Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities
−Removed: Use of Proceeds
−Removed: On August 7, 2018, we completed our initial public offering (the “IPO”) in which we issued and sold 11,747,250 shares of common stock (including 1,532,250 shares of common stock pursuant to the underwriters’ option to purchase additional shares, which was exercised in full on August 3, 2018) at a price to the public of $16.00 per share.
−Removed: Cash proceeds from the IPO were $173.4 million, net of the portion of the offering cost paid by Arlo, which portion was $1.4 million.
−Removed: The total offering cost was $4.6 million, of which $3.2 million was paid by NETGEAR.
−Removed: No offering expenses were paid directly or indirectly to any of our directors, officers, or persons owning ten percent or more of our common stock or to their associates or affiliates.
−Removed: The offer and sale of all of shares in the IPO were registered under the Securities Act pursuant to a registration statement on Form S-1 (File No.
−Removed: 333-226088), which was declared effective by the SEC on August 2, 2018.
−Removed: Merrill Lynch, Pierce, Fenner & Smith Incorporated, Deutsche Bank Securities Inc, and Guggenheim Securities LLC acted as lead book-running managers for the offering.
−Removed: Raymond James & Associates, Inc., Cowen and Company LLC, and Imperial Capital LLC acted as joint book-running managers for the offering.
−Removed: The offering commenced on August 2, 2018 and did not terminate before all securities registered in the registration statement were sold.
−Removed: There has been no material change in the planned use of proceeds from the IPO as described in our final prospectus filed with the Securities and Exchange Commission on August 6, 2018, pursuant to Rule 424(b) of the Securities Act of 1933, as amended.
Market Information
15 unchanged sentences
The following selected consolidated financial data are qualified in their entirety, and should be read in conjunction with the consolidated financial statements and related notes thereto, and “ Management's Discussion and Analysis of Financial Condition and Results of Operations ” in Item 7 of Part II of this Annual Report on Form 10-K.
−Removed: We derived the selected consolidated statements of operations data for the years ended December 31, 2019 , 2018 and 2017 and the selected consolidated balance sheets data as of December 31, 2019 and 2018 from our audited consolidated financial statements in Item 8 of Part II of this Annual Report on Form 10-K.
+Added: The consolidated statements of operations data for each of the years ended December 31, 2020, 2019, and 2018 and the consolidated balance sheets data as of December 31, 2020 and 2019 are derived from our audited consolidated financial statements included in Part II, Item 8, "Financial Statements and Supplementary Data" of this Annual Report on Form 10‑K.
+Added: The consolidated statements of income data for the years ended December 31, 2017 and 2016 and the consolidated balance sheets data as of December 31, 2018, 2017 and 2016 are derived from our audited consolidated financial statements, except as otherwise noted, that are not included in this Annual Report on Form 10-K.
Historical results are not necessarily indicative of results to be expected for future periods.
−Removed: The full year of 2016 and 2017 and first and second quarters of 2018, are based on carve-out financials and reflect the transactions which are directly attributable to Arlo and certain allocated costs, whereas third quarter and fourth quarter of 2018 and fiscal year 2019 are based on our actual results for the periods as a standalone public company.
+Added: The full years of 2016 and 2017 and first quarter and second quarter of 2018, are based on carve-out financials and reflect the transactions which are directly attributable to Arlo and certain allocated costs, whereas third quarter and fourth quarter of 2018 and fiscal years of 2019 and 2020 are based on our actual results for the periods as a standalone public company.
Consolidated Statements of Operations Data
Year Ended December 31,
+Added: 2020 2019 2018 2017 2016
(In thousands, except per share data)
+Added: $ 357,154 $ 370,007 $ 464,918 $ 370,658 $ 184,604
Cost of revenue (2)
+Added: 301,765 334,203 372,843 279,424 146,570
+Added: Gross profit 55,389 35,804 92,075 91,234 38,034
Operating expenses:
Research and development (2)
+Added: 60,137 69,384 58,794 34,683 24,438
Sales and marketing (2)
+Added: 49,064 56,985 52,593 34,340 18,455
General and administrative (2)
+Added: 51,096 47,624 28,209 15,096 8,289
Separation expense 248 1,913 27,252 1,384 —
Gain on sale of business (3)
+Added: (292) (54,881) — — —
Total operating expenses 160,253 121,025 166,848 85,503 51,182
7 unchanged sentences
$ (1.30) $ (1.14) $ (1.12) $ 0.11 $ (0.22)
+Added: $ (1.30) $ (1.14) $ (1.12) $ 0.11 $ (0.22)
+Added: _________________________
(1) On January 1, 2018, the Company adopted ASU 2014-09, “Revenue from Contracts with Customers” (Topic 606) (“ASC 606”) and applied this guidance to those contracts which were not completed at the date of adoption using the modified retrospective method.
3 unchanged sentences
Year Ended December 31,
+Added: 2020 2019 2018 2017 2016
+Added: Total Total Direct Indirect Total Direct Indirect Total Direct Indirect Total
(In thousands)
3 unchanged sentences
General and administrative 19,125 10,154 3,153 2,100 5,253 — 2,547 2,547 — 1,216 1,216
+Added: Total $ 35,247 $ 22,894 $ 8,831 $ 4,048 $ 12,879 $ 2,451 $ 4,467 $ 6,918 $ 1,520 $ 2,084 $ 3,604
(3) Relates to the sale of our commercial operations in Europe in the fourth quarter of 2019.
−Removed: Refer to Note 4 , Disposal of business , in Notes to Consolidated Financial Statements in Item 8 of Part II of this Annual Report on Form 10-K for a complete discussion of this disposal.
+Added: Refer to Note 4, Disposal of Business , in the Notes to Consolidated Financial Statements in Item 8 of Part II of this Annual Report on Form 10-K for a complete discussion of this disposal.
(4) Information regarding calculation of per share data is described in Note 14, Net Income (Loss) Per Share , in Notes to Consolidated Financial Statements in Item 8 of Part II of this Annual Report on Form 10-K.
1 unchanged sentence
As of December 31,
+Added: 2020 2019 2018 2017 2016
(In thousands)
Cash, cash equivalents and short-term investments (1)
+Added: $ 206,124 $ 256,670 $ 201,027 $ 108 $ 220
Working capital $ 119,202 $ 175,668 $ 233,484 $ 112,878 $ 54,967
Total assets (2)
+Added: $ 413,968 $ 542,712 $ 595,946 $ 269,820 $ 158,581
Deferred revenue (current and non-current) $ 69,705 $ 66,098 $ 49,991 $ 47,404 $ 23,393
Non-current operating lease liabilities (2)
+Added: $ 25,029 $ 29,001 $ — $ — $ —
Non-current financing lease obligation (3)
+Added: $ — $ — $ 19,978 $ — $ —
Total liabilities $ 280,201 $ 339,336 $ 326,444 $ 144,401 $ 85,407
3 unchanged sentences
Our total offering cost is $4.6 million, of which $3.2 million was paid by NETGEAR.
−Removed: In fiscal year 2019, reflects $75.2 million from Verisure related to sale of the Company's commercial operations in Europe and advance payment on the product purchase and NRE services under the Supply Agreement.
+Added: In fiscal year 2019, reflects $75.2 million from Verisure related to sale of the Company's commercial operations in Europe, an advance payment for product purchases, and NRE services under the Supply Agreement.
(2) On January 1, 2019, the Company adopted ASU 2016-12, "Leases" (Topic 842) and applied this guidance utilizing the modified retrospective transition method through a cumulative-effect adjustment at the beginning of the first fiscal quarter of 2019.
−Removed: Refer to Note 11 , Commitments and Contingencies in Notes to Consolidated Financial Statements in Item 8 of Part II of this Annual Report on Form 10-K for further information about our leases.
+Added: Refer to Note 11, Commitments and Contingencies in the Notes to Consolidated Financial Statements in Item 8 of Part II of this Annual Report on Form 10-K for further information about our leases.
(3) The Company was deemed to be the accounting owner of its build-to-suit lease arrangement for its San Jose corporate headquarters and the construction was in progress at adoption date.
2 unchanged sentences
As a result, the Company de-recognized the build to suit asset and liability as of January 1, 2019.
−Removed: Refer to Note 11 , Commitments and Contingencies , in Notes to Consolidated Financial Statements in Item 8 of Part II of this Annual Report on Form 10-K for further details.
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.