NETGEAR (NTGR) 10-Q 4 Nov 22 2022 Q3 Quarterly report Financial data

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