Skip to content

February 7, 2018

Netgear turns its security cameras into a separate business

by John_A

Netgear’s Arlo security cameras are apparently a hit — so much so that the company is turning them into a separate business. The router maker has revealed that it’s spinning out Arlo as a separate company, with the regulatory paperwork completed in the first half of 2018 and a public stock offering in the second. Senior strategy VP Matthew McRae (who used to be Vizio’s chief technical officer) is expected to helm Arlo when all is said and done.

Why this, and why now? Netgear didn’t break down the specifics, but its latest financials tell the story. Where it saw just a $30 million boost in year-over-year revenue last fall and posted a $31 million loss, Arlo was surging — its revenue was up a whopping 67 percent (to $128.5 million) even as Netgar’s mainstay networking businesses struggled. Simply put, Netgear wants to capitalize on that success while it can.

It’s a hot market, too. There’s fierce competition between Amazon, Nest, Ring and other big names, some of which are taking advantage of AI to tell the difference between a burglar and the family pet. The spin-out could help the Arlo team thrive in a space where it would be all too easy to fall behind.

Via: Multichannel News

Source: Netgear

Read more from News

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

Note: HTML is allowed. Your email address will never be published.

Subscribe to comments

%d bloggers like this: