NETGEAR, Inc. (NASDAQ:NTGR) Q1 2024 Earnings Call Transcript

Bryan Murray: In terms of cash generation, we are going to generate more cash in Q2, largely because the benefits of continuing to work down our inventory. I would steer it probably in the magnitude of maybe half of what we saw in the first to somewhere in the high end up and around that range. The rest of the year, I would just probably steer you to kind of – we stated our target is to be down to three months’ of inventory. We’re going to aggressively try and work through that by the end of this year. There will be offsets, obviously, from an income standpoint. Q2’s guide would be a consumption of cash there, so there will be offsets to that. But I would say most of the cash generation for this year will still continue to be tied to inventory reduction and working towards our target.

In terms of capital allocation, I think this is your second question there. We repurchased shares in the first quarter, which is something we probably hadn’t done in almost two years. And I think we still believe that we’re going to be opportunistic buyers of our stock in this market.

Operator: And there are no further questions at this time. I will now turn the call over to CJ Prober for some final closing remarks.

Charles Prober: Thanks everybody for joining and look forward to future calls over the coming quarters.

Operator: This concludes today’s conference call. Thank you for your participation. You may now disconnect.