1 week Ago By David Richards
Netgear the high-priced consumer networking Company is seriously struggling, with the business reporting losses and falling sales, in the last quarter ending March 31st 2024, revenue fell 9% to US$164.59 million from a year ago losses came in at of $18.65 million.
since 2021 their share value has fallen from US43 to just $11.58 today with their Asia Pacific operation of which Australia makes up the bulk of the revenue, reporting Connected Home sales of $9.95 million and $13.
5M in the B2B market during the past quarter. This was down on the prior quarter. Last week the business that has started killing off poor performing products including their Meural digital picture frame but are still facing stock problems in the Channel due to retail and B2B partners only carrying the minimum level of stock.
The CEO of the business, CJ Prober, claims the challenging macroeconomic environment coupled with continued high inflation and interest rates are pressuring their channel partners to drive inventory to historical lows across Netgear’s consumer and B2B businesses. “While we have been working to bring down channel inventories, this higher level of destocking combined with a mix shift from our premium consumer products to our service provider products and a slightly more promotional retail market, unfavourably impacted our profitability in the first quarter.” Co-founder and Chief Executive Officer Patrick Lo appears to have an ongoing struggling to hit any of the targets he outlined.
