NETGEAR Inc (NTGR) 2025 Q2 法說會逐字稿

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

女士們、先生們，感謝你們的支持（操作員指示）現在我想將本次會議交給艾瑞克·拜林先生。先生，請繼續。

Thank you, operator. Good afternoon, and welcome to NETGEAR's second quarter of 2025 financial results conference call. Joining us from the company are Mr. CJ Prober, CEO; and Mr. Bryan Murray, CFO. The format of the call will start with commentary on the business provided by CJ, followed by a review of the financials for the second quarter and guidance for the third quarter provided by Bryan. We'll then have time for any questions.

謝謝您，接線生。下午好，歡迎參加 NETGEAR 2025 年第二季財務業績電話會議。與我們一同出席的公司還有執行長 CJ Prober 先生和財務長 Bryan Murray 先生。電話會議的形式將首先由 CJ 對業務進行評論，然後由 Bryan 對第二季度的財務狀況進行回顧，並給出第三季度的指導。然後我們會有時間回答任何問題。

If you have not received a copy of today's release, please visit NETGEAR's Investor Relations website at 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.

如果您尚未收到今天的新聞稿，請造訪 NETGEAR 投資者關係網站 www.netgear.com。在開始正式發言之前，我們在此提醒您，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。

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.

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. In addition, several non-GAAP financial measures will be mentioned on this call. Reconciliation of the non-GAAP to GAAP measures can be found in today's press release on our Investor Relations website.

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。此外，本次電話會議也將提及幾個非公認會計準則財務指標。非公認會計準則與公認會計準則衡量標準的對帳可以在我們投資者關係網站上今天的新聞稿中找到。

At this time, I would now like to turn the call over to CJ.

現在，我想將電話轉給 CJ。

Thanks, Erik, and thank you all for joining our call. We are very pleased to report that Q2 was another great quarter for NETGEAR, with results much better than anticipated, including historically high gross margins and another quarter of non-GAAP profitability the team simply delivered.

謝謝，艾瑞克，也感謝大家參加我們的電話會議。我們非常高興地報告，第二季度對於 NETGEAR 來說又是一個出色的季度，業績遠好於預期，包括歷史性的高毛利率和團隊輕鬆實現的另一個季度的非 GAAP 盈利。

Even more importantly, our transformation to deliver long-term shareholder value via profitable growth is progressing as planned, and we continue to execute well against our newly formed long-term strategy. Today, I'll review our second quarter financial highlights, give an update on each of our three business units and cover a couple of macro points that are top of mind.

更重要的是，我們透過獲利成長實現長期股東價值的轉型正在按計劃進行，並且我們繼續按照新制定的長期策略順利執行。今天，我將回顧我們第二季的財務亮點，介紹我們三個業務部門的最新情況，並討論幾個最受關注的宏觀要點。

In Q2, we outperformed our guidance on both the top and bottom line. Despite ProAV supply constraints that limited shipments, net revenue came in at $170.5 million, above the high end of our outlook, and we delivered non-GAAP gross margins of 37.8%, an all-time high for the company. We also outperformed our non-GAAP operating margin guidance and delivered non-GAAP profitability for a second quarter in a row. This performance reflects continued progress in our transformation journey.

在第二季度，我們的營收和淨利潤都超出了預期。儘管 ProAV 供應受限導致出貨量減少，但淨收入仍達到 1.705 億美元，高於我們預期的高端，且我們的非 GAAP 毛利率達到 37.8%，創下公司歷史新高。我們也超越了非公認會計準則營業利潤率預期，並連續第二季實現非公認會計準則獲利。這項業績體現了我們轉型之路的持續進步。

A year removed from the major channel destocking we executed in Q2 of 2024, our tighter operational discipline is paying dividends. We've streamlined inventory, stabilized DSOs at their lowest level in nearly 8-years and realigned our supply chain to support leaner, more resilient execution. Nowhere is this transformation more evident than in the profitability of our three business units.

距離我們在 2024 年第二季實施的主要管道去庫存行動已經過去一年，我們更加嚴格的營運紀律正在帶來回報。我們精簡了庫存，將 DSO 穩定在近 8 年來的最低水平，並重新調整了我們的供應鏈，以支援更精簡、更有彈性的執行。這種轉變最明顯地體現在我們三個業務部門的獲利能力上。

Last quarter, we shared that each business unit improved its year-over-year contribution margin by over 400 basis points. This quarter, we're excited to share that we've achieved positive contribution margins across each business. This milestone is even more impressive considering the varied opportunities and challenges within each segment, and it serves as a great testament to the progress we are making in driving focused execution.

上個季度，我們分享了每個業務部門的年比貢獻利潤率提高了 400 多個基點。本季度，我們很高興地告訴大家，我們每個業務都實現了正的貢獻利潤。考慮到每個領域內的各種機會和挑戰，這個里程碑更加令人印象深刻，它充分證明了我們在推動重點執行方面所取得的進展。

Most importantly, though, these efforts have cemented a foundation of improved profitability, and now we are framing our growth plans for the second phase of our transformation. On to the business updates. NFB led the way again this quarter with revenue up 38% year-over-year and up more than 4% sequentially. NFB's gross margin reached 46.7%, representing an increase of 1,300 basis points year-over-year and 40 basis points sequentially.

但最重要的是，這些努力鞏固了提高獲利能力的基礎，現在我們正在為轉型的第二階段製定成長計畫。繼續了解業務更新。NFB 本季再次領先，營收年增 38%，季增超過 4%。NFB 的毛利率達到 46.7%，年增 1,300 個基點，比上一季成長 40 個基點。

As we continue to scale this business and it becomes a larger percentage of our revenue, we will continue to benefit from the higher gross and contribution margin profile it brings to our consolidated P&L. ProAV remained a steadfast growth engine for NFB with strong double-digit year-over-year sell-through growth across all geographies. Despite entering the quarter supply constrained, great execution by the team allowed us to exceed our shipment target for Q2 and deliver 14% sequential revenue growth for ProAV.

隨著我們繼續擴大這項業務，它在我們的收入中所佔的比例越來越大，我們將繼續受益於它為我們的合併損益表帶來的更高的毛利率和貢獻利潤率。ProAV 仍然是 NFB 的穩定成長引擎，所有地區的銷售額均實現了強勁的兩位數年成長。儘管進入本季供應受限，但團隊的出色執行使我們超出了第二季的出貨量目標，並為 ProAV 帶來了 14% 的連續收入成長。

Even with this strong growth, end market demand for our highly differentiated products resulted in a considerable increase in our sales backlog during the quarter. While we prefer to be capitalizing on the full potential of this business, it is great to see our investments unlock substantial growth opportunities. We're diligently working to improve supply, and we expect to begin to burn down our sales backlog in Q3 and establish safety stock in the first quarter of 2026.

即使有如此強勁的成長，終端市場對我們高度差異化產品的需求也導致本季我們的銷售積壓量大幅增加。雖然我們更希望充分利用這項業務的潛力，但很高興看到我們的投資釋放出巨大的成長機會。我們正在努力改善供應，並預計在第三季開始消耗銷售積壓，並在 2026 年第一季建立安全庫存。

Further demonstrating our market leadership in ProAV, we also won multiple industry awards at NAB and InfoComm and expanded our AV manufacturing partner base to approximately 460. The customer deployments on the AV side of our business continue to include large Fortune 500 organizations and high-profile events and productions. For example, we recently completed commercial deployments at Fortune 500 companies like CBRE, Applied Materials, Global Foundries and [Kerry] Ireland and also powered the G7 Conference in Canada, President Macron's Bastille celebration in France and Marilyn Manson's concert Tour to name a few fun examples.

為了進一步證明我們在 ProAV 領域的市場領導地位，我們還在 NAB 和 InfoComm 上贏得了多個行業獎項，並將我們的 AV 製造合作夥伴基礎擴大到約 460 個。我們業務的 AV 方面的客戶部署繼續包括大型財富 500 強企業和備受矚目的活動和製作。例如，我們最近在世邦魏理仕、應用材料、格芯和[Kerry] Ireland等財富 500 強公司完成了商業部署，也為加拿大的 G7 會議、法國馬克宏總統的巴士底獄慶典和瑪麗蓮曼森的巡迴演唱會提供了支持，僅舉幾個有趣的例子。

We also launched our new AV Professional Services group this quarter. This launch marks an important expansion of our enterprise value proposition. Our on-site engineering assistance service embeds seasoned NETGEAR engineers directly into customer deployments, offering pre-event validation, live day support and post-event analysis, derisking complex AV over IP projects and delivering peace of mind for mission-critical use cases.

本季我們也成立了新的 AV 專業服務集團。此次發布標誌著我們企業價值主張的重要擴展。我們的現場工程援助服務將經驗豐富的 NETGEAR 工程師直接嵌入到客戶部署中，提供事件前驗證、現場支援和事件後分析，降低複雜的 AV over IP 專案風險，並為關鍵任務用例提供安心。

With the full catalog of modular service offerings in development, we're building a scalable service-led layer on top of our hardware and software foundation to drive long-term customer success and higher-margin revenue. On the IT side of NFT, we're building a complete network and security solution for SMEs and MSPs to address an opportunity with huge potential where we currently only have a small share of the market.

隨著模組化服務產品的完整目錄的開發，我們正在硬體和軟體基礎上建立一個可擴展的服務主導層，以推動長期客戶成功和更高利潤的收入。在 NFT 的 IT 方面，我們正在為中小企業和 MSP 建立完整的網路和安全解決方案，以抓住目前我們僅佔一小部分市場份額的巨大潛力機會。

Our acquisition of Exium gives us a proprietary SASE platform to integrate directly into our cloud management service, Insight. This will enable us to offer what we believe to be the industry's first fully integrated networking and cloud security solution purpose-built for small- and medium-sized enterprises.

我們對 Exium 的收購為我們提供了專有的 SASE 平台，可直接整合到我們的雲端管理服務 Insight 中。這將使我們能夠提供我們認為是業界第一個專為中小型企業打造的完全整合的網路和雲端安全解決方案。

Combined with our in-house software team in Chennai, which was accelerated by the VAAG acqui-hire, we've substantially advanced our plan to in-source software development and make software a core capability and even more of a differentiator for NFB.

結合我們在欽奈的內部軟體團隊（該團隊因 VAAG 收購而加速發展），我們大大推進了內部軟體開發計劃，使軟體成為 NFB 的核心能力，甚至成為 NFB 的差異化因素。

Our home networking business had a great quarter up and down the P&L, surpassing our expectations for top line, gross margin and contribution profit. Despite the stiff competition that remains in the market, this business is unequivocally benefiting from a broadening product portfolio, the leaner operational footprint and getting past some of the older inventory issues. These levers translated to strong sequential results, revenue growth of 10%, 540 basis points increase in gross margin and 750 basis points improvement in profitability.

我們的家庭網路業務本季的損益表現十分出色，超出了我們對營業收入、毛利率和貢獻利潤的預期。儘管市場競爭仍然激烈，但該業務無疑受益於不斷擴大的產品組合、更精簡的營運佈局以及一些舊庫存問題的解決。這些因素轉化為強勁的連續業績，營收成長 10%，毛利率增加 540 個基點，獲利能力提高 750 個基點。

We've had success at the mid- and high-end of the market. And yesterday, our streamlined execution enabled us to launch our new Orbi 370 offering. The latest and perhaps most important addition to building out our good, better, best strategy, the Orbi 370 leverages the deep expertise NETGEAR brings at the high end on performance and security at a more accessible price point. This combination makes the 370 ideal for households that need the extended coverage of a mesh system but don't require the advanced performance of our top-of-the-line model.

我們在中高端市場取得了成功。昨天，我們精簡的執行使我們能夠推出新的 Orbi 370 產品。Orbi 370 是我們建立「好、更好、最佳」策略的最新且也許是最重要的補充，它以更實惠的價格利用了 NETGEAR 在高端性能和安全性方面的深厚專業知識。這種組合使 370 成為需要網狀系統擴展覆蓋範圍但不需要我們頂級型號的高級性能的家庭的理想選擇。

This latest release rounds out our offering as our most affordable WiFi 7 mesh system to date, further expanding the NETGEAR brand to the bigger part of the market and positioning us for additional success in home networking. Most importantly, we're pleased to have Jonathan Oakes officially join as Senior Vice President and General Manager of our Home Networking business.

這個最新版本完善了我們迄今為止最經濟實惠的 WiFi 7 網狀系統產品，進一步將 NETGEAR 品牌擴展到更大的市場，並為我們在家庭網路領域取得更多成功奠定了基礎。最重要的是，我們很高興喬納森·奧克斯正式加入我們，擔任家庭網路業務高級副總裁兼總經理。

Jonathan is the latest addition to our newly formed executive leadership team and brings deep experience in consumer technology with a strong track record of driving execution and innovation at scale at leading brands like Fitbit, Google and Amazon.

喬納森是我們新成立的執行領導團隊的最新成員，他在消費科技領域擁有豐富的經驗，在 Fitbit、Google和亞馬遜等領先品牌推動大規模執行和創新方面擁有良好的記錄。

Since joining a couple of months ago, he's made an immediate impact by sharpening our strategic focus, accelerating the launch of the Orbi 370 and setting the groundwork to enhance our product road map, subscription offerings and channel execution. Under his leadership, we're confident home networking is on a strong trajectory to drive profitable growth.

自從幾個月前加入以來，他透過強化我們的策略重點、加速 Orbi 370 的推出以及為增強我們的產品路線圖、訂閱服務和管道執行奠定基礎，產生了立竿見影的效果。在他的領導下，我們相信家庭網路將走上強勁的軌道，推動獲利成長。

In our mobile segment, we saw strong retail performance and grew our EMEA-based service provider business substantially by launching six new products across four customers. That said, sales with our large US-based service provider customer were weaker than expected, and the overall revenue for this business was below our expectation for the quarter. Despite the revenue shortfall, we significantly exceeded our gross margin expectations at over 29%, and we're able to deliver positive contribution margin for the mobile business in the quarter.

在行動領域，我們實現了強勁的零售業績，並透過向四家客戶推出六款新產品，大幅成長了我們位於 EMEA 的服務供應商業務。儘管如此，我們與美國大型服務供應商客戶的銷售表現弱於預期，該業務本季的整體收入低於我們的預期。儘管收入不足，但我們的毛利率仍大大超出預期，達到 29% 以上，並且我們能夠在本季度為行動業務帶來正的貢獻利潤率。

As we continue to make progress launching new products that align with our good, better, best product strategy, we expect to drive top line improvement for this business. The underlying demand for cellular connectivity continues to grow in both the consumer and B2B markets, given the need for reliable cellular connectivity and the performance improvements enabled by 5G.

隨著我們不斷推出符合「好、更好、最好」產品策略的新產品，我們期望推動該業務的營收成長。鑑於對可靠蜂窩連接的需求以及 5G 帶來的性能改進，消費者和 B2B 市場對蜂窩連接的潛在需求持續增長。

We remain on track with the execution of our mobile product strategy and are bullish about the long-term prospects of this business. On the macro front, we're pleased to report that despite various machinations on tariffs, nothing has changed for NETGEAR and the vast majority of our products remain completely exempt from tariffs. Further, the fact that we do not manufacture in China provides a clear benefit if trade tensions do indeed escalate.

我們的行動產品策略執行仍在按計劃進行，並且對該業務的長期前景充滿信心。從宏觀角度來看，我們很高興地報告，儘管關稅方面有各種陰謀，但 NETGEAR 的情況並沒有改變，我們的絕大多數產品仍然完全免除關稅。此外，如果貿易緊張局勢確實升級，我們不在中國生產的事實將帶來明顯的好處。

Additionally, we remain more confident than ever that our status as a US-based independent public company positions us well in the complicated geopolitical landscape. NETGEAR is exactly the type of company that consumers, enterprises and governments can trust. For example, this quarter, on the home networking front, we were awarded several retail placements at the Navy Exchange stores and Army and Air Force Exchange Service stores.

此外，我們比以往任何時候都更加相信，作為一家美國獨立上市公司，我們能夠在複雜的地緣政治格局中佔據有利地位。NETGEAR 正是消費者、企業和政府可以信賴的公司。例如，本季度，在家庭網路方面，我們獲得了海軍交換商店以及陸軍和空軍交換服務商店的多個零售攤位。

Furthermore, continuing reports of the escalating cyber threat posed by the PRC and scrutiny faced by Chinese-backed competitors strengthens our optimism that these tailwinds will not abate. In closing, our team notched another excellent quarter. We delivered strong in-quarter results up and down the P&L with all-time record gross margins and non-GAAP profitability being two of the most important proof points. Additionally, we were highly successful on the capital allocation front with the Exium acquisition and $7.5 million in share buybacks.

此外，有關中國網路威脅不斷升級以及中國支持的競爭對手面臨審查的報道不斷增強了我們的樂觀情緒，認為這些順風不會減弱。最後，我們的團隊又取得了一個出色的季度。我們在本季取得了強勁的業績，毛利率創歷史新高，非公認會計準則獲利能力是兩個最重要的證明點。此外，我們在資本配置方面取得了巨大成功，收購了 Exium 並回購了 750 萬美元的股票。

I've been with NETGEAR for 1.5-years now and cannot be more pleased with not only the way the team has come together, but also how they've approached and succeeded at the vast transformations work we've already undertaken. We brought in new talent to lead key areas and elevated internal leaders and others.

我已經在 NETGEAR 工作了一年半，不僅對團隊的協作方式感到滿意，而且對他們處理我們已經開展的大規模轉型工作的方式以及取得的成功也感到非常滿意。我們引進了新的人才來領導關鍵領域，並提升了內部領導者和其他人員的水平。

We've enabled these leaders to succeed through the creation of three distinct business units. This has given us sharper focus, accountability and a path to greater growth and profitability. Each business has clear objectives and dedicated resources to execute its strategy as we build out the next phase of our transformation.

我們透過創造三個不同的業務部門來幫助這些領導者取得成功。這讓我們更加專注、更加負責，並找到了實現更大成長和獲利的道路。在我們建構下一階段轉型的過程中，每個企業都有明確的目標和專用資源來執行其策略。

With Phase 2, of our transformation already underway, I want to encourage everyone listening to join us at our Investor Day on November 17 in New York. We'll share more detail on the plans for each business and how we expect to deliver on our purpose of powering extraordinary experiences while creating long-term value for shareholders.

我們的轉型第二階段已經啟動，我希望鼓勵每位聽眾參加我們 11 月 17 日在紐約舉行的投資者日活動。我們將分享有關每項業務計劃的更多細節，以及我們如何實現為股東提供非凡體驗的同時創造長期價值的目標。

With that, I'll hand it over to Bryan to walk through the financials.

說完這些，我就把任務交給布萊恩處理財務事宜。

Thank you, CJ, and thank you, everyone, for joining today's call. Thanks to the excellent execution of our team, we continued the momentum from our strong start to the year. and delivered a fifth consecutive quarter where we exceeded the high end of our guidance ranges for revenue and operating margin. We delivered year-over-year top line growth of 18.5%, along with sequential growth of more than 5%, with strong performances from our NFB and home networking businesses.

謝謝 CJ，也謝謝大家參加今天的電話會議。由於我們團隊的出色執行，我們延續了年初強勁的勢頭，並連續第五個季度超過了收入和營業利潤率指導範圍的上限。我們的營業收入年增 18.5%，較上季成長超過 5%，其中 NFB 和家庭網路業務表現強勁。

I'm also pleased to share that we delivered non-GAAP gross margin of 37.8%, an all-time high for NETGEAR, with DSOs at their lowest level in nearly 8-years, truly a testament to the operational excellence the team is performing at as we drive to profitable long-term growth. As a reminder, we successfully conducted a channel destocking a year ago, setting the groundwork for the results you see today, but also suppressing our revenue and profitability in the year ago comparable quarter.

我也很高興地告訴大家，我們實現了 37.8% 的非 GAAP 毛利率，這是 NETGEAR 的歷史新高，DSO 處於近 8 年來的最低水平，這真正證明了團隊在推動長期盈利增長過程中所表現的卓越運營。提醒一下，我們一年前成功地進行了渠道去庫存，為您今天看到的結果奠定了基礎，但也抑制了我們去年同期的收入和盈利能力。

The second quarter's outperformance was driven mainly by a strong showing by our higher-margin NFB business segment, along with home networking coming in above our initial expectations, supported by stocking in anticipation of Prime Day, which occurred earlier this month.

第二季的優異表現主要得益於我們利潤率更高的 NFB 業務部門的強勁表現，以及家庭網絡超出我們最初的預期，這得益於本月早些時候舉行的 Prime Day 促銷活動的庫存。

The health of the channel's inventory levels and our ability to match sell-in with sell-through were significant contributors to our success around the first half of the year, positioning ourselves for streamlined execution. End-user demand for our ProAV Managed Switch products grew double digits, and we continue to see penetration of our broader WiFi 7 portfolio pick up momentum for our home networking business.

通路庫存水準的健康狀況以及我們匹配銷售量和銷售通過量的能力是我們上半年成功的重要因素，為我們精簡執行奠定了基礎。終端用戶對我們的 ProAV 管理型交換器產品的需求成長了兩位數，我們繼續看到更廣泛的 WiFi 7 產品組合的滲透為我們的家庭網路業務帶來成長動力。

For the quarter ended June 29, 2025, revenue was above the high end of our guidance range, coming in at $170.5 million, up 5.2% on a sequential basis and up 18.5% year-over-year. In Q2, we completed the purchase of Exium to add security specifically designed for small and medium enterprises to our NFB portfolio, and we repurchased $7.5 million of our shares. We ended the quarter with $363.5 million in cash and short-term investments. We delivered $82.6 million of revenue in the NFB segment for the second quarter, up 4.3% sequentially and up 38% year-over-year.

截至 2025 年 6 月 29 日的季度，營收高於我們預期範圍的高端，達到 1.705 億美元，環比增長 5.2%，同比增長 18.5%。在第二季度，我們完成了對 Exium 的收購，為我們的 NFB 投資組合添加了專為中小型企業設計的安全性，並且我們回購了價值 750 萬美元的股票。本季末，我們擁有 3.635 億美元的現金和短期投資。我們第二季在 NFB 部門實現了 8,260 萬美元的收入，環比成長 4.3%，年增 38%。

Although we continue to be challenged by supply constraints around certain Managed Switch products in our NFB business, the team executed well and was once again able to outperform our forecast for the quarter by closely working with key vendors to overcome these headwinds. This enabled us to deliver sequential revenue growth of our Managed Switch products by approximately 14%. However, we expect revenue will remain constrained in the back half, which has been taken into consideration in our forecast.

儘管我們 NFB 業務中某些管理型交換機產品的供應限制繼續給我們帶來挑戰，但團隊表現良好，透過與主要供應商密切合作克服這些不利因素，我們再次超越了本季度的預測。這使我們能夠實現管理型交換器產品收入的連續成長約 14%。然而，我們預計下半年收入仍將受到限制，這一點已在我們的預測中考慮到。

With demand substantially above our expectations, we are carrying a higher backlog for our ProAV Managed Switch products into Q3 as we remain challenged on supply, but we are expecting gradual improvement through the first quarter of 2026. In Q2, the home networking business delivered net revenue of $67.5 million, up 13.1% on a year-over-year basis and up 10% sequentially.

由於需求大大超出我們的預期，我們在第三季的 ProAV 管理型交換器產品積壓訂單量較大，因為我們仍面臨供應方面的挑戰，但我們預計到 2026 年第一季情況會逐步改善。第二季度，家庭網路業務淨營收為 6,750 萬美元，年增 13.1%，季增 10%。

The US retail market remained extremely competitive, leading to market compression, although a little less than the decline we saw in the first quarter. This was offset by increased stocking in preparation for Prime Day, which took place in the beginning of the third quarter and was a longer event than initially expected. We continue to benefit from working through lower cost inventory and improved product mix of WiFi 7 offerings and benefits of streamlined channel execution.

美國零售市場競爭依然十分激烈，導致市場壓縮，儘管降幅略小於第一季。但這一增長被為準備 Prime Day 而增加的庫存所抵消，Prime Day 於第三季度初舉行，持續時間比最初預期的要長。我們持續受益於降低庫存成本、改善 WiFi 7 產品組合以及簡化通路執行帶來的好處。

Revenue for the mobile business in Q2 was $20.4 million, slightly below our expectations, down 16.1% year-over-year and down 5% sequentially as a result of softer-than-expected service provider sales. With additional products expected to launch later this year, we believe the full benefit of our good, better, best strategy will build over time. We exited the second quarter with 559,000 recurring subscribers and generated $9 million in recurring services revenue in the quarter, a year-over-year increase of 16.6%.

第二季行動業務收入為 2,040 萬美元，略低於我們的預期，年減 16.1%，季減 5%，原因是服務供應商的銷售額低於預期。隨著今年稍後預計將推出更多產品，我們相信我們的「好、更好、最好」策略的全部優勢將隨著時間的推移而逐漸顯現。我們在第二季結束時擁有 559,000 名經常性訂閱用戶，並在本季度創造了 900 萬美元的經常性服務收入，年增 16.6%。

We continue to believe that focusing on increasing our recurring subscriber base is the optimal strategy to add high-margin revenue to the home networking business. Within NFB, we believe the acquisition of Exium and the launch of our new AV professional services group will spur growth of our services revenue as software rounds out our value proposition. From this point on, my discussion points will focus on non-GAAP numbers.

我們仍然相信，專注於增加我們的經常性用戶群是為家庭網路業務增加高利潤收入的最佳策略。在 NFB 內部，我們相信，隨著軟體完善我們的價值主張，收購 Exium 和成立新的 AV 專業服務集團將刺激我們的服務收入成長。從現在開始，我的討論重點將集中在非 GAAP 數字上。

The reconciliation from GAAP to non-GAAP is detailed in our earnings release distributed earlier today. Non-GAAP gross margin came in at 37.8% in the second quarter of 2025, an all-time high and the fourth consecutive quarter of sequential gross margin expansion. This marked a 1,540 basis point increase compared to 22.4% in the prior year comparable period and a 280 basis point increase compared to 35% in the first quarter of 2025.

我們今天稍早發布的收益報告中詳細說明了從 GAAP 到非 GAAP 的對帳情況。2025 年第二季非公認會計準則毛利率達 37.8%，創歷史新高，也是連續第四季毛利率擴大。與去年同期的 22.4% 相比，這一數字增加了 1,540 個基點，與 2025 年第一季的 35% 相比，這一數字增加了 280 個基點。

Compared to the prior year period, our gross margin in the current period benefited from an improved mix of our higher-margin NFB business, improved sales returns and associated costs, success in moving past older higher cost inventory, along with other benefits of operating with channel inventory at leaner levels. In addition to the margin expansion unlocked by our NFB products, we also continue to see improved product mix from our WiFi 7 lineup.

與去年同期相比，本期我們的毛利率得益於利潤率更高的 NFB 業務組合的改善、銷售回報和相關成本的提高、成功淘汰成本較高的老庫存，以及在更精簡的渠道庫存水平下運營的其他好處。除了我們的 NFB 產品帶來的利潤擴張之外，我們還看到 WiFi 7 產品線的產品組合不斷改善。

Drilling down to the profitability of our three business segments, NFB gross margin was 46.7%, up 1,300 basis points year-over-year and the highest level in 7 quarters. The mobile segment gross margin increased 750 basis points year-over-year to 29.1%. The home networking segment had the largest improvement in segment gross margin expansion, aided by our improved mix of WiFi 7 products, the move into lower cost inventory and improved sales returns and associated costs, which improved our gross margin for this business by 1,800 basis points year-over-year to 29.5%.

深入研究我們三大業務部門的獲利能力，NFB 毛利率為 46.7%，年成長 1,300 個基點，達到 7 個季度以來的最高水準。行動部門毛利率年增750個基點至29.1%。家庭網路部門的毛利率成長幅度最大，這得益於我們改進的 WiFi 7 產品組合、轉向低成本庫存以及提高的銷售回報和相關成本，這使該業務的毛利率同比提高了 1,800 個基點，達到 29.5%。

Total Q2 non-GAAP operating expenses came in at $65.7 million, up 3.7% year-over-year and up 10.6% sequentially as we were able to catch up on our hiring plans. Our headcount was 707 as of the end of the quarter, up from 636 in Q1. As a reminder, we conducted a reorganization in January to enact approximately $20 million in annual savings and are reinvesting those savings in the areas of the business that we expect will deliver the best growth and profitability. This is reflected in the sequential operating expense and headcount increase, most notably within our NFB business.

第二季非公認會計準則總營運費用為 6,570 萬美元，年增 3.7%，季增 10.6%，因為我們能夠趕上招聘計畫。截至本季末，我們的員工人數為 707 人，高於第一季的 636 人。提醒一下，我們在一月份進行了重組，每年節省約 2000 萬美元，並將這些節省下來的資金重新投資於我們預計將帶來最佳增長和盈利能力的業務領域。這反映在連續的營運費用和員工人數增加上，最明顯的是我們的 NFB 業務。

Our non-GAAP R&D expense for the second quarter was 11.6% of net revenue as compared to 13.2% of net revenue in the prior year comparable period and 10.9% of net revenue in the first quarter of 2025. 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 improved top line led by our NFB and Home Networking segments and compounded by gross margin improvement.

我們第二季的非公認會計準則研發費用佔淨收入的 11.6%，而去年同期為淨收入的 13.2%，2025 年第一季為淨收入的 10.9%。為了維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，我們的獲利能力超出了預期範圍的高端，這得益於 NFB 和家庭網路部門帶動的營收成長以及毛利率的提高。

Our Q2 non-GAAP operating loss was $1.2 million, resulting in a non-GAAP operating margin of negative 0.7%, an improvement of 2,090 basis points compared to the year ago period and an improvement of 90 basis points compared to the prior quarter. Our non-GAAP tax expense was approximately $800,000 in the second quarter of 2025. Looking at the bottom line for Q2, we reported non-GAAP net income of approximately $1.7 million, resulting in a non-GAAP income of $0.06 per share. Turning to the balance sheet.

我們第二季的非公認會計準則營業虧損為 120 萬美元，導致非公認會計準則營業利潤率為負 0.7%，與去年同期相比改善了 2,090 個基點，與上一季相比改善了 90 個基點。2025 年第二季度，我們的非公認會計準則稅費約為 80 萬美元。從第二季的底線來看，我們報告的非 GAAP 淨收入約為 170 萬美元，導致非 GAAP 每股收益為 0.06 美元。轉向資產負債表。

We ended the second quarter of 2025 with $363.5 million in cash and short-term investments, down $28.5 million from the prior quarter due largely to the Exium acquisition and $7.5 million in stock repurchases, equating to $11.95 per share.

截至 2025 年第二季度，我們的現金和短期投資為 3.635 億美元，比上一季減少 2,850 萬美元，主要原因是收購了 Exium 並回購了 750 萬美元的股票，相當於每股 11.95 美元。

During the quarter, $1.8 million of cash was used by operations, which brings our total cash provided by operations over the trailing 12-months to $118.6 million. We used $3.5 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 $9.1 million.

本季度，營運活動使用了 180 萬美元的現金，這使得我們過去 12 個月營運活動提供的現金總額達到 1.186 億美元。本季度，我們花費 350 萬美元購買財產和設備，這使得過去 12 個月用於資本支出的現金總額達到 910 萬美元。

In Q2, we spent $7.5 million to repurchase approximately 258,000 shares of NETGEAR common stock at an average price of $29.09 per share. We have approximately 2.8 million shares reserved in our current authorization, and our fully diluted share count is approximately 30.4 million shares as of the end of the second quarter.

第二季度，我們花費 750 萬美元以每股 29.09 美元的平均價格回購了約 258,000 股 NETGEAR 普通股。我們目前的授權中保留了大約 280 萬股，截至第二季末，我們的完全稀釋股數約為 3,040 萬股。

We're committed to returning value to our shareholders and plan to continue to opportunistically repurchase shares in future periods. I'll now cover our outlook for the third quarter of 2025. We expect to continue to see more predictable performance that is aligned with the market for all of our businesses.

我們致力於為股東帶來回報，並計劃在未來繼續適時回購股票。現在我將介紹我們對 2025 年第三季的展望。我們期望繼續看到我們所有業務的與市場保持一致的更可預測的表現。

Within NFB, end-user demand for our ProAV line of Managed Switches is expected to remain strong. And although we expect to continue to make improvements in our supply position, we continue to face lengthy lead times for supply, which may limit our ability to capture the full top line potential of this growing business.

在 NFB 內部，預計最終用戶對我們的 ProAV 系列管理型交換器的需求將保持強勁。儘管我們預計將繼續改善我們的供應狀況，但我們仍然面臨著漫長的供應交貨時間，這可能會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 home networking side, we are seeing signs of the benefit of our broader product portfolio to address the market. On the mobile side, we expect revenue to be in line with Q2 as we await our new product introductions to round out the portfolio later this year.

在家庭網路方面，我們看到了更廣泛的產品組合對滿足市場需求的好處。在行動方面，我們預計收入將與第二季持平，因為我們正在等待今年稍後推出的新產品來完善產品組合。

Accordingly, we expect third quarter net revenue to be in the range of $165 million to $180 million. In the third quarter, we expect to further ramp our planned investments with focus on in-sourcing software development capabilities and enhancing our go-to-market capabilities supporting our NFB business.

因此，我們預計第三季淨收入將在 1.65 億美元至 1.8 億美元之間。在第三季度，我們預計將進一步增加計劃投資，重點是內部採購軟體開發能力並增強支援 NFB 業務的市場進入能力。

Accordingly, we expect our third quarter GAAP operating margin to be in the range of negative 11% to negative 8% and non-GAAP operating margin to be in the range of negative 5.5% to negative 2.5%. Our GAAP tax expense is expected to be in the range of $800,000 to $1.8 million. And our non-GAAP tax expense is expected to be in the range of a benefit of $500,000 to an expense of $500,000 for the third quarter of 2025.

因此，我們預計第三季 GAAP 營業利潤率將在負 11% 至負 8% 之間，非 GAAP 營業利潤率將在負 5.5% 至負 2.5% 之間。我們的 GAAP 稅費預計在 80 萬至 180 萬美元之間。預計 2025 年第三季的非 GAAP 稅費將在收益 50 萬美元至費用 50 萬美元之間。

And with that, we can now open up for questions.

現在我們可以開始提問了。

(Operator Instructions)

（操作員指示）

Logan Katzman, Raymond James.

羅根卡茲曼、雷蒙詹姆斯。

Hey guys, thanks for taking my questions. Maybe to start here on ProAV. I was just curious if you guys could talk a little bit more about what's going on there and the supply constraints in a little bit more detail. And I think if I heard you correctly, you expect this to end here 1Q '26, but I just want to confirm. And then it sounds like you guys were able to sell through backlog pretty well. But I was just curious how much you guys are carrying into Q3?

嘿夥計們，謝謝你們回答我的問題。也許可以從 ProAV 開始。我只是好奇，你們是否可以更詳細地談談那裡發生的事情以及供應限制。如果我沒聽錯的話，您預計這會在 2026 年第一季結束，但我只是想確認一下。聽起來你們能夠很好地銷售積壓訂單。但我只是好奇你們在第三季取得了多少成績？

Hey, Logan, great question. Happy to take that, and Bryan can weigh in with any additional thoughts. So I think maybe a couple of just framing points. We've historically talked about the three NFB businesses for simplicity as being kind of one-third, one-third, one-third in terms of size. With the growth that we've seen on the ProAV side of things, that's actually become about half of NFB's top line and about 25% of NETGEAR's overall top line.

嘿，洛根，這個問題問得好。很高興接受這一點，布萊恩可以提出任何其他想法。所以我認為也許只是幾個框架點。為了簡單起見，我們過去曾討論過這三家 NFB 企業的規模，即三分之一、三分之一、三分之一。隨著我們在 ProAV 方面看到的成長，它實際上已成為 NFB 營業收入的一半左右和 NETGEAR 整體營業收入的 25% 左右。

So it's not a big business for us. So with the -- as we said on the call, 14% sequential growth, that was above our plan. Despite that, we saw an increase in our backlog of high single-digit, low double-digit millions. So obviously, the demand generation there is great and a huge shout out to our operations team for being able to increase supply to allow us to deliver above plan.

所以這對我們來說並不是一個大生意。因此，正如我們在電話會議上所說的那樣，連續成長 14%，這超出了我們的計劃。儘管如此，我們的積壓訂單量還是有所增加，達到了數百萬個位數和數百萬個位數。顯然，那裡的需求產生是巨大的，並且我們的營運團隊能夠增加供應以使我們能夠超額完成計劃，這值得我們大力稱讚。

And the differentiation on the product side, it's everything from hardware to software to the ecosystem that we built, and it's really kind of validation that these investments that we outlined at the beginning of the year around the restructuring in Q1, we're putting investments against NFB.

產品方面的差異化包括從硬體到軟體再到我們構建的生態系統的一切，這確實驗證了我們在今年年初圍繞第一季度重組所概述的這些投資，我們正在對 NFB 進行投資。

We already started that at the end of last year. It's paying off. So as it relates to supply, we expect to start to burn down the backlog towards the end of Q3. So we'll start that process. And then we expect to be in a position in Q1 to begin to build a safety stock position.

我們從去年年底就已經開始這麼做了。它正在獲得回報。因此，就供應而言，我們預計將在第三季末開始減少積壓訂單。因此我們將開始這一進程。然後我們預計將在第一季開始建立安全庫存部位。

Now of course, if we continue to over-deliver on our expectations, it may take a little bit longer. But based on the visibility we currently have on supply, which we really addressed the opportunities we've had to accelerate that with our partners. That's what we're thinking. Q3, Q4, burn down the backlog, Q1, we start to build a safety stock position.

當然，如果我們繼續超出我們的預期，那麼可能需要更長的時間。但基於我們目前對供應的了解，我們確實抓住了與合作夥伴一起加速供應的機會。我們就是這麼想的。Q3、Q4，燒掉積壓訂單，Q1，我們開始建立安全庫存。

Got it. That's helpful. Thank you. And maybe to piggyback off that a little bit. I know you guys talked a little bit about the OpEx increases here as it relates to investing into the business. But how should we think about OpEx ramping through the back half of this year? And then any operating leverage or anything, any color you guys can give for 2026 on that front as well?

知道了。這很有幫助。謝謝。或許可以稍微利用一下這一點。我知道你們在這裡談論了與業務投資有關的營運支出增加。但是，我們該如何看待今年下半年營運支出的成長呢？那麼，對於任何營運槓桿或任何東西，你們能為 2026 年做出什麼預測嗎？

Yeah. Let me take that one. So we clearly made some tremendous progress in Q2. We hired more than 70 people. As you know, we kicked off the year and did a restructuring to free up about $20 million in annual spend that we plan to reinvest at an equivalent level back into the business, largely into the NFB business. Q1, we got off to a bit of a slow start with the hiring, as we've discussed before, but made great progress in the second quarter.

是的。讓我來拿那個。因此，我們在第二季度顯然取得了巨大進展。我們僱用了70多人。如您所知，我們在年初進行了重組，以釋放約 2000 萬美元的年度支出，我們計劃以等量的資金重新投資於業務，主要用於 NFB 業務。正如我們之前討論過的，第一季我們的招募起步有點慢，但第二季取得了很大進展。

As we look out to the third quarter, I would say we have continued investments going there. We're likely to see an increase in our OpEx in the mid-single-digit increase. And some -- largely, that's due to these investments that we're making. There are a couple of other items that I'd probably like to highlight and point out. One, with the Exium transaction closing late in Q2, we'll have a full quarter expense of that newly acquired team and including some investments there to get that integrated into our Insight platform.

展望第三季度，我想說我們將繼續在該領域進行投資。我們的營運支出可能會出現中等個位數的成長。其中一些 — — 很大程度上是由於我們所做的這些投資。還有一些其他事項我可能想強調並指出。首先，隨著 Exium 交易在第二季末結束，我們將對新收購的團隊產生整個季度的支出，包括一些投資，以將其整合到我們的 Insight 平台中。

There are also a couple of unusual items, I would say, with regards to the Q2 OpEx outlook. One is we'll have double rent expense. So after 17-years of being in our current headquarter space, we decided it was time for a change. And so we will be making a move at the end of the quarter. We're able to cut our footprint by about one-third, but we will remain cost neutral on the facility.

我想說，關於第二季營運支出前景，還有一些不尋常的事情。一是我們的租金支出將增加一倍。因此，在我們目前的總部辦公了 17 年後，我們決定是時候做出改變了。因此我們將在本季末採取行動。我們能夠將我們的足跡減少約三分之一，但我們的設施成本仍將保持中性。

So during this 3-month period, while we're getting that up and running, we'll have double rent expense. That's about $1 million. The other thing is that we have a pretty meaningful litigation defense cost that will hit in the quarter. It's probably an incremental $1 million as well that -- we absolutely will be defending ourselves, and we're not going to settle on claims that don't have merit.

因此，在這 3 個月期間，當我們開始運行它時，我們的租金支出將會翻倍。大約是100萬美元。另一件事是，我們在本季將產生相當大的訴訟辯護費用。這可能也是 100 萬美元的增量——我們絕對會為自己辯護，並且不會對毫無根據的索賠做出和解。

So those last two items, I would say, a bit unique. You take those out likely Q4, I would expect a sequential decrease in that low single-digit range off of the back of the Q3 level. But net-net, if you model this out, I think we're largely steering towards OpEx. When you normalize 2024 for the exceptional release that we got with regards to the TP-Link settlements, when you normalize for that on a full year basis, we're probably trending to about a similar level of OpEx compared to last year.

所以我想說，最後兩項有點獨特。如果你把第四季的數據排除在外，我預期第三季的數據將出現低個位數的季減。但總體而言，如果你對此進行建模，我認為我們主要會轉向營運支出。當您將 2024 年與我們獲得的有關 TP-Link 結算的特殊發布標準化時，當您將其在全年基礎上標準化時，我們的營運支出水平可能與去年大致相同。

Got it. Okay. No, that's helpful. And maybe hitting on some of the investments you guys are making in NFB. I know you guys talked about it on the prepared remarks, and we saw the press release for professional services there.

知道了。好的。不，這很有幫助。也許還會牽涉到你們在 NFB 進行的一些投資。我知道你們在準備好的演講稿中談到了這一點，我們也看到了那裡有關專業服務的新聞稿。

Maybe first, what parts of NFB is this going to affect the most? And then also, maybe what's your expectations on how and when this is going to impact the model? And yes, any other color you guys can provide on the professional services side there?

首先，這會對 NFB 的哪些部分產生最大影響？另外，您對這將如何以及何時影響模型有何預期？是的，你們在專業服務方面還能提供其他顏色嗎？

Yeah. Let me start with that, Bryan can weigh in. And I'll make it a little broader, Logan, in professional services. So as we've talked about, we have three business units. And all three have different businesses, but they have a common strategic theme and that in all of them, we're looking to differentiate via software and add value to customers via differentiated software and leverage that to shift our business model to recurring revenue.

是的。首先，布萊恩可以發表意見。洛根，我會在專業服務方面把它講得更廣泛一些。正如我們所討論的，我們有三個業務部門。這三家公司都有不同的業務，但它們有一個共同的策略主題，那就是我們都希望透過軟體實現差異化，透過差異化的軟體為客戶增加價值，並利用這一點將我們的業務模式轉變為經常性收入。

And today, when you look at our ARR, it mostly comes from our home networking business unit. And there's a lot of opportunity to scale that. Jonathan has a ton of experience, built Fitbit subscription business from scratch. So we're excited about that. We're excited about the increased top of funnel that we're going to get from the 370 launch that we announced yesterday.

今天，當您查看我們的 ARR 時，它主要來自我們的家庭網路業務部門。並且有很多機會可以擴大這一規模。喬納森擁有豐富的經驗，從零開始建立了 Fitbit 訂閱業務。所以我們對此感到很興奮。我們對昨天宣布的 370 發布所帶來的漏斗頂部增長感到非常興奮。

But NFB, which is currently relatively nascent, we have three main levers to grow our recurring business. First is we've got our current Insight cloud management platform with a licensing model that doesn't work. So we're revamping that, and we expect to expand our Insight business quite significantly as we do that. We made the acquisition of Exium that fills an important gap in security. We're going to integrate Exium into Insight.

但 NFB 目前還處於相對早期階段，我們有三個主要槓桿來發展我們的經常性業務。首先，我們目前的 Insight 雲端管理平台的授權模式不起作用。因此，我們正在對此進行改進，並希望在此過程中大幅擴展我們的 Insight 業務。我們收購了 Exium，填補了安全領域的重要空白。我們將把 Exium 整合到 Insight 中。

So that's a one plus one equals three for customers. We have other plans for how we leverage Exium's security footprint in other products that will also drive recurring revenue. So we're excited about that. Professional services, which is what you asked about is the third leg of that stool for NFB. And if you think about companies like ours, you'll see services attach at 40%, 50%. We're at 0%. We give a lot of that way today for free. We're actually getting customers asking us to offer this.

因此，對客戶來說，這就是一加一等於三。我們還有其他計劃，關於如何在其他產品中利用 Exium 的安全足跡，這也將帶來經常性收入。所以我們對此感到很興奮。專業服務，也就是您所問到的，是 NFB 的第三條腿。如果你考慮一下像我們這樣的公司，你會發現服務附加價值佔 40% 到 50%。我們處於 0%。今天我們免費提供了很多這樣的服務。事實上，有客戶要求我們提供此項服務。

So it's a win for customers because they're going to get better value from NETGEAR. It's a win for us because it's a new source of revenue. And all three of those are kind of in the early stages of deployment, professional services, to answer your very specific question, will support the AP business initially. But we expect to see real growth on the recurring revenue side in NFB in 2026. It's a big, big focus of ours.

因此，這對客戶來說是一次勝利，因為他們將從 NETGEAR 獲得更高的價值。這對我們來說是一場勝利，因為這是一個新的收入來源。這三項服務都處於部署的早期階段，專業服務，回答您的特定問題，最初將支援 AP 業務。但我們預計 2026 年 NFB 的經常性收入將實現實際成長。這是我們非常關注的重點。

Got it. That's helpful. And then maybe shifting to the consumer side of the business. I just wanted to see kind of where we're at with TP-Link and any updates there?

知道了。這很有幫助。然後也許轉向業務的消費者方面。我只是想看看 TP-Link 的情況以及有什麼更新嗎？

Yeah. We're obviously reading the same tea leaves as everybody else is. when you speak to people about the whole situation of Chinese companies operating in the US and the lack of parity that exists, what's interesting is it's kind of people view this as a bit of a no-brainer for the US. And not to make it political in any way, but the new administration, if you the sense I was listening to a podcast that he was on just on the way to the office today in they -- I mean, they get the lack of parity with China and they're taking steps to address that.

是的。我們顯然和其他人一樣，在解讀同樣的觀點。當你和人們談論中國公司在美國運作的整體情況以及存在的不平等現象時，有趣的是，人們似乎認為這對美國來說是輕而易舉的事。我無意以任何方式將其政治化，但新政府，如果你覺得我在聽他今天去辦公室的路上做的播客，他們——我的意思是，他們意識到與中國缺乏平等，他們正在採取措施解決這個問題。

And so when you combine that with all the activity around commerce, what we've read about the DOJ the Senate, the congressional leaders having a sustained focus on this. I mean our confidence remains high that this is going to be a tailwind for us, either specifically or generally. And we're really well positioned to capitalize on it if that ends up being the case. We're the second market leader. We've got the broad portfolio.

因此，當你將其與所有圍繞商業的活動結合時，我們了解到司法部、參議院和國會領導人對此持續關注。我的意思是，我們仍然充滿信心，這對我們來說將是一個順風，無論是具體的還是整體的。如果最終情況確實如此，我們確實有能力利用它。我們是第二大市場領導者。我們擁有廣泛的產品組合。

The biggest gap in our portfolio was the low-end mesh. We just launched the 370. So in routing and mesh, we're really well positioned. We've got the brand. And then we have said publicly that we're making an investment in inventory. So if something were to happen here that we're well positioned to capture it. Now there's a broad spectrum of approaches you could take there.

我們產品組合中最大的缺口是低階網狀產品。我們剛剛推出了 370。因此，在路由和網格方面，我們處於非常有利的位置。我們有品牌。然後我們公開表示我們正在對庫存進行投資。因此，如果這裡發生了什麼事情，我們就能很好地捕捉到它。現在您可以採取多種方法。

You could do nothing or you could go all in, and we're not doing any -- either of those. We're being quite strategic about where we're making incremental inventory investments. And you might see that reflected in our Q3 balance sheet kind of in the low double-digit, high single-digit millions of dollars just to reflect an incremental investment in inventory so that we're positioned to capture any upside that would come from that.

你可以什麼都不做，也可以全力以赴，但我們什麼都不做——兩者都不做。我們對增量庫存投資的領域非常有策略性。您可能會看到，這反映在我們的第三季資產負債表中，金額在低兩位數到高個位數之間，僅反映了庫存的增量投資，以便我們能夠抓住由此帶來的任何好處。

Jay Goldberg, Seaport Research Partners.

傑伊‧戈德堡 (Jay Goldberg)，海港研究夥伴。

Hi guys, thanks for taking my call. So CJ, I was just wondering if you could talk a little bit more about home networking. I know you've had some big plans there. How are those progressing? How do you see yourself in the market today? Where are things going?

大家好，感謝您接聽我的電話。所以 CJ，我只是想知道您是否可以多談談家庭網路。我知道你在那裡有一些大計劃。進展如何？您如何看待自己在現今市場中的表現？事情進展如何？

Yeah, great question. So if you look at the market, how the market is evolving, units have been increasing, right? So there was a time post-COVID where the market was declining from a unit perspective. Units today are increasing. ASPs are declining largely because of some super aggressiveness that we're seeing from TP-Link. We did gain share last quarter in home networking despite not having our full portfolio in the market. We lost some of that back. This quarter, we gained share in Prime Day.

是的，很好的問題。所以如果你觀察市場，你會發現市場是如何發展的，單位一直在增加，對嗎？因此，從單位角度來看，新冠疫情過後，市場出現了下滑。今天的單位正在增加。平均售價下降的主要原因是 TP-Link 的超級激進行為。儘管我們在市場上沒有完整的產品組合，但上個季度我們在家庭網路領域的份額確實有所增長。我們失去了一些。本季度，我們在 Prime Day 的份額有所增加。

So there's a big back and forth happening with TP-Link from a share perspective. But when we shifted our strategy last year to play in bigger parts of the market, that meant we're going downstream with our routing products, downstream with our mesh products. The 370 is the most recent launch there. It's really positioned us well with consumers. And with Jonathan on board, we're starting to work on the longer-term road map, which we've given indications that we -- in past calls, Jay, before you having joined, that we do view NETGEAR is playing a bigger role in the home in solving connectivity problems.

因此，從共享角度來看，TP-Link 存在著很大的來回波動。但當我們去年改變策略以佔據更大的市場份額時，這意味著我們的路由產品和網狀產品將向下游發展。370 是那裡最新推出的車型。這確實讓我們在消費者心目中佔據了有利地位。隨著喬納森的加入，我們開始著手製定長期路線圖，傑伊，在你加入之前的過去的電話會議中，我們已經表明，我們確實認為 NETGEAR 在解決家庭連接問題方面發揮著更大的作用。

And so we have big aspirations for this business. And I'm excited about the position we've put ourselves in to really compete. And we've got a great foundational subscription service that we're building off of as well. So that's kind of where we stand. We're in a bit of a dog fight right now. And -- but we've got some really good and exciting plans for the future here.

因此，我們對這項業務抱持著遠大的期望。我對於我們所處的真正競爭地位感到非常興奮。我們還有一個很棒的基礎訂閱服務，我們也正在以此為基礎進行建置。這就是我們的現狀。我們現在正處於一場激烈的鬥爭之中。而且——但是我們對未來有一些非常好且令人興奮的計劃。

Great, thank you for that. So Bryan, I was wondering if you could just dig in a little bit to gross margin, some of the puts and takes that got you to the numbers you're putting in this quarter. And then I won't ask you to give guidance for the whole year, but sort of how should we think about those trends as we progress?

太好了，謝謝你。所以布萊恩，我想知道您是否可以稍微深入研究一下毛利率，以及一些讓您得出本季數字的因素。然後我不會要求你給出全年的指導，但是我們在進步的過程中應該如何看待這些趨勢？

Yes. Thanks for joining today, Jay. So obviously, record quarterly gross margin at 37.8%, a fantastic result. We're a bit ahead of pace of where we probably thought we would be coming into the year. Obviously, the key contributor there is the mix of the NFB business and the success that we're seeing there, driven by the ProAV Managed Switch portfolio. We are continuing to see the benefits of getting past higher cost inventory. That's going to be a permanent benefit as we move forward.

是的。感謝您今天的參加，傑伊。因此顯然，季度毛利率達到 37.8%，這是一個了不起的成績。我們今年的進展速度比我們預想的要快一些。顯然，其中的關鍵貢獻者是 NFB 業務的組合以及我們在那裡看到的成功，這得益於 ProAV 管理交換器產品組合的推動。我們繼續看到擺脫高成本庫存的好處。這將是我們前進過程中的一個永久的利益。

Obviously, we're managing a tighter supply chain. We got our inventory in order. The channel inventories in order, we'll get benefits from that as well. We did have a onetime benefit, I would say, in the quarter that was specific to home networking that was in relation to sales returns experience, where we've seen dramatic improvement there. That was about 100 basis point impact on our total consolidated gross margin, 250 basis points specific to home networking.

顯然，我們正在管理更緊密的供應鏈。我們已將庫存整理好。通路庫存有序，我們也將從中受益。我想說，我們在本季確實獲得了一次性收益，這具體與家庭網路有關，與銷售回報體驗有關，我們在那裡看到了顯著的改善。這對我們的總合併毛利率影響約為 100 個基點，家庭網路影響約為 250 個基點。

So that's probably a nonrepeatable thing. But putting all that together and given today's business mix, we would expect to be able to maintain the mid- to high 30% gross margin profile. Longer term, CJ touched on a few of these things earlier, like obviously, the continued growth of NFB will play a role given it's about 47% gross margin today. But the services businesses that we expect to accelerate in all of our businesses really will be kind of the next iteration or the next wave of accretion.

所以這可能是一件不可重複的事。但綜合考慮所有這些因素並考慮到當今的業務組合，我們預計能夠保持 30% 左右的毛利率。從長遠來看，CJ 之前已經談到了其中的一些事情，例如，顯然，鑑於 NFB 目前毛利率約為 47%，其持續成長將發揮一定作用。但我們預期在所有業務中加速發展的服務業務實際上將是下一次迭代或下一波成長浪潮。

The one thing I would kind of just say that we're focused on, we're able to mitigate at this point, but there is certainly a lot of noise and press out there with regards to memory pricing and DDR4 specifically, where the major suppliers in this market are taking those products end of life. And there have been some short-term pricing noise out there in the market. Like I said, we've been able to mitigate it thus far, but it's something that we're paying attention to.

我想說的是我們目前關注的重點是能夠緩解這一影響，但關於記憶體定價和 DDR4 的具體問題肯定存在許多噪音和壓力，這個市場的主要供應商正在停止這些產品的使用壽命。市場上出現了一些短期定價噪音。就像我說的，到目前為止我們已經能夠緩解它，但這是我們正在關注的事情。

But really, I guess, summarizing back to it, we're pretty confident we've delivered this benefit and expanded our gross margins, and we're going to be able to maintain the mid- to high 30% range until we see that next wave of accretion with the services.

但實際上，我想，總結一下，我們非常有信心我們已經實現了這一好處並擴大了我們的毛利率，並且我們將能夠維持 30% 的中高水平，直到我們看到服務的下一波增長。

Thank you. That's very helpful. And so I guess just last question, CJ, can you give us an update on your software in-sourcing, how that's progressing? Maybe tease a little bit about what we're going to see at the Analyst Day on the software front.

謝謝。這非常有幫助。所以我想我只剩下最後一個問題了，CJ，您能否向我們介紹一下您的軟體內部採購的最新進展？也許可以稍微透露一下我們在分析師日上將在軟體方面看到什麼。

Yeah. It's a huge focus of ours, as I mentioned earlier. So great progress. We completed the [VAAG] acqui-hire, which was a real accelerant to building out our Chennai location. So we've onboarded about 60 engineers. We have a great team more focused on the home networking side of things, the app side, the cloud side of the home networking business being built out in Cork. We've got a great leader there. She's building out a great team.

是的。正如我之前提到的，這是我們關注的重點。進步真大。我們完成了 [VAAG] 收購，這對我們建造欽奈辦事處起到了真正的加速作用。我們已經招募了大約 60 名工程師。我們擁有一支優秀的團隊，更加專注於在科克建立的家庭網路業務的家庭網路方面、應用程式方面和雲端方面。我們有一位偉大的領導者。她正在組建一支優秀的團隊。

And then other parts of our organization are also building out their teams in Richmond, in the Vancouver area and in Taipei. So it's going well. But the amazing thing about this in-sourcing is, and I've said this before, but I'll say it again, it leads to better quality product, faster execution, so big wins for the customer, and it costs us about the same.

我們組織的其他部門也在里士滿、溫哥華地區和台北組建團隊。一切進展順利。但這種內部採購的神奇之處在於，我以前說過，但我還要再說一遍，它可以帶來更高品質的產品、更快的執行速度，從而為客戶帶來巨大的利益，而我們的成本卻大致相同。

So it's not like we're pouring money into this. We're burning down the contractor spend that we've had on outsourced vendors that just don't have the incentive to adopt automation and AI like we're doing internally here. So it's a real multiplier for us and super excited about all the teams that we've -- team members that we've onboarded recently. And if I didn't say it at the outset, thanks for joining the call. Great to have you.

所以這並不是說我們在這方面投入了大量的資金。我們正在削減承包商在外包供應商身上的支出，因為這些供應商沒有動力像我們內部一樣採用自動化和人工智慧。所以這對我們來說是一個真正的倍增器，並且對我們最近加入的所有團隊 - 團隊成員感到非常興奮。如果一開始我沒有說的話，感謝您參加這次電話會議。很高興有你。

And everyone, at this time, there are no further questions. I'd like to hand the call back to Mr. CJ Prober for any additional or closing remarks.

各位，目前，沒有其他問題了。我想將電話轉回給 CJ Prober 先生，讓他做任何補充或結束語。

Just a quick shout out to the Global NETGEAR team. Thanks for delivering on another great quarter.

只是想向全球 NETGEAR 團隊致以簡短的問候。感謝您又一個出色的季度。

And once again, ladies and gentlemen, that does conclude today's conference. You may now disconnect.

女士們、先生們，今天的會議到此結束。您現在可以斷開連線。