Netgear 2012 Annual Report Download - page 45

Table of Contents
Net Revenue
Our net revenue consists of gross product shipments, less allowances for estimated returns for stock rotation and warranty, price protection,
end-user customer rebates and other sales incentives deemed to be a reduction of net revenue and net changes in deferred revenue.
2012 vs 2011
Net revenue increased $90.9 million , or 7.7% , to $1.27 billion for the year ended December 31, 2012 , from $1.18 billion
for the year ended
December 31, 2011
. The increase in net revenue was primarily driven by sales to our service provider customers, and to a lesser extent, our retail
products. This increase was partially offset by a decrease in net revenue from our commercial business unit.
2011 vs 2010
Net revenue increased $279.0 million , or 30.9% , to $1.18 billion for the year ended December 31, 2011 , from $902.1 million
for the year
ended December 31, 2010
. The increase in net revenue was due to strong growth in our retail and commercial product lines, and exceptional growth
in service provider revenue. Refer to the discussion of segment information for additional discussion of net revenue by business unit.
Refer to "Net Revenue by Geographic Region" and "Segment Information" for further discussion of net revenue by geographic region and
segment respectively.
Net Revenue by Geographic Region
2012 vs 2011
The increase in Americas net revenue was primarily driven by our retail products and sales to our service provider customers. The decrease in
EMEA net revenue was primarily attributable to a decrease in sales of our commercial products and, to a lesser extent, a decrease in sales of our retail
products. The increase in APAC net revenue was primarily attributable to increased sales to our service provider customers.
Americas continues to represent the largest percentage of our net revenues, and APAC increased as a percentage of revenue, primarily due to
growth in the region. EMEA decreased as a percentage of revenues as we continued to see macroeconomic weakness in the European market.
2011 vs 2010
The increase in Americas net revenue was primarily attributable to sales to our service provider customers. The increase in EMEA net revenue
was primarily attributable to increased sales to our service provider customers and increased sales of our retail
41
Year Ended December 31,
2012 % Change 2011 % Change 2010
(In thousands, except percentage data)
Total net revenue
$
1,271,921
7.7
%
$
1,181,018
30.9
%
$
902,052
Year Ended December 31,
2012
% Change 2011 % Change 2010
(In thousands, except percentage data)
Americas
$
679,419
15.7
%
$
587,056
25.8
%
$
466,542
Percentage of net revenue
53.4
%
49.7
%
51.7
%
EMEA
$
457,724
(4.2
)%
$
477,713
40.4
%
$
340,249
Percentage of net revenue
36.0
%
40.4
%
37.7
%
APAC
$
134,778
15.9
%
$
116,249
22.0
%
$
95,261
Percentage of net revenue
10.6
%
9.8
%
10.6
%