items] | |
Term of derivative contracts | 3 months |
Maximum | Cash Flow Hedges | |
Derivative [Line Items] | |
Term of derivative contracts | 6 months |
Derivative Financial Instrume_4
Derivative Financial Instruments (Schedule of Fair Values of the Company's Derivative Instruments and the Line Items on the Unaudited Condensed Consolidated Balance Sheets) (Details) - USD ($) $ in Thousands | Oct. 02, 2022 | Dec. 31, 2021 |
Derivatives, Fair Value [Line Items] | ||
Gross Amounts of recognized assets | $ 2,828 | $ 1,372 |
Gross Amounts of recognized liabilities | 459 | 344 |
Prepaid expenses and other current assets | Derivatives not designated as hedging instruments | ||
Derivatives, Fair Value [Line Items] | ||
Gross Amounts of recognized assets | 2,650 | 1,214 |
Prepaid expenses and other current assets | Derivatives designated as hedging instruments | ||
Derivatives, Fair Value [Line Items] | ||
Gross Amounts of recognized assets | 178 | 158 |
Other accrued liabilities | Derivatives not designated as hedging instruments | ||
Derivatives, Fair Value [Line Items] | ||
Gross Amounts of recognized liabilities | 443 | 321 |
Other accrued liabilities | Derivatives designated as hedging instruments | ||
Derivatives, Fair Value [Line Items] | ||
Gross Amounts of recognized liabilities | $ 16 | $ 23 |
Net Income (Loss) Per Share (Sc
Net Income (Loss) Per Share (Schedule of Net Income (Loss) Per Share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 02, 2022 | Oct. 03, 2021 | Oct. 02, 2022 | Oct. 03, 2021 | |
Numerator: | ||||
Net income (loss) | $ 2,801 | $ 9,584 | $ (62,943) | $ 50,378 |
Denominator: | ||||
Weighted average common shares - basic | 28,891 | 30,301 | 29,023 | 30,495 |
Potentially dilutive common share equivalent | 138 | 497 | 0 | 861 |
Weighted average common shares - dilutive | 29,029 | 30,798 | 29,023 | 31,356 |
Basic net income (loss) per share | $ 0.10 | $ 0.32 | $ (2.17) | $ 1.65 |
Diluted net income (loss) per share | $ 0.10 | $ 0.31 | $ (2.17) | $ 1.61 |
Anti-dilutive employee stock-based awards, excluded | 1,539 | 1,036 | 1,582 | 389 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Aug. 16, 2022 | Oct. 02, 2022 | Oct. 03, 2021 | Oct. 02, 2022 | Oct. 03, 2021 | |
Schedule Of Income Taxes [Line Items] | |||||
Tax impact | $ (4,314) | $ 3,199 | $ (8,967) | $ 15,383 | |
Effective tax rate | 285.10% | 25% | 12.50% | 23.40% | |
Pre tax loss | $ 1,513 | $ (12,783) | $ 71,910 | $ (65,761) | |
Possible reduction in liabilities for uncertain tax positions | $ 400 | $ 400 | |||
Inflation Reduction Act” ("IRA") | |||||
Schedule Of Income Taxes [Line Items] | |||||
Exercise tax on stock repurchases | 1% |
Commitments and Contingencies_2
Commitments and Contingencies (Details) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Oct. 02, 2022 USD ($) claim | Oct. 03, 2021 USD ($) | Oct. 02, 2022 USD ($) claim patent | Oct. 03, 2021 USD ($) | Dec. 31, 2021 USD ($) | |
Loss Contingencies [Line Items] | |||||
Additional purchase orders beyond contractual termination periods | $ 664.7 | $ 664.7 | |||
Non-cancelable purchase commitments with suppliers | 120.7 | 120.7 | $ 94.8 | ||
Losses incurred related to purchase commitments | $ 1.6 | $ 0.9 | $ 4.6 | $ 2.9 | |
Number of existing cases and proceedings that the Company currently believes are liking to have a material adverse effect on its financial position | claim | claim | 0 | 0 | |||
The future length the Company currently considered regarding existing cases and proceedings that are likely to have a material adverse effect on it (in months) | 12 months | ||||
Huawei v. NETGEAR Inc. | |||||
Loss Contingencies [Line Items] | |||||
Number of patent infringement cases | patent | 2 | ||||
Number of patents | patent | 2 | ||||
46 to 60 Days | |||||
Loss Contingencies [Line Items] | |||||
Percentage of cancelable orders | 50% | 50% | |||
31 to 45 Days | |||||
Loss Contingencies [Line Items] | |||||
Percentage of cancelable orders | 25% | 25% | |||
Non- Trade | |||||
Loss Contingencies [Line Items] | |||||
Long-term, non-cancellable purchase commitments | $ 14.8 | $ 14.8 | |||
Minimum | 46 to 60 Days | |||||
Loss Contingencies [Line Items] | |||||
Required notice period prior to expected shipment date | 46 days | ||||
Minimum | 31 to 45 Days | |||||
Loss Contingencies [Line Items] | |||||
Required notice period prior to expected shipment date | 31 days | ||||
Maximum | 46 to 60 Days | |||||
Loss Contingencies [Line Items] | |||||
Required notice period prior to expected shipment date | 60 days | ||||
Maximum | 31 to 45 Days | |||||
Loss Contingencies [Line Items] | |||||
Required notice period prior to expected shipment date | 45 days |
Commitments and Contingencies_3
Commitments and Contingencies (Schedule of Changes in Warranty Obligations) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 02, 2022 | Oct. 03, 2021 | Oct. 02, 2022 | Oct. 03, 2021 | |
Movement in Standard Product Warranty Accrual [Roll Forward] | ||||
Balance as of beginning of the period | $ 6,523 | $ 7,180 | $ 6,861 | $ 9,240 |
Provision for warranty liability made | 1,052 | 1,258 | 3,706 | 3,019 |
Settlements made | (1,431) | (1,575) | (4,423) | (5,396) |
Balance as of the end of the period | $ 6,144 | $ 6,863 | $ 6,144 | $ 6,863 |
Stockholders' Equity (Narrative
Stockholders' Equity (Narrative) (Details) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Jul. 03, 2022 | Apr. 03, 2022 | Oct. 03, 2021 | Jun. 27, 2021 | Oct. 02, 2022 | Oct. 03, 2021 | |
Stockholders Equity Note [Abstract] | ||||||
Shares remaining authorized for repurchase (in shares) | 2,500 | |||||
Stock repurchased (in shares) | 1,000 | 1,600 | ||||
Cost of stock repurchased | $ 15,000 | $ 9,377 | $ 32,467 | $ 24,999 | $ 24,400 | $ 57,500 |
RSU withholdings (in shares) | 198 | 197 | ||||
RSU withholdings | $ 4,731 | $ 7,456 |
Stockholders' Equity (Schedule
Stockholders' Equity (Schedule of Changes in Accumulated Other Comprehensive Income by Component) (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Oct. 02, 2022 | Oct. 03, 2021 | |
Estimated tax benefit (provision) | ||
Beginning balance | $ (22) | $ 9 |
Other comprehensive income (loss) before reclassifications | (154) | 53 |
Less: Amount reclassified from accumulated other comprehensive income (loss) | (263) | 60 |
Net current period other comprehensive income (loss) | 109 | (7) |
Ending balance | 87 | 2 |
AOCI, after tax | ||
Beginning balance | 696,815 | 689,384 |
Other comprehensive income (loss) before reclassifications | 727 | (182) |
Less: Amount reclassified from accumulated other comprehensive income (loss) | 991 | (228) |
Net current period other comprehensive income (loss) | (264) | 46 |
Ending balance | 622,927 | 708,856 |
Unrealized gains (losses) on available-for-sale investments | ||
AOCI, before tax | ||
Beginning balance | (2) | (2) |
Other comprehensive income (loss) before reclassifications | (459) | 0 |
Less: Amount reclassified from accumulated other comprehensive income (loss) | 0 | 0 |
Net current period other comprehensive income (loss) | (459) | 0 |
Ending balance | (461) | (2) |
Unrealized gains (losses) on derivatives | ||
AOCI, before tax | ||
Beginning balance | 173 | (42) |
Other comprehensive income (loss) before reclassifications | 1,340 | (235) |
Less: Amount reclassified from accumulated other comprehensive income (loss) | 1,254 | (288) |
Net current period other comprehensive income (loss) | 86 | 53 |
Ending balance | 259 | 11 |
AOCI | ||
AOCI, after tax | ||
Beginning balance | 149 | (35) |
Ending balance | $ (115) | $ 11 |
Stockholders' Equity (Schedul_2
Stockholders' Equity (Schedule of Reclassifications out of AOCI) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Oct. 02, 2022 | Oct. 03, 2021 | Oct. 02, 2022 | Oct. 03, 2021 | ||
Reclassification Out of Accumulated Other Comprehensive Income [Line Items] | |||||
Net revenue | [1] | $ 249,587 | $ 290,150 | $ 683,369 | $ 916,886 |
Cost of revenue | 181,058 | 203,309 | 494,516 | 625,748 | |
Research and development | 22,167 | 23,472 | 68,193 | 69,887 | |
Sales and marketing | 34,203 | 36,176 | 104,335 | 109,731 | |
General and administrative | 13,949 | 14,056 | 41,698 | 45,084 | |
Tax impact | 4,314 | (3,199) | 8,967 | (15,383) | |
Total, net of tax | 2,801 | 9,584 | (62,943) | 50,378 | |
Amount Reclassified from AOCI | |||||
Reclassification Out of Accumulated Other Comprehensive Income [Line Items] | |||||
Net revenue | 683 | 545 | 1,395 | (407) | |
Cost of revenue | 0 | (1) | 0 | 0 | |
Research and development | (3) | 12 | (18) | 56 | |
Sales and marketing | (64) | (27) | (97) | 50 | |
General and administrative | (22) | (4) | (26) | 13 | |
Total before tax | 594 | 525 | 1,254 | (288) | |
Tax impact | (124) | (110) | (263) | 60 | |
Total, net of tax | $ 470 | $ 415 | $ 991 | $ (228) | |
[1] No individual country represented more than 10% of the Company's total net revenue in the periods presented. |
Employee Benefit Plans (Narrati
Employee Benefit Plans (Narrative) (Details) - USD ($) shares in Thousands, $ in Millions | 1 Months Ended | 9 Months Ended |
Apr. 30, 2022 | Oct. 02, 2022 | |
A2016 Incentive Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares reserved for future grant (in shares) | 900 | |
Employee Stock Purchase Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares reserved for future grant (in shares) | 1,000 | |
Maximum percentage of compensation contributed by employees (in percentage) | 10% | |
Purchase percentage of stock at fair market value (in percentage) | 85% | |
2003 Employee Stock Purchase Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Increase in number of shares of common stock authorized | 1,000,000 | |
Number of shares of common stock authorized | 3,000,000 | |
Options and RSUs | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting term | 4 years | |
Performance Shares | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting term | 3 years | |
Performance Shares | Minimum | Target Shares Granted | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Percentage vest of performance shares | 0% | |
Performance Shares | Maximum | Target Shares Granted | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Percentage vest of performance shares | 150% | |
Stock Options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total unrecognized compensation | $ 0.4 | |
Weighted-average period of recognition of stock based compensation | 9 months 18 days | |
Restricted Stock Units (RSUs) | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total unrecognized compensation | $ 38.4 | |
Weighted-average period of recognition of stock based compensation | 2 years 6 months |
Employee Benefit Plans (Schedul
Employee Benefit Plans (Schedule of Stock Option Activity) (Details) - Stock Options shares in Thousands | 9 Months Ended |
Oct. 02, 2022 $ / shares shares | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |
Number of shares, beginning balance (in shares) | shares | 912 |
Number of shares, exercised (in shares) | shares | (37) |
Number of shares, expired (in shares) | shares | (3) |
Number of shares, ending balance (in shares) | shares | 872 |
Beginning balance (in dollars per share) | $ / shares | $ 30.19 |
Exercised (in dollars per share) | $ / shares | 20.16 |
Expired (in dollars per share) | $ / shares | 20.30 |
Ending balance (in dollars per share) | $ / shares | $ 30.64 |
Employee Benefit Plans (Sched_2
Employee Benefit Plans (Schedule of RSU Activity) (Details) - Restricted Stock Units (RSUs) shares in Thousands | 9 Months Ended |
Oct. 02, 2022 $ / shares shares | |
Number of Shares | |
Beginning balance (in shares) | shares | 1,555 |
Granted (in shares) | shares | 804 |
Vested (in shares) | shares | (611) |
Cancelled (in shares) | shares | (145) |
Ending balance (in shares) | shares | 1,603 |
Weighted Average Grant Date Fair Value Per Share | |
Beginning Balance (in dollars per share) | $ / shares | $ 33.86 |
Granted (in dollars per share) | $ / shares | 22.21 |
Vested (in dollars per share) | $ / shares | 34.60 |
Cancelled (in dollars per share) | $ / shares | 30.92 |
Ending Balance (in dollars per share) | $ / shares | $ 28 |
Employee Benefit Plans (Sched_3
Employee Benefit Plans (Schedule of Performance Shares Activity) (Details) - Performance Shares shares in Thousands | 9 Months Ended |
Oct. 02, 2022 $ / shares shares | |
Number of Shares | |
Beginning balance (in shares) | shares | 293 |
Granted (in shares) | shares | 145 |
Vested (in shares) | shares | 0 |
Cancelled (in shares) | shares | (8) |
Ending balance (in shares) | shares | 430 |
Weighted Average Grant Date Fair Value Per Share | |
Beginning Balance (in dollars per share) | $ / shares | $ 33.07 |
Granted (in dollars per share) | $ / shares | 22.37 |
Vested (in dollars per share) | $ / shares | 0 |
Cancelled (in dollars per share) | $ / shares | 27.17 |
Ending Balance (in dollars per share) | $ / shares | $ 29.38 |
Employee Benefit Plans (Sched_4
Employee Benefit Plans (Schedule of Total Stock-Based Compensation Expense Resulting from Stock Options, RSUs, Performance Shares and the ESPP) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 02, 2022 | Oct. 03, 2021 | Oct. 02, 2022 | Oct. 03, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock-based compensation | $ 3,440 | $ 6,210 | $ 13,266 | $ 20,072 |
Cost of revenue | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock-based compensation | 283 | 430 | 1,027 | 1,626 |
Research and development | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock-based compensation | 968 | 1,414 | 3,150 | 3,832 |
Sales and marketing | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock-based compensation | 1,249 | 2,008 | 4,275 | 5,741 |
General and administrative | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock-based compensation | $ 940 | $ 2,358 | $ 4,814 | $ 8,873 |
Segment Information (Narrative)
Segment Information (Narrative) (Details) | 9 Months Ended |
Oct. 02, 2022 segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 2 |
Number of reportable segments | 2 |
Segment Information (Schedule o
Segment Information (Schedule of Reportable Segments and Reconciliation of Segment Contribution Income (Loss) to Income (Loss) Before Income Taxes) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Oct. 02, 2022 | Apr. 03, 2022 | Oct. 03, 2021 | Oct. 02, 2022 | Oct. 03, 2021 | ||
Segment Reporting Information [Line Items] | ||||||
Total net revenue | [1] | $ 249,587 | $ 290,150 | $ 683,369 | $ 916,886 | |
Total segment contribution income | 23,171 | 39,695 | 50,811 | 151,020 | ||
Corporate and unallocated costs | (21,392) | (20,203) | (62,532) | (62,744) | ||
Amortization of intangibles | [2] | (129) | (145) | (386) | (1,768) | |
Stock-based compensation expense | (3,440) | (6,210) | (13,266) | (20,072) | ||
Change in fair value of contingent consideration | 0 | 0 | 0 | 3,003 | ||
Goodwill impairment charge | 0 | 0 | (44,442) | 0 | ||
Restructuring and other charges | (361) | (222) | (911) | (3,378) | ||
Litigation reserves, net | 0 | 0 | (20) | (315) | ||
Other income (expenses), net | [3] | 638 | (132) | (1,164) | 15 | |
Income (loss) before income taxes | (1,513) | 12,783 | (71,910) | 65,761 | ||
Connected Home | ||||||
Segment Reporting Information [Line Items] | ||||||
Total net revenue | [1] | 150,581 | 208,539 | 409,787 | 679,320 | |
Total segment contribution income | $ (512) | $ 22,558 | $ (3,033) | $ 101,189 | ||
Segment contribution margin | (0.30%) | 10.80% | (0.70%) | 14.90% | ||
Goodwill impairment charge | $ (44,400) | $ (44,442) | ||||
SMB | ||||||
Segment Reporting Information [Line Items] | ||||||
Total net revenue | [1] | $ 99,006 | $ 81,611 | 273,582 | $ 237,566 | |
Total segment contribution income | $ 23,683 | $ 17,137 | $ 53,844 | $ 49,831 | ||
Segment contribution margin | 23.90% | 21% | 19.70% | 21% | ||
Goodwill impairment charge | $ 0 | $ 0 | ||||
[1] No individual country represented more than 10% of the Company's total net revenue in the periods presented. |
Segment Information (Schedule_2
Segment Information (Schedule of Reportable Segments and Reconciliation of Segment Contribution Income (Loss) to Income (Loss) Before Income Taxes) (Parenthetical) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 02, 2022 | Oct. 03, 2021 | Oct. 02, 2022 | Oct. 03, 2021 | |
Segment Reporting [Abstract] | ||||
Gain/(loss), net from derivatives not designated as hedging instruments | $ 3.4 | $ 1.8 | $ 6.9 | $ 2.9 |
Segment Information (Schedule_3
Segment Information (Schedule of Net Revenue by Geographic Areas) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Oct. 02, 2022 | Oct. 03, 2021 | Oct. 02, 2022 | Oct. 03, 2021 | ||
Segment Reporting Information [Line Items] | |||||
Total net revenue | [1] | $ 249,587 | $ 290,150 | $ 683,369 | $ 916,886 |
United States (U.S.) | |||||
Segment Reporting Information [Line Items] | |||||
Total net revenue | 164,890 | 188,009 | 445,170 | 606,735 | |
Americas (excluding U.S.) | |||||
Segment Reporting Information [Line Items] | |||||
Total net revenue | 4,470 | 7,114 | 12,866 | 20,172 | |
EMEA | |||||
Segment Reporting Information [Line Items] | |||||
Total net revenue | [1] | 44,827 | 56,940 | 126,643 | 179,802 |
APAC | |||||
Segment Reporting Information [Line Items] | |||||
Total net revenue | [1] | $ 35,400 | $ 38,087 | $ 98,690 | $ 110,177 |
[1] No individual country represented more than 10% of the Company's total net revenue in the periods presented. |
Segment Information (Schedule_4
Segment Information (Schedule of Net Revenue by Geographic Areas) (Parenthetical) (Details) - Maximum | 3 Months Ended | 9 Months Ended |
Oct. 02, 2022 | Oct. 02, 2022 | |
EMEA | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Percentage of net revenue | 10% | 10% |
APAC | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Percentage of net revenue | 10% | 10% |
Segment Information (Schedule_5
Segment Information (Schedule of Long-Lived Asset by Geographic Region) (Details) - USD ($) $ in Thousands | Oct. 02, 2022 | Dec. 31, 2021 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total | $ 47,601 | $ 36,511 | |
United States (U.S.) | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total | 30,640 | 14,564 | |
Americas (excluding U.S.) | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total | 2,540 | 3,283 | |
EMEA | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total | 1,246 | 2,465 | |
Singapore | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total | 3,936 | 4,767 | |
APAC (excluding Singapore) | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total | [1] | $ 9,239 | $ 11,432 |
[1] No individual |
Segment Information (Schedule_6
Segment Information (Schedule of Long-Lived Asset by Geographic Region) (Parenthetical) (Details) | 9 Months Ended |
Oct. 02, 2022 | |
Maximum | APAC (excluding Singapore) | |
Revenues From External Customers And Long Lived Assets [Line Items] | |
Percentage of total long-lived assets owned | 10% |
Fair Value Measurements (Summar
Fair Value Measurements (Summary of Valuation of Company's Financial Instruments by Various Levels) (Details) - USD ($) $ in Thousands | Oct. 02, 2022 | Dec. 31, 2021 | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Assets measured at fair value | $ 118,231 | $ 117,902 | |
Liabilities measured at fair value | 459 | 344 | |
Quoted market prices in active markets (Level 1) | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Assets measured at fair value | 21,482 | 116,006 | |
Liabilities measured at fair value | 0 | 0 | |
Significant other observable inputs (Level 2) | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Assets measured at fair value | 96,749 | 1,896 | |
Liabilities measured at fair value | 459 | 344 | |
Cash Equivalents | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Assets measured at fair value | 14,961 | 108,441 | |
Cash Equivalents | Quoted market prices in active markets (Level 1) | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Assets measured at fair value | 14,961 | 108,441 | |
Cash Equivalents | Significant other observable inputs (Level 2) | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Assets measured at fair value | 0 | 0 | |
Trading securities | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Assets measured at fair value | [1] | 6,521 | 6,814 |
Trading securities | Quoted market prices in active markets (Level 1) | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Assets measured at fair value | [1] | 6,521 | 6,814 |
Trading securities | Significant other observable inputs (Level 2) | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Assets measured at fair value | [1] | 0 | 0 |
Certificates of Deposit | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Assets measured at fair value | [1] | 6 | 6 |
Certificates of Deposit | Quoted market prices in active markets (Level 1) | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Assets measured at fair value | [1] | 0 | 0 |
Certificates of Deposit | Significant other observable inputs (Level 2) | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Assets measured at fair value | [1] | 6 | 6 |
Available-for-sale Investments | U.S. Treasury Securities | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Assets measured at fair value | [1] | 93,569 | |
Available-for-sale Investments | U.S. Treasury Securities | Quoted market prices in active markets (Level 1) | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Assets measured at fair value | [1] | 0 | |
Available-for-sale Investments | U.S. Treasury Securities | Significant other observable inputs (Level 2) | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Assets measured at fair value | [1] | 93,569 | |
Available For Sale Investments Convertible Debt Securities | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Assets measured at fair value | [2] | 346 | 518 |
Available For Sale Investments Convertible Debt Securities | Quoted market prices in active markets (Level 1) | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Assets measured at fair value | [2] | 0 | 0 |
Available For Sale Investments Convertible Debt Securities | Significant other observable inputs (Level 2) | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Assets measured at fair value | [2] | 346 | 518 |
Foreign currency forward contracts | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Assets measured at fair value | [3] | 2,828 | 1,372 |
Liabilities measured at fair value | [4] | 459 | 344 |
Foreign currency forward contracts | Quoted market prices in active markets (Level 1) | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Assets measured at fair value | [3] | 0 | 0 |
Liabilities measured at fair value | [4] | 0 | 0 |
Foreign currency forward contracts | Significant other observable inputs (Level 2) | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Assets measured at fair value | [3] | 2,828 | 1,372 |
Liabilities measured at fair value | [4] | $ 459 | 344 |
Corporate Equity Securities | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Assets measured at fair value | [1] | 751 | |
Corporate Equity Securities | Quoted market prices in active markets (Level 1) | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Assets measured at fair value | [1] | 751 | |
Corporate Equity Securities | Significant other observable inputs (Level 2) | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Assets measured at fair value | [1] | $ 0 | |
[1] (1) Included in Short-term investments on the Company's unaudited condensed consolidated balance sheets. $173,000 and $172,000 included in Short-term investments as of October 2, 2022 and December 31, 2021, respectively, and $173,000 and $346,000 included in Other non-current assets as of October 2, 2022 and December 31, 2021, respectively. |
Fair Value Measurements (Summ_2
Fair Value Measurements (Summary of Valuation of Company's Financial Instruments by Various Levels) (Parenthetical) (Details) - USD ($) $ in Thousands | Oct. 02, 2022 | Dec. 31, 2021 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Short-term investments | $ 100,269 | $ 7,744 |
Other non-current assets | 89,835 | 76,350 |
Convertible Debt | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Short-term investments | 173 | 172 |
Other non-current assets | $ 173 | $ 346 |