Netgear 2013 Annual Report Download - page 45

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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:
** 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:
Net Revenue
42
Year Ended December 31,
2013
% Change
2012
% Change
2011
(In thousands, except percentage data)
Net revenue
$
1,369,633
7.7
%
$
1,271,921
7.7
%
$
1,181,018
Cost of revenue
976,018
9.9
%
888,368
9.5
%
811,572
Gross profit
393,615
2.6
%
383,553
3.8
%
369,446
Operating expenses:
Research and development
85,168
39.5
%
61,066
25.4
%
48,699
Sales and marketing
153,804
2.7
%
149,766
(3.1
)%
154,562
General and administrative
48,915
8.6
%
45,027
14.2
%
39,423
Restructuring and other charges
5,335
348.3
%
1,190
(43.2
)%
2,094
Litigation reserves, net
5,354
**
390
**
(201
)
Impairment charges
2,000
**
—
**
—
Total operating expenses
300,576
16.8
%
257,439
5.3
%
244,577
Income from operations
93,039
(26.2
)%
126,114
1.0
%
124,869
Interest income
400
(19.7
)%
498
4.4
%
477
Other income (expense), net
(457
)
(117.1
)%
2,670
**
(1,136
)
Income before income taxes
92,982
(28.1
)%
129,282
4.1
%
124,210
Provision for income taxes
37,765
(11.6
)%
42,743
30.1
%
32,842
Net income
$
55,217
(36.2
)%
$
86,539
(5.3
)%
$
91,368
Year Ended December 31,
2013
2012
2011
Net revenue
100
%
100
%
100
%
Cost of revenue
71.3
69.8
68.7
Gross margin
28.7
30.2
31.3
Operating expenses:
Research and development
6.2
4.8
4.1
Sales and marketing
11.2
11.9
13.1
General and administrative
3.6
3.5
3.3
Restructuring and other charges
0.4
0.1
0.2
Litigation reserves, net
0.4
0.0
0.0
Impairment charges
0.1
—
—
Total operating expenses
21.9
20.3
20.7
Income from operations
6.8
9.9
10.6
Interest income
0.0
0.1
0.0
Other income (expense), net
0.0
0.2
(0.1
)
Income before income taxes
6.8
10.2
10.5
Provision for income taxes
2.8
3.4
2.8
Net income
4.0
%
6.8
%
7.7
%