NTGR - Earnings call transcript Q2 2020

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Operator

Ladies and gentlemen, thank you for standing by. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session. [Operator Instructions] I would now like to turn the conference over to Erik Bylin. Please go ahead, sir.

Erik Bylin

Josh. you, Thank welcome Results and Second of Quarter Good Call. to Fiscal Conference XXXX afternoon, NETGEAR's

Joining company The business on from of by and call us Bryan, the start provided the Mr. and Lo, will details second Bryan by CEO; financials Chairman followed for Patrick. Murray, quarter a by the CFO. with format the the are of review Mr. provided Patrick commentary and

have time for any then questions. will We

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

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

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

refer addition, release non-GAAP Relations At And measures Murray. periodic no in NETGEAR to the in based like call the non-GAAP as a please discussed on over statements this result Mr. Any be go I including call GAAP SEC, to this as to mentioned filings today's and update the recent reconciliation of several call. Bryan we Investor of Bryan, events. financial the factors NETGEAR's to be measures can new in undertakes would now found on Form or most XX-Q. information on are obligation of statements future our assumptions that to forwardXlooking risk For these this more on press will with A make time, website. turn the information, today, ahead.

Bryan Murray

and of to to pandemic. share Net rapidly deliver business, presented revenue quarter overall, line overcame were our to strong you year-over-year, changing XX.X% everyone again, to strong million, on the areas connections. from sequential sequential top their a for is challenges you, home we look on our profitability work as XX, demand Despite in around today's XXXX market our taking thank I'm to and Once quarter and in globe, basis second place joining a XXXX ended response Thank the you to year-over-year up for certain headwinds ongoing products was basis. growth. due June the due The a in Erik. the pleased up primarily second team call. revenue able $XXX.X individuals continued the CHP increase upgrade XX.X% transition with by for results both exceptionally today. And network

edge We online continue win Wi-Fi market strong to with leading offerings in presence. the and our X

our by for second came created leverage margin by growth. operating the driven non-GAAP the revenue quarter largely Our at in X.X%,

work for from products a the in EMEA For of home, XX.X% shift the $XXX.X also basis. revenue year-over-year, provider both home was net CHP XX.X% response retail and from increased quarter to was for and million, driven demand both up year-over-year which XXXX, up and sequential channels. up and XX.X% revenue by channels service provider net service quarter-over-quarter. and retail the second million, demand $XX.X environment. by work generated products the to continued up seen which to on benefit in the is This from Americas the is for CHP The Americas in was XX.X%

from X.X% driven by X.X% $XX.X providers. net was prior net periods sales decline down comparable was Our service both which sequentially. to from and quarter, is to relation the revenue year APAC in down lower million, revenue The

quarter point introduced focus The quarter non-GAAP constituted introduced in non-GAAP in from respectively. about XX discussion products was and about quarter and this XX% wireless second shipped points home year in wired margin points detailed respectively. gross units, comparable earlier split In second XX.X% about quarter approximately million our points XX XX% non-GAAP XXXX, XX of basis and of which all the products wired of quarter X.X my about X.X the while compared XXXX the compared and release million today. is gateways XX% XX products. the for XX.X%, XX% last including reconciliation we XX.X% of on, on between products and was revenue of split total in was our months of up numbers. prior quarter, to routers quarter months as wireless XX% up second shipments, basis a The of units about will were revenue combined Shipments second of GAAP and first net X.X distributed XXXX. net earnings From the is shipment. the of Products nodes between For contributed XX% and business the million to to in XXXX. second in The wireless our last

While margin CHP business, business. gross the the year-over-year, which carries our higher spending declined to margins, than due mix relatively impact able of gross SMB more marketing were lower contra we revenue in to offset our primarily million, associated in is X.X% increase increased top and primarily XX.X% $XX non-GAAP the QX sales came higher with sequential marketing which expenses at and up line. This spend operating to Total year-over-year was sequentially. at due

to continue we our ensuring expenses manage while prudently, are also investing of growth business sufficiently future success. the that for we always, our portions in As

by of prior as of the end Our headcount the from quarter. down was nine XXX the quarter,

period, our first and continue year quarter continue revenue of in X.X% XXXX. R&D very uncertainty. expense service Non-GAAP continue of net are was the of tightly, of comparable in leadership, in To as X.X% to to net revenue, our of and especially the subscription X.X% we committed headcount quarter in revenue compared economic net technology We R&D. prior the investment manage for times to

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

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

XXXX and $XXX.X short-term Turning second million into prior the the investments, the from quarter. cash ended balance sheet, we quarter of up in million $XX.X with

repurchase Wi-Fi flow mix $X.X and In of used and for QX, during to million Americas cash million capital Additionally, our the we expenditures increase deliver million over $XX.X XXXX. $XX $XXX.X trailing demand the provided as further trailing in brings months We from ability million. half generated remain months reduce In cash XX cash, continue our and to able QX, position will the generate in we which be expect confident operations, of purchases to $X.X older we to equipment continued to our brings in spent second XX EMEA, our and the repurchase inventory continued average our approximately total repurchase XXX,XXX $XXX.X total to Since use in QX to million. decreased $XX.XX we an by in the quarter, our in operations inventory per common at of strong stock have cash spent in on to in technologies. million million successfully price $X.X the shares. XXXX, the share. of we which We shares from XX.X million cash to of our activity quarter, over NETGEAR property start of

shares these, with importance diluted balance XX.X approximately of we of position, balance million desire our recognize second strong count of continue practice a to share repurchasing to end our Our is the of will and in maintaining strong fully a shares maintain the uncertainty Especially cash sheet. as quarter. the of like times we

includes quarter been XXXX second we again at The the of basis, of year-over-year, of up both consumer fiscal $XX its since increased which up XX.X% the quarter year-over QX the XX% Now, and sequential a and SMB and the which provider Meural achieved since -ear XX.X% in XXXX, revenue In segment segment, demand $XXX attributable net during revenue highest leadership share The provider its non-service coming channels. of and for while The held Wi-Fi, increase strong In sequentially. product a second down and it on was second record. XXXX, to down fourth market provider was the service quarter of revenue sequentially. a highest service basis, the retail U.S. million best has second home revenue our million of results position turning the segments. on generated brands, quarter XX.X% and XX%. results is on which Gaming, Nighthawk is year-over-year industry-leading of generated Pro the to in Nighthawk, in Orbi, connected in the XXXX, quarter, net quarter,

As corresponding pandemic experienced expected, business the onset in of closures. the SMB we declines our with business

continued front, market. and lines our well the perform in PoE Plus the On ProAV switching product to

share channel now at call in came in the QX. sold commentary. XX% his switches in turn I'll retail market for through U.S. over Our to Patrick

Patrick Lo

Thank you, Bryan.

the to team executing want delivering product. I NETGEAR thank and great for First, a well

continue We to originally of as from home, even meet working the than it challenges longer lasts anticipated.

of that leads working year-over-year provides from ideal to market has our speed delivers of new not household, medical of as half mirror bandwidth us all to aspect food, products, connectivity of well the to the homes possible built this from sales reality our edit for the in from this home corner we you era, that believe high to in shopping revenues, benefit that battling entertainment, to solution. new internet a products dynamics X can is from the year, are to to a but schooling advantage both on multiple quarter. devices, every that everyone Not Tri-Band, secure, will excluding connected second every needs the getting It's is of Wi-Fi With where members speeds hope world, hold new coverage always technology and new with by we to in experienced one growth and X rate of While conducted service also but across from advantage we only a continue the on, their connection, just lives learning the technology we leadership from and as in socializing, to end an where for online, the our and working pandemic, unmatched demand multitude out technology at and connection which speed of unprecedented swiftest same the work unprecedented for Wi-Fi second served providers, ordering CHP time, advice. the daily

internet in quarter. ramp versions second from hotspots, our traction volume. in year. to in of XG saw we Notably, shipped those we Domestically, secure strong growth diligently homes, our hotspots excited the or to the For the families we second to for work anywhere, are demand unprecedented to XG to the half XXX% their have where in wired we working gained meet the EMA, sequential for mobile with which been shipments looking unable in

revenue that in has year, currently the work ability XX% we first in pleased not to to compared to expect the we channel this innovate. grow as impeded of half am half. second our I to As remote the stand, share

mesh mesh a system, newest at system, Tri-Band in AXXXXX point just X a our of system. but offered not leader our Wi-Fi, devices, mesh released X Wi-Fi of under with attractive a $XXX very at for the we system an a the Tri-Band is top As Wi-Fi mesh line quite AXXXXX three-pack. of Wi-Fi lots recently and of large homes This Orbi X for price attractive scale mesh

we product us our strong Continued by subscribers, in paid new allowed in subscribers recurring XXX,XXX record that XX%, of surpass XXXX. with last paid than quarter stream. of demand the traction year the subscriber trajectory goal with revenue clear by subscribers. growing quarter and the XXX,XXX to our are from subscribers XX,XXX is to increased with on doubling Beginning a end new end our adding we paid progress more deliver end It gain of to count our the

well during performed delivered and expectations. to initial team SMP the our Our quarter

channels transactional quarter, through of pushing [ph] traditional are corporate to in sales on sophisticated we pro-AV last dramatic offset home the shared sales via projects. our we well channel, drop -- as the closing hard office as on wide our channels, solutions focusing via the As

recover decline slowly year-over-year to half, we economies improve corporate of our second expecting are sales the around the world, SMB slightly thereby As business. the lessening in

wins first home sales projects our pro-AV to networking compared the office Now, to expect to and grow we continue half.

access Our are driving our mesh home our reduce via provide points. is multiple access Together, SSIDs, plus network, access office managed consisting Pro points mesh of based and and popular they solutions multiple networking and home wiring can industry-leading unmanaged points. for on a VLANs, Orbi or most switches, sophisticated

still in are fully preconfigured anchored solutions pro-AV switches. managed our Our

from second the an to increasingly to continue is in of museum doctor from games, classes, food, ordering fitness your products the networks videoconferencing in serving T.V., virtual people's streaming two to and will going critical from the online hours, out that We We happy going learning to to home Broadway last beyond shows these current new believe to half. part playing normal lives online from of from remote clothes new roll movies, to pandemic. the going and to to ordering areas

year, us to top Murray accelerate For line the to this and addressable the value NETGEAR, in of empowers comment service our turn to obstacles overall higher the paid us Bryan a market for resets opportunities level, rest quarters. of on coming base. subscriber to to the it our that, a the to stable growth grow and of over enables with And I'll continue

Bryan Murray

Thank you, Patrick.

product. to they forecast. our fulfill the to in supporting ongoing new second Furthermore, business by and significantly by difficult waves suppliers' disruptions While warehouses. our uncertainty extension, demand If we in-market may is heightened half home and worldwide our scope, around most are economic confident been supply of slowing or to be strength and or networks, greater outbreaks our demand the of has in reopenings, for CHP profitable factories of the makes there still for our become of the speed of chain ability the continue and business, such CHP reversals hamper This in SMB, widespread of disrupted COVID-XX, the and XXXX. considerable could our COVID-XX recovery

As not of financial quarter provide now comfortable enough We the such, in audience. to from year. half guidance the like any a second third questions are the to position would for the we and answer

Operator

first comes an Adam Instructions] go Raymond James. question Please [Operator Tindle ahead. from with Your

Adam Tindle

about and afternoon, wanted strong on you talked that with results. to CHP. fuel Good to growth. expecting start the I know congrats made on I comment a continue thanks. to Patrick, Okay, you

that you guess was ex-service Was expecting up XQ so, confidence be QX growth would the go have I And do How and in you QX, a to that kind out the if versus up I said and that subsiding of in tail, level about why over you're longer talk and having confidence comment and should XX% the rates. that CHP seeing you're on you burst think think this there's tail about there? provider, that QX? what's just I to mirror which think to that? to longer giving you this it

Patrick Lo

are part the higher on seeing it clearly that was into the trends what than just the continue buying, QtX, at We're ASPs when Yes. people look early and of we before. it's

at without As the doing online lot a own interfering could to every I perform mentioned, home, people corners because coverage houses their things they virtually of high-speed other. with so uniform need various online their now things members around of have each

Wi-Fi the market is such, ASP Wi-Fi more of network at be significantly a higher as meaning the and higher. amount reset of So a actually sophisticated depth, a will the today of home home setup higher addressable into network That level. our

continue forward. maintain enjoy into are the we rest then, time we're calm, higher lead that right? the different year, We're be because received. of XX% As then And provider will the that's market our then That's about growth we for to service will we the long we the provider a why non-service be year, feel generally those once should orders mean, QX XX% longer the that we versus for roughly as make And course, share, growth the able on year. the the to for level why confident rest the comments. get business. next I going I of revenue mean, half it in a provider of service that's side, continue And delivering. is second all first of confident the half just of

Adam Tindle

QX of or Okay. weighting of about it in QX? QX the and for in Are rates kind us a rates QX, there's pretty the towards expected? differences there any think similar where growth to bigger in stuff Is terms major growth

Patrick Lo

seasonality quarter growth it each provider in say Friday. half could the Christmas, rate continue, mimic the that, would the QX of for Black With you which school for Overall, believe you second non-service could is piece, with of should same providers. back to and then the non-service the I normal will then

XX% the the on we the side, What's On depends overall QX mean, split second first half and between will provider service I be than how really ship. can bigger half much QX

Adam Tindle

from year guess to to lessening initial progresses, Okay. And think as that helped confirm And that year are goes? just case had mentioned the be to the an the the be you home slightly that. expecting work the declines heard segment? lessen I want they're tailwind I on if quickly SMB, impact that if then correctly. why from you've as so, I would the declines would expecting that you if Why I year-over-year

Patrick Lo

business about QX. SMB declined year-over-year Our in XX%

of the the actually The same reopening see economy be more XX%, of Based will sales And rate year less observation more the As believe QX, is we grow versus then and and decline getting business a corporate last normal the thing. better. QX QX projection, of QX. basis. will reopen, that than smooth we particular from decline hopefully, on the

points and When front, QX it push year-over-year momentum. been the Wi-Fi SMB new LAN we less second grade started will to as starting around to all using Actually, early more POV that push continue the really QX. office be we're progress add getting ProAV less access we're hard even said, believe that make in QX. home QX. QX. On just while, back some we we believe continue wireless that the of for you we'll together, our sophisticated little a those The and QX areas in in business switches, but we'll the in into has decline in the We network, commercial and to

Operator

comes from with Your Deutsche Bank. go Jeffrey next question [ph] Vance Please ahead.

Unidentified Analyst

you quarter? supply And Were to in quarter. seeing? are guys all the still demand nice you're that the any on there congratulations constraints Hi, able meet the

Patrick Lo

can inventory demand. claim a meet I that the we No, as quite I XXX% mean, can bit. don't you channel see, could depleted think that of we our

say XX lead our us team helping The It channel demand when weeks, other doing we components. to much But are best do? so we the we try to have now. is sold between produce. difficult buffer immediately. don't is much done to XX you We wouldn't a job Our XXX% we I because fantastic whatever that time the pretty more ops can very can. is difference. usually, they that do weeks many to could anywhere And out up How know

Unidentified Analyst

And margin you still Are there follow-up, do related And how you to seeing gross gross mix thinking think increased about COVID? thank to just forward? are Great, how as that about a going margins you. you're costs too? related

Bryan Murray

that PHP positive the look with that as One we think see we the think the of is, face headwinds on have, than capacity SMB margins. the margin touched model still certainly further That and leverage. of kind two on relent I the some you side. we'll And margin. I mix Patrick we line freight, out is to challenges related the get, the on I there's lessen in see on think we SMB put get some a side chasing forward, lift was just As we on with trying things we businesses weights pressure two which costs gross seeing gross can We're are some trends we comes we gross side, which some aren't as Those it bit the still and has will additional challenge. we even QX, that will see, can can every supply. with compression at the to that on, all, and maximize said, two top put air the the

gives we net saw. of levels that basis the addition two things an think points to I operating margin the us QX XX of off those of probably

Unidentified Analyst

Great, you. thank

Operator

Silverstein with Cowen. ahead. from comes next go question Paul Please Your

Paul Silverstein

growth? are Bryan, did XX% you expecting if that's all correctly guys. of XG And revenue? so, space I hotspots first Thanks, that for what off, hear

Bryan Murray

not what first hotspots. half. is include total that's material saw in mobile XG to But off the service the break XX% back LTE we coming in of started quarter. in out we in level. for specific across of That that Europe, say And we do XX% half of kind growth hotspots providers. would the at would volume revenues I The in all ship the

Paul Silverstein

Is generically, correct? X million less if like sold the still you that math I well what them a Wi-Fi More is it Of did than right, a quarter? products units. sounds enabled

Patrick Lo

the in a as well really Wi-Fi market of received we on quarter. as probably because limit demand. is we actually haven't But supply. north said, in representing little end we pretty market a X The bit it is checked then, see out the products the of it XX% there And is

Paul Silverstein

confirm I the specific X X.X shipped most of last I'm numbers me. appreciate that from I'm the a simple well the less your of a I XX% last X question I with you're if just assume product product -- XX that's are in units. what just -- months. right, in bear -- where than said response. million. less new asking question. that's you you I assume my Patrick, the units with Wi-Fi ballpark, is were in last Wi-Fi see that this. X.X which a is the units that you the million, think million quantitative is months; of heard But shipped? Wi-Fi of in months, the that's than [Indiscernible] I quantitatively million units, X -- XX want qualitative I going or If XX to

Patrick Lo

Today, it's not from Well, a as But not could of the basically afford to work their home's then of actually, and drives And be. think fact, meaningful because lot this reach, Wi-Fi could Wi-Fi people I a everybody matter home X. really upgrade it an lot people very, of a XXAC you or for $XXX. to going expanders two you at XXAC units buy high. of very are And buy one and way spend would to buy expanders. fastest still those cheapest $XX, them a and can is lot two about

not very in many this meaningful look purely the there's it's else. because And just completely course, unit buying volumes basis, overwhelm just extenders. at those QX $XX everything you so a of If people

Paul Silverstein

you've Unless Not could or X, a one your if Droid, can I'm a only endpoint. not argument. Now, afford new correct actually the push unless many iPhone, computer, of chipsets people new would bought even you not won't your you've X, benefit but new me Wi-Fi Wi-Fi wrong. Wi-Fi bought get get got you X, a if -- in you or Wi-Fi X Patrick,

then get X. today, want bought give of if Wi-Fi I But they you people only but the not so, they benefit won't Is I'll X real And And to question. sure. afford correct? Wi-Fi not most that make Wi-Fi my even X can

Patrick Lo

yes. Well, number a XX upgraded quite of client to I Galaxy Wi-Fi out think lot current networks. a mean, there But SXX, iPhone people there's generally there are Galaxy laptops. Wi-Fi more already of I devices and Fold, X SXX, the and speaking, new X bit personally than of

everybody We home are going think And SXX, difficulty haven't Wi-Fi those who there yet. Galaxy Galaxy all seen have and give I we a to iPhone Fold. X networks owning XX, SXX, to all just people

Paul Silverstein

When me let million trust full question percent you quarters? my driving just and towards. all, I been of out That's most ahead I'm this mass man there's that X that. question now versus is still assume Wi-Fi basic there's most adoption? give market in XX% of still points there Perhaps point small which the have in real or if stolen units question, because of are of homes very of get to ultimate of you're from has sucked has X the the what for ahead, I'm ahead terms preciously what answer the market much forward too the pacing of whether The of have if not real the States, shipping million it next is are price the market much it adopted today, high but the true essentially the And of potential would G how of price iteration I pulled suggest driving and debate the and in and that still terms you is could Wi-Fi, me. of like opportunity United AC, at. do is sounds the of years? really -- future year little less future -- of and market and market opportunity in XX% some been But a for We than X points how where Wi-Fi, upgrades XXX Wi-Fi a -- much has you. how well not

Patrick Lo

I I on that And bit X about shipped million logic see little of Naturally, mean, mean, a we said to use Well, that just basis so I X. do on, I math. a expensive. gateways, Wi-Fi forth. said Wi-Fi I XX% dollar think routers, I'll is we maybe about your more is so combined, X.X

a take cut. You rough

only million, You're XX% only Wi-Fi that, right. million into That's in of XXX Okay, of about is XXX,XXX homes the X.X X. U.S.?

everybody to lowest entry people for X not afford for to -- still than the is the so two cycle Wi-Fi in $XXX, off. the will can a have future, today long by X competition as drive. argue upgrade huge, could Wi-Fi town, of $XXX. Wi-Fi its come -- buy less way is runway The could buy Wi-Fi who $XXX Wi-Fi as by limited And those still there number upgrade point X we're products Wi-Fi good my $XXX; a about game supply, because cheaper solution. But because long X. people when But only I is in no a anyway. as limited $XXX, is We finally in you I mean the that pretty expanders because to you QX, some affordability go I are said, people well like we're expanders will X lot a And

a way think long to I there's go.

Operator

from question with Woo next Jin comes Please go Ho Your ahead. Intelligence. Bloomberg

Woo Jin Ho

timing think you the the taking taking airfreight into and for shipments Thank on Henry great. talking Bryan, quarter? the my Patrick question. Hey, of out about What And fulfill an third there and normalize shipping airfreight on when think your flights should quarter? I you those logistics second about demand. was X-K do David in

Bryan Murray

bit little and in exit as to a pretty spend levels, QX. airfreight given channel in said a it's the I as came we throughout in us for quarter. much positioned, the certainly the better channel, where the QX, as going say QX maybe into they terms for investment inventory quarter fair mean, I'd I of loaded. backend And consistent little was be well probably earlier, a

as of supply demand? that what season of have up see we pipeline kind earlier caught the matching that our part hopeful we we're get get and think can to the in I holiday we

Woo Jin Ho

it quarter Black Do half, seem the of the the Okay. think was increase look some didn't And we the have as there some half, second commercial then season. we on. terms bit? Prime a at holiday much little Day, you in and of going you second discounting of the second to mentioned going in is But that activity Friday,

Bryan Murray

we'll activity season. we I think promotional as holiday normal enter the see

some a certainly expect we're occurs. if out aside I season. activities and line. that, I when and they top the think be as the reinstitute Prime But promotional still would think, managing And the to question of with holiday kind from and normal going does, that Day, we there Amazon what line growing around there's bottom of to to form occur

Woo Jin Ho

if And in a I amount may, well as pricing. that talking it threat, if attractive competitor Amazon. competition. particular their do retailers view about looks them of question, smaller they one Patrick, it your as not that one channel? you potential X I'm they I a and they this mortar of fair as in given into has and brick a has going mean, or And threat? are Wi-Fi brick like doing one brought you're Google bigger and Are business of with, a mortar online seems terms on more channel

Patrick Lo

have I mean, so. the we No, the broadest on X, Wi-Fi don't basically believe portfolio. thing we is

but also we Tri-BXand technology, as Dual well. have Band unique Our

think in I It town we're is concerned out or it said, competitors or is it's, only is I concerned it mesh? Wi-Fi is cable there. matter gateways, or as game pretty not routers, small we're much it far the expanders, As about as whether X doesn't

Google to continue real market, we Amazon still Wi-Fi yet. Nest. in the is Neither competition the maintain U.S. have X of them Euro and As

Woo Jin Ho

Understood. you. Thank

Operator

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

Hamed Khorsand

Hi.

because much is spending I off, through? to channel partners, changes of you actual how of inventory the his and just sell much how reduction want inventory with First your ask of

Patrick Lo

through. channel Well, sales well. then And sell is as I mode being online. is and mean, are clearly, of sales done our also, changing partner's more More

Costco. online that just close in case, example, limiting more that stores. at do to pickup. to some the when and inventory less is the actually curbside channel. of inside have sites and we the really, what so Buy, seeing. Walmart, I are And the have course, online, traffic would ramping successful. business overall as And been That's For Best inventory stores liked stores because There's need sales really as shift of we up fast. more Buy they shifting not able Best much certainly is the the you need into we're online. said, in not it's ship the And much you time to in point but And don't as the

the in-store to well. the depletes of It as Some demand. the in-store inventory been has buffer inventory helping

Hamed Khorsand

purely from shipping you're able in capacity amount standpoint, is to -- issue The able chain is you're not ship supply to that supply meet a that and in components? that or demand entirety, of

Patrick Lo

mean, I to component as certainly. mentioned is lead yes, I Oh, from XX weeks. anywhere just weeks XX the supply now, time

see the April, go anywhere that mean, talk they're weeks the I go XX quoting And when chips end you right chips. in you March. in won't this order to of until could weeks tell early Qualcomm, arrive time end of into suppliers the about July. production between as and chips [indiscernible]; the chip such pressed to you all to saw XX all towards if June lead more So for we Broadcom, button they coming And of we

Hamed Khorsand

up something doing question just And QX, in ARPU achieved forcing Okay. not people of it last that you on my promos? to as you're purely X with of Or is QX. Wi-Fi the Is from much routers? because lack buy that then like was supplies XX% is just

Patrick Lo

people also, homes. XX, And products. they mentioned, advanced to are Wi-Fi those grouped more X. Well, to increase quarter-over-quarter That the just They as well. and and I more of up people SXX, and that's completely get the Galaxy over like just Galaxy SXX. at and opt have best, of why iPhone having basically X want some moved Costco ARPU Wi-Fi XXAC as you helps retailers rid entirely more for more

Hamed Khorsand

Do standpoint? you a production have to capacity from revenue here from grow

Patrick Lo

Yes, definitely. about it. No doubt

I mentioned, to arrive. chips As the starting just

Hamed Khorsand

Okay, it. I appreciate Thank you.

Patrick Lo

Sure.

Operator

at call questions time. further closing no are for this Patrick turn I'll to the There back remarks.

Patrick Lo

partners October. behind and more in the I forward to growth time. to like our contributors success employees of I and forward work us, Thank remain And sharing strategy year you coming their again next flexibility strong to And for call you look our this will so components and hard of look with the to confident quarters, much, a our would once Thank strong we beyond. earnings on half with thank XXXX and during in be our you. we this delivering Josh.

Operator

This for concludes joining. call. today's conference Thank you

now may disconnect. You

NETGEAR (NTGR) 22 Jul 202020 Q2 Earnings call transcript