We are a global company that delivers innovative networking and Internet connected
products to consumers and growing businesses. In the first fiscal quarter of
2017, our Chief Operating Decision Maker requested changes to the information
that he regularly reviews for purposes of allocating resources and assessing
performance. By consequence, we reorganized our operating segment structure,
resulting in a change to our reportable segments. Beginning with fiscal year
2017, we operate and report in the following three segments: Arlo, Connected
Home, and Small and Medium Business ("SMB"). The Arlo segment is focused
on intelligent internet-connected products for consumers and businesses that
provide security and safety. The Connected Home segment is focused on consumers
and consists of high-performance, dependable and easy-to-use LTE and WiFi internet
networking solutions.
Our products are built on a variety of proven technologies such as wireless
(WiFi and LTE), Ethernet and powerline, with a focus on reliability and ease-of-use.
Our product line consists of devices that create and extend wired and wireless
networks as well as devices that provide a special function and attach to the
network, such as Internet Protocol (“IP”) security cameras and home
automation devices and services. These products are available in multiple configurations
to address the changing needs of our customers in each geographic region in
which our products are sold.
Smart Home / Connected Home / Broadband access. Products that create and extend
wired and wireless networks in homes and small businesses to connect devices
to the internet, enable connection to broadband networks, as well as devices
that provide remote, secure monitoring of homes and businesses. These products
are sold primarily via brick and mortar retail, e-commerce, and service provider
channels and include:
Remote video security systems, which provide remote video and audio monitoring
and recordings, accessible by smart phones, tablets or PCs and MACs through
WiFi or LTE;
Broadband modems, which are devices that convert the broadband signals into
Ethernet data that feeds Internet into homes and offices. We provide modems
that connect to DOCSIS 3.x, xDSL, FTTx, and 4G LTE;
WiFi Gateways, which are WiFi routers with an integrated broadband modem, for
broadband Internet access;
WiFi Hotspots, which create mobile WiFi Internet access that utilizes 3G and
4G LTE data networks for use on the go, and at home in place of traditional
wired broadband, Internet access;
WiFi routers and home WiFi Systems, which create a local area network (LAN)
for home or office computer, mobile and Smart Devices to connect and share a
broadband Internet connection;
WiFi range extenders, which extend the range of an existing WiFi network to
eliminate WiFi dead spots;
Powerline adapters and bridges, which extend wired and WiFi Internet connections
to any AC outlet using existing electrical wiring; and
WiFi network adapters, which enable computing devices to be connected to the
network via WiFi.
Small and Medium business solutions. These products are sold into the small
and medium business marketplace through an extensive network of DMRs and VARs,
and increasingly through brick and mortar retail and e-commerce channels and
include:
Ethernet switches, which are multiple port devices used to network computing
devices and peripherals via Ethernet wiring;
Wireless controllers and access points, which are devices used to manage and
control multiple WiFi base stations on a campus or a facility providing WiFi
connections to smart phones, tablets, laptops and other computing devices;
Unified storage, which delivers file and block based data into a single shared
storage system, meeting the demands of small enterprises, education, hospitality
and health markets through an easy-to-use interface for managing multiple storage
protocols; and
Internet security appliances, which provide internet access through capabilities
such as anti-virus and anti-spam.
We design our products and services to meet the specific needs of the consumer,
business and service provider markets, tailoring various elements of the software
interface, the product design, including component specification, physical characteristics
such as casing, design and coloration, and specific user interface features
to meet the needs of these markets. We also leverage many of our technological
developments, high volume manufacturing, technical support and engineering infrastructure
across our markets to maximize business efficiencies.
Our products that target the business market are generally designed with an
industrial appearance, including metal cases and, for some product categories,
the ability to mount the product within standard data networking racks as well
as unique mounting solutions for other uses. These products typically include
higher port counts, higher data transfer rates and other performance characteristics
designed to meet the needs of a business user. For example, we offer data transfer
rates up to ten gigabits per second for our business products to meet the higher
capacity requirements of business users. Some of these products are also designed
to support transmission modes such as fiber optic cabling, which is common in
more sophisticated business environments. Security requirements within our products
for business broadband access include firewall, virtual private network and
content threat management capabilities that allow for secure interactions between
remote offices and business headquarter locations over the internet. Our connectivity
product offerings for the business market include enhanced security and remote
configurability often required in a business setting. Our ReadyNAS® family
of network attached storage products implements redundant arrays of independent
disks data protection, enabling businesses to store and protect critical data
easily, efficiently and intelligently.
Our vision for the home network is about intelligently controlling and monitoring
all devices connected to the home network at all times, thus creating a Smart
Environment. Our focus is to continue to introduce new products and services
into growth areas that form the basis of Smart Homes, such as: the fastest WiFi
standards with broadest coverage via latest technology (802.11ac) WiFi routers
and home WiFi systems; high speed DOCSIS 3.1, xDSL and fiber gateways with more
integrated functions; 4G LTE gateways and mobile hotspots; smart home cameras;
smart home lights and other automation devices. We continue to announce and
introduce new products in these key markets.
Our vision for the business network is to increase the effectiveness and efficiency
of the hybrid cloud access network. We believe small and medium-sized enterprises
will continue to move into cloud-based applications, such as: Salesforce.com,
Ring Central, Zoom video conferencing, SuccessFactors, Workday, and others.
In addition, we believe these enterprises will move into utility-like on demand
computing power supplied by third party data centers. Also, increasingly more
enterprises are enabling the BYOD (bring your own device) environment allowing
smart phones, tablets, and netbooks to be the business computing devices of
choice. These trends will place a greater demand on business networks. To meet
this demand we are introducing next generation commercial products in rapid
pace, such as: Power over Ethernet (PoE) switches, Multi-gigabit Ethernet switches,
high capacity local and remote unified storage, small to medium capacity campus
wireless LAN, and security appliances.
