NETGEAR(R) Reports Third Quarter 2008 Results and Announces Share Repurchase Program

NETGEAR(R) Reports Third Quarter 2008 Results and Announces Share Repurchase
Program

Highlights:

- Net revenue of $179.4 million, as compared to $191.7 million in the
comparable prior year quarter

- Non-GAAP net income of $6.9 million, as compared to $16.0 million in the
comparable prior year quarter

- Non-GAAP diluted earnings per share of $0.19, as compared to $0.44 in the
prior year quarter

- Expect fourth quarter 2008 net revenue to be in the range of $155 million to
$165 million, with non-GAAP operating margin in the range of 9.5% to 10.5%

- Board authorizes repurchase of up to 6,000,000 shares

SAN JOSE, Calif., Oct. 23 /PRNewswire-FirstCall/ -- NETGEAR, Inc. (Nasdaq:
NTGR), a worldwide provider of technologically advanced, branded networking
products, today reported financial results for the third quarter ended
September 28, 2008.

Net revenue for the third quarter ended September 28, 2008 was $179.4 million,
a 6% decrease as compared to $191.7 million for the third quarter ended
September 30, 2007, and a 12% decrease as compared to $204.5 million in the
second quarter ended June 29, 2008. Net income for the third quarter of 2008
computed in accordance with GAAP was $3.1 million, or $0.09 per diluted share.
This compared to net income of $13.3 million for the third quarter of 2007
and to net income of $11.1 million in the second quarter of 2008. Diluted
earnings per share, computed in accordance with GAAP, was $0.37 for the third
quarter of 2007 and $0.31 for the second quarter of 2008.

Gross margin on a non-GAAP basis in the third quarter of 2008 was 35.5%, as
compared to 34.0% in the year ago comparable quarter, and 33.2% in the second
quarter of 2008. Non-GAAP operating margin was 11.1% in the third quarter of
2008, as compared to 11.7% in the third quarter of 2007, and 11.5% in the
second quarter of 2008. In the third quarter of 2008, non-GAAP operating
expenses were 24.4% of net revenue, as compared to 22.3% in the year ago
comparable quarter, and 21.7% in the prior quarter.

Net income on a non-GAAP basis for the third quarter of 2008 was $6.9 million,
as compared to non-GAAP net income of $16.0 million for the third quarter of
2007, and non-GAAP net income of $14.5 million for the second quarter of 2008.
Non-GAAP net income was $0.19 per diluted share in the third quarter of 2008,
as compared to $0.44 per diluted share in the third quarter of 2007 and $0.41
per diluted share in the second quarter of 2008. Non-GAAP net income for the
third quarter of 2008 excludes $775,000 of adjustments related to amortization
of purchased intangibles and acquisition related retention compensation, net
of taxes, related to our recent acquisitions. Non-GAAP net income for the
third quarter of 2008 also excludes non-cash, stock-based compensation, net of
tax, of $2.4 million, restructuring costs related to vacating certain
facilities, net of tax, of $592,000 and $52,000 in litigation reserve
requirements, net of tax. Non-GAAP net income for the third quarter of 2007
excludes $811,000 of adjustments related to amortization of purchased
intangibles and acquisition related retention compensation, net of taxes.
Non-GAAP net income for the third quarter of 2007 also excludes non-cash,
stock-based compensation, net of tax, of $1.8 million and $124,000 in
litigation reserves, net of tax. Non-GAAP net income for the second quarter of
2008 excludes $1.1 million of adjustments related to amortization of purchased
intangibles and acquisition related retention compensation, net of taxes.
Non-GAAP net income for the second quarter of 2008 also excludes non-cash,
stock-based compensation, net of tax, of $2.4 million. The accompanying
schedules provide a reconciliation of net income computed on a GAAP basis to
net income computed on a non-GAAP basis.

Patrick Lo, Chairman and Chief Executive Officer of NETGEAR, commented, "The
September quarter showed weakness in demand for our consumer products across
both retail and service provider channels in all geographies, resulting in a
quarter-over-quarter and year-over-year decline in consumer product shipments.
We believe the weakness in the global economy and tight credit markets
worldwide are causing softness in end-user demand. As a result of the current
environment, we expect subdued spending conditions to persist over the next
few quarters until consumer confidence returns to the market. SMB (small and
medium-sized business) demand is holding well with continuous momentum. The
impact of current economic conditions on our operating margin was offset by
continued successful product and operating cost reductions, healthy sales of
ReadyNAS(R) and Smart Switches and the reduction in air freight cost
requirements as a result of increased on hand and available inventory. In the
third quarter, our service provider net revenue was approximately $31.4
million, about 18% of our total net revenue, as compared to 22% in the year
ago quarter, and 27% in the second quarter of 2008.

Mr. Lo continued, "In late September, we were pleased to enter the high growth
SMB security appliance market with the signing of a definitive agreement to
purchase certain assets of CP Secure, a leading provider of integrated
security solutions that protect organizations and businesses from Internet
originated web and e-mail based malware threats. With this acquisition, we can
further strengthen our share in this market by ensuring that our SMB clients
are provided an integrated solution to safeguard their networks from Internet
threats and improve their overall business continuity.

On the new product front, during the third quarter, we introduced 14 new
products, including 3 new models of our super fast 6 Bay ReadyNAS Pro, which
has enjoyed strong reception worldwide. In addition, we've been pleased to
bring our new energy-efficient, high-performance Wireless-N Router and
Wireless-N DSL Modem Router to the marketplace, enabling the simultaneous use
of applications such as Voice-Over-IP, video and multimedia streaming, console
gaming, and Web surfing. Looking ahead into Q4, we anticipate launching 12 to
15 new products, which will be ready for the Consumer Electronics Show in
January 2009, further positioning us for future revenue growth and market
share gain."

Christine Gorjanc, Chief Financial Officer of NETGEAR, said, "We were
negatively impacted in Q3 by lower than expected revenue and the strengthening
of the US dollar. During the quarter, the value of the US dollar rose rapidly
against the Australian dollar, British pound and the Euro. As a result of the
remeasurement of our foreign currency net assets, we suffered a currency loss
of $4.7 million. Also, our effective tax rate increased to 57.7%, on a
non-GAAP basis, due to lower than expected international profit. We ended the
third quarter of 2008 with net inventory at $125.7 million, compared to $106.4
million at the end of the second quarter of 2008, and $79.3 million at the end
of the third quarter of 2007. Ending inventory turns were 3.7, compared to
5.2 at the end of the second quarter of 2008, and 6.5 at the end of the third
quarter of 2007. Days sales outstanding (DSO) were 76 in the third quarter of
2008, compared to 71 days in the second quarter of 2008 and 66 days in the
third quarter of 2007. Cash, cash equivalents and short-term investments were
$202.2 million at the end of the third quarter of 2008, compared to $186.8
million at the end of the second quarter of 2008, and $177.2 million at the
end of the third quarter of 2007. Deferred revenue increased to $13.3 million
at the end of the third quarter of 2008, compared to deferred revenue of $4.3
million at the end of the second quarter of 2008, and $7.8 million at the end
of the third quarter of 2007."

U.S. retail channel inventory ended the third quarter of 2008 at 11.4 weeks,
compared to 8.8 weeks in the third quarter of 2007, and 13.6 weeks in the
second quarter of 2008. U.S. distribution channel inventory ended the third
quarter of 2008 at 5.5 weeks, compared to 4.2 weeks in the third quarter of
2007, and 5.1 weeks in the second quarter of 2008. European distribution
channel inventory ended the third quarter of 2008 at approximately 5.1 weeks,
compared to approximately 4.9 weeks in the third quarter of 2007, and 6.0
weeks in the second quarter of 2008. Asia Pacific distribution channel
inventory ended the third quarter of 2008 at approximately 7.2 weeks, compared
to approximately 4.7 weeks in the third quarter of 2007, and 6.0 weeks in the
second quarter of 2008.

Net revenue by geography comprises gross revenue less such items as marketing
incentives paid to customers, sales returns and price protection. The
following table shows net revenue by geography for the periods indicated:

Net revenue by geography:

Three months ended
September 28, September 30, June 29,
2008 2007 2008

North America $73,693 41% $76,357 40% $75,900 37%
Europe, Middle-East
and Africa $81,646 46% $95,549 50% $97,582 48%
Asia Pacific $24,028 13% $19,775 10% $30,982 15%
$179,367 100% $191,681 100% $204,464 100%

Additionally, the company announced that its board of directors has authorized
a program to repurchase up to 6,000,000 shares of the company's common stock,
or approximately 16.9% of the outstanding shares. "We believe the company's
stock represents an attractive investment opportunity at current market
prices," said Mr. Lo. "The Board's approval of the share repurchase program
reflects its confidence in the long term future of NETGEAR's business and its
ongoing commitment to increase shareholder value."

The stock repurchase authorization does not have an expiration date and the
pace of repurchase activity will depend on factors such as levels of cash
generation from operations, cash requirements for acquisitions, current stock
price, and other factors. Under the program, NETGEAR may repurchase shares
from time to time on the open market. The company will finance the repurchase
program with available cash on hand. The stock repurchase program may be
modified or discontinued at any time.

Looking forward, Mr. Lo added, "The weakness in consumer demand and the global
economic environment will continue to test growth in the coming quarters.
Despite such market challenges, we firmly believe our success in SMB will
bolster us well amidst weaker demand for our consumer products. We are
excited about the impending closing of the asset acquisition of CP Secure,
providing us with differentiated technology in the form of our new
ProSecure(TM) line of security appliances for SMB. We will continue to drive
innovation in the SMB market with our Smart Switches, ReadyNAS and soon to be
launched ProSecure line of products. For the fourth quarter of 2008, we expect
lower than normal consumer demand due to the current economic conditions.
Specifically, we expect fourth quarter net revenue to be approximately $155
million to $165 million. We expect non-GAAP operating margin to be in the
range of 9.5% to 10.5%."

Investor Conference Call / Webcast Details
NETGEAR will review the third quarter 2008 results and discuss management's
expectations for the fourth quarter of 2008 today, Thursday, October 23, 2008
at 5 p.m. EDT (2 p.m. PDT). The dial-in number for the live audio call is
(201) 689-8560. A live webcast of the conference call will be available on
NETGEAR's website at www.netgear.com the call will be available 2 hours
following the call through midnight EDT (9 p.m. PDT) on Thursday, October 30,
2008 by telephone at (201) 612-7415 and via the web at www.netgear.com. The
account number to access the phone replay is 3055 and the conference ID number
is 299835.

About NETGEAR, Inc.
NETGEAR (NASDAQGM: NTGR) designs innovative, branded technology solutions for
networking, storage, and security that address the specific needs of small and
medium-sized business and home users. The company offers an end-to-end
networking product portfolio to enable users to share Internet access,
peripherals, files, multimedia content, and applications among multiple
computers and other Internet-enabled devices. Products are built on a variety
of proven technologies such as wireless, Ethernet and powerline, with a focus
on reliability and ease of use. NETGEAR products are sold in over 29,000
retail locations around the globe, and via more than 41,000 value-added
resellers. The company's headquarters are in San Jose, California, with
additional offices in 19 countries. NETGEAR is an ENERGY STAR(R) partner. More
information is available by visiting www.netgear.com or calling (408)
907-8000.

(C) 2008 NETGEAR, Inc. NETGEAR(R), the NETGEAR Logo, ReadyNAS and ProSecure
are trademarks or registered trademarks of NETGEAR, Inc. in the United States
and/or other countries. Other brand and product names are trademarks or
registered trademarks of their respective holders. Information is subject to
change without notice. All rights reserved.

Contact:
Joseph Villalta
The Ruth Group
(646) 536-7003
jvillalta@theruthgroup.com

Safe Harbor Statement under the Private Securities Litigation Reform Act of
1995 for NETGEAR, Inc.:
This press release contains forward-looking statements within the meaning of
the U.S. Private Securities Litigation Reform Act of 1995. The words
"anticipate", "expect", "believe", "will", "may", "should", "estimate",
"project", "outlook", "forecast" or other similar words are used to identify
such forward-looking statements. However, the absence of these words does not
mean that the statements are not forward-looking. The forward-looking
statements represent NETGEAR, Inc.'s expectations or beliefs concerning future
events based on information available at the time such statements were made
and include statements, among others, regarding NETGEAR's expected revenue,
earnings, operating income and tax rate on both a GAAP and non-GAAP basis, the
effect of the global economic environment on the company's business, the
possibility that NETGEAR may repurchase its shares under the repurchase
program, the belief that the company's stock represents an attractive
investment opportunity at current market prices, the long term future of
NETGEAR's business, our continued success in the SMB market, our ability to
innovate, anticipated new product offerings, current and future demand for the
Company's existing and anticipated new products, willingness of consumers to
purchase and use the Company's products, and ability to increase distribution
and market share for the Company's products domestically and worldwide. These
statements are based on management's current expectations and are subject to
certain risks and uncertainties, including, without limitation, the following:
future demand for the Company's products may be lower than anticipated;
consumers may choose not to adopt the Company's new product offerings or adopt
competing products; product performance may be adversely affected by real
world operating conditions; the Company may be unsuccessful or experience
delays in manufacturing and distributing its new and existing products;
telecommunications service providers may choose to slow their deployment of
the Company's products or utilize competing products; the Company may be
unable to collect receivables as they become due; the Company may fail to
manage costs, including the cost of developing new products and manufacturing
and distribution of its existing offerings; channel inventory information
reported is estimated based on the average number of weeks of inventory on
hand on the last Saturday of the quarter, as reported by certain of NETGEAR's
customers; changes in the level of NETGEAR's cash resources and the company's
planned usage of such resources, changes in the company's stock price and
developments in the business that could increase the company's cash needs.
Further, certain forward-looking statements are based on assumptions as to
future events that may not prove to be accurate. Therefore, actual outcomes
and results may differ materially from what is expressed or forecast in such
forward-looking statements. Further information on potential risk factors that
could affect NETGEAR and its business are detailed in the Company's periodic
filings with the Securities and Exchange Commission, including, but not
limited to, those risks and uncertainties listed in the section entitled "Part
II - Item 1A. Risk Factors," pages 28 through 39, in the Company's Quarterly
Report on Form 10-Q for the quarterly period ended June 29, 2008, filed with
the Securities and Exchange Commission on August 8, 2008. NETGEAR undertakes
no obligation to release publicly any revisions to any forward-looking
statements contained herein to reflect events or circumstances after the date
hereof or to reflect the occurrence of unanticipated events.

Use of Non-GAAP Financial Information:
To supplement our consolidated financial statements presented on a GAAP basis,
NETGEAR uses non-GAAP measures of operating results, net income and income per
share, which are adjusted to exclude certain expenses and tax benefits we
believe appropriate to enhance an overall understanding of our past financial
performance and also our prospects for the future. These adjustments to our
current period GAAP results are made with the intent of providing both
management and investors a more complete understanding of NETGEAR's underlying
operational results and trends and our marketplace performance. For example,
the non-GAAP results are an indication of our baseline performance before
charges that are considered by management to be outside of our core operating
results. In addition, these adjusted non-GAAP results are among the primary
indicators management uses as a basis for our planning and forecasting of
future periods. The presentation of this additional information is not meant
to be considered in isolation or as a substitute for net income or diluted net
income per share prepared in accordance with generally accepted accounting
principles in the United States.

NETGEAR, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)

Three months ended Nine months ended
------------------ -----------------
Sept. 28, Sept. 30, Sept. 28, Sept. 30,
2008 2007 2008 2007
---- ---- ---- ----

Net revenue $179,367 $191,681 $581,985 $529,528
Cost of revenue 117,074 127,903 389,420 349,766
------- ------- ------- -------
Gross profit 62,293 63,778 192,565 179,762
------ ------ ------- -------

Operating expenses:
Research and
development 8,267 7,816 25,589 20,881
Sales and marketing 30,220 30,509 94,440 86,756
General and
administrative 8,048 6,781 23,238 20,643
Restructuring 964 - 964 -
In-process research and
development - - - 4,100
Litigation
reserves, net 85 202 136 202
------ ------ ------- -------
Total operating
expenses 47,584 45,308 144,367 132,582
------ ------ ------- -------
Income from operations 14,709 18,470 48,198 47,180
Interest income 976 1,860 3,528 6,424
Other income
(expense), net (4,653) 1,732 (1,824) 3,152
------ ----- ------ -----
Income before
income taxes 11,032 22,062 49,902 56,756
Provision for
income taxes 7,929 8,796 24,509 23,336
----- ----- ------ ------
Net income $3,103 $13,266 $25,393 $33,420
====== ======= ======= =======

Net income per share:
Basic $0.09 $0.38 $0.72 $0.96
===== ===== ===== =====
Diluted $0.09 $0.37 $0.71 $0.94
===== ===== ===== =====

Weighted average
shares outstanding
used to compute
net income per share:
Basic 35,412 35,045 35,361 34,679
====== ====== ====== ======
Diluted 35,721 35,955 35,834 35,742
====== ====== ====== ======

Stock-based
compensation expense
was allocated as
follows:
Cost of revenue $216 $160 $657 $448
Research and
development 835 694 2,499 1,692
Sales and marketing 836 781 2,564 2,319
General and
administrative 1,044 731 2,950 2,098

NETGEAR, INC.
NON-GAAP CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Excluding restructuring costs, amortization of purchased intangibles,
in-process research and development, acquisition related retention
compensation, impact to cost of sales from purchase accounting
adjustments to inventory, litigation reserves and stock-based
compensation, net of tax.
(In thousands, except per share data)
(Unaudited)

Three months ended Nine months ended
------------------ -----------------
Sept. 28, Sept. 30, Sept. 28, Sept. 30,
2008 2007 2008 2007
---- ---- ---- ----

Net revenue $179,367 $191,681 $581,985 $529,528
Cost of revenue 115,683 126,560 385,221 345,920
------- ------- ------- -------
Gross profit 63,684 65,121 196,764 183,608
------ ------ ------- -------

Operating expenses:
Research and development 7,346 6,987 22,403 18,470
Sales and marketing 29,384 29,728 91,876 84,437
General and administrative 7,004 6,050 20,288 18,545
------ ------ ------- -------
Total operating expenses 43,734 42,765 134,567 121,452
------ ------ ------- -------
Income from operations 19,950 22,356 62,197 62,156
Interest income 976 1,860 3,528 6,424
Other income (expense), net (4,653) 1,732 (1,824) 3,152
------ ----- ------ -----
Income before income taxes 16,273 25,948 63,901 71,732
Provision for income taxes 9,383 9,960 28,382 26,464
----- ----- ------ ------
Net income $6,890 $15,988 $35,519 $45,268
====== ======= ======= =======

Net income per share:
Basic $0.19 $0.46 $1.00 $1.31
===== ===== ===== =====
Diluted $0.19 $0.44 $0.99 $1.27
===== ===== ===== =====

Weighted average shares
outstanding used to compute
net income per share:
Basic 35,412 35,045 35,361 34,679
====== ====== ====== ======
Diluted 35,721 35,955 35,834 35,742
====== ====== ====== ======

NETGEAR, INC.
GAAP TO NON-GAAP RECONCILIATION
(In thousands, except per share data)
(Unaudited)

Three months ended
September 28, 2008
------------------
GAAP Adjustments Non-GAAP
---- ----------- --------

Net revenue $179,367 $- $179,367
Cost of revenue 117,074 1,391 115,683
------- ----- -------
Gross profit 62,293 (1,391) 63,684
------ ------ ------

Operating expenses:
Research and development 8,267 921 7,346
Sales and marketing 30,220 836 29,384
General and administrative 8,048 1,044 7,004
Restructuring 964 964 -
Litigation reserves, net 85 85 -
------ ----- ------
Total operating expenses 47,584 3,850 43,734
------ ----- ------
Income from operations 14,709 (5,241) 19,950
Interest income 976 - 976
Other income (expense), net (4,653) - (4,653)
------ --- ------
Income before income taxes 11,032 (5,241) 16,273
Provision for income taxes 7,929 (1,454) 9,383
----- ------ -----
Net income $3,103 $(3,787) $6,890
====== ======= ======

Net income per share:
Basic $0.09 $0.19
===== =====
Diluted $0.09 $0.19
===== =====

Weighted average shares
outstanding used to compute
net income per share:
Basic 35,412 35,412
====== ======
Diluted 35,721 35,721
====== ======

Nine months ended
September 28, 2008
------------------
GAAP Adjustments Non-GAAP
---- ----------- --------

Net revenue $581,985 $- $581,985
Cost of revenue 389,420 4,199 385,221
------- ----- -------
Gross profit 192,565 (4,199) 196,764
------- ------ -------

Operating expenses:
Research and development 25,589 3,186 22,403
Sales and marketing 94,440 2,564 91,876
General and administrative 23,238 2,950 20,288
Restructuring 964 964 -
Litigation reserves, net 136 136 -
------- ----- -------
Total operating expenses 144,367 9,800 134,567
------- ----- -------
Income from operations 48,198 (13,999) 62,197
Interest income 3,528 - 3,528
Other income (expense), net (1,824) - (1,824)
------ --- ------
Income before income taxes 49,902 (13,999) 63,901
Provision for income taxes 24,509 (3,873) 28,382
------ ------ ------
Net income $25,393 $(10,126) $35,519
======= ======== =======

Net income per share:
Basic $0.72 $1.00
===== =====
Diluted $0.71 $0.99
===== =====

Weighted average shares
outstanding used to compute
net income per share:
Basic 35,361 35,361
====== ======
Diluted 35,834 35,834
====== ======

NETGEAR, INC.
GAAP TO NON-GAAP RECONCILIATION
(in thousands, except per share data)
(Unaudited)

Three months ended
September 30, 2007
------------------
GAAP Adjustments Non-GAAP
---- ----------- --------

Net revenue $191,681 $- $191,681
Cost of revenue 127,903 1,343 126,560
------- ----- -------
Gross profit 63,778 (1,343) 65,121
------ ------ ------

Operating expenses:
Research and development 7,816 829 6,987
Sales and marketing 30,509 781 29,728
General and administrative 6,781 731 6,050
In-process research and development - - -
Litigation reserves, net 202 202 -
------ ----- ------
Total operating expenses 45,308 2,543 42,765
------ ----- ------
Income from operations 18,470 (3,886) 22,356
Interest income 1,860 - 1,860
Other income 1,732 - 1,732
----- --- -----
Income before income taxes 22,062 (3,886) 25,948
Provision for income taxes 8,796 (1,164) 9,960
----- ------ -----
Net income $13,266 $(2,722) $15,988
======= ======= =======

Net income per share:
Basic $0.38 $0.46
===== =====
Diluted $0.37 $0.44
===== =====

Weighted average shares
outstanding used to compute
net income per share:
Basic 35,045 35,045
====== ======
Diluted 35,955 35,955
====== ======

Nine months ended
September 30, 2007
------------------
GAAP Adjustments Non-GAAP
---- ----------- --------

Net revenue $529,528 $- $529,528
Cost of revenue 349,766 3,846 345,920
------- ----- -------
Gross profit 179,762 (3,846) 183,608
------- ------ -------

Operating expenses:
Research and development 20,881 2,411 18,470
Sales and marketing 86,756 2,319 84,437
General and administrative 20,643 2,098 18,545
In-process research and development 4,100 4,100 -
Litigation reserves, net 202 202 -
------- ------ -------
Total operating expenses 132,582 11,130 121,452
------- ------ -------
Income from operations 47,180 (14,976) 62,156
Interest income 6,424 - 6,424
Other income 3,152 - 3,152
----- --- -----
Income before income taxes 56,756 (14,976) 71,732
Provision for income taxes 23,336 (3,128) 26,464
------ ------ ------
Net income $33,420 $(11,848) $45,268
======= ======== =======

Net income per share:
Basic $0.96 $1.31
===== =====
Diluted $0.94 $1.27
===== =====

Weighted average shares
outstanding used to compute
net income per share:
Basic 34,679 34,679
====== ======
Diluted 35,742 35,742
====== ======

NETGEAR, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)

September 28, December 31,
2008 2007
---- ----

ASSETS
Current assets:
Cash and cash equivalents $192,039 $167,495
Short-term investments 10,148 37,848
Accounts receivable, net 150,552 157,765
Inventories 125,711 83,023
Deferred income taxes 14,865 13,091
Prepaid expenses and other
current assets 22,490 20,367
------ ------
Total current assets 515,805 479,589
Property and equipment, net 20,403 11,205
Intangibles, net 12,778 16,319
Goodwill 51,435 41,985
Other non-current assets 2,019 2,011
----- -----
Total assets $602,440 $551,109
======== ========

LIABILITIES AND
STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $46,421 $55,333
Accrued employee compensation 10,002 16,085
Other accrued liabilities 104,960 89,470
Deferred revenue 13,346 7,619
------ -----
Total current liabilities 174,729 168,507
Deferred income tax liability 1,770 2,626
Non-current income
taxes payable 12,117 8,272
Other non-current liabilities 5,949 181
----- ---
Total liabilities 194,565 179,586
Stockholders' equity:
Common stock 35 35
Additional paid-in capital 263,631 252,421
Cumulative other
comprehensive income 33 101
Retained earnings 144,176 118,966
------- -------
Total stockholders' equity 407,875 371,523
------- -------
Total liabilities and
stockholders' equity $602,440 $551,109
======== ========

SOURCE NETGEAR, Inc.

Joseph Villalta of The Ruth Group for NETGEAR, +1-646-536-7003,
jvillalta@theruthgroup.com