- Netgear has struggled over the last several years. The company's struggles are the result of two segments underperforming.
- The EMEA segment has declined due to issues in Europe. The slow economy has hurt the segment's revenue but the company has also had sales execution issues.
- Despite a sluggish European economy, Cisco was able to grow their EMEA revenue. Netgear's management is addressing their issues with two new initiatives which will take several quarters to work.
- Netgear's commercial revenue has declined due to the struggles of their NAS system. Netgear is struggling in the NAS market due to a subpar entry-level product and the competitive environment.
- Management believes they can compete in the high-end NAS market. Yet, the market is dominated by two large vendors. As a result, Netgear is positioned to continue to struggle.