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NETGEAR (NTGR) to Offer AV Support Services in IP Networking

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NETGEAR Inc. (NTGR - Free Report) recently announced the launch of value-added services for audio-visual solutions for seamless deployment across IP networking facilities. The company has introduced a new engineering support center to this effect, which is likely to facilitate the back-up services for addressing the specific needs of the industry.  

In particular, NETGEAR has employed a dedicated team of experts to offer services ranging from pre-sales and post-sales support to technical training, white papers and best practices. This engineering services team is expected to empower audio-visual installers, consultants, manufacturers and resellers to gain technical know-how for deployment in IP networking assets. This, in turn, is likely to bridge the digital divide for the successful transition from legacy matrix switching to audio-visual solutions over Ethernet.

The strategic move is aimed to simplify and streamline IP networking for small and medium sized firms that often lack the requisite resources and technical knowledge for effectively utilizing complex audio-visual installations. NETGEAR’s M4300 line of switches enable seamless installations of low complexity solutions for the deployment of zero latency, uncompressed 4K video over Ethernet. For larger and more complex installations, the company employs automatic audio-visual multicast under the guidance of its expert engineering team to optimize operations.   

NETGEAR’s top line is benefiting from the rapid surge in Internet connected devices, which has boosted the need for robust networking solutions. An increased market demand for Smart Home and connected products such as Smart TVs, game consoles, HD streaming players and security cameras, among others, continues to drive innovations in networking space. NETGEAR focuses on introducing coveted products into growth areas, which form the basis of Smart Homes as it strives to be the provider of industry-leading networking and connected products for consumers, business and service provider markets. Furthermore, it has released the third generation Meural Canvas. Notably, Meural is the world’s leading smart digital canvas. The company also announced an exciting new Meural content partnership with National Geographic.

In order to benefit from the increasing demand for cloud-based applications for small and mid-sized enterprises, NETGEAR further plans to introduce next generation commercial products. Technological advancements are likely to expand the effectiveness and efficiency of its hybrid cloud access network and provide a competitive edge to outsmart its rivals.

However, shares of NETGEAR have recorded an average loss of 46.1% against the industry’s rise of 4% over the past year.

The downside can be largely attributable to management’s decision to separate Arlo Technologies, Inc. On Dec 31, 2018, NETGEAR completed the spin-off of the Arlo business through a distribution of 62,500,000 shares of Arlo stock to NETGEAR’s shareholders. Prior to that, the company owned nearly 84.2% of Arlo stock.

NETGEAR currently has a Zacks Rank #5 (Strong Sell). Some better-ranked stocks in the broader industry are Extreme Networks, Inc. (EXTR - Free Report) and Radcom Ltd. (RDCM - Free Report) , both sporting a Zacks Rank #1 (Strong Buy), and Viasat Inc. (VSAT - Free Report) , carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Extreme Networks beat earnings estimates thrice in the trailing four quarters, the average being 73.8%.  

Radcom beat earnings estimates in each of the trailing four quarters, the average being 68.2%.

Viasat beat earnings estimates in each of the trailing four quarters, the average positive surprise being 230.6%.

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