Netgear 2003 Annual Report Download - page 15

Download and view the complete annual report

Please find page 15 of the 2003 Netgear annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 24

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24

Initial Public Offering. As one of the few technology companies
to go public in 2003, and one of the first Silicon Valley com-
panies to complete a placement after a long drought, NETGEAR
is excited about the enormous amount of interest in the global
marketplace.
Recognized as the fastest growing wireless company world-
wide in 2003 by Synergy Research Group, NETGEAR is in a
strong position to advance its leadership in the coming years
in this important and high-growth category. Broadband adop-
tion continues to increase worldwide, fundamentally driving
adoption of networking and creating new opportunities for
NETGEAR around the world.
NETGEAR has developed international strength over the
years. This foundation provides us the base to expand glob-
ally into new emerging markets. As shown by the mobile
phone industry, the international markets ultimately eclipse
the size of the domestic US market and our strong position
internationally provides the best foundation to capitalize on
this tremendous growth opportunity.
With the enterprise networking segment 100% penetrated
according to International Data Corporation (IDC), and net-
works deployed in only 8% of the consumer segment and 32%
of the small-to-medium business segment, NETGEAR remains
well poised as a leader in the “sweet spot” of the networking
market that is expected by analysts to grow at a 19% compound
annual growth rate.
Broad trends in technology offer even more exciting oppor-
tunities for growth. The widespread availability of legal
digital audio content and the emergence of Internet sourced
entertainment provide new growth avenues for the company
following the introduction of NETGEAR’s Digital Music Player
(MP101) that connects your stereo to your network of digital
music files. Demand for video and Internet gaming solutions
are expected to follow. The rise of quality Voice over Internet
Protocol (VoIP) services provide the beginnings of a revolution
in voice communications creating new openings in our con-
sumer and small-to-medium business networking markets. As
Internet and network security continue to increase in impor-
tance, NETGEAR is well positioned to deliver the technologies
that are as critical to any small-to-medium sized business as
they are to any large enterprise.
Opportunities to deliver superior value to customers and
shareholders alike are many for those with innovation and
speed in their blood.
Patrick C. S. Lo
Chairman and
Chief Executive Officer
13