Netgear 2012 Annual Report Download - page 44

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:
** Percentage change not meaningful.
The following table sets forth the Consolidated Statements of Operations, expressed as a percentage of net revenue, for the periods presented:
40
Year Ended December 31,
2012
% Change 2011 % Change 2010
(In thousands, except percentage data)
Net revenue
$
1,271,921
7.7
%
$
1,181,018
30.9
%
$
902,052
Cost of revenue
888,368
9.5
%
811,572
34.6
%
602,805
Gross profit
383,553
3.8
%
369,446
23.5
%
299,247
Operating expenses:
Research and development
61,066
25.4
%
48,699
21.8
%
39,972
Sales and marketing
149,766
(3.1
)%
154,562
17.5
%
131,570
General and administrative
45,027
14.2
%
39,423
8.8
%
36,220
Restructuring and other charges
1,190
(43.2
)%
2,094
**
(88
)
Litigation reserves, net
390
**
(201
)
**
211
Total operating expenses
257,439
5.3
%
244,577
17.7
%
207,885
Income from operations
126,114
1.0
%
124,869
36.7
%
91,362
Interest income
498
4.4
%
477
12.0
%
426
Other income (expense), net
2,670
**
(1,136
)
101.4
%
(564
)
Income before income taxes
129,282
4.1
%
124,210
36.2
%
91,224
Provision for income taxes
42,743
30.1
%
32,842
(18.5
)%
40,315
Net income
$
86,539
(5.3
)%
$
91,368
79.5
%
$
50,909
Year Ended December 31,
2012
2011 2010
Net revenue
100
%
100
%
100
%
Cost of revenue
69.8
68.7
66.8
Gross margin
30.2
31.3
33.2
Operating expenses:
Research and development
4.8
4.1
4.5
Sales and marketing
11.9
13.1
14.6
General and administrative
3.5
3.3
4.0
Restructuring and other charges
0.1
0.2
0.0
Litigation reserves, net
0.0
0.0
0.0
Total operating expenses
20.3
20.7
23.1
Income from operations
9.9
10.6
10.1
Interest income
0.1
0.0
0.1
Other income (expense), net
0.2
(0.1
)
(0.1
)
Income before income taxes
10.2
10.5
10.1
Provision for income taxes
3.4
2.8
4.5
Net income
6.8
%
7.7
%
5.6
%