Netgear 2012 Annual Report Download - page 5

Table of Contents
PART I
This Annual Report on Form 10-K (“Form 10-K”), including Management’
s Discussion and Analysis of Financial Condition and Results of
Operations in Part II, Item 7 below, includes forward-
looking statements within the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”).
All statements other than statements of
historical facts contained in this Form 10-
K, including statements regarding our future financial position, business strategy and plans and objectives
of management for future operations, are forward-looking statements. The words “believe,” “may,” “will,” “estimate,” “continue,” “anticipate,”
“intend,” “should,” “plan,” “expect” and similar expressions, as they relate to us, are intended to identify forward-
looking statements. We have based
these forward-
looking statements largely on our current expectations and projections about future events and financial trends that we believe may
affect our financial condition, results of operations, business strategy and financial needs. These forward-
looking statements are subject to a number
of risks, uncertainties and assumptions described in “Risk Factors” in Part I, Item 1A below, and elsewhere in this Form 10-
K, including, among
other things: the future growth of the commercial business, retail, and broadband service provider markets; speed of adoption of wireless networking
worldwide; our business strategies and development plans; our successful introduction of new products and technologies; future operating expenses
and financing requirements; and competition and competitive factors in the commercial business, retail, and broadband service provider markets. In
light of these risks, uncertainties and assumptions, the forward-looking events and circumstances discussed in this Form 10-
K may not occur and
actual results could differ materially from those anticipated or implied in the forward-looking statements. All forward-
looking statements in this
Form 10-K are based on information available to us as of the date hereof and we assume no obligation to update any such forward-
looking
statements. The following discussion should be read in conjunction with our consolidated financial statements and the accompanying notes contained
in this Form 10-K.
Item 1. Business
General
We are a global networking company that delivers innovative products to consumers, businesses and service providers. In the second fiscal
quarter of 2011, we made organizational changes that we believe enable us to better focus our efforts on core customer segments and allow us to be
more nimble and opportunistic as a company overall. Our business is now managed in three specific business units: retail, commercial, and service
provider. The retail business unit consists of high performance, dependable and easy-to-
use home networking, storage and digital media products to
connect users with the Internet and their content and devices. The commercial business unit consists of business networking, storage and security
solutions without the cost and complexity of Big IT. The service provider business unit consists of made-to-
order and retail proven, whole home
networking solutions sold to service providers for sale to their customers. Additionally, in the first fiscal quarter of 2011, we combined our North
American, Central American and South American sales forces to form the Americas territory. Previously, North America was its own geographic
region and the Central American and South American territories were categorized within the Asia Pacific ("APAC") geographic region. Following
this change, we are now organized into the following three geographic territories: Americas, Europe, Middle-
East and Africa ("EMEA") and APAC.
For further detail, refer to Note 12, Segment Information, Operations by Geographic Area and Customer Concentration
, in Notes to Consolidated
Financial Statements in Item 8 of Part II of this Annual Report on Form 10-K.
We were incorporated in Delaware on January 8, 1996. Our principal executive offices are located at 350 East Plumeria Drive, San Jose,
California 95134, and our telephone number at that location is [phone]. Our website address is www.netgear.com.
In the years ended December 31, 2012 , 2011 , and 2010 , we generated net revenue of $1.27 billion , $1.18 billion , and $902.1 million
,
respectively.
Markets
Our mission is to be the innovative leader in connecting the world to the internet. This includes our goal of being the leading provider of
innovative networking products to the consumer, business, and service provider markets. A number of factors are driving today's demand for
networking products within these markets. As the number of computing devices, such as PCs, smart phones and tablets, has increased in recent years,
networks - especially WiFi networks -
are being deployed more broadly in order to share information and resources among users and devices. This
information and resource sharing occurs internally, through a local area network, or externally, via the Internet. To take advantage of complex
applications, advanced communication capabilities and rich multimedia content, users are upgrading their Internet connections by deploying high-
speed broadband access technologies. Users also seek the convenience and flexibility of operating their PCs, laptops, smart phones, tablets and
related computing devices while accessing their content in a more mobile, or wireless, manner. In addition, market demand for television
connectivity products
1