Netgear (NTGR) shares surged 16.09% in after-hours trading on Wednesday following the release of better-than-expected first-quarter earnings and the announcement of a strategic shift in the company's focus.

The networking equipment maker reported adjusted earnings per share of $0.02, significantly beating analyst estimates of a $0.37 loss. Revenue for the quarter came in at $162.06 million, surpassing the consensus estimate of $152.24 million. Despite a slight year-over-year decrease in sales, the company's performance exceeded market expectations, demonstrating resilience in a challenging economic environment.

Adding to the positive sentiment, Netgear unveiled a bold new vision for its business segment. The company announced significant investments in research and development, including the acquisition of VAAG Systems, to enhance its offerings for small and medium enterprises. Under the leadership of new NETGEAR for Business President and GM Pramod Badjate, the company aims to simplify networking solutions for this growing market segment. This strategic repositioning, coupled with the company's strong presence in the AV-over-IP technology sector, has investors optimistic about Netgear's future growth prospects.