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Table of Contents NETGEAR, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
The Company's investments in cash equivalents and available-for-
sale securities are classified within Level 1 of the fair value hierarchy because
they are valued based on quoted market prices in active markets. The Company enters into foreign currency forward contracts with only those
counterparties that have long-
term credit ratings of A+/A2 or higher. The Company's foreign currency forward contracts are classified within Level 2 of
the fair value hierarchy as they are valued using pricing models that take into account the contract terms as well as currency rates and counterparty credit
rates. The Company verifies the reasonableness of these pricing models using observable market data for related inputs into such models. Additionally,
the Company includes an adjustment for non-performance risk in the recognized measure of fair value of derivative instruments. At
December 31, 2013
and December 31, 2012 , the adjustment for non-
performance risk did not have a material impact on the fair value of the Company's foreign currency
forward contracts. The carrying value of non-
financial assets and liabilities measured at fair value in the financial statements on a recurring basis,
including accounts receivable and accounts payable, approximate fair value due to their short maturities.
QUARTERLY FINANCIAL DATA
(In thousands, except per share amounts)
(Unaudited)
The following table presents unaudited quarterly financial information for each of the Company’
s last eight quarters. This information has been
derived from the Company’
s unaudited financial statements and has been prepared on the same basis as the audited Consolidated Financial Statements
appearing elsewhere in this Annual Report on Form 10-
K. In the opinion of management, all necessary adjustments, consisting only of normal recurring
adjustments, have been included to state fairly the quarterly results.
105
December 31,
2013 September 29,
2013 June 30,
2013 March 31,
2013
Net revenue
$
356,620
$
361,895
$
357,719
$
293,399
Gross profit
$
100,789
$
101,659
$
103,430
$
87,737
Provision for income taxes
$
11,712
$
10,364
$
7,144
$
8,545
Net income
$
11,432
$
14,457
$
13,985
$
15,343
Net income per share—basic
$
0.30
$
0.37
$
0.36
$
0.40
Net income per share—diluted
$
0.30
$
0.37
$
0.36
$
0.39
December 31,
2012 September 30,
2012 July 1,
2012 April 1,
2012
Net revenue
$
310,436
$
315,210
$
320,655
$
325,620
Gross profit
$
91,378
$
97,688
$
94,638
$
99,849
Provision for income taxes
$
12,325
$
9,920
$
9,933
$
10,565
Net income
$
16,079
$
23,791
$
21,522
$
25,147
Net income per share—basic
$
0.42
$
0.62
$
0.57
$
0.67
Net income per share—diluted
$
0.41
$
0.61
$
0.56
$
0.65