Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What's happening: 
Shares of Netgear (NASDAQ:NTGR) were down 9.7% as of 12:30 p.m. Friday after the company the day before announced better-than-expected fourth-quarter results, but followed with disappointing guidance.

Quarterly revenue fell 1% year over year to $353.2 million, which translated to adjusted earnings of $0.65 per diluted share. For reference, adjusted operating margin came in at 10.1%, compared to 10.6% in the year-ago period. But analysts, on average, were only looking for revenue and earnings of $344.5 million and $0.63 per share, respectively.

For the current quarter, however, Netgear expects revenue of $300 million to $315 million, with adjusted operating margin of 8.5% to 9.5%. Wall Street was modeling earnings of $0.59 per share on much higher revenue of $341.7 million.

Why it's happening: 
First, note based on generally accepted accounting principles, Netgear actually turned in a surprise net loss of $1.16 per share in Q4. For that, they can thank a non-cash goodwill impairment charge of $74.2 million resulting in a loss of $1.62 per share related to its Service Provider Business Unit.

To be sure, while Netgear's Retail and Commercial business units performed admirably during the quarter, its Service Provider business saw a significant decline and, based on feedback from its customers, will likely suffer more in 2015 and for the foreseeable future. As a result, Netgear took steps to both resize the cost structure of its Service Provider Business and concentrate resources on profitable, long-term accounts.

Of course, however constrained, that Service Provider weakness certainly isn't ideal. But in the end, patient investors -- myself included -- can take some solace knowing the company's core businesses are continuing to deliver on its long-term vision for capitalizing on the Internet of Things.