NETGEAR Inc (NTGR) 2024 Q4 法說會逐字稿

Ladies and gentlemen, thank you for standing by. (Operator Instructions) I would now like to turn the conference over to Eric Bylin. Please go ahead, sir.

女士們、先生們，感謝你們的支持。（操作員指示）現在，我想將會議交給 Eric Bylin。先生，請繼續。

Thank you, operator. Good afternoon and welcome to NETGEAR's fourth quarter and full year 2024 financial results conference call. Joining us from the company are Mr. CJ Prober, CEO; and Mr. Brian Murray, CFO.

謝謝您，接線生。下午好，歡迎參加 NETGEAR 2024 年第四季和全年財務業績電話會議。與我們一起參加公司活動的有執行長 CJ Prober 先生；以及財務長 Brian Murray 先生。

The format of the call will start with commentary on the business provided by CJ followed by a review of the financials for the fourth quarter and full year and guidance for the first quarter of 2025 provided by Brian. We'll then have time for any questions. If you have not received a copy of today's release, please visit NETGEAR's investor relations website at www.netgear.com.

電話會議的形式將首先由 CJ 提供業務評論，然後由 Brian 回顧第四季度和全年的財務狀況以及提供 2025 年第一季的指導。然後我們會有時間回答任何問題。如果您尚未收到今天發布的副本，請造訪 NETGEAR 的投資者關係網站 www.netgear.com。

Before we begin the formal remarks, we advise you that today's conference call contains forward-looking statements. Forward-looking statements include statements regarding expected revenue, operating margins, tax expense, expenses, and future business outlook. Actual results or trends could differ materially from those contemplated by these forward-looking statements. For more information, please refer to the risk factors discussed in NETGEAR's periodic filings with the SEC including the most recent Form 10-Q.

在我們開始正式發言之前，我們提醒您，今天的電話會議包含前瞻性陳述。前瞻性陳述包括有關預期收入、營業利潤率、稅費、費用和未來業務前景的陳述。實際結果或趨勢可能與這些前瞻性陳述所預期的結果或趨勢有重大差異。欲了解更多信息，請參閱 NETGEAR 向美國證券交易委員會提交的定期文件中討論的風險因素，包括最新的 10-Q 表。

Any forward-looking statements that we make on this call are based on assumptions as of today and NETGEAR undertakes no obligation to update these statements as a result of new information or future events except as required by law.

我們在本次電話會議上所做的任何前瞻性陳述均基於今天的假設，除非法律要求，否則 NETGEAR 不承擔因新資訊或未來事件而更新這些陳述的義務。

In addition, several non-GAAP financial measures will be mentioned on this call. A reconciliation of the non-GAAP to GAAP measures can be found in today's press release on our investor relations website. At this time, I would now like to turn the call over to CJ.

此外，本次電話會議中也將提及幾項非公認會計準則財務指標。在我們投資者關係網站上今天的新聞稿中可以找到非 GAAP 指標與 GAAP 指標的對帳表。現在，我想將電話轉給 CJ。

Thanks, Eric, and thank you all for joining our call. Today I'm going to cover the following topics: a recap of 2024, our Q4 highlights, context and impact of our Q1 restructuring, and high level thoughts on our 2025 plans. Later, Brian will recap financials for the year and quarter as well as our Q1 outlook.

謝謝，艾瑞克，也感謝大家參加我們的電話會議。今天，我將討論以下主題：2024 年回顧、我們第四季的亮點、我們第一季重組的背景和影響，以及我們 2025 年計畫的高層想法。隨後，Brian 將回顧今年和本季的財務狀況以及我們的第一季展望。

I just passed my one year anniversary with NETGEAR and I'm thrilled with the progress we've made over the past year. And particularly proud of our team's adaptability given we implemented significant changes in three main areas: our organization, our operating model, and our strategy. These changes set us up to achieve our long-term goals and we've been able to deliver on the business while evolving for the future.

我剛剛度過了在 NETGEAR 工作一周年，對於我們在過去一年中取得的進步感到非常高興。我們特別為我們團隊的適應能力感到自豪，因為我們在三個主要領域實施了重大變革：我們的組織、我們的營運模式和我們的策略。這些變化使我們有能力實現我們的長期目標，並且我們能夠在實現業務目標的同時為未來發展做好準備。

On the organization front, we restructured NETGEAR to bring more focus and leadership to our biggest market and growth opportunities. Most notably, we brought in new leadership and capabilities dedicated to our B2B segment which we call NETGEAR For Business or NBF: a new president, commercial leader, channel leader, product leader, and UX leader, to name a few.

在組織方面，我們重組了 NETGEAR，以便更加關注和領導我們最大的市場和成長機會。最值得注意的是，我們引入了新的領導力和能力，致力於我們的 B2B 部門，我們稱之為 NETGEAR For Business 或 NBF：新總裁、商業領袖、通路領袖、產品領袖和 UX 領袖，等等。

These established leaders continue to attract great talent at a time when we're seeing significant disruption at other companies in the industry. We also revamped our values and shifted the company's orientation from short-term results to long-term value creation.

當我們看到業內其他公司出現重大混亂時，這些既有的領導者卻繼續吸引優秀人才。我們也重塑了我們的價值觀，將公司的導向從短期結果轉向長期價值創造。

Other newly-hired executives in our legal, strategy, people, corporate development, and finance teams are inspiring the rest of our organization to dare to transform which is our most notable new value. Operationally, after I completed a listening tour in the first quarter, we began taking immediate action to remedy near-term challenges facing NETGEAR.

我們法律、策略、人才、企業發展和財務團隊中其他新聘用的高階主管正在激勵我們組織的其他成員勇於變革，這是我們最顯著的新價值。在營運方面，在我完成第一季的傾聽之旅後，我們開始立即採取行動來解決 NETGEAR 面臨的近期挑戰。

Our first order of business was to eliminate a years long overhang of excess channel inventory that remain from COVID-driven supply shortages. We were able to accomplish this within one quarter and that has resulted in cleaner, more efficient operation where we're able to match sell in with sell through each quarter.

我們的首要任務是消除新冠疫情導致的供應短缺造成的多年通路過剩庫存。我們能夠在一個季度內完成這一目標，從而使營運更加清潔、高效，我們能夠在每個季度匹配銷售量。

We quickly realized the benefits of the de-stocking which can be seen in the lowest DSOs we've had in over seven years with receivables down approximately 29 million, or 16%, year over year.

我們很快就意識到了去庫存的好處，從 DSO 來看，我們的應收帳款達到了七年來最低水平，年減了約 2,900 萬美元，降幅為 16%。

Alongside this effort, we drove an accelerated effort to lower our finished goods inventory and made great inroads to reach our objective of three months of supply, reducing inventory by approximately 86 million or 35% from the prior year.

在此努力的同時，我們加快降低成品庫存，並取得了很大進展，實現了三個月的供應目標，庫存比上年減少了約 8,600 萬，即 35%。

Aside from specific supply challenges related to certain long-lead-time items, the team has done an outstanding job delivering to demand in this much streamlined upgrading model that has resulted in consistently strong cash flow generation.

除了與某些長交貨期專案相關的特定供應挑戰之外，該團隊在這個簡化的升級模型中出色地滿足了需求，從而持續產生了強勁的現金流。

In September, we announced an important settlement in a patent dispute with TP-Link. This settlement was a clear validation of our intellectual property and added more than $100 million in cash to our balance sheet. Since then, the government scrutiny of TP-Link as a national security risk has been exposed by Bloomberg and the Wall Street Journal raising questions about TP-Link's ability to continue to participate in the US market -- we are monitoring this situation very closely .

9月，我們宣布與TP-Link就專利糾紛達成重要和解。此次和解是對我們的智慧財產權的明確認可，並為我們的資產負債表增加了1億多美元的現金。此後，彭博社和華爾街日報曝光政府將 TP-Link 列為國家安全風險，引發了人們對 TP-Link 繼續參與美國市場的能力的質疑——我們正在密切關注這一情況。

Our strong cash position enabled us to buy back over $33 million in stock at an average price of just under $16 per share representing over a 40% discount to pricing entering this week. Our $409 million in cash and equivalents, which is up $125 million in 2024, serves as a tremendous foundation to pursue the key prongs of our capital allocation and long-term growth strategies -- both of which we expect to drive long-term value for investors.

我們強大的現金狀況使我們能夠以每股略低於 16 美元的平均價格回購超過 3,300 萬美元的股票，比本週的價格低 40% 以上。我們的現金和等價物為 4.09 億美元，到 2024 年將增加 1.25 億美元，這為我們追求資本配置和長期成長策略的關鍵方面奠定了堅實的基礎——我們希望這兩者都能為投資者帶來長期價值。

On the strategic front, we developed a new north star for NETGEAR rooted powering extraordinary experiences. Early in the year, we implemented a significant shift in our Home Networking strategy focused on product simplification and the impact has been quite favorable. For NFB, we identified some critical resource gaps on the go-to-market side and invested to close those gaps in the second half of the year.

在策略方面，我們為 NETGEAR 開發了一顆新的北極星，以提供非凡的體驗。今年年初，我們對家庭網路策略進行了重大轉變，重點關注產品簡化，並產生了良好的影響。對於 NFB，我們發現了市場進入方面的一些關鍵資源差距，並在下半年進行了投資以彌補這些差距。

More broadly, we completed a thorough three-year strategic review that clarifies our investment priorities and innovation agenda as we enter the next phase of our transformation. Our focus across all our businesses is on driving differentiation via software and growing our recurring revenue.

更廣泛地說，我們完成了全面的三年策略審查，明確了我們進入轉型下一階段時的投資重點和創新議程。我們所有業務的重點是透過軟體推動差異化並增加經常性收入。

Now turning to our Q4 highlights. Our strong execution led to another quarter where we surpassed the high end of our guidance range for revenue and operating merchant. We also had another strong quarter of cash generation, bolstered by a decrease in DSOs, enabling $13 million of cash to be added to the balance sheet and we repurchased almost $11 million of shares on top of that. Our recurring revenue grew 25% year over year and we exited in 2024 with almost $35 million in annual recurring revenue.

現在來談談我們第四季的亮點。我們的強勁執行力使我們在另一個季度中超越了收入和運營商戶的指導範圍的高端。由於 DSO 的減少，我們又度過了一個現金創造能力強勁的季度，使資產負債表中增加了 1,300 萬美元的現金，此外，我們還回購了近 1,100 萬美元的股票。我們的經常性收入年增 25％，並於 2024 年實現年度經常性收入近 3,500 萬美元。

This acceleration is attributed to the simplification of our armor subscription service, value proposition, and the launch of our Armor Plus tier last quarter. In Pro AV, we built on the tremendous momentum we have by delivering another record quarter of end user sales, launching Engage 2.0 and adding almost 50 new manufacturing partners for a total of more than 370.

這種加速歸功於我們裝甲訂閱服務的簡化、價值主張以及上個季度推出的Armor Plus層。在 Pro AV 領域，我們憑藉著強勁的發展勢頭，再創季度終端用戶銷售額新高，推出 Engage 2.0，並新增近 50 家製造合作夥伴，總數超過 370 家。

One of our new partners on the broadcast side is NVIDIA. Since their acquisition of Mellanox, their focus is being on AI Networks opening the door for us to be one of their manage switch solution providers for the broadcast market.

我們在廣播方面的新合作夥伴之一是 NVIDIA。自從收購 Mellanox 以來，他們的重點就放在 AI Networks 上，這為我們成為其廣播市場管理交換器解決方案提供商之一打開了大門。

We also made great progress, evolving our Insight platform that powers our Enterprise Wi-Fi deployments. In Q4, we launched a significant update that enables cloud management for our managed switches and cloud APIs for our integration partners. Both improvements have been long time requests for our partners and are critical for us to expand our share in this large and growing market.

我們也取得了巨大進步，改進了為企業 Wi-Fi 部署提供支援的 Insight 平台。在第四季度，我們推出了一項重大更新，支援為我們的託管交換器提供雲端管理，並為我們的整合合作夥伴提供雲端 API。這兩項改進都是我們合作夥伴長期以來的要求，對於我們擴大在這個龐大且不斷增長的市場中的份額至關重要。

These innovations in Armor, Insight, and Engage are great examples of how we're innovating with software and this momentum will provide a solid foundation for our plans to accelerate these efforts in 2025.

Armor、Insight 和 Engage 中的這些創新是我們透過軟體進行創新的絕佳例子，這種勢頭將為我們在 2025 年加速這些努力的計劃奠定堅實的基礎。

In our Mobile business, the M7 Pro that was launched at the end of Q3 has been very well received by customers. In Q4, a similar product was launched in Australia in partnership with Telstra. These products set the bar for performance as the first mobile hotspots that combine 5G and Wi-Fi 7.

在我們的行動業務中，第三季末推出的M7 Pro受到了客戶的一致好評。第四季度，該公司與Telstra合作在澳洲推出了類似的產品。作為首批結合 5G 和 Wi-Fi 7 的行動熱點，這些產品樹立了效能標準。

While we drove considerable change in the organization in 2024, shedding old habits and building new muscles, we felt there was a novel opportunity to implement a significant restructuring to further propel our success. This was very much implemented from a position of strength so I'd like to take a moment to provide the context for this.

當我們在 2024 年推動組織進行重大變革、擺脫舊習慣並增強新能力時，我們感到有一個新的機會來實施重大重組以進一步推動我們的成功。這是從實力角度實施的，所以我想花點時間來介紹這一點。

After completing our three-year strategic plan, we shifted to creating a detailed annual operating plan for 2025. As part of this process, we wanted to ensure we were set up for success coming into the year. We embraced our data to transform value and planned to restructuring aimed at achieving the following goals: funding our investment priorities, primarily focused on our B2B business; reducing our loss position in 2025 and putting us on an accelerated path to return to profitability; targeting cost reductions in businesses that would be a drag on profitability in 2025; reorganizing into a flatter and more efficient organization by reducing layers of management and increasing span of control; and unlocking our ability to transform key functions more quickly.

在完成三年策略規劃後，我們開始製定2025年詳細的年度營運計畫。作為此過程的一部分，我們希望確保在今年取得成功。我們利用數據轉化價值，並計劃進行重組，旨在實現以下目標：為我們的投資重​​點提供資金，主要集中在我們的 B2B 業務上；減少2025年的虧損狀況，並加速恢復獲利能力；目標是降低 2025 年可能影響獲利能力的業務成本；透過減少管理層級、增加管理幅度，重組為更扁平、更有效率的組織；並釋放我們更快轉變關鍵功能的能力。

All of these goals were achieved with the restructuring we implemented in mid-January which impacted approximately 50 team members. And when combined with other cost cuts resulted in a reduction of over $20 million in baseline annual operating expenses.

我們在一月中旬實施的重組實現了所有這些目標，這次重組影響了大約 50 名團隊成員。與其他成本削減措施相結合，可減少年度基本營運費用 2,000 多萬美元。

While changes that impact people are always difficult, this restructuring is being well received by our global team and we're moving forward on building the future with urgency. We expect to redeploy these savings back into the business and invest in our highest opportunities for profitable growth, most of which are in our NFB business this year.

雖然影響人們的變化總是困難的，但這次重組受到了我們全球團隊的熱烈歡迎，我們正在緊急推進建設未來。我們希望將這些節省下來的資金重新投入到業務中，並投資於我們最有可能實現盈利成長的機會，其中大部分都在今年投資於我們的 NFB 業務。

As part of these changes, we elevated Graeme McLindin to lead a newly created business unit focused on our mobility products and we're recruiting for a new leader for our Home Networking business and a company-wide Chief Technology Officer to further accelerate our technology transformation.

作為這些變革的一部分，我們提拔 Graeme McLindin 來領導一個新成立的專注於行動產品的業務部門，並且我們正在為我們的家庭網路業務招募一位新的領導者和一位全公司首席技術官，以進一步加速我們的技術轉型。

Going forward, we plan to report the results of each of our three business units: NETGEAR For Business, Mobile, and Home Networking and we plan to share profitability metrics for each of these businesses given their financial profiles very quite significantly.

展望未來，我們計劃報告三個業務部門的業績：NETGEAR 商業、行動和家庭網絡，並且我們計劃分享每個業務的獲利指標，因為它們的財務狀況非常重要。

For 2025, while we plan to limit our formal guidance to quarterly numbers for the foreseeable future, we remain steadfast on our plans to grow net revenue, expand gross margins, and significantly reduce our loss position this year. We expect to deliver on these goals while investing in long-term value creation.

對於 2025 年，雖然我們計劃在可預見的未來將正式指引限制在季度數字上，但我們仍堅定不移地執行增加淨收入、擴大毛利率和大幅減少今年虧損狀況的計劃。我們希望在投資長期價值創造的同時實現這些目標。

Our NFB business will receive most of our incremental investments for the year and we'll be focused on insourcing our software capabilities, expanding our product portfolio, and most importantly, building a true B2B go-to-market capability that will allow us to grow our share in the sizable AV and Enterprise Wi-Fi markets we're disrupting.

我們的 NFB 業務將獲得我們今年的大部分增量投資，我們將專注於內部採購我們的軟體能力，擴大我們的產品組合，最重要的是，建立真正的 B2B 上市能力，這將使我們能夠在我們正在顛覆的龐大 AV 和企業 Wi-Fi 市場中擴大我們的份額。

One unexpected headwind that we expect to impact us in Q1 is short term supply constraints for certain Pro AV managed switch products. Keeping up with our increasing demand for our Pro AV products has been a challenge given the long lead times of certain components and a key ODM partner has had some operational challenges, impacting their ability to deliver on their commitments.

我們預計在第一季對我們產生影響的一個意外阻力是某些 Pro AV 管理型交換器產品的短期供應限制。由於某些組件的交貨時間較長，滿足我們對專業 AV 產品日益增長的需求一直是一個挑戰，而且主要的 ODM 合作夥伴遇到了一些營運挑戰，影響了他們履行承諾的能力。

While these are being addressed, we expect the undershipping Q1, leading to a more muted top line guidance for NFB this quarter. Despite these short term supply constraints, we expect double-digit top line growth for NFB segment this year. In the first few quarters of 2025, the top line of our Mobile BU is being impacted by our legacy focus on the premium segment of the market.

在解決這些問題的同時，我們預計第一季的出貨量將不足，從而導致 NFB 本季的營收預期更加低迷。儘管有短期供應限制，我們預計今年 NFB 部門的營收將達到兩位數成長。在 2025 年的前幾個季度，我們行動業務部門的營收將受到我們傳統上專注於高端市場的影響。

Like our Home Networking business, we're transforming our product portfolio to a good, better, best line up that will address a broader part of the market. We expect these products to launch in the second half of the year with a compelling, new, companion app that will simplify and streamline the user experience.

就像我們的家庭網路業務一樣，我們正在將我們的產品組合轉變為更好、更優、最佳的產品線，以滿足更廣泛的市場需求。我們預計這些產品將在今年下半年推出，並附帶一個引人注目的全新配套應用程序，以簡化和優化用戶體驗。

With the market stabilizing for our Home Networking products, we're cautiously optimistic about this coming year. If the regulatory scrutiny facing companies affiliated with the PRC were to materialize, we'd expect a significant positive impact to this business segment.

隨著我們的家庭網路產品市場逐漸穩定，我們對來年持謹慎樂觀的態度。如果與中華人民共和國有關聯的公司面臨的監管審查成為現實，我們預計該業務部門將受到重大正面影響。

Throughout 2025, we will continue to execute on the balanced capital allocation strategy we outlined last quarter. Our priorities remain on organic investments and returning capital to shareholders as opportunistic buyers of our stock at a minimum to cover dilution from our stock issuances.

在整個 2025 年，我們將繼續執行上個季度概述的平衡資本配置策略。我們的首要任務仍然是進行有機投資，並向股東返還資本，作為我們股票的機會主義買家，至少可以彌補我們股票發行造成的稀釋。

We are exploring acquisition opportunities and remain committed to being ultra disciplined when evaluating ways to inorganically accelerate our transformation.

我們正在探索收購機會，並在評估以無機方式加速我們轉型的方法時繼續致力於保持高度紀律。

So in summary: our transformation is working; we had a great 2024; a strong Q4; we implemented a restructuring in January to position ourselves even better against our 2025 goals; and we plan to carry all this momentum forward through 2025.

總而言之，我們的轉型正在發揮作用；我們度過了美好的2024年；強勁的第四季；我們於一月份實施了重組，以便更好地實現 2025 年目標；我們計劃將這一勢頭延續到 2025 年。

For this year, we expect to grow net revenue, expand gross margins, and significantly reduce our loss position. Longer term, we remain focused on driving growth, profitability, and most importantly, shareholder value creation. I cannot be more excited about what we've accomplished and where we're going. And with that, I'll hand it off to Bryan.

今年，我們預期淨收入將增加，毛利率將提高，虧損也將大幅減少。從長遠來看，我們仍將專注於推動成長、獲利能力，以及最重要的股東價值創造。對於我們所取得的成就和未來的發展，我感到無比興奮。說完這些，我就把它交給布萊恩。

Thank you, CJ, and thank you everyone for joining today's call. We once again deliver both revenue and operating margin above the high end of our guidance range.

謝謝 CJ，也謝謝大家參加今天的電話會議。我們的收入和營業利潤率再次高於我們的預期範圍上限。

These results were driven by strong end-user demand for products across both sides of the business, with our Pro AV managed switch products driving momentum on the NFB side and further penetration of our broader Wi-Fi 7 portfolio, picking up momentum for our [CHP] business.

這些結果是由最終用戶對業務兩個方面的產品的強勁需求推動的，其中我們的 Pro AV 管理型交換機產品推動了 NFB 方面的發展勢頭，並進一步滲透了我們更廣泛的 Wi-Fi 7 產品組合，為我們的 [CHP] 業務注入了動力。

For the quarter ended December 31, 2024, revenue was above the high end of our guidance range at $182.4 million, down 0.2% on a sequential basis and down 3.3% year over year. In addition, with strong working capital management in Q4, we generated approximately $19 million in free cash flow and ended the quarter with nearly $409 million in cash and short term investments. Net of $10.7 million in stock we purchased during the period.

截至 2024 年 12 月 31 日的季度，營收高於我們預期範圍的高端，為 1.824 億美元，環比下降 0.2%，年減 3.3%。此外，憑藉第四季度強大的營運資本管理，我們產生了約 1,900 萬美元的自由現金流，並在本季末擁有近 4.09 億美元的現金和短期投資。我們在此期間購買了價值 1070 萬美元的股票淨額。

As a reminder, in the first half of the year, we took decisive action to accelerate the stocking of the channel to better position both sides of the business for more predictable performance aligned to the market trends. We started to reap the benefits of these efforts in the second half of the year with improved linearity in Q4.

提醒一下，在今年上半年，我們採取了果斷行動，加速了通路的備貨，以便更好地定位業務的雙方，從而實現與市場趨勢相一致的更可預測的業績。我們從下半年開始收穫這些努力的成果，第四季的線性得到了改善。

As such, we lower DSOs to 80 days -- our lowest level in over seven years -- down from 88 days in the prior quarter which was a strong contributor to our cash generation in the quarter and a sign of our strong operational execution. After successfully putting the destocking behind us, we entered the second half of the year well positioned to match sell in with sell through at our channel partners.

因此，我們將 DSO 降低至 80 天（這是我們七年來的最低水平），低​​於上一季的 88 天，這對我們本季的現金創造貢獻巨大，也是我們強勁營運執行力的標誌。在成功去庫存之後，我們進入了下半年，已經做好了充分準備，能夠匹配通路合作夥伴的銷售量。

Consequentially, in Q4, the NFB segment grew healthily to $80.8 million in revenue for the fourth quarter, up 2.9% sequentially and up 14.9% year over year. Impressively, although we were chasing supply of certain products throughout the quarter and unable to capture the full market potential of this business. our Pro AV managed switch products, once again, saw end-user demand grow double-digits year over year to record levels. Momentum is clearly building behind NFB's growth trajectory bolstered by the investments we've made in the business.

因此，在第四季度，NFB 部門的收入健康成長至 8,080 萬美元，季增 2.9%，年增 14.9%。令人印象深刻的是，儘管我們整個季度都在追逐某些產品的供應，卻無法充分發揮該業務的市場潛力。我們的 Pro AV 管理型交換器產品再次見證了終端用戶需求年增兩位數，達到創紀錄的水平。在我們對該業務進行的投資的推動下，NFB 的成長軌跡顯然正在增強。

We not only grew our strategic manufacturing partnerships by almost 50, but I'm pleased to share that we've also joined two broadcast alliances, further expanding our reach into this new vertical. In CHP, our premium products outperformed the broader market and we continue to see great performance for a recently released Wi-Fi 7 offerings to help fill out our good, better, best strategy and are tailored to capitalize on the accelerating Wi-Fi 7 upgrade cycle.

我們不僅將戰略製造合作夥伴關係增加了近 50 個，而且我很高興地告訴大家，我們還加入了兩個廣播聯盟，進一步擴大了我們在這個新垂直領域的影響力。在 CHP 中，我們的優質產品表現優於大盤，我們繼續看到最近發布的 Wi-Fi 7 產品的出色表現，這有助於充實我們的「好、更好、最好」策略，並可利用加速的 Wi-Fi 7 升級週期。

We saw further improvement in the US consumer networking market performance in Q4, which experienced a low single digit contraction year of year, outperforming our expectations coming into the quarter. In Q4, the CHP business delivered net revenue of $101.6 million, down 14.2% on a year-over-year basis and down 2.6% sequentially. Service provider revenue was $19.8 million in line with our expectations.

我們看到美國消費網路市場第四季的表現進一步改善，與去年同期相比，該市場出現了個位數的低收縮，超出了我們本季的預期。第四季，CHP業務淨營收為1.016億美元，年減14.2%，季減2.6%。服務提供者收入為 1,980 萬美元，符合我們的預期。

It's clear that the NETGEAR brand is resonating in the market with our recently introduced Nighthawk 5G and Wi-Fi 7 mobile hotspots, Nighthawk Wi-Fi 7 routers, and Orbi Wi-Fi 7 mesh products -- each performing well and receiving warm customer reviews. With our additional new product introductions planned for release throughout 2025, we expect the full benefits of this new strategy to build over time.

顯然，NETGEAR 品牌在市場上引起了共鳴，我們最近推出的 Nighthawk 5G 和 Wi-Fi 7 行動熱點、Nighthawk Wi-Fi 7 路由器以及 Orbi Wi-Fi 7 網狀產品都表現良好並獲得了客戶的熱烈評價。我們計劃在 2025 年推出更多新產品，我們預計這項新策略的全部優勢將隨著時間的推移而逐漸顯現。

We exited the fourth quarter with 556,000 recurring subscribers and we generated $8.7 million in recurring service revenue in the quarter, a year-over-year increase of 24.5%. We continue to see increased emphasis placed by consumers on cybersecurity protection, privacy, and premium support further substantiating our belief that focusing on increasing our recurring subscriber base is the optimal strategy to add high-margin revenue to the CHP business.

在第四季結束時，我們擁有 556,000 名經常性訂閱用戶，本季創造了 870 萬美元的經常性服務收入，年增 24.5%。我們繼續看到消費者越來越重視網路安全保護、隱私和優質支持，這進一步證實了我們的信念：專注於增加我們的經常性用戶群是為 CHP 業務增加高利潤收入的最佳策略。

For the full year 2024, NETGEAR net revenues were $673.8 million, down 9.1% compared to the prior year ending December 31, 2023. The ongoing uncertain macroeconomic environment, elevated interest rates, significant destocking of the channel, and the competitive landscape of the retail consumer networking market impacted our top line and profitability.

2024 年全年，NETGEAR 淨收入為 6.738 億美元，較截至 2023 年 12 月 31 日的上一年下降 9.1%。持續不確定的宏觀經濟環境、利率上升、通路大幅去庫存以及零售消費者網路市場的競爭格局影響了我們的營收和獲利能力。

As a result, we had a full year non-GAAP operating loss of $49.6 million resulting in non-GAAP operating margin of negative 7.4%.

結果，我們全年非公認會計準則營業虧損為 4,960 萬美元，導致非公認會計準則營業利潤率為負 7.4%。

We believe many of these factors will improve in 2025. And combined with how we're positioning NETGEAR to take advantage of the highest growth market opportunities in front of us, we anticipate that they should result in revenue growth, expanded gross margin, and meaningful improvement in our profitability in the coming year.

我們相信，其中許多因素將在 2025 年得到改善。結合我們如何定位 NETGEAR 以利用我們面前的最高成長市場機會，我們預計它們將在未來一年帶來收入成長、毛利率擴大和盈利能力的顯著提升。

From this point on, my discussion points will focus on non-GAAP numbers. The reconciliation from GAAP to non-GAAP is detailed in our earnings release distributed earlier today. Non-GAAP gross margin in the fourth quarter of 2024 was 32.8%, down 220 basis points compared to 35% in the prior year comparable period and up 170 basis points compared to 31.1% in the third quarter of 2024.

從現在開始，我的討論重點將集中在非 GAAP 數字上。我們今天早些時候發布的收益報告中詳細說明了從 GAAP 到非 GAAP 的調整。2024 年第四季非公認會計準則毛利率為 32.8%，較去年同期的 35% 下降 220 個基點，較 2024 年第三季的 31.1% 上升 170 個基點。

This marks the second consecutive quarter that we have achieved gross margin above 30% as we continue to benefit from an improved mix of NFB products which delivered segment gross margin of 43.9%. An improved product mix from our Wi-Fi 7 line up along with decreasing impact of older, more expensive inventory, both enabling CHP gross margin to increase 300 basis points sequentially to 23.9%.

這是我們連續第二季實現毛利率超過 30%，我們繼續受益於 NFB 產品組合的改善，該組合實現了 43.9% 的分部毛利率。我們的 Wi-Fi 7 系列產品組合得到改善，同時老舊、昂貴庫存的影響不斷減少，二者均使 CHP 毛利率環比增長 300 個基點，達到 23.9%。

Compared to the prior year period, our profitability in the current period was impacted by higher-cost inventory and our use of air freight as we begin to operate at leaner inventory levels and chase supply in response to strong demand. Total Q4 non-GAAP operating expenses came in at $63.9 million, up 1% year over year and up 15.7%. Sequentially.

與去年同期相比，由於我們開始以更精簡的庫存水準運作並追逐供應以滿足強勁的需求，本期的獲利能力受到庫存成本上漲和使用空運的影響。第四季非 GAAP 營業費用總額為 6,390 萬美元，較去年同期成長 1%，成長 15.7%。依次。

As a reminder, Non-GAAP operating expenses were lowered in the third quarter by the $10.9 million of legal fee adjustments pertaining to the TP-Link settlement. Our head count was 655 as of the end of the quarter, up from 638 in Q3. Our non-GAAP R&D expense for the fourth quarter was 10.5% of net revenue as compared to 9.9% of net revenue in the prior comparable period and 11% of net revenue in the third quarter of 2024.

提醒一下，第三季非 GAAP 營業費用因與 TP-Link 和解相關的 1,090 萬美元法律費用調整而降低。截至本季末，我們的員工人數為 655 人，高於第三季的 638 人。我們第四季的非 GAAP 研發費用佔淨收入的 10.5%，而去年同期該費用佔淨收入的 9.9%，2024 年第三季該費用佔淨收入的 11%。

To continue our technology and product leadership, we are committed to continued investment in R&D. I'm pleased that we delivered profitability above the high end of our guidance range enabled by the strength of NFB, the success of our new product introductions within CHP in recent quarters, and improved top line leverage.

為了繼續保持我們的技術和產品領先地位，我們致力於持續投資研發。我很高興，得益於 NFB 的實力、最近幾季我們在 CHP 內成功推出的新產品以及提升的營收槓桿，我們實現了高於預期範圍的盈利。

Our Q4 non-GAAP operating loss was $4.2 million, resulting in a non-GAAP operating margin of negative 2.3% -- a decline of 370 basis points compared to the year ago period and a decline of 320 basis points compared to the prior quarter. Our non-GAAP tax expense was $1.2 million in the fourth quarter of 2024. Looking at the bottom line for Q4, we reported non-GAAP net loss of $1.6 million, resulting in a non-GAAP loss of $0.06 on an earnings-per-share basis.

我們第四季的非 GAAP 營業虧損為 420 萬美元，導致非 GAAP 營業利潤率為負 2.3%——比去年同期下降 370 個基點，比上一季下降 320 個基點。2024 年第四季度，我們的非 GAAP 稅金為 120 萬美元。從第四季的底線來看，我們報告的非 GAAP 淨虧損為 160 萬美元，導致每股收益非 GAAP 虧損為 0.06 美元。

Turning to the balance sheet, we ended the fourth quarter of 2024 with $408.7 million in cash and short term investments, up $13 million from the prior quarter and equating to $14.27 per share. During the quarter, $21.5 million of cash was provided by operations -- better than our expectations -- which brings our total cash provided by operations over the trailing 12 months to $164.8 million.

談到資產負債表，截至 2024 年第四季度，我們的現金和短期投資為 4.087 億美元，較上一季增加 1,300 萬美元，相當於每股 14.27 美元。本季度，經營活動提供的現金為 2,150 萬美元 - 好於我們的預期 - 這使得我們過去 12 個月的經營活動提供的總現金達到 1.648 億美元。

We used $2.5 million in purchases of property and equipment during the quarter which brings our total cash used for capital expenditures over the trailing 12 months to $9 million.

我們在本季使用了 250 萬美元購買物業和設備，這使得我們過去 12 個月用於資本支出的總現金達到 900 萬美元。

The fourth quarter marks our sixth consecutive quarter of positive cash generation. In Q4, we resumed our share repurchase program and spent $10.7 million to repurchase approximately 423,000 shares of NETGEAR common stock at an average price of $25.20 per share. This brings our stock repurchases for the full year 2024 to $33.6 million or $15.96 per share. We have approximately 3.4 million shares reserved in our current authorization and our fully diluted share count is approximately 28.6 million shares as it is in the fourth quarter.

第四季是我們連續第六個季度實現正現金流。在第四季度，我們恢復了股票回購計劃，斥資 1,070 萬美元以平均每股 25.20 美元的價格回購了約 423,000 股 NETGEAR 普通股。這使我們 2024 年全年的股票回購額達到 3,360 萬美元，即每股 15.96 美元。我們目前的授權中保留了大約 340 萬股股票，而第四季度我們的完全稀釋股數約為 2860 萬股。

Now, a cover outlook for Q1 2025. We expect to continue to see more predictable performance that is aligned with the market for both of our businesses now that are destocking and inventory reduction actions are substantially completed.

現在，封面展望 2025 年第一季。我們預計，對於我們兩個業務而言，現在去庫存和減少庫存的行動已基本完成，將繼續看到與市場保持一致的更可預測的績效。

However, within NFB, although in-user demand for Pro AV line manage switches remain strong, we are facing lengthy lead times for supply which will limit our ability to capture the full top line potential of this growing business.

然而，在 NFB 內部，雖然用戶對專業 AV 線路管理交換器的需求仍然強勁，但我們面臨著較長的供貨交貨時間，這將限制我們充分發揮這一不斷增長的業務的營收潛力的能力。

On the CHP side, we are seeing signs of market stability and expect to experience normal seasonality in the retail portion of this business. We expect revenue from the service provider channel to be approximately $15 million in Q1 down on a sequential basis. Accordingly, we expect first quarter net revenue to be in the range of $145 million to $160 million.

在 CHP 方面，我們看到了市場穩定的跡象，並預計該業務的零售部分將經歷正常的季節性。我們預計第一季服務提供者管道的收入將比上一季下降約 1500 萬美元。因此，我們預計第一季淨收入將在 1.45 億美元至 1.6 億美元之間。

In the first quarter, we expect to maintain the gross margin performance similar to what we reported in the fourth quarter. However, with our seasonally lower top line, we expect our first quarter GAAP operating margin to be in the range of negative 16.4% to negative 13.4% and non-GAAP operating margin to be in the range of negative 10% to negative 7%. Our GAAP tax expense is expected to be in the range of $1 million to $2 million. And our non-GAAP tax benefit is expected to be in the range of $1.5 million to $2.5 million for the first quarter of 2025.

我們預計第一季的毛利率表現將與第四季相似。然而，由於我們的營收季節性下降，我們預計第一季 GAAP 營業利潤率將在負 16.4% 至負 13.4% 之間，非 GAAP 營業利潤率將在負 10% 至負 7% 之間。我們的 GAAP 稅費預計在 100 萬至 200 萬美元之間。預計 2025 年第一季的非 GAAP 稅收收益將在 150 萬美元至 250 萬美元之間。

Moving forward, as we orient this business to deliver long term growth and expand profitability, we will continue to pursue a lean operating model and maintain a focus on investing in the areas of the business with the biggest growth potential.

展望未來，在我們定位這項業務以實現長期成長和擴大獲利能力的同時，我們將繼續推行精實的營運模式，並繼續專注於投資最具成長潛力的業務領域。

As CJ mentioned, we enacted a significant restructuring in Q1 that drove cost reductions throughout the organization, yielding a reduction in annual operating expenses of approximately $20 million or over 8% of our annual expense in 2024. This savings will enable roughly the equivalent level of investment into the areas that will drive long-term profitable growth and generate shareholder value, most of which are in our NFB business.

正如 CJ 所提到的，我們在第一季進行了重大重組，推動了整個組織的成本削減，導致年度營運費用減少約 2,000 萬美元，佔 2024 年年度費用的 8% 以上。這些節省將使我們把大致相當的投資投入到那些能夠推動長期獲利成長和創造股東價值的領域，其中大部分都在我們的 NFB 業務中。

Also, in light of the news this week, we think it's important to address the newly contemplated tariffs potentially affecting imports from China, Canada, and Mexico at some point head onl. We had been anticipating these tariffs for some time and are pleased to report that based on information known to date our business should not be materially affected.

此外，鑑於本週的消息，我們認為有必要正面解決可能影響中國、加拿大和墨西哥進口的新關稅問題。我們已經預料到這些關稅有一段時間了，並且很高興地報告，根據迄今為止已知的信息，我們的業務不會受到重大影響。

However, this new trade landscape is evolving in real time and we are staying vigilant to ensure we're aware of the new developments to help minimize their impact, if any, on our business going forward. And with that, we can now open up for questions.

然而，這種新的貿易格局正在即時演變，我們將保持警惕，確保了解新的發展，以幫助將其對我們未來業務的影響降至最低。現在，我們可以開始提問了。

Thank you. (Operator Instructions) Logan Katzman, Raymond James.

謝謝。（操作員指示）Logan Katzman，Raymond James。

Hey guys, this is Logan on for Adam. Thanks for taking our question and CJ, congrats on the one-year mark. Maybe to start, can you touch a little bit more on supply constraints you guys are seeing in the NFB side of the business? Maybe if you could give us a little bit more detail on how the situation emerged and steps you guys are taking to work through it. That would be super helpful. Thank you.

嘿夥計們，我是 Logan，代替 Adam 上場。感謝您回答我們的問題，CJ，恭喜您一週年。首先，您能否稍微談談您在 NFB 業務方面看到的供應限制？也許你可以向我們詳細介紹一下情況是如何發生的，以及你們為解決這個問題所採取的措施。那將會非常有幫助。謝謝。

Yeah. Hey, Logan, good to hear from you; thanks for the congrats on the one year. Yeah, this actually started before I joined and to be clear, it's really in one product category, our manage switches that fuel our Pro AV business and there is some lower optimism for that category exiting 2023 so that led to some lower forecast.

是的。嘿，洛根，很高興收到你的來信；謝謝你對我這一年的祝賀。是的，這實際上在我加入之前就開始了，需要明確的是，這實際上屬於一個產品類別，即我們的管理交換機，它推動了我們的 Pro AV 業務，人們對該類別在 2023 年退出時的樂觀程度較低，因此導致了較低的預測。

And as we implemented some of our new strategies, the team was able to really accelerate demand for that product category back to historical levels, if not above. And so that led us to chase supply which is always better to chase supply than it is to chase demand.

隨著我們實施一些新策略，團隊能夠真正將該產品類別的需求加速回升至歷史水平，甚至更高。因此，這導致我們追逐供給，追逐供給總是比追逐需求更好。

And we actually didn't think we're going to have an issue. We had -- even though we're well within our lead times, these are products that, you know, a lot of the components -- you're looking at almost a year's lead time.

我們實際上並不認為我們會遇到問題。儘管我們的交貨時間還算充足，但這些產品的許多部件的交貨時間幾乎需要一年。

But we're working with an ODM, work -- our key ODM working with our key partners. They're working to pull it forward and commitments were made that just weren't -- didn't materialize. And so that started really in Q3, we thought we'd make it up in Q4, we're on a path to recovery now.

但我們正在與 ODM 合作，我們的關鍵 ODM 正在與我們的關鍵合作夥伴合作。他們正在努力推動這一目標的實現，並做出了承諾，但尚未兌現。這實際上從第三季就開始了，我們以為我們會在第四季彌補，現在我們正走在復甦的道路上。

It's just going to take Q1 and some of Q2 to get back on track. In fairness to our partner, you know, these were incremental demand signals within lead times and this is coming at a time we were -- our partners have lived through a lot of variability working with NETGEAR.

只需第一季和第二季的部分時間即可重回正軌。公平地對待我們的合作夥伴，您知道，這些都是交貨期內增量的需求信號，而這發生在我們 - 我們的合作夥伴與 NETGEAR 合作經歷了很多變化的時候。

And so we had some of our historical practices contributed to the situation but we're on the right trajectory now. We're doing everything we need to and we'll get back on track in the next in the next quarter or so.

因此，我們的一些歷史做法導致了這種情況，但現在我們正走在正確的軌道上。我們正在盡一切努力，並將在下個季度左右重回正軌。

Awesome, that's super helpful. Thank you. And kind of, going off that still. How do you see revenue seasonality playing out throughout 2025?

太棒了，這非常有幫助。謝謝。而且，現在仍然如此。您認為 2025 年的營收季節性將如何發展？

Sure, Logan. Let me just start, I guess, and reiterate some of the movements within the guidance for Q1. Obviously, we just talked about supply constraints on manage switch within NFB which is obviously into -- create a situation where we're shipping in less than we think.

當然，洛根。我想，首先讓我重申第一季指引中的一些動向。顯然，我們剛才談到了 NFB 內部管理交換器的供應限制，這顯然會導致我們的出貨量比我們想像的要少。

The real demand is there so that's a little bit of a headwind there. The CHP retail market seasonally is down mid-teen percentage wise and we're expecting normal seasonality to play out as we're seeing some promise with regards to stability in that market.

存在真正的需求，因此這確實是一個小小的阻力。熱電聯產零售市場季節性下降了百分之十幾，我們預計正常的季節性將會發揮作用，因為我們看到該市場在穩定性方面有一定希望。

And then lastly, the service provider revenue at $15 million, as I mentioned, the guidance, as we kind of work to expand to a good, better, best product line up within our Mobile business unit. As we progress through the year, I think that the -- if you get to Q2, we'll expect some relief from the supply situation -- the managed switch. So that should be favorable.

最後，正如我所提到的那樣，服務提供者收入為 1500 萬美元，這是預期，因為我們致力於在行動業務部門內擴展到更好、更好的產品線。隨著今年的進展，我認為——如果進入第二季度，我們預計管理型交換機的供應情況會有所緩解。這應該是有利的。

Throughout the year, on the CHP side, I would say normal retail seasonality is expected at this point which is relatively flat when you get to Q2 to Q1.

就 CHP 方面而言，我認為全年零售季節性預計處於正常水平，第二季與第一季相比零售季節性相對穩定。

And so service provider revenues for the year, we're probably looking at something closer to $75 million and that's comparative to 2024 of roughly $90 million. And again, that's due to the time you want our new products will be introduced. But I think all those things factored in there, we'll start to see sequential uptick throughout the year, progressively.

因此，我們預計今年服務提供者的收入可能接近 7,500 萬美元，而 2024 年的收入約為 9,000 萬美元。再次，這是由於您希望我們推出新產品的時間。但我認為將所有這些因素考慮在內，我們將開始看到全年逐步的連續上升。

Awesome. Yeah, super helpful. Thank you. Another question, I can't help to notice you sound a little bit more bullish on the TP-Link front here and obviously, we've seen some headlines and news articles come out around that can. Can you just share a little bit about how you're prepping operationally for a potential ban if that does happen? And any impacts that could have for the year?

驚人的。是的，非常有幫助。謝謝。另一個問題是，我注意到您對 TP-Link 方面的看法似乎更加樂觀，而且顯然，我們已經看到了一些關於這方面的頭條新聞和新聞文章。如果真的發生這種情況，您能否稍微分享一下您在營運方面如何為可能的禁令做準備？這對今年會產生什麼影響嗎？

Yeah, great, great question. So maybe just a quick update since we -- lots happened since our last earnings call. So you know, the [CSO] of Microsoft posted a blog post on LinkedIn and on the Microsoft blog that really exposed kind of TP-Links role in some of these typhoons that the US is facing.

是的，這個問題問得非常好。因此，也許只是一個快速更新，因為自從我們上次財報電話會議以來發生了很多事情。你知道，微軟的 [CSO] 在 LinkedIn 和微軟部落格上發布了一篇博文，揭露了 TP-Links 在美國面臨的一些颱風中所扮演的角色。

And that led to Bloomberg and Wall Street Journal doing fairly thorough kind of reporting on the multiple different angles here from a governmental investigation perspective at the Department of Commerce, the DOJ.

這使得彭博社和華爾街日報從美國商務部（DOJ）的政府調查角度對多個不同角度進行了相當詳盡的報導。

And so we're reading the same news you all are reading. But given the hawkishness of the new administration, we are starting to look at making a small investment in supply given some of the lead times of our products to be in a better position, should you know, an exclusion actually happen.

因此，我們所讀到的新聞和你們所讀到的是一樣的。但考慮到新政府的強硬立場，我們開始考慮在供應方面進行小額投資，以縮短我們部分產品的交貨時間，從而處於更有利的地位，如果您知道的話，實際上可能會發生排除的情況。

And as we've talked about before, like an exclusion were to happen, that would require a significant working capital investment. We're not talking about doing that in the event of any decision but we are talking about being a little bit more prepared.

正如我們之前談到的，如果發生排除，就需要大量的營運資金投資。我們並不是說在做任何決定時要這樣做，而是說要做更多的準備。

So in future quarters, you might see a little increase in our finished goods inventory just in anticipation of a of a positive outcome there for us. And you know, when a decision is made, I think there tends -- if you look at what's happened with like [EB software], and [drones], and Kaspersky, there tends to be a decent waiting period between the decision and the final determination of that decision. And so we'd have some time to operationally prepare more aggressively if that were were to come to pass.

因此，在未來幾個季度，您可能會看到我們的成品庫存略有增加，這只是預期我們會取得積極成果。你知道，當做出一個決定時，我認為往往——如果你看看[EB 軟體]、[無人機]和卡巴斯基的情況，你會發現在做出決定和最終裁定之間往往會有一段相當長的等待期。因此，如果這種情況真的發生，我們將有時間進行更積極的營運準備。

No, that makes sense, that makes sense. Awesome. Well, thank you. Another question here. Looking at your guys' restructuring efforts, $20 million in savings here but also you guys talked about some of your investments in the 2025. Can you just elaborate, just in another way, just what exactly your investment priorities are in 2025?

不，這很有道理，這很有道理。驚人的。好吧，謝謝你。這裡還有一個問題。看看你們的重組努力，這裡節省了 2000 萬美元，但你們也談到了 2025 年的一些投資。您能否換個方式詳細說明 2025 年您的投資重點到底是什麼？

Yeah, great question. So I think one important way to frame this or simple way to frame this is if you think about the focus of our historical business, it's been consumer centric and it's been device centric. And so we're making investments largely focused on our B2B business and we're -- the three main areas there are one, to build a world class B2B go-to-market capability. That's everything from the right tools, to generate track, activate leads, marketing capabilities, building out a stronger brand on the B2B side.

是的，很好的問題。因此，我認為建立這個概念的一個重要方法或簡單的方法是，如果你考慮我們歷史業務的重點，它一直以消費者為中心，以設備為中心。因此，我們的投資主要集中在 B2B 業務上，主要有三個領域，一是打造世界級的 B2B 市場進入能力。這一切都包括正確的工具、生成追蹤、激活潛在客戶、行銷能力，以及在 B2B 方面打造更強大的品牌。

If you go to our website, there's significant work underway to revamp that; it's needs a lot of work. Sales coverage, pre- and post-sales support -- there's just a lot that we -- a lot of opportunity which is really positive because we've had the success we've had without a lot of that. And so go-to-market investments on the B2B side are a big part of it.

如果你造訪我們的網站，你會發現我們正在進行重大的工作來改進它；這需要做大量的工作。銷售覆蓋、售前和售後支援——我們有很多機會，這些機會非常積極，因為我們在沒有太多這些的情況下也取得了成功。因此，B2B 方面的市場進入投資是其中很重要的一環。

The other is software, right? We've had a legacy of being great devices. Our new mission reason for existing is to power extraordinary experiences. You can only do that with great software these days. And so we're doing a lot of work to insource kind of that critical capability.

另一個是軟體，對嗎？我們一直致力於生產出更出色的設備。我們存在的新使命是提供非凡體驗。如今，只有使用優秀的軟體才能做到這一點。因此，我們正在做大量工作來引進這種關鍵能力。

And that's happening across the business, not just on NFB, but most of the effort -- is most of the investments happening on the NFB side and there's puts and takes there, right? Because we have external vendors so we reduce the cost of those expenses while we build up our internal teams.

這正在發生在整個業務中，不僅僅是在 NFB 上，而是大部分的努力——大多數投資是否都發生在 NFB 方面，並且存在著收益和損失，對嗎？因為我們有外部供應商，所以我們在建立內部團隊的同時降低了這些費用的成本。

And then last is filling product gaps. So on the NFP side, we have a fairly robust portfolio of capabilities but there are a few things missing in terms of delivering a full solution to our IT Enterprise customers and so we're actively building out those products. Those are the real three main investment areas and again, it's mostly focused on the B2B side.

最後是填補產品空白。因此，在 NFP 方面，我們擁有相當強大的功能組合，但在為 IT 企業客戶提供完整解決方案方面還缺少一些東西，因此我們正在積極建立這些產品。這些是真正的三個主要投資領域，而且主要集中在 B2B 方面。

Awesome. Yeah, super helpful. Yeah, 2025 seems like an exciting year for next year, for sure. You know, last question for me here. You know, you guys have a strong cash balance coming out of '24. Can you share any updates to your capital allocation priorities or any shifts in those priorities?

驚人的。是的，非常有幫助。是的，2025 年對明年來說肯定是令人興奮的一年。你知道，這是我的最後一個問題。你知道，你們在 24 年擁有充足的現金餘額。您能否分享一下您的資本配置重點的更新或這些重點的變化？

Yeah, great question. Maybe before I answer that, again, just to make sure you and our investors are aware. So we're planning on a go forward basis to be providing more details on our different segments. You'll see that in our press release for this quarter, we had segment results. We got some good feedback from you all and from investors.

是的，很好的問題。也許在我回答這個問題之前，只是為了確保您和我們的投資者都知道。因此，我們計劃在未來提供有關不同細分市場的更多詳細資訊。您將在本季的新聞稿中看到，我們公佈了分部業績。我們從大家和投資者那裡得到了一些很好的回饋。

Next quarter, as we enter into start reporting on in 2025, you'll see three segments. So we'll have NFB as it exists today. And then what CHP is today, we're going to break that into two: one is Home Networking and the other is Mobile. And most of what you see in service provider today falls in the Mobile category though there is a retail business associated with that.

下個季度，當我們進入 2025 年開始報告時，您將看到三個部分。因此我們將擁有今天現有的 NFB。那麼，我們將把今天的 CHP 分成兩部分：一個是家庭網絡，另一個是行動網絡。如今，您所看到的服務提供者大多屬於行動類別，儘管行動業務也與零售業務相關。

But on to capital allocation; no change in our priorities. So just to recap it, we're making the organic investments. We were aggressive in our restructuring very much from a position of strength to basically self fund those. So we're excited about our ability to do that.

但談到資本配置；我們的優先事項沒有改變。總結一下，我們正在進行有機投資。我們在重組方面非常積極，從實力上來說，基本上就是自籌資金。因此，我們對自己能夠做到這一點感到非常興奮。

The share repurchases remains a priority of our capital allocation strategy. We repurchased about $33 million this year. We're going to continue to pursue share repurchases. And then we are looking at acquisition opportunities, as I've said before, we're going to be ultra diligent in our evaluation of those.

股票回購仍是我們資本配置策略的重點。我們今年回購了約3300萬美元。我們將繼續進行股票回購。然後，我們正在尋找收購機會，正如我之前所說，我們將非常認真地評估這些機會。

But if there's ways for us to accelerate our transformation and you know, the few areas I've talked to -- but previously is, companies that have great software that can accelerate that part of our transformation and bring an acceleration to our recurring revenue growth, product adjacencies that fill some of those gaps that I talked about, and then scale. And, we suffer from a lack of scale in a couple of our business segments.

但是，如果我們有辦法加速我們的轉型，你知道，我之前談到的幾個領域是，擁有優秀軟體的公司可以加速我們轉型的這一部分，並加速我們的經常性收入增長，產品鄰接可以填補我談到的一些空白，然後擴大規模。而且，我們的一些業務部門面臨規模不足的問題。

So those are the three things that we're considering but that really aligns exactly with what we've talked about before.

所以這就是我們正在考慮的三件事，但這與我們之前談論的內容完全一致。

Great. Yeah, thank you. That's that's all I got and I know I appreciated the extra incremental breakout on the segments this quarter. So looking forward to what's to come next quarter.

偉大的。是的，謝謝。這就是我得到的全部結果，我知道我很欣賞本季各個細分市場的額外增量突破。我們非常期待下個季度的進展。

Awesome. Thanks, Logan.

驚人的。謝謝，洛根。

And there are no further questions at this time. I would like to turn the call back over to Mr. CJ Prober for closing remarks.

目前沒有其他問題。我想將電話轉回給 CJ Prober 先生，請他作最後發言。

Thank you. Yeah. I just want to give a big shout out to our global team. As I said at the outset of our call, we are making all of the hard decisions and doing the hard work to both transform the business while delivering on the business quarter over quarter. So big shout out to the team for their adaptability and the urgency with which we're approaching the transformation. Couldn't be happier about the progress we've made in 2024 and look forward to carrying that momentum forward this coming year.

謝謝。是的。我只想向我們的全球團隊大聲喊叫。正如我在電話會議開始時所說的那樣，我們正在做出所有艱難的決定，並付出艱苦的努力來轉變業務，同時逐季實現業務成長。因此，我們要大聲感謝團隊的適應能力以及我們應對轉型的迫切性。我們對 2024 年的進展感到非常高興，並期待在來年繼續保持這一勢頭。

And ladies and gentlemen, this concludes today's call and we thank you for your participation. You may now disconnect.

女士們、先生們，今天的電話會議到此結束，感謝你們的參與。您現在可以斷開連線。