Netgear 2011 Annual Report Download - page 47

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Table of Contents
Results of Operations
The following table sets forth the Consolidated Statements of Operations and the percentage change from the preceding year for the
periods indicated:
The following table sets forth the Consolidated Statements of Operations, expressed as a percentage of net revenue, for the periods presented:
43
Year Ended December 31,
2011
Percentage
Change
2010
Percentage
Change
2009
(In thousands, except percentage data)
Net revenue
$
1,181,018
30.9
%
$
902,052
31.4
%
$
686,595
Cost of revenue
811,572
34.6
%
602,805
25.5
%
480,195
Gross profit
369,446
23.5
%
299,247
45.0
%
206,400
Operating expenses:
Research and development
48,699
21.8
%
39,972
33.0
%
30,056
Sales and marketing
154,562
17.5
%
131,570
23.9
%
106,162
General and administrative
39,423
8.8
%
36,220
10.7
%
32,727
Restructuring and other charges
2,094
*
*
(88
)
*
*
809
Technology license arrangements
—
*
*
—
(
100.0
%)
2,500
Litigation reserves, net
(201
)
*
*
211
(89.9
%)
2,080
Total operating expenses
244,577
17.7
%
207,885
19.2
%
174,334
Income from operations
124,869
36.7
%
91,362
184.9
%
32,066
Interest income, net
477
12.0
%
426
(32.3
%)
629
Other income (expense), net
(1,136
)
101.4
%
(564
)
340.6
%
(128
)
Income before income taxes
124,210
36.2
%
91,224
180.1
%
32,567
Provision for income taxes
32,842
(18.5
%)
40,315
73.5
%
23,234
Net income
$
91,368
79.5
%
$
50,909
445.5
%
$
9,333
**
Percentage change not meaningful.
Year Ended December 31,
2011
2010
2009
Net revenue
100
%
100
%
100
%
Cost of revenue
68.7
66.8
69.9
Gross margin
31.3
33.2
30.1
Operating expenses:
Research and development
4.1
4.5
4.4
Sales and marketing
13.1
14.6
15.4
General and administrative
3.3
4.0
4.8
Restructuring and other charges
0.2
0.0
0.1
Technology license arrangements
0.0
0.0
0.4
Litigation reserves, net
0.0
0.0
0.3
Total operating expenses
20.7
23.1
25.4
Income from operations
10.6
10.1
4.7
Interest income, net
0.0
0.1
0.1
Other income (expense), net
(0.1
)
(0.1
)
(0.1
)
Income before income taxes
10.5
10.1
4.7
Provision for income taxes
2.8
4.5
3.3
Net income
7.7
%
5.6
%
1.4
%