NTGR - Earnings call transcript Q4 2018

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Operator

Good day, ladies and gentlemen, and welcome to the NETGEAR Fourth Quarter and Full-Year 2018 Earnings Conference Call. Currently at this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session and instructions will follow at that time. [Operator Instructions] As a reminder, this conference call is being recorded. At this time, I would like to turn the call over to your host Chris Genualdi. sir. ahead, go Please

Christopher Genualdi

Good XXXX welcome financial operator. quarter NETGEAR's and full-year results afternoon you, to and fourth Thank conference call.

first the and Mr. followed and business The fourth quarter from provided and by review of will details us Company full-year finish guidance for Patrick a by quarter Mr. by provided Joining the financials Lo, start CEO; of with and the of provided Bryan commentary format CFO. and with on the Murray, XXXX Patrick the call are Chairman Bryan. by Bryan,

time We will any then have for questions.

a If you have of please not website received visit Relations NETGEAR's at www.netgear.com. copy Investor release, today's

remarks, call we statements. the formal that you contains we Before forward-looking conference today's begin advise

and materially outlook. could future or trends include those statements. from results business operating statements Forward-looking regarding expenses expected Actual differ statements by revenue, these contemplated forward-looking rates, margins, tax

to we obligation please with Form factors For these and that statements the refer events. no this as new NETGEAR on of future undertakes statements including today, update assumptions in filings XX-Q. the information SEC, more the result most recent of call are a make NETGEAR's or forward-looking periodic as based to risk information, on Any discussed

call mentioned several time, I be to would now on In will to Relations to the this Bryan At over press the Investor Mr. website. in call. measures non-GAAP release of addition, today's GAAP A reconciliation financial found Murray. this can be non-GAAP measures on turn our like

Bryan Murray

NETGEAR will financial the work completion The and the distribution, not Arlo longer Technologies fourth went any continuing including discontinued will completed Arlo of Thank a XXXX of and business into be spin-off for stock the results discontinued operations shares on Arlo you, be include periods, into all like focused NETGEAR distribution Arlo's no on call. results to operations. to of which Arlo through occurred hard the stock. the joining today's On call now December from discussed Christopher, all thank only historical the NETGEAR shareholders. XX, operations. that completing of we for results common We'd spin. quarter and of owns both NETGEAR you, the for everyone, distribution will teams of the reclassified Upon during historical common this acknowledge NETGEAR the

Now, fourth and turning XXXX. our to results for quarter the full-year

$X.XX earnings in For earnings non-GAAP non-GAAP the today. resulting is up were for full-year operating XXXX's compared margin in of for our was was to million, distributed revenues of the revenue. reconciliation XXXX, XXXX to income X.X% detailed GAAP $X.XX. billion, X.X% release Non-GAAP earlier of Full-year the a non-GAAP net from is NETGEAR net operating full-year full-year. diluted which The per $XX.X share full-year

high quarter ended $X.X a comparable despite fourth XX, year million, on decline across X.X% is basis. to NETGEAR December which quarter. a provider the up on and up net revenue This in QX as prior year-over-year revenue was successful a XXXX for service switches. switching business. is X.X% for Turning driven in Nighthawk by which the gateways, and range to the top SMB cable quarter we results, portfolio, at modems our PoE of It are and guidance the Orbi, came Pro line. in and bottom both our with fourth pleased was our XXXX, particular and end ProAV Performance the compared of sequential our $XXX.X a was Gaming, million

million, was by grew reflects net for America. For North year-over-year. once X.X% net which in revenue continued Americas geography declines XX.X% to our slightly provider year-over-year $XXX.X is which NETGEAR service up on Net X.X% basis the revenue quarter-over-quarter. channel revenue million, up the and up non-service X.X% was provider down year-over-year revenue again a sequential basis. EMEA and $XX.X revenue net due strength is

up is million for $XX.X XXXX, down which prior year from X.X% X.X% quarter-over-quarter. revenue APAC Our quarter was fourth of the net and comparable the quarter

shipped wireless about months about of net of to revenue combined our XX% For about X.X XX% fourth in quarter business quarter of introduced of the X.X million revenue was XXXX. XXXX, units last for split routers units, quarter split nodes respectively. million The our XX% home XX introduced and products XX% and between wire X.X last approximately Shipments of The million fourth including XX% where wireless and products gateways shipment, quarter fourth months about contributed we all net and products. and were total XX% was wired in the shipments. the Products respectively. about the of of XX fourth and constituted wireless between products

Our the the the gross is of which XX% points was was million, year-over-year margin season. elevated the holiday down usual came during in flat the year-over-year non-GAAP in operating fourth due in QX basis down to seasonality for of XX.X% XXX quarter. from expenses promotions at and $XX.X up XX.X%, in X.X% XXXX, sequentially. quarter to headcount XXXX non-GAAP first Total Total sequentially XXX of third XXXX, and quarter compared

to for year quarter period needed the as expense our from was XX.X% in sequentially quarter as revenue Our for and net to quarter of compared prior third Non-GAAP vital expect quarter the the which XXXX. X.X% and X.X% this quarter comparable R&D was X.X% non-GAAP R&D dollars. expense of business, in up prior fourth remains the down the and absolute XXXX. net compared X.X%, margin of we of to fourth to therefore, the revenue year in is comparable in in X.X% grow operating third

non-GAAP XX.X% the tax XXXX. was of rate Our fourth in quarter

non-GAAP $XX.X non-GAAP per share. the net at of million QX, $X.XX we've Looking bottom line of reported and diluted EPS for income

of the ended sheet. quarter with We $XXX.X cash. XXXX the to fourth million balance in Turning

which operations million XX brings $XX.X cash flow in million. cash in used our trailing operations, $XX.X we continuing quarter, in to the months the During continuing total used over

We of to used confident in the in and which cash XX cash; operations in expect we million. further remain generate expenditures the first our ability levels outflow XXXX, of $X.X from in the half itself meaningful will correct trailing of of to property a our $XX.X which Additionally, capital cash half. however, second we total used during million the brings quarter, equipment purchase for over months

We are to a to QX XXX,XXX of imposed $XX.XX approximately we shares as inventory consciously smooth manufacturing start QX, $XX of per for to equates China to spin repurchase allow average on we've of basis. XX.X repurchase tariffs. locations approximately select $XX.XX In NETGEAR a stock Since transition million activity at million our price a the shares. an to spent post repurchased of amount part common share, the outside response of of approximately which in XXXX, our on taking

stock of shares the X.X are the under opportunistically and is quarter. end buyback approximately shares There quarters as in program, at we the million come. fourth Our fully diluted repurchase count share million remaining to to approved XX.X plan our our

net Now and of Nighthawk results generated Meural sequentially. Orbi, and to on brands million Nighthawk, quarter, Pro year-over-year The of turning X.X% during segments. Connected our a Home the leading up XX.X% the which up Gaming, industry $XXX.X which segment, the revenue basis includes is

sales service sequentially. revenue up XX.X% and net Excluding providers, was year-over-year to up X.X%

mesh, were performers Orbi our quarter. Pro strong line gateways cable modems and up Our and the during Nighthawk routers Gaming

and fourth The retail of quarter year-over-year X.X% pleased a is hold in X.X% to XX% that which gateways WiFi of segment extenders. share over down XXXX, $XX.X basis up we SMB net mesh, As routers, sequentially. to generated are on result, products, and we U.S. for continue the a revenue covers which see market million

guidance Our the which portfolio SMB, our switching the ProAV for I commentary, switches. Patrick cover provide call XXXX. now continues and I'll first to for results will over after PoE especially the to his turn of quarter for

Patrick Lo

Thank everyone. you, Bryan, and hello,

series quarter XXXX, PoE+ that Orbi for Gaming the are We our Nighthawk XX which in and we of year, ProAV product extremely as fourth mesh, Pro by such routers pleased with new the the driven were the switches. results last the and introduced of categories

continue Our strong cable performers well. as modems and be gateways to

high segments. in end operating the revenue in for range streams a approximately our QX both global business build progress SMB of year-over-year We results installed our about of million saw of for came topline excited margin. of tapping financial recurring and into growth massive We quarter and positioning remain profit XX and revenue guidance Our base healthy by the the our customers. delivered and at to significant CHP

in X operating ID meaning users, margins in million that customer quickly subscribers million XX% already as we reported our of registered September Day unique reaching had X.X bases user with we Last and last roughly as and XX year, As paid targets with our registered have us. September, possible. that million of had a details of Analyst one-third outlined we installed

million, report that our specifically users registered crucial we're apps, to as last services Adding foundation to pleased Furthermore, downloaded it reached of the app relationship very one have management functionality. had are we we products XXX,XXX we us and time. September, registered last users is quarter. Adding our users shared These device for customers. provides customers the registered because X.X active at fourth that a app our for that with We also are of and registered for companion additional that value-added since engage $X.X app-users apps able September offer important more doubled is that that to year, on purchased our our our thrilled because fit users number of directly reaching fourth to to suite than quarter. allow our Through with report of customers' the app us regular a end us, a million of needs. of the We're our basis. especially registered customers as of

marked that our product technology wave debuted front, had significant world's points AT&T. launched we We millimeter first industry-leading in product mobile fourth the quarter inflection fixed the routers with first launches Turning to WiFi wireless. routers and two during XG

as As also the optimized we congestion accommodating many interference. standard mitigating have X known home, Wi-Fi that's is newest previously, and discussed the network reducing XXX.XXax neighborhood devices for WiFi in

our Wi-Fi AXX in available Mesh mesh NETGEAR announced with many to prior October provide XXX.XXac WiFi Orbi launched Xx of the data capacity year. also the we in home. than AXX Nighthawk last was patented January, first to Routers. speed The to CES Furthermore, the Wi-Fi combines engineered consumers. It delivering with WiFi at more Wi-Fi capable technology to of first Nighthawk in The X the products, generation gigabit up system Router is performance deliver X XXX.XXax best FastLaneX WiFi

that available in product this half expect the of be second will We XXXX.

higher Wi-Fi XAC and Orbi are counterparts. of AXX, we AXX.XX the the the All X that announced, routers than products ASPs Wi-Fi the the at AXXX X

the in Wi-Fi line of products, During products. on XXXX, confident of X higher standards. various to the ASPs will introducing again new are XXAC based the cause At lead relative that we we

world's millimeter wave AT’s XG During mobile first the services available XG adopters. commitment XG XG We're of with Nighthawk Hotspot network in the excited of announced plus also standard-based we to to release the mobile, in the mobile, be Mobile U.S. part very on introduce AT&T’s is for to T’s the and first and the network early AT&T. It's quarter world first fourth device the XG the mobile be

content to first patented You a hardware, XG canvas, desktop the technology, be of more images a gesture signature Meural can platform in The from that acquisition Canvas everyday. curated the the of and software retail channels, through to an voice, by at world provider world develop is Canvas viewing is over including which of generation combination to the for approximate experience, annual around or our XXXX Canvas CES with museums, users which partners of fee. Meural's service a cloud Both that The Controllable to Meural Canvas third true $XX and Matt from us hardware Meural’s Meural big the related to for release and subscription shared expect realistic and empowers another was digital art products provides announcement XXXX Meural part became XXXX. interact differentiated a declare firmware and business. display. app. combined XX,XXX of art artists, smart op access Meural by is a mobile we the NETGEAR. August NETGEAR leading deliver the the

modular content different Meural month, featuring Geographic. sizes WiFi, in has partnership and styles we improved various frames National announced new and performers. with exciting two greater Our higher new with third-generation in comes stability price, Meural Last products an and

Meural the enjoy collection of variety stunning a Geographic can from you at National home Now photography Canvas. with wide the

many XXXX. exciting partnership more ahead, can you Meural Looking in from us expect content

solution we SMB with Ceiling-Mount lineup management side, Mesh Orbi cloud our expanded a WiFi the points our PoE+ and our switches, advanced Pro On family. wireless for a new lineup product Satellite access of for insight

powered show. medium a open a it and CES, discrete ceiling Ethernet or areas, directly especially Orbi as solution Pro at was CES powered be for with such satellite Orbi at it new wireless the connected large innovation operating mode outlet by perfect deployments warehouses low in POE AC via hit an if without award Ethernet mesh if Our capturing for Pro useful a device is is honorary connection. It's the because by can satellite density.

applications of in During growth has into QX, casinos world. switching capability powering, contributed around the our in our been in the such our a new malls introduction ProAV to also the and as well. we displays as PoE+ switches success of QX and unmanaged video saw and shopping walls expansion The revenue line switching big

As shared our installed the the focused base. the the forefront that continuing the innovation by end in premium command the roll supplemented we of desired hardware, for our differentiated to right be of installed the creating services the base we to future while successful which will on connectivity connectivity value-added key at continue most have in NETGEAR staying By the of to out software, need innovation services to they them. paid by provide market, will be that will Internet past, to in are value-added

technologies at fiscal topline growth be growth the we mid-single-digit be and to XXXX, of in double-digit operating products introduced Looking non-GAAP continue the confident pipeline on new profit to and for year. in in strong the

seasonally operating the in margins call We we the guidance. believe back XX% can will continue strong that to half, now range. XX% for quarter to exit second I quarter Bryan fourth turn the first with to without

Bryan Murray

Thank you.

below the usually As business Patrick service last pronounced portion is And becomes of a our overall XX% provider becomes portion approximately quarter revenue, businesses Day on CHP is as our Non-service very our just our QX. indicated seasonal. Analyst more September. we smaller mentioned, provider of in seasonality first as

to the the half back of year, a of second half for between at second we completed typically half in half, recently of which the XX% seen our lift have the XX% XXXX. over of the Looking year first factors

effect year. relative first to This of quarter million. in range approximately the too $XXX For from revenue $XXX QX seasonality we days post-holiday XXXX, added the fewer be normal with million prior of QX selling of to the anticipate reflects will the to

First quarter in is be the to to X.X% GAAP X%. of the margin X.X%, to operating in of operating be range to margin while non-GAAP is range expected expected X%

tax and the comments, to XX.X% be is to our XXXX. GAAP be expected take the that tax now quarter is XX% Our we approximately and questions. rate first expected approximately in non-GAAP Operator, rate can concludes

Operator

Thank go you, first Instructions] ahead. Raymond comes Adam James. Please question sir. from [Operator Our Tindle from

Madison Suhr

Adam. taking Good my Thanks is Madison afternoon. for This on for question.

like XX% exiting there Day, to about Analyst margin. And the bit have at a talked So you QX you had a XX% operating QX to at of looks it guidance. an climb get based on

in the So XX% guys some XX% you what throughout to factors And are still leverage the year? are key to the targeting getting QX? additional

Bryan Murray

as to XX% we Yes, rate the to and mentioned be able are I exit still XX% Patrick think deliver for QX. confident

driven that's I seasonal that by partly see. lift think we the

growth first the hopeful we about services half As to I from on a XX% in are as see to quarter. mentioned, in that fourth see XX% will some the the benefit compared typically to and we start we attach second half,

confident will to hit that So we we XX% exit that XX% rate. do remain

Madison Suhr

on similar cash And Thanks. flow. then question Okay.

commentary about around to at million. $XX Analyst You some talked $XX million that the there. And normalizing you had Day, around

about is now XXXX? of, we spin you priorities, complete? to, So that remind us number is accelerate about kind also to fiscal Thanks. as we And buybacks then, year right if that the could on think expect should capital and the allocation think

Bryan Murray

million. of will of out first the look neighborhood we that cash income did of be a of XX% XXXX, I be half terms cash typically the in Yes, net think in think XXX% to of XXXX. and the non-GAAP be probably that usage $XX to, I for in I XXXX the case flow a point will generation, to

we response year to and roughly seen we beyond were back inventories have in that evaluate operate increase think to to $XXX for initiatives. tariffs the the XX% did an anticipating From need But to standpoint, the into expect we stock. got anything increase to million would of will allocation strategic in delayed. obviously business many which that buyers half. We capital our opportunistic that effective the a normalize continue be as X, we You January

Madison Suhr

Thank helpful. That’s you. Okay.

Operator

you. Thank

from Our Woo question Ho ahead. next comes from Please Bloomberg. go Jin

Woo Jin Ho

in the shake did selling way more of Google so WiFi? you you’ve low the Great. Orbi the questions. you bit high SKUs XX, taking out? about Will end Nighthawk the Patrick, Thank portfolio. a season? was the Orbi SKUs Can the broadening be well traction good take little just for towards with SKUs nicely on away holiday share with as been – this the the you Where my Or past a to the there a XXs? as up talk portfolio end it from

Patrick Lo

individual Well, products with rest on to we we we all performance, product the comment say, traditionally but are happy do the series and no introduced is Orbi very exception. line for not XX new

sold products both sales think And of get associate, Best if are they pretty walk stores Costco. you I Buy stand. sense and in and the a both into how good you will ask

Woo Jin Ho

question trend how And ask WiFi in ASP that your then different line? your way, in did to portfolio

Patrick Lo

has that We any for be think frankly, not last there the definitely exception going of there because continue over unit years upwards growth, ASP few trend the is this would don't our the we And growth growth is powered market. Home it and because, been the by year. Connected to saturation believe to of

Woo Jin Ho

us giving expectations in a to there? XG start mean should that should the Are you questions. I'm XG continuing we business? every given start Okay provider moderate Home especially providers, Connected keeps Analyst The how number pulling quarter guys that up – talking every I assuming keep and down my new have and Hotspot was is we a number, that couple you and sell-in. and thinking you product-related service of your more revenue it Or service that hair your me our that about opportunity? sequentially the the Day, outlook

Bryan Murray

Yes, million before, I we that business, we think $XX average, on at range. be as expect said to

I tail the XXXX think, as at newer phenomenon we network on as think to as of gets end average believe it's I quarter. devices it XG, relates rolled this come a out. out million point, that's $XX fully But

Woo Jin Ho

a is seasonal still the the a of upgrade on lastly X, X. things back X of product you for is of mixed appreciate or contingent the the And more that Okay. I'm chip story? half front, of half Wi-Fi hearing I strength Wi-Fi on in Or – Is terms the Wi-Fi availability the cycle the for commentary. year in router guys? year it back XXXX

Patrick Lo

No, this X that we Wi-Fi year the believe year is for upgrade.

have probably you probably the procurement in know, we As the valley. best team

We short shortage, that chips. problem. are last I mean, never about And any everybody this had we of year, never complained capacity

don't a the And is three ASP whole announce to there I restriction try And more. we'll So up. already factor. and push announced think is we've products thing

year possible WiFi every this Wi-Fi of for So of XXac. choose we device, X purchase, them like to our instead would

the will that significantly then course, happens up go best than if would be So we that ASP planned of the but scenario. more case

Woo Jin Ho

you. thank Understood,

Operator

Thank you.

Our Hamed comes BWS ahead. go next question Please Khorsand from Financial. from

Hamed Khorsand

accounts your than your more more what's higher a gone Hi, talk this? this to last year, year than it Are up It balance giving retailers? even about I receivable year has and mean terms like could you DSOs? driving you like it credit seemed seems was quarter and it before. last

Bryan Murray

same the phenomenon. really it's No

customer, offer extend about we Our terms programs XX seasonal normal days. payment dating largest that by

DSOs, what that – days small then the to a the beginning there's a the have that the to that few on was more side which the relating fourth other new of seasonal expect that impactful. a to portion makes And adjustment in standards adds of is kicked in business, with the is in lesser we contributing impact non-carrier subscribers are factor line revenue year quarter. that kind of The see even but and

Hamed Khorsand

the from up seasonal the service going line in we for being somewhat seasonal with a usually meaning down other with it point? And QX QX lowest, the dip does to the smaller, is provider business change seen, still of are is the change see revenue events the

Bryan Murray

You're right.

is QX the As business, service lesser non-service be the relatively – impacts the a typically is market the noticeable. of a total of flat. provider portion more becomes CHP provider portion seasonal will of

As product on, the market, I that you outperform and we're to the know, think trying continues. trend with Patrick touched that lineup would I hope

Hamed Khorsand

it, of in from how guidance? trying much in these guys mitigate to were impact And a I then is that did you have input talking Okay. but QX QX expecting? that you tariffs and how you're much about your know an business neutralize

Bryan Murray

number increases. aside offset tariffs, way is standpoint chain to impacting of from the we in no profitability several get aren't of a on ago would that price There a in ahead the chain as stated months our effect of we that supply then we have anything able and this the to offset actions taking be supply

Hamed Khorsand

Thank Okay. you.

Operator

you. Thank

Our Please next Silverstein question from Cowen. from Paul comes go ahead.

Paul Silverstein

my taking high-level for simple questions. I Thanks a got question.

you but about the standpoint, ground, You risk what the XXXX, greatest to things was a course for covered the one of three excited those when one both and the most over you're to lot of think and the growth from big? about to profitability three company

Patrick Lo

mean, Well, we inflection doubt got it. number course technology I there one about new every there's time take to share. of we've a is that technologies believe is no

So and excited Wi-Fi XG. this very about we're X

thing are because and fact, to Wi-Fi even very excited gone to have though the SMB share. We're another gain the end actually force to Same more is of is here, matter we XG Now PoE++ right to the coming going technology out, story to is very of technology it. like so yet. side, utilize so as inflexion from PoE+, we X technology excited we're a inflection there non-PoE on build networks PoE+ year is about full called the probably on many about. go not a XG PoE

is this the that Because XX if the and matter would we X% by get thing to that be is love The that recurring of million year thrilling. number of revenue factor we download the I X. possible of most mean, end can even to downloads course, then two, quickly app of debt exciting. buildup is, So users as fact already very get number service half of the XX that's will we the very foundation. And million our get exciting registered as many our you convert bit little subscriber. once And but think, app, do. say harder, hard is have X% so XX% be thing. them job ways most could unreachable, I paid is a not out of converting our the would the to a second to it's a service not bluebird. to get that rise I to maybe we the continual to exciting And thing Meural, will the in be Meural third app turn right. download, is significant say all a

Now this bottom we of top mean, getting we could who to don't if new new haven't factored going of any it, Meural because we knows. year into how our go. exciting and avenue more know content, selling line I it's growth find of But

So I very very, is exciting for us. think, that

those actually what not you irrationally product. then that competitors, care was I most number bad market are profitability data one some would our not top is competitors worry about if business of two, selling of risk and motto be selling motto about. tough. talked I risk And do behave customers’ is that mean, them mean because the be in that our one, clearly we the three. Their the about business the of their anyone believe we So could is that

move Wi-Fi premium likewise do gaming, that, towards all the further towards end pro customers better. X, the our why high XG, And is things the that more the and of that market like to believe that end. where we all move faster we of we this to So all Meural, we really the need privacy. appreciate end The further

mitigate try we as that quickly So as possible. to

to but – everybody ranging Brexit All right. in from X-star can't we control. if – ton and schedule, who time, I And we could our Every play mean completely course, about for usual Second, big is in any, shutdown, to that of government knows, we mean, record. all any I products got as lot can't the of control these pretty you know, are third on Otherwise a I mean, there's on so geopolitical I every Technomic, then is thing and terms knows. night. right sleep trade is in as issues execution, terms This a terms don't the This been products track control. business every war, we've it. of slip any of new worry world, marketplace. but product's havoc having I out technologies significant we've probably the the are around time up, main good the of of we that product schedule, in a man, one quality, in market, in we can rolling and of of that,

risk the hope we two, is hope you for doesn't mean, one, is my all it two, happen, I one, number our we three. control bull's So number that eye under doesn't and time. it it absolutely in happen, three, see

So that's much one, pretty three, one, two, two, three.

Paul Silverstein

out typical does visibility I All right. quarter? it the What how far your extend? going into If And may warrant some is more questions.

Patrick Lo

happen – if generally, visibility those our the issues would at XX business bluebird XX visibility. some any we or days out, mean, out. for things, good on things a days normal is But as I have and said, could the for the non-service of competitors that irrational of disrupt visibility at you behavior time business, look of like essential of scheme our I any geopolitical provider

Paul Silverstein

Understood.

would characterize So that today days said how year you a ago XX visibility ago? versus versus

Patrick Lo

Pretty good.

Paul Silverstein

no Better, or worse change?

Patrick Lo

stated XX-day basically is it visibility. what in on No, our guidance based we have

Paul Silverstein

on. Appreciate pass Thank I’ll it that. Got you. it.

Patrick Lo

problem. No Sure.

Operator

Thank you.

Equities. Trip last Our question Global Please comes from ahead. Chowdhry go from

Tripatinder Chowdhry

And fourth Patrick, was that consumer printed extremely wondering, business do? how your out Thank the the in quarter extremely, collapsed. quarter, challenging? execution, everyone almost your Company fact did was you I you. the What A and electronics that the whole fourth did good for maneuver considering the fact things you numbers very fabulous. you products, considering

Patrick Lo

we to your going I classic you're channel plan. execute that of to mean think continue on And on pricing. to promotion, on four-piece really mean XXX% pretty I just our products, a channel, execute on I three-piece, the story Well, it. partners appreciate

Our appreciate it. customers really

in we're the product the I executing tariff the put grateful is and team they the cleaning team, channel have do awesome, team. I top doing really and up mean it that quarter many really, of to am the the so I thingy the And pleased to and and things the with spend, thankful very way. and so on program.

Tripatinder Chowdhry

that Meural, it love also. product on somebody versus other then the see see the the at experience the at Buy wondering, it initially it's it, Costco to to wouldn't Regarding that? product, thoughts completely a person fall in it think with I product you way like on places sell very saw I would going experience can be experiential Meural best was Best really any show CES like and probably online, in and it, has least

Patrick Lo

you mean on right the lot our it. I the have to a think router, and it I of like the Orbi order exciting like to products experience the you Voice, in head. Gaming appreciate new do hit Meural,

I mouth So physical once believe build following you're that for a help big people it you presence, referral. is experience would mean right, I then enough of a to the overcome areas physical definitely words must. experiential to

organize you try in that of we that getting coming year to our kind So to that's – a lot of experience partners the year. channel we're and have it. up to And people I a last to experiential see from more presence setting and beta this store started why, of think interest

Tripatinder Chowdhry

Excellent, execution extremely very and environment. difficult good

Patrick Lo

you. Thank

Operator

the Q&A for closing concludes time, turn Thank This management call you. the this I'd to to At over remarks. session. like

Patrick Lo

QX, the products, three just that we're as in call. I opportunities the again, thank on you. look we described, excited the Chinese earnings this time. a Year about mean channel so And everybody as again time have and in you, coming in to once with updating is our mean you I pleased excited. Thank very those having for opportunities very we're in forward New call, I and And our Well, we're that both joining today's year. top financials. I the the next metrics good well all

Operator

you. Thank program. for gentlemen and today's conference. the Ladies This attending concludes

disconnect. You may all day. Good

Christopher Genualdi	Investor Relations
Patrick Lo	Chairman and Chief Executive Officer
Bryan Murray	Chief Financial Officer
Madison Suhr	Raymond James & Associates, Inc.
Woo Jin Ho	Bloomberg Intelligence
Hamed Khorsand	BWS Financial Inc.,
Paul Silverstein	Cowen & Company
Tripatinder Chowdhry	Global Equities Research, LLC
Jonas Silverstein	Cowen and Company, LLC

NETGEAR (NTGR) 6 Feb 192018 Q4 Earnings call transcript