Netgear Inc. (NASDAQ:NTGR) Q4 2017 Earnings Conference Call - Final Transcript

Feb 06, 2018 • 05:00 pm ET

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Netgear Inc. (NASDAQ:NTGR) Q4 2017 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Good afternoon. My name is Kirsten and I will be your conference operator today. At this time, I would like to welcome everyone to the NETGEAR Fourth Quarter and Fiscal Year 2017 Results Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. (Operator Instructions)

At this time, I would like to turn the call over to your host, Mr. Genualdi. Please go ahead, sir.

Executive
Christopher Genualdi

Thank you, operator. Good afternoon and welcome to NETGEAR's fourth quarter and full year 2017 financial results conference call. Joining us from the Company are Mr. Patrick Lo, Chairman and CEO; and Ms. Christine Gorjanc, CFO.

The format of the call will start with a review of the financials for the fourth quarter and full year provided by Christine, followed by details and commentary on the business provided by Patrick, who will also discuss our plan to separate our Arlo business into a separate public company, and finish with first quarter of 2018 guidance provided by Christine. We will then have time for any questions. If you have not received a copy of today's release, please visit NETGEAR's Investor Relations Web-site 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 rates, expenses, our plans regarding the separation of the Arlo business, 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. 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.

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 Ms. Christine Gorjanc.

Executive
Christine M. Gorjanc

Thank you, Christopher, and thank you everyone for joining today's call. We have a lot to discuss on today's call, given that we just announced that the NETGEAR Board of Directors have unanimously approved the pursuit of the separation of the Arlo business from NETGEAR. The separation is expected to be effective through an initial public offering of less than 20% of newly issued shares of common stock of Arlo Technologies, Inc., with NETGEAR to retain the remaining interest. We currently intend that following the IPO, NETGEAR will distribute its remaining shares of Arlo to our stockholders in a spin-off that is generally intended to be tax-free to our stockholders for US federal income tax purposes.

Before we dive into further details regarding the separation, I'd like to first provide commentary on our results for the fourth quarter of