NETGEAR, INC. (NASDAQ:NTGR) Files An 8-K Results of Operations and Financial Condition
Item 2.02 below.
Item 2.02Results of Operations and Financial Condition.
On February 22, 2019, Arlo Technologies, Inc. (“Arlo”) filed a Form 8-K to amend its previously announced financial results for the fourth quarter and year ended December 31, 2018. As a consequence, NETGEAR, Inc.’s consolidated results reported on February 6, 2019, which included Arlo (reported within “Loss from discontinued operations, net of tax”), require amendment. “Loss from discontinued operations, net of tax” increases by $5.4 million in both the fourth quarter and year ended December 31, 2018, respectively.
The amendment, which increases Arlo’s pre-tax loss for the fourth quarter of 2018, results in a $1.7 million increase to “Provision for income taxes from continuing operations.” In addition, the increase in Arlo’s pre-tax loss results in an increase to deferred tax assets recorded within discontinued operations, while the corresponding valuation allowances recorded against these assets are shown within continuing operations, in accordance with U.S. GAAP. The increase in Arlo’s pre-tax loss does not change the consolidated provision for income tax.
Results from operations as amended for line items impacted by these changes, as well as amounts previously reported on February 6, 2019, are outlined in the table below. Additionally, the amendment to “Provision for income taxes from continuing operations” increases cash used in continuing operations by $1.7 million in both the fourth quarter and year ended December 31, 2018, respectively. The non-GAAP measures previously reported on February 6, 2019 remain unchanged.
|
NETGEAR, INC. |
|
(In thousands, except per share data) |
|
(Unaudited) |
|
Amended Consolidated Statements of Operations |
Previously Reported Consolidated Statements of Operations |
|||||||||||
|
February 22, 2019 |
February 6, 2019 |
|||||||||||
|
Three months Ended |
Twelve Months Ended |
Three months Ended |
Twelve Months Ended |
|||||||||
|
December 31, 2018 |
December 31, 2018 |
December 31, 2018 |
December 31, 2018 |
|||||||||
|
Income from continuing operations before income taxes |
$ |
18,675 |
$ |
43,204 |
$ |
18,675 |
$ |
43,204 |
||||
|
Provision for income taxes |
19,210 |
25,878 |
17,548 |
24,216 |
||||||||
|
Net income (loss) from continuing operations |
(535 |
) |
17,326 |
1,127 |
18,988 |
|||||||
|
Net income (loss) from discontinued operations, net of tax |
(27,304 |
) |
(35,655 |
) |
(21,861 |
) |
(30,212 |
) |
||||
|
Net income (loss) |
(27,839 |
) |
(18,329 |
) |
(20,734 |
) |
(11,224 |
) |
||||
|
Net loss attributable to non-controlling interest in discontinued operations |
(8,368 |
) |
(9,167 |
) |
(7,786 |
) |
(8,585 |
) |
||||
|
Net income (loss) attributable to NETGEAR, Inc. |
$ |
(19,471 |
) |
$ |
(9,162 |
) |
$ |
(12,948 |
) |
$ |
(2,639 |
) |
|
Net income (loss) per share – basic: |
||||||||||||
|
Income (loss) from continuing operations |
$ |
(0.02 |
) |
$ |
0.55 |
$ |
0.04 |
$ |
0.60 |
|||
|
Income (loss) from discontinued operations attributable to NETGEAR, Inc. |
(0.60 |
) |
(0.84 |
) |
(0.45 |
) |
(0.68 |
) |
||||
|
Net income (loss) attributable to NETGEAR, Inc. |
$ |
(0.62 |
) |
$ |
(0.29 |
) |
$ |
(0.41 |
) |
$ |
(0.08 |
) |
|
Net income (loss) per share – diluted: |
||||||||||||
|
Income (loss) from continuing operations |
$ |
(0.02 |
) |
$ |
0.52 |
$ |
0.03 |
$ |
0.57 |
|||
|
Income (loss) from discontinued operations attributable to NETGEAR, Inc. |
(0.60 |
) |
(0.80 |
) |
(0.42 |
) |
(0.65 |
) |
||||
|
Net income (loss) attributable to NETGEAR, Inc. |
$ |
(0.62 |
) |
$ |
(0.28 |
) |
$ |
(0.39 |
) |
$ |
(0.08 |
) |
|
Weighted average shares used to compute net income (loss) per share: |
||||||||||||
|
Basic |
31,604 |
31,626 |
31,604 |
31,626 |
||||||||
|
Diluted |
31,604 |
33,137 |
32,803 |
33,137 |
The information contained in this Current Report on Form 8-K/A shall not be deemed “filed” for purposes of Section18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, except as expressly set forth by specific reference in such a filing.
About NETGEAR, INC. (NASDAQ:NTGR)
NETGEAR, Inc. is a global networking company. The Company’s product line consists of devices, such as network attached storage, Internet protocol security cameras, and home automation devices and services. Its segments include retail, commercial and service provider. The retail business unit consists of home networking, home video security, storage and digital media products. The commercial business unit consists of business networking, storage and security solutions. The service provider business unit consists of whole home networking hardware and software solutions, as well as fourth-generation long term evolution hotspots sold to service providers for sale to their subscribers. It has operations in the Americas, Europe, Middle-East and Africa, and Asia Pacific. The Company sells its products through multiple sales channels, including traditional retailers, online retailers, wholesale distributors, direct market resellers, value-added resellers and broadband service providers.