NETGEAR , INC. (NASDAQ:NTGR), a global networking company valued at $782.54 million and maintaining a "GOOD" financial health rating according to InvestingPro, has confirmed the departure of David J. Henry, the former President and General Manager of Connected Home Products and Services, as of December 31, 2024. Following the separation, Mr. Henry is set to receive a severance package in line with the terms of his 2018 agreement with the company.
The severance package for Mr. Henry includes several components: a lump sum payment equal to one year of his base salary, twelve months of COBRA premium reimbursements, and accelerated vesting of his unvested time-based restricted stock units. The company appears well-positioned to handle these obligations, with a strong current ratio of 2.84 and more cash than debt on its balance sheet.
Additionally, performance-based restricted stock units that have met their performance metrics by his last day will also vest. These benefits are contingent upon Mr. Henry's execution of a release of claims against NETGEAR.
In recognition of his service to the company through the end of 2024, Mr. Henry will also be eligible for a bonus for the second half of that year. The bonus, contingent on company discretion, will be awarded concurrently with other qualifying employees.
In other recent news, NETGEAR, Inc. has seen significant developments recently. The company has expanded its mesh system portfolio with the introduction of the WiFi 7 Orbi 870 Series Mesh System. This new product is designed to cater to large homes needing multi-gig speeds and advanced security features. Despite a 15% year-over-year revenue decline in the last twelve months, the company reported a 27.1% sequential revenue increase to $182.9 million in its Q3 2024 financial results and maintains strong liquidity.
In addition, NETGEAR has been in the spotlight due to a potential ban on rival TP-Link routers in the U.S. over national security concerns. This development could potentially benefit competitors like NETGEAR. The company also reported a significant growth in its recurring revenue subscribers, which now stand at 555,000, and highlighted a strategic transformation focusing on intelligent solutions and cybersecurity.
Finally, the company's ProAV business grew over 10%, and it launched the M7 Pro mobile hotspot, combining 5G and WiFi 7. NETGEAR also plans to be active in stock repurchases, given its strong cash position of approximately $396 million, and expects Q4 2024 revenue to range from $160 million to $175 million.
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