Macro Canvas Not Pretty For Netgear
Enterprise minister and local Fine Gael TD Simon Coveney was on hand recently for the official opening of Netgear’s new international headquarters at Penrose Dock. The San Jose, California, connected products manufacturer has had a presence in Cork since 2006, and says the investment in the new Leeside base has cost €4.75m.
The Cork office employs
46 people across finance, customer operations, logistics, digital marketing, data operations, HR, legal, customer support, sales and IT support. On a revenue-per-employee basis, Irish company Netgear International Ltd must be one of the best performing in the city, with $650m turnover flowing through the company in 2022. That works out at €13.2m per Cork staff member. The Cork office plays a central role in global operations, and average pay for staff last year was €85,700.
Netgear is best known in Irish offices for its routers. The company’s business arm makes up 40% of annual revenue, with consumer WiFi products making up the balance. Netgear’s recent trading performance offers a window into the real US economy beyond the tech giants, and the latest data suggests some strains.
Turnover through the first three quarters of 2023 declined by 19%.
The company reported that the yearover-year decrease in SME turnover was primarily due to a reduction in inventory carrying levels by channel partners “driven by the continued pressure of the uncertain macroeconomic environment”. The annual decrease in Connected Home revenue was blamed on a contraction of the US retail market and higher inventory carrying levels at retailers in the prior year period.
Despite the revenue hit, gross profit was maintained. This reflected higher prices and the lower cost of shipping products made in Asia by sea. Founder Patrick Lo, chairman and CEO, also took a swipe at overheads, shaving 17% from outgoings. Q1 to Q3 pre-tax loss this year narrowed to $19m from $72m the previous year, though an $84m tax charge widened the net loss for the period to $103m.
A Netgear novelty that demands Christmas gift attention is its WiFi connected Meural Canvas (left), a digital display that brings entire art collections and photo albums to your wall. An optional extra is subscription to the Meural Library, which offers over 30,000 famous artworks from museums and galleries around the world. Expect to pay from €750 for this digital treat.