Netgear

Netgear is a network equipment manufacturer headquartered in San Jose, California.

Business in Russia

2015: Development through partners in the Northwestern Federal District

As noted in early 2015 by the regional director of Netgear in Russia and the CIS, Andreeva Tatiana, Netgear relies on business development in Russia thanks to partners in the North-West Federal District. According to her, since January 1, 2015, a new model of warranty service has been launched in Russia: now the company provides equipment replacement under warranty within seven working days from the date of application. The program covers all Netgear corporate and home hardware lines and is free for Netgear Slowing partners^[1] customers].

At the same time, in 2015, the company also intends to work out a program for replacing failed equipment for the next working day. However, Tatyana Andreeva clarified that this service will be paid, since additional resources will be required to implement it. Netgear is looking for a partner who is ready to take on part of the obligations under this program.

2010: Sales growth in Russia by 106%

In Russia 2010, NETGEAR sales growth outstripped industry growth and amounted to 106% (hereinafter in dollar terms). Thus, the market share of NETGEAR (according to the company's estimates) increased by approximately 98-100%.

Continuing the trend of 2009, 2010 became a record sales of the key NETGEAR commodity group - ReadyNAS networked storage. Revenue from sales of goods of this category increased by 147% compared to 2009. This was largely facilitated by the success of the professional rack lines of 12-disk ReadyNAS 3200/4200 systems and 4-CD ReadyNAS 2100/3100 systems. Overall, the rack model business grew 7-fold.

The growth of the NETGEAR home devices segment was also significant. First of all, it should be noted the incredible success of the NETGEAR Stora home media center, whose sales grew 5 times over the year. At the same time, the annual sales growth of the home line of NETGEAR wireless routers was 190%. The most popular home devices turned out to be N-standard routers specially designed for Russia: the flagship of the line is a powerful WNR3500L and a new budget device WNR612, which has a revolutionary set of functions for its low price of 1,400 rubles. These and other models of NETGEAR home Wi-Fi routers are available today at more than 2,000 retail outlets in Russia.

In 2010, the number of active NETGEAR resellers increased by 60%. At the beginning of the year, there were 630 of them, and at the end - already 1010.

"In 2011, NETGEAR's total sales growth in Russia is planned to be 60%. This result will be primarily provided by sales of ReadyNAS lines, enhanced by powerful new desktop models such as ReadyNAS Ultra Plus and ReadyNAS Pro 6, as well as revolutionary rack-based networked storage. Secondly, we will develop success in the segment of home routers fully modified for the needs of Russian providers and customers. And finally, NETGEAR has high hopes for the sale of the new 10 Gigabit ProSafe XSM7224S switches with a lifetime warranty and professional N-standard wireless solutions, "said Dmitry Tanyukhin, head of NETGEAR in Russia.

In August 2011, NetGear opened a representative office in St. Petersburg - it will be responsible for the company's work in the North-West, and the division will be led by NetGear regional manager Sergey Gorodetsky. By the end of the year, the company plans to open a branch in Yekaterinburg. According to Dmitry Tanyukhin, the northwestern division is faced with the task of developing NetGear retail and corporate sales. He is confident that the opening of the St. Petersburg representative office by the end of 2011 will increase the company's revenue in Russia (the figures were not disclosed) and the North-West will account for 15% (now - 7%).

At the end of 2010, NetGear had 45 service centers, by the end of 2011 they are planned to be expanded to 75. In Moscow, the company's office was located at: st. Trubnaya, 12.

History

2021: Revenue slump by 6.9% to $1.17 billion and net profit to $49.4 million

At the end of 2021, Netgear raised $1.17 billion, which is 6.9% less than a year earlier. The decline occurred mainly because there is a comparison with the high performance of 2020, when the demand for network and other equipment of the company was high against the background of a large-scale transition of people to a remote format of work and training.

It follows from Netgear's reporting that the Connected Home Products (CHP) direction, which includes home routers and modems, brought revenue of $853.5 million to the company in 2021 against $1 billion a year earlier.

Netgear financials

The division responsible for business products (switches, wireless equipment, network storage) recorded an increase in annual revenue from $247.7 million to $314.6 million. Orders from telecom operators provided Netgear with revenues of almost $131.5 million, which is less than a year ago ($195.9 million).

Netgear's revenue in EMEA (Europe, Middle East, Africa) at the end of 2021 was $229.8 million, an increase on an annualized basis from $221.7 million. In the Asia-Pacific region, the company's revenues rose from $135.6 million to $151.9 million. Most of the manufacturer's business is still concentrated in the Americas - there in 2021 the company earned $786.3 million, which corresponds to 67% of total revenue. In 2020, the share was measured at 71%, and sales in the region - $898 million.

Netgear's net profit in 2021 was $49.4 million against $58.3 million in profit a year earlier.

Netgear CEO Patrick Lo, commenting on the quarterly results, noted that demand for IT products for small and medium-sized businesses was high, but their supply remains "very limited." The CHP division took another step forward as part of the company's core long-term strategy to focus on premium segments of the higher-margin market, where Netgear shows highly differentiated technology leadership, he said.^[2]

2020: Revenue growth by a quarter, to $1.26 billion

At the end of 2020, Netgear raised $1.26 billion, which is a quarter higher than sales a year ago, which amounted to almost $1 billion.

The Connected Home division, which focuses on the home router and modem business, ended 2020 with a turnover of $1 billion against $711.4 million a year earlier. In the direction of products for small and medium-sized businesses, the company's annual revenue decreased - from $287.4 million in 2019 to $247.7 million a year later.

The largest market for Netgear equipment and services remains the countries of the Americas: in 2020, the company's revenue in this region reached $898 million, which corresponds to 71% in total turnover. In 2019, these indicators were measured at $653 million and 65%, respectively. The company's sales in EMEA countries for the year increased from $200.1 million to $221.7 million, and the share of sales in this region decreased from 20% to 18%.

Netgear revenue up a quarter thanks to premium devices

Netgear's revenue in the Asia-Pacific region at the end of 2020 amounted to $135.6 million against $145.7 million in 2019. And the share of these states in the total turnover fell from 15% to 11%.

In 2020, Netgear's net profit reached $58.3 million, more than double the profit of a year ago ($25.8 million).

It is noted that the main catalysts for improving Netgear's financial performance were routers with Wi-Fi 6 support, as well as network equipment with support for mesh technology. Due to the COVID-19 coronavirus pandemic, people began to work and study more often from home, as a result of which sales of the company's products increased. There was a special demand for premium products, said Netgear CEO Patrick Lo.

From the financial report of the company it also follows that by the end of December 2020, 818 people worked at Netgear against 809 employees by December 31, 2019.^[3]

2019: Revenue drop 6.7% to $998.8 million

In 2019, Netgear's revenue amounted to $998.8 million, a decrease of 6.7% compared to the previous year. The decline occurred after the separation of the business for the release of CCTV cameras.

The Connected Home business, which focuses on home routers and modems, showed a decline in turnover from $771.1 million in 2018 to $711.4 million a year later.

Netgear financials

The division responsible for business products (switches, wireless equipment, network storage) recorded revenue of $287.4 million in 2019, which is approximately the same as a year ago.

Orders from telecom operators in 2019 brought Netgear annual revenue at $133.3 million. In 2018, this figure was $160.3 million.

At the end of 2019, Netgear's revenue in EMEA countries (Europe, Middle East, Africa) amounted to $200.1 million, down from $207.6 million in the previous year. The largest part of income (about 65%) is still occupied by the states of the Americas, where in 2019 the company earned $653 million against $700.7 million in 2018.

The countries of the Asia-Pacific region added $145.7 million to Netgear's revenue at the end of 2019. This is less than a year earlier ($150.5 million).

In 2019, Netgear returned to profit, receiving it in the amount of $25.8 million, while in 2018 the company had net losses equal to $18.3 million.

In 2019, Netgear's financial statements no longer take into account sales of Arlo wireless cameras. This business was spun off into a new company.

Commenting on the results of 2019, Netgear CEO Patrick Lo noted that the company's products have 12.8 million registered users. In addition, the number of users of Netgear applications amounted to 4.4 million people.

As of December 31, 2019, the company employed 809 people against 837 employees.^[4]

2018

Listing Arlo Technologies

In August 2018, Netgear listed Arlo Technologies, which was built on the basis of the wireless camera division. The shares are listed on the New York Stock Exchange under the ticker symbol ARLO. Read more here.

Creation of Arlo Technologies

On February 6, 2018, Netgear announced the creation of a new company, Arlo Technologies, to which it transferred its security camera business. Read more here.

2017

Revenues only grow in CCTV business

At the end of 2017, Netgear's revenue amounted to $1.41 billion, an increase of almost 6% compared to the previous year.

The company's net profit fell fourfold - from $75.9 million to $19.4 million. The decrease was due to expenses of $48.3 million, which the American manufacturer of network equipment incurred in connection with the tax reform in the United States.

In 2017, the revenue of the division responsible for the development and sale of compact cameras video surveillances Arlo reached $378.4 million against $188.5 million in 2016. The company is going to separate this business from itself and put it on the stock exchange.

Netgear revenue up 6% in 2017

The Connected Home business, which focuses on home routers and modems, showed a decline in turnover from $844.8 million in 2016 to $762.1 million a year later.

The division responsible for business products (switches, wireless equipment, network storage) recorded annual revenue of $266.4 million, while in 2016 it was measured at $295 million.

Service provider orders provided Netgear with revenues of $214.2 million. In 2016, the company earned $274 million on this.

More and more revenues of the company are brought by the countries of the Americas: their share in the vendor's revenue in 2017 increased to 68%, which in monetary terms corresponds to $958.1 million. According to the results of the previous year, the indicators were 67% and $883.6 million, respectively.

Annual sales of Netgear  to EMEA (Europe, Middle East, Africa) and Asia-Pacific were $253.9 million and $195 million (18% and 14% in total turnover), respectively.

After the publication of financial statements and the announcement of plans to spin off the business in the field of video surveillance cameras, Netgear shares rose by 4%. It helped the company that its earnings were above Wall Street expectations.^[5]

Attack of routers by a Russian-speaking hacker

In September 2017, it became known that a certain Russian-speaking hacker (his name is not called) infected Netgear routers with viruses, which allowed him to create a large botnet.

According to the American company Forkbombus Labs, which specializes in issues, cyber security the hacker used a vulnerability called CVE-2016-10176 in Netgear WNR2000 routers, the existence of which was discovered at the end of 2016.

CVE-2016-10176 affects the operation of the web server included in the Netgear hardware and allows you to run the administrator panel built into the devices. Thanks to this vulnerability, attackers could perform various kinds of key actions with administrative rights.

Netgear Router WNR2000

Stu Gorton, chief researcher and head of research at Forkbombus Labs, says the hacker used the vulnerability to download and run RouteX malware on Netgear routers running on old unprotected firmware.

This virus performs two main functions. First, it installs a SOCKS proxy server on each infected device. Secondly, it adds rules to the Iptable command line utility that prevent further exploitation of the same vulnerability, but at the same time limit the device's Internet access to several IP addresses under the control of the initiators. cyber attacks

Routers infected in this way are used to carry out attacks like credential stuffing, in which hackers massively try known stolen logins and passwords for access to other resources, in particular banks and online stores

Proxy servers installed on routers allow an attacker to attack new IP addresses and bypass anti-attack systems by brute-force passwords. Most of the credential stuffing attacks are from the largest Fortune 500 companies, Gorton said.^[6]

2016

Revenue growth thanks to retail

In February 2017, Netgear published its annual financial statement. The network and communications equipment maker's revenues rose thanks to record results in the retail business.

For the 12-month period closed on December 31, 2016, Netgear's revenue amounted to $1.3 billion, which is 2.1% more than a year earlier. Net profit rose 56%, reaching $75.9 million.

The company has about 25 offices worldwide. The company also specializes in video surveillance, VoIP, virtualization, storage and cloud computing solutions, supplying products to customers in the fields of education, healthcare, hospitality, etc.

Netgear Office Building

2016 was another successful year for Netgear, as we delivered many new and excellent products to our customers, increased our share in the key markets of the presence and received strong profit growth for our shareholders. We are also pleased to announce that our retail business recorded the highest annual revenue in the company's history. We will maintain this momentum going forward, "said Netgear Chairman and CEO Patrick Lo.

In 2016, the revenue of the Netgear retail division reached $763.5 million against $614.4 million in 2015. This rise was due to the product lines of Nighthawk, Arlo and Orbi, Lo noted.

In 2016, corporate orders brought Netgear about $290.8 million, while a year earlier the figure was measured at $264.8 million. Sales of products and services to telecom operators fell from $421.5 million to $273.9 million. Netgear expects cumulative retail and corporate sales growth of 10% in 2017.

More and more revenues of the company are brought by the countries of the Americas: their share in the vendor's revenue at the end of 2016 amounted to 67%, which in monetary terms corresponds to $883.6 million, while in 2015 the share was 61%. Netgear's annual sales in EMEA (Europe, Middle East, Africa) and Asia-Pacific were $245.4 million and $199.2 million (18% and 15% in total), respectively.^[7]

Buying Placemeter

In December 2016, it became known that Netgear was acquiring Placemeter, a computer vision technology company. With these technologies, Netgear intends to expand the functionality of its Arlo line of surveillance cameras. Read more here.

Visibility in routers

In December 2016, the American Computer Incident Response Center (CERT) warned of the need to stop operating some Netgear routers due to a vulnerability found in them. We are talking about devices from the Nightwalk series.

Netgear routers R6400, R7000, R7000P, R7500, R7800, R8000, R8500 and R9000 have identified a software malfunction that allows attackers to gain full control over devices if a user has visited a specific site. According to the Shodan service, about 10 thousand Netgear routers are vulnerable.

Thousands of NetGear routers at risk of hacking due to vulnerability

Users can independently check whether their router has come under a hacker attack. To do this, being on the local network, in the address bar of the browser you need to follow the link of the form:

http ://[ router-IP address ]/cgi-bin/; uname $ IFS-a

If any information other than an error or an empty window appears, then the device is infected. In some cases, links to www.routerlogin.net or www.routerlogin.com can be used instead of an IP address, since Netgear routers assign these domain names to the local IP address.

Due to the fact that the vulnerability exploits an HTTP request that does not require authentication, hackers can attack routers using the so-called cross-site request spoofing.

When a victim visits a site created by an attacker, a request is secretly sent on her behalf to another server carrying out a certain malicious operation. To carry out this attack, the victim must be authenticated on the server to which the request is sent, and this request should not require any confirmation from the user, which cannot be ignored or forged by the attacking script.

A vulnerability in Netgear routers was discovered by information security expert Andrew Rollins, known by the pseudonym Acew0rm. He claims that he warned the manufacturer about the malfunction at the end of August 2016, but he did not react to the incident. Months later, Rollins spoke publicly about the vulnerability. Only after that, Netgear announced that it was working to fix the problem.^[8]

2014: Revenue of $1.37 billion

In 2014, the company's revenues on a global scale in all business areas, including commercial direction, retail and the direction of service providers, amounted to $1.37 billion. At the same time, Netgear does not disclose individual figures by regions of presence (in particular, in Russia).

According to the results of 2014, the Netgear distribution network has more than 36 thousand partners and more than 45 thousand retail points of sale around the world. The company has representative offices in 25 countries of the world, including Russia, its staff consists of 1047 people.

Sales of 10GbE switches in Q4 2014 amounted to 8 thousand units, an increase of 2 thousand compared to Q3. At the same time, sales of switches with support for PoE (Power over Ethernet) technology in Q3 and Q4 2014 stopped at around 100 thousand units in the quarter. Sales of managed switches in Q4 2014 increased by 2 thousand units - to 14 thousand from 12 thousand in Q4.

2012

According to Gartner, in 2012 Netgear was the leader in NAS/unified storage by number of devices delivered.

2010: Small Business and Home Products Launch

NETGEAR develops its own-brand products that address the specific needs of small/medium-sized enterprises and home users. The company's complete portfolio of network products allows users to collaborate with the Internet, peripherals, files, digital multimedia content and applications from various personal computers and other supporting Internet devices. The products are developed on the basis of various proven technologies, including wireless networks, Ethernet and Powerline, and their designers pay special attention to reliability and usability.

NETGEAR products sell over 28 thousand retail stores worldwide, in Russia over 2000, and more than 97 thousand VAR resellers, in Russia over 1000 partners.

2007

Netgear, which started the business as a manufacturer of network equipment for SMB and home office, entered the storage market in 2007 as a result of the acquisition of Infant, which developed entry-level NAS systems ReadyNAS. With ReadyData unified storage solutions using the same OS as ReadyNAS, the company hopes to gain a foothold in the enterprise storage sector.

Notes