Netgear, Inc. · NASDAQ:NTGR
Netgear — Investor Presentation (2006)
23 slides from Netgear's investor presentation, Oct 21, 2006
Slide 1: NETGEAR
Slide 2: Safe Harbor Disclosure
Safe Harbor Disclosure This presentation This presentation contains contains forward-looking forward-looking statements statements within within thethe meaning meaning of of the the U.S. U.S. Private Private Securities Litigation Securities Litigation Reform Reform Act Act of of 1995. 1995. Specific
Slide 3: Mission Statement
Mission Statement Be the Innovative leader in the fast growing networking market of connecting home and SMB users to the broadband Internet
Slide 4: About NETGEAR
About NETGEAR 9Tremendous Market Opportunity For Revenue Growth 9Unique Innovation Process for Product Development 9Superior Cost Structure Leads to Sustained Profitability 9Solid Financial Performance since IPO 9Global Distribution Channel Second to None
Slide 5: Market Opportunity
Market Opportunity Forecast of Broadband Subscribers Worldwide Subscribers in Millions R 251 C AG 24 % 226 Asia 199 166 126 Europe 88 USA 2003 2004 2005 2006 2007 2008 Source: Dell’Oro
Slide 6: Market Continues to Grow
Market Continues to Grow Continuous Expansion of wireless home networks in $Billions 5.7 A GR C 4.6 % Multimedia Devices 26 3.5 2.5 2.3 1.8 WLAN AP/cards 2003 2004 2005 2006 2007 2008 Source: Dell’Oro Group, Cahner/In-Stat
Slide 7: Market Continues to Grow
Market Continues to Grow Unmged/Smart Gbit Switch Market in $millions 540 461 A GR C % 48 332 202 124 78 2003 2004 2005 2006 2007 2008 Source: Dell’Oro
Slide 8: NETGEAR Annual Revenue Growth
NETGEAR Annual Revenue Growth ($ in millions) $450 $383 G R CA % 26 $299 $237 $192 $177 $112 1999 2000 2001 2002 2003 2004 2005
Slide 9: Innovation Process for Product Intro
Innovation Process for Product Intro = Partner Partner Partner Partner Identify + + = Market Recognize Recognize Identify with with promising with with key market key market promising world-class world-class networking world-class world-class opportunities opportunities networking technologies techn
Slide 10: Continuous Stream of Innovation
Continuous Stream of Innovation Connecting different devices to the Network and Internet --------Æ TV Disc Stereo Environ PC Printer Phone Control Gaming Wireless Broadband 3G, Flash OFDM, Wi-Max Various Transmission Powerline 14, 85, 200 Mbps Media and Speed Wi-Fi 11g, Super G, RangeMAX, RangeMAX 2
Slide 11: RangeMax Router and Adapters
RangeMax™ Router and Adapters •• First First Introduced Introduced in in Q1 Q1 2005 2005 •• Advanced Advanced MIMOMIMO technology technology for for max. max. coverage coverage –– 10x 10x more more coverage coverage than than standard standard 11g 11g •• 108, 108, 240, 240, and and 300 300 Mbps Mbps
Slide 12: Stackable Smart Switch
Stackable Smart Switch • Only stackable smart switches on the market • Smart switches = fastest growing switch category • Extend Smart Switch for up to 192 users • Rich management features comparable to L2 switch • Cut the complexity and costs of L2 switch by 1/3 to 1/2 • Expand NETGEAR’s dominance
Slide 13: Wall-Plugged Ethernet Switch
Wall-Plugged Ethernet Switch • Leader in market with broad offerings • 14, 85 and 200 Mbps* speed and encrypted security • Make any outlet a fast Ethernet Switch • Ethernet ports to connect – Game consoles – Storage Central – Desktop or laptop PCs – Slingbox™ – Printer Servers To the LAN and Interne
Slide 14: 4-port LAN Connected to the Internet
4-port LAN Connected to the Internet
Slide 15: Skype WiFi Phone
Skype WiFi Phone • Announced in CES in January 2006 TM TM • Skype calls over WiFi - no PC required • Shipping soon • Unlimited free calls to Skype users • Call any phone worldwide for pennies/ minute • View contact lists and see who’s on-line • Conference calling and voicemail
Slide 16: Always Strive for Cost Efficiency
Always Strive for Cost Efficiency 9 Lead in Offshore (Taiwan -> China) Manufacturing 9 Leverage our quarterly units of 3M+ and growing 9 Moving more manufacturing to Northern China 9 Always looking for the next low cost site 9 Highest productivity - $1.5M revenue/yr/employee
Slide 17: End-to-End Inventory Management
End-to-End Inventory Management U.S. EMEA Asia On hand Push/Pull Channel Channel Channel and pipeline Latest Actions to Weekly Sell Thru Weekly Sell Thru Weekly Sell Thru Inventory info demand and suppliers + + + & Inventory & Inventory & Inventory margin forecast Less Price Protection, Less Invento
Slide 18: Continuous Revenue Growth
Continuous Revenue Growth $131 $127 ($ in millions) $122 $109 $108 $109 $105 $101 $87 $88 $88 $76 Q3'03 Q4'03 Q1'04 Q2'04 Q3'04 Q4'04 Q1'05 Q2'05 Q3'05 Q4'05 Q1'06 Q2'06
Slide 19: Double Digit Operating Margin
Double Digit Operating Margin 12.7% 12.5% 12.4% 11.4%11.5% 11.4% 11.2% 9.8% 8.9% 8.2% 7.2% 5.6% Q3'03 Q4'03 Q1'04 Q2' 04 Q3' 04 Q4'04 Q1'05 Q2'05 Q3'05 Q4'05 Q1'06 Q2'02 On a Non GAAP Basis
Slide 20: Rising Earnings Per Share
Rising Earnings Per Share $0.31 $0.30 $0.27 $0.27 $0.25 $0.25 $0.23 $0.20 $0.17 $0.14 $0.14 $0.08 Q3'03 Q4'03 Q1'04 Q2' 04 Q3' 04 Q4'04 Q1'05 Q2'05 Q3'05 Q4'05 Q1'06 Q2'06 On a Non GAAP Basis
Slide 21: Continue to Increase our Sales Channels
Continue to Increase our Sales Channels VAR / Catalog / Retail Online Service Reseller DMR Retail Provider Over 29,000 VARs worldwide
Slide 22: Global Distribution Second to None
Global Distribution Second to None 46% 43% 11% #1 Brand in Europe, #2 Brand in the US
Slide 23: NETGEAR