Editor’s Note: A previous version of this article erroneously mentioned Motorola Solutions as a “cable-modem competitor” instead of Motorola Mobility.

NetGear (Nasdaq: NTGR) didn't do anything wrong in the fourth quarter. The networking-equipment maker with a focus on consumer markets reported sales of $259 million and an 11.4% non-GAAP operating margin, either beating or meeting management's stated targets. The company is shifting product faster than expected and is keeping profit margins strong.

Yet the stock fell hard today. It's a classic case of the Icarus Syndrome --  NetGear has been flying mighty high recently and was due to shed some wax and feathers off its overheated wings. The stock has risen by 55% in the past six months and is still up a very healthy 46% since early August.

The company is coming up with new products at a record pace and expects to keep the fires burning throughout 2011. 

NetGear aims to take market share from Cisco Systems (Nasdaq: CSCO), privately held D-Link, cable-modem competitor Motorola Mobility (NYSE: MMI), and other rivals by drowning the market in fresh, high-quality goods.

Catalysts for continued growth include increasingly network-dependent living rooms, networked storage making its way over from data centers to consumer homes, next-generation cable-modem boxes, and routers designed to turn 4G wireless signals into a homebound broadband connection. Bell Canada (NYSE: BCE) is already deploying  NetGear's 4G routers, and Verizon (NYSE: VZ) is likely to join that bandwagon soon.

This is exactly the kind of quarter you should expect from  NetGear, by the way. CEO Patrick Lo's stated goal is "always to maximize our top-line growth [and] maximize our market-share gain, while maintaining an 11% to 12% operating margin." That's exactly what you got this quarter and what you'll see again in the coming quarter -- and beyond.

Add this Stock Advisor pick and five-star CAPS stock to your Foolish watchlist to make sure you don't miss a beat in  NetGear's conquest of the networked home.

Fool contributor Anders Bylund holds no position in any of the companies discussed here. NetGear is a Motley Fool Stock Advisor selection. The Fool has created a bull call spread position on Cisco Systems. Motley Fool Alpha owns shares of Cisco Systems. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. You can check out Anders' holdings and a concise bio if you like, and The Motley Fool is investors writing for investors.