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Discontinued Operations
9 Months Ended
Sep. 29, 2019
Discontinued Operations and Disposal Groups [Abstract]  
Discontinued Operations Discontinued Operations

On February 6, 2018, the Company announced that its Board of Directors had unanimously approved the pursuit of a separation of its smart camera business “Arlo” from NETGEAR (the “Separation”) to be effected by way of initial public offering (“IPO”) and spin-off. In August 2018, Arlo Technologies, Inc. (“Arlo”) was listed on the New York Stock Exchange under the symbol "ARLO" and completed the IPO. Upon completion of the IPO, NETGEAR held approximately 84.2% of the outstanding shares of Arlo common stock, or 62,500,000 shares. On December 31, 2018, NETGEAR completed the distribution of these 62,500,000 shares of common stock of Arlo (the “Distribution”) and no longer owns any shares of Arlo common stock. The Distribution took place by way of a pro rata common stock dividend to each NETGEAR stockholder of record on the record date of the Distribution, December 17, 2018, and NETGEAR stockholders received 1.980295 shares of Arlo common stock for every share of NETGEAR common stock held as of the record date.

Upon completion of the Distribution, the Company ceased to own a controlling financial interest in Arlo and Arlo's assets, liabilities, operating results and cash flows for all periods presented have been classified as discontinued operations within the unaudited condensed Consolidated Financial Statements.
The financial results of Arlo through the Distribution date are presented as income (loss) from discontinued operations, net of tax, in the unaudited condensed consolidated statement of operations. The following table presents financial results of Arlo for the three and nine months ended September 30, 2018:
 
Three Months Ended
 
Nine Months Ended
 
September 30, 2018
 
September 30, 2018
 
(In thousands)
Net revenue
$
131,175

 
$
342,491

Cost of revenue
101,427

 
255,666

Gross profit
29,748

 
86,825

Operating expenses:
 
 


Research and development
14,816

 
32,569

Sales and marketing
11,592

 
25,148

General and administrative
6,905

 
9,859

Separation expense
6,675

 
25,443

Total operating expenses
39,988

 
93,019

Loss from operations of discontinued operations
(10,240
)
 
(6,194
)
Interest income, net
503

 
503

Other income (expense), net
(126
)
 
213

Loss from discontinued operations before income taxes
(9,863
)
 
(5,478
)
Provision (benefit) for income taxes
(2,703
)
 
2,873

Loss from discontinued operations, net of tax
$
(7,160
)
 
$
(8,351
)