We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Share Name | Share Symbol | Market | Type |
---|---|---|---|
Extreme Networks Inc | NASDAQ:EXTR | NASDAQ | Common Stock |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.11 | 0.91% | 12.17 | 12.10 | 12.36 | 12.20 | 11.83 | 11.96 | 1,254,529 | 01:00:00 |
Financial Results in-line With Previous Outlook
38% Growth in SaaS ARR
Extreme Networks, Inc. (“Extreme”) (Nasdaq: EXTR) today released financial results for its third quarter ended March 31, 2024.
"Extreme’s focus on the intersection of networking, security, and AI is creating a compelling value proposition that's resonating with customers and driving significant traction in our business. Net new logos grew double-digits this quarter, particularly in the Americas. Our SaaS ARR grew again by 38%, as we continue to deliver on our promise of creating flexibility and simplicity with One Network, One Cloud. Our competitive positioning in the market has never been stronger, as we believe key competitors are either distracted by portfolio rationalization and integration or have lost their focus on networking. Meanwhile, Extreme remains solely focused on our customers' networking needs," said Ed Meyercord, President and Chief Executive Officer.
"Consistent with our expectations, channel inventory was significantly reduced during the quarter. Heading into the fourth quarter, we expect sequential growth in revenue, but note that the networking industry is still impacted by customers working through their prior purchases. Our expanded go to market opportunities around the integration of networking, security, and AI, give us confidence that we are positioned for a return to growth in FY25," concluded Meyercord.
Kevin Rhodes, Executive Vice President and Chief Financial Officer stated, "During the quarter we took actions to improve our operating expense profile that will once again lead to double-digit operating margins and strong cash flow. We expect to return to solid profitability and cash flow generation during the fourth quarter."
Fiscal Third Quarter Results:
Liquidity:
Recent Key Highlights:
*Gartner, Magic Quadrant for Enterprise Wired and Wireless LAN Infrastructure, March 2024 GARTNER is a registered trademark and service mark of Gartner, Inc. and/or its affiliates in the U.S. and internationally, and MAGIC QUADRANT is a registered trademark of Gartner, Inc. and/or its affiliates and are used herein with permission. All rights reserved.
Gartner does not endorse any vendor, product or service depicted in its research publications, and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner research publications consist of the opinions of Gartner’s research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.
The Gartner content described herein, (the "Gartner Content") represent(s) research opinion or viewpoints published, as part of a syndicated subscription service, by Gartner, Inc. ("Gartner"), and are not representations of fact. Gartner Content speaks as of its original publication date (and not as of the date of this Current Report on Form 8-K) and the opinions expressed in the Gartner Content are subject to change without notice.
Fiscal Q3 2024 Financial Metrics:
(in millions, except percentages and per share information)
GAAP Results
Three Months Ended
March 31, 2024
March 31, 2023
Change
Product
$
106.4
$
241.1
$
(134.7
)
Subscription and support*
104.6
91.4
13.2
Total net revenue
$
211.0
$
332.5
$
(121.5
)
Gross margin
56.8
%
57.7
%
(0.9
)%
Operating margin
(29.6
)%
8.9
%
(38.5
)%
Net income (loss)
$
(64.4
)
$
22.1
$
(86.5
)
Net income (loss) per diluted share
$
(0.50
)
$
0.17
$
(0.67
)
Non-GAAP Results
Three Months Ended
March 31, 2024
March 31, 2023
Change
Product
$
106.4
$
241.1
$
(134.7
)
Subscription and support*
104.6
91.4
13.2
Total net revenue
$
211.0
$
332.5
$
(121.5
)
Gross margin
57.6
%
59.1
%
(1.5
)%
Operating margin
(12.2
)%
15.6
%
(27.8
)%
Net income (loss)
$
(24.8
)
$
38.8
$
(63.6
)
Net income (loss) per diluted share
$
(0.19
)
$
0.29
$
(0.48
)
* Prior to fiscal 2024, subscription and support revenue was referred to as service and subscription revenue, however, the composition of subscription and support revenue has not been modified.
Extreme uses the non-GAAP free cash flow metric as a measure of operating performance. Free cash flow represents GAAP net cash provided by (used in) operating activities, less purchases of property, plant and equipment. Extreme considers free cash flow to be useful information for management and investors regarding the amount of cash generated by the business after the purchases of property, plant and equipment, which can then be used to, among other things, invest in Extreme’s business, make strategic acquisitions, and strengthen the balance sheet. A limitation of the utility of this non-GAAP free cash flow metric as a measure of financial performance is that it does not represent the total increase or decrease in the Company's cash balance for the period. The following table shows non-GAAP free cash flow calculation (in millions):
Free Cash Flow
Three Months Ended
Nine Months Ended
March 31, 2024
March 31, 2023
March 31, 2024
March 31, 2023
Cash flow provided by (used in) operations
$
(69.9
)
$
48.2
$
40.0
$
168.5
Less: Property and equipment capital expenditures
(3.7
)
(2.4
)
(13.6
)
(8.6
)
Total free cash flow
$
(73.6
)
$
45.8
$
26.4
$
159.9
SaaS ARR: Extreme uses SaaS annual recurring revenue (“SaaS ARR”) to identify the annual recurring revenue of XIQ and other subscription revenue, based on the annualized value of quarterly subscription revenue and term-based licenses. We believe that SaaS ARR is an important metric because it is driven by our ability to acquire new customers and to maintain and expand our relationships with existing customers. SaaS ARR should be viewed independently of revenue or deferred revenue that are accounted for under U.S. GAAP. SaaS ARR does not have a standardized meaning and therefore may not be comparable to similarly titled measures presented by other companies. SaaS ARR is not intended to be a replacement for forecasts of revenue.
Gross Debt: Gross debt is defined as long-term debt and the current portion of long-term debt as shown on the balance sheet plus unamortized debt issuance costs, if any.
Net Cash (Debt) is defined as cash and cash equivalents minus gross debt, as shown in the table below (in millions):
Cash and cash equivalents
Gross debt
Net cash (debt)
$
151.0
$
192.5
$
(41.5
)
Business Outlook:
Extreme’s business outlook is based on current expectations. The following statements are forward-looking, and actual results could differ materially based on various factors, including market conditions and the factors set forth under “Forward-Looking Statements” below.
For its fourth quarter and full year of fiscal 2024, ending June 30, 2024, the Company is targeting:
(in millions, except percentages and per share information)
GAAP
Non-GAAP
FQ4'24 Guidance
Total net revenue
$250.0 - $260.0
$250.0 - $260.0
Gross margin
60.9% - 62.9%
61.6% - 63.6%
Operating margin
(3.8%) - (0.9%)
9.0% - 11.5%
Earnings per diluted share
($0.11) - ($0.05)
$0.11 - $0.15
Shares outstanding used in calculating diluted EPS
130.1
131.1
FY'24 Guidance
Total net revenue
$1,110.5 - $1,120.5
$1,110.5 - $1,120.5
Gross margin
60.2% - 60.6%
60.9% -61.4%
Operating margin
(2.4%) - (1.7%)
9.3% - 9.9%
Earnings per diluted share
($0.35) - ($0.30)
$0.51 - $0.55
Shares outstanding used in calculating diluted EPS
129.3
131.6
The following table shows the GAAP to non-GAAP reconciliation for Q4 FY'24 and full year FY’24 guidance:
FQ4'24
FY'24
Gross Margin
Operating Margin
Earnings per Share
Gross Margin
Operating Margin
Earnings per Share
GAAP
60.9% - 62.9%
(3.8%) - (0.9%)
($0.11) - ($0.05)
60.2% - 60.6%
(2.4%) - (1.7%)
($0.35) - ($0.30)
Estimated adjustments for:
Share-based compensation
0.4%
7.5% - 7.8%
0.15
0.5%
7.0%
0.60
Amortization of product intangibles
0.3%
0.3%
0.00
0.3%
0.3%
0.02
Amortization of non-product intangibles
—
0.2%
0.00
—
0.2%
0.01
Restructuring and related charges
—
2.7% - 2.8%
0.05
—
3.0%
0.26
Litigation charges
—
0.9%
0.02
—
0.7%
0.06
System transition cost
—
0.8%
0.02
—
0.4%
0.03
Tax adjustment
—
—
(0.02) - (0.04)
—
—
(0.12) - (0.13)
Non-GAAP
61.6% - 63.6%
9.0% - 11.5%
$0.11-$0.15
60.9% - 61.4%
9.3% - 9.9%
$0.51-$0.55
The total of percentage rate changes may not equal the total change in all cases due to rounding.
Conference Call:
Extreme will host a conference call at 8:00 a.m. Eastern (5:00 a.m. Pacific) today to review the third quarter results of fiscal 2024 as well as the business outlook for the fourth quarter of fiscal 2024 ending June 30, 2024, including significant factors and assumptions underlying the targets noted above. The conference call will be available to the public through a live audio web broadcast via the internet at http://investor.extremenetworks.com and a replay of the call will be available on the website for at least 7 days following the call. To access the call, please go to this link (Extreme Networks Q3'24 Earnings Registration) and you will be provided with dial in details. If you would like to participate in the Q&A, please register here: Registration Link [Q&A]. To avoid delays, we encourage participants to dial into the conference call fifteen minutes ahead of the scheduled start time.
About Extreme:
Extreme Networks, Inc. (EXTR) creates networking experiences that enable all of us to advance. We push the boundaries of technology leveraging the powers of machine learning, artificial intelligence, analytics, and automation. Over 50,000 customers globally trust our end-to-end, cloud-driven networking solutions and rely on our top-rated services and support to accelerate their digital transformation efforts and deliver progress like never before. For more information, visit Extreme's website at https://www.extremenetworks.com/ or LinkedIn, YouTube, Twitter, Facebook or Instagram.
Extreme Networks, ExtremeCloud, and the Extreme Networks logo, are trademarks of Extreme Networks, Inc. or its subsidiaries in the United States and/or other countries. Other trademarks shown herein are the property of their respective owners.
Non-GAAP Financial Measures:
Extreme provides all financial information required in accordance with U.S. generally accepted accounting principles (“GAAP”). The Company is providing with this press release non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating margin, non-GAAP operating income (loss), non-GAAP net income (loss), non-GAAP net income (loss) per diluted share, net cash (debt) and non-GAAP free cash flow. In preparing non-GAAP information, the Company has excluded, where applicable, the impact of share-based compensation, acquisition and integration costs, amortization of intangibles, restructuring charges, system transition costs, litigation charges, and the tax effect of non-GAAP adjustments. The Company believes that excluding these items provides both management and investors with additional insight into its current operations, the trends affecting the Company, the Company's marketplace performance, and the Company's ability to generate cash from operations. Please note the Company’s non-GAAP measures may be different than those used by other companies. The additional non-GAAP financial information the Company presents should be considered in conjunction with, and not as a substitute for, the Company’s GAAP financial information.
The Company has provided a non-GAAP reconciliation of the results for the periods presented in this release, which are adjusted to exclude certain items as indicated. These measures should only be used to evaluate the Company's results of operations in conjunction with the corresponding GAAP measures for comparable financial information and understanding of the Company’s ongoing performance as a business. Extreme uses both GAAP and non-GAAP measures to evaluate and manage its operations.
Forward-Looking Statements:
Statements in this press release, including statements regarding those concerning the Company’s business outlook and future operating metrics, financial and operating results, are forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements speak only as of the date of this release. There are several important factors that could cause actual results and other future events to differ materially from those suggested or indicated by such forward-looking statements. These include, among others, risks related to global macroeconomic and business trends; the Company’s failure to achieve targeted financial metrics; a highly competitive business environment for network switching equipment and cloud management of network devices; the Company’s effectiveness in controlling expenses; the possibility that the Company might experience delays in the development or introduction of new technology and products; customer response to the Company’s new technology and products; risks related to pending or future litigation; political and geopolitical factors; and a dependency on third parties for certain components and for the manufacturing of the Company’s products.
More information about potential factors that could affect the Company's business and financial results are described in “Management's Discussion and Analysis of Financial Condition and Results of Operations” and “Risk Factors” included in the Company’s Annual Report on Form 10-K for the year ended June 30, 2023, Quarterly Report on Form 10-Q for the quarters ended September 30, 2023 and December 31, 2024 and other documents of the Company on file with the Securities and Exchange Commission (available at www.sec.gov). As a result of these risks and others, actual results could vary significantly from those anticipated in this press release, and the Company’s financial condition and results of operations could be materially adversely affected. Except as required under the U.S. federal securities laws and the rules and regulations of the U.S. Securities and Exchange Commission, Extreme disclaims any obligation to update any forward-looking statements after the date of this release, whether as a result of new information, future events, developments, changes in assumptions or otherwise.
EXTREME NETWORKS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except per share amounts)
(Unaudited)
March 31, 2024
June 30, 2023
ASSETS
Current assets:
Cash and cash equivalents
$
151,007
$
234,826
Accounts receivable, net
94,438
182,045
Inventories
185,357
89,024
Prepaid expenses and other current assets
75,182
70,263
Total current assets
505,984
576,158
Property and equipment, net
47,254
46,448
Operating lease right-of-use assets, net
44,236
34,739
Intangible assets, net
11,789
16,063
Goodwill
394,177
394,755
Other assets
82,028
73,544
Total assets
$
1,085,468
$
1,141,707
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Current portion of long-term debt, net of unamortized debt issuance costs of $674 and $674, respectively
$
9,326
$
34,326
Accounts payable
81,483
99,724
Accrued compensation and benefits
44,053
71,367
Accrued warranty
11,067
12,322
Current portion, operating lease liabilities
9,989
10,847
Current portion, deferred revenue
299,580
282,475
Other accrued liabilities
72,804
64,440
Total current liabilities
528,302
575,501
Deferred revenue, less current portion
258,731
219,024
Long-term debt, less current portion, net of unamortized debt issuance costs of $1,903 and $2,409, respectively
180,597
187,591
Operating lease liabilities, less current portion
42,248
31,845
Deferred income taxes
7,476
7,747
Other long-term liabilities
3,152
3,247
Commitments and contingencies
Stockholders’ equity:
Convertible preferred stock, $0.001 par value, issuable in series, 2,000 shares authorized; none issued
—
—
Common stock, $0.001 par value, 750,000 shares authorized; 148,105 and 143,629 shares issued, respectively; 129,886 and 127,775 shares outstanding, respectively
148
144
Additional paid-in-capital
1,204,885
1,173,744
Accumulated other comprehensive loss
(14,511
)
(13,192
)
Accumulated deficit
(887,759
)
(855,998
)
Treasury stock at cost, 18,219 and 15,854 shares, respectively
(237,801
)
(187,946
)
Total stockholders’ equity
64,962
116,752
Total liabilities and stockholders’ equity
$
1,085,468
$
1,141,707
EXTREME NETWORKS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
(Unaudited)
Three Months Ended
Nine Months Ended
March 31, 2024
March 31, 2023
March 31, 2024
March 31, 2023
Net revenues:
Product
$
106,442
$
241,058
$
546,536
$
670,779
Subscription and support
104,594
91,449
314,014
277,765
Total net revenues
211,036
332,507
860,550
948,544
Cost of revenues:
Product
60,837
108,915
250,866
312,265
Subscription and support
30,298
31,654
93,477
95,978
Total cost of revenues
91,135
140,569
344,343
408,243
Gross profit:
Product
45,605
132,143
295,670
358,514
Subscription and support
74,296
59,795
220,537
181,787
Total gross profit
119,901
191,938
516,207
540,301
Operating expenses:
Research and development
54,517
54,837
165,366
158,444
Sales and marketing
87,708
83,962
264,782
242,882
General and administrative
25,213
21,683
74,470
64,315
Acquisition and integration costs
—
—
—
390
Restructuring and related charges
14,421
1,363
26,312
2,320
Amortization of intangible assets
511
510
1,531
1,537
Total operating expenses
182,370
162,355
532,461
469,888
Operating income (loss)
(62,469
)
29,583
(16,254
)
70,413
Interest income
1,239
774
3,895
2,055
Interest expense
(4,179
)
(3,946
)
(12,766
)
(11,656
)
Other income (expense), net
361
(367
)
373
142
Income (loss) before income taxes
(65,048
)
26,044
(24,752
)
60,954
Provision for (benefit from) income taxes
(623
)
3,913
7,009
8,307
Net income (loss)
$
(64,425
)
$
22,131
$
(31,761
)
$
52,647
Basic and diluted income (loss) per share:
Net income (loss) per share – basic
$
(0.50
)
$
0.17
$
(0.25
)
$
0.41
Net income (loss) per share – diluted
$
(0.50
)
$
0.17
$
(0.25
)
$
0.39
Shares used in per share calculation – basic
129,299
128,816
129,021
129,864
Shares used in per share calculation – diluted
129,299
133,025
129,021
133,716
EXTREME NETWORKS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
Nine Months Ended
March 31, 2024
March 31, 2023
Cash flows from operating activities:
Net income (loss)
$
(31,761
)
$
52,647
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation
13,821
15,014
Amortization of intangible assets
4,192
11,415
Reduction in carrying amount of right-of-use asset
8,834
9,274
Provision for credit losses
1,770
245
Share-based compensation
58,709
46,561
Deferred income taxes
(153
)
338
Non-cash interest expense
795
756
Other
(3,225
)
(6,148
)
Changes in operating assets and liabilities:
Accounts receivable, net
85,837
25,216
Inventories
(97,589
)
(21,989
)
Prepaid expenses and other assets
(13,855
)
2,226
Accounts payable
(17,340
)
12,570
Accrued compensation and benefits
(27,252
)
(6,158
)
Operating lease liabilities
(8,780
)
(11,172
)
Deferred revenue
59,301
46,502
Other current and long-term liabilities
6,693
(8,778
)
Net cash provided by operating activities
39,997
168,519
Cash flows from investing activities:
Capital expenditures
(13,632
)
(8,634
)
Net cash used in investing activities
(13,632
)
(8,634
)
Cash flows from financing activities:
Payments on revolving facility
(25,000
)
—
Payments on debt obligations
(7,500
)
(71,625
)
Repurchase of common stock
(49,855
)
(74,807
)
Payments for tax withholdings, net of proceeds from issuance of common stock
(27,564
)
(1,685
)
Deferred payments on an acquisition
—
(3,000
)
Net cash used in financing activities
(109,919
)
(151,117
)
Foreign currency effect on cash and cash equivalents
(265
)
(294
)
Net increase (decrease) in cash and cash equivalents
(83,819
)
8,474
Cash and cash equivalents at beginning of period
234,826
194,522
Cash and cash equivalents at end of period
$
151,007
$
202,996
Extreme Networks, Inc. Non-GAAP Measures of Financial Performance
To supplement the Company's consolidated financial statements presented in accordance with U.S. generally accepted accounting principles (“GAAP”), Extreme uses non-GAAP measures of certain components of financial performance. These non-GAAP measures include non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating margin, non-GAAP operating income (loss), non-GAAP net income (loss), non-GAAP net income (loss) per diluted share, net cash (debt) and non-GAAP free cash flow.
Reconciliation to the nearest GAAP measure of all historical non-GAAP measures included in this press release can be found in the tables included with this press release.
Non-GAAP measures presented in this press release are not in accordance with or alternative measures prepared in accordance with GAAP and may be different from non-GAAP measures used by other companies. In addition, these non-GAAP measures are not based on any comprehensive set of accounting rules or principles. Non-GAAP measures have limitations in that they do not reflect all of the amounts associated with Extreme’s results of operations as determined in accordance with GAAP. These non-GAAP measures should only be used to evaluate Extreme’s results of operations in conjunction with the corresponding GAAP measures.
Extreme believes these non-GAAP measures, when shown in conjunction with the corresponding GAAP measures, enhance investors' and management's overall understanding of the Company's current financial performance and the Company's prospects for the future, including cash flows available to pursue opportunities to enhance stockholder value. In addition, because Extreme has historically reported certain non-GAAP results to investors, the Company believes the inclusion of non-GAAP measures provides consistency in the Company's financial reporting.
For its internal planning process, and as discussed further below, Extreme's management uses financial statements that do not include share-based compensation expense, acquisition and integration costs, amortization of intangibles, restructuring charges, system transition costs, litigation charges and the tax effect of non-GAAP adjustments. Extreme’s management also uses non-GAAP measures, in addition to the corresponding GAAP measures, in reviewing the Company's financial results.
As described above, Extreme excludes the following items from one or more of its non-GAAP measures when applicable.
Share-based compensation. Consists of associated expenses for stock options, restricted stock awards and the Company’s Employee Stock Purchase Plan. Extreme excludes share-based compensation expenses from its non-GAAP measures primarily because they are non-cash expenses that the Company does not believe are reflective of ongoing cash requirement related to its operating results. Extreme expects to incur share-based compensation expenses in future periods.
Acquisition and integration costs. Acquisition and integration costs consist of specified compensation charges, software charges, and legal and professional fees related to the acquisition of Ipanema. Extreme excludes these expenses since they result from an event that is outside the ordinary course of continuing operations.
Amortization of intangibles. Amortization of intangibles includes the monthly amortization expense of intangible assets such as developed technology, customer relationships, trademarks and order backlog. The amortization of the developed technology and order backlog are recorded in cost of goods sold, while the amortization for the other intangibles is recorded in operating expenses. Extreme excludes these expenses since they result from an intangible asset and for which the period expense does not impact the operations of the business and are non-cash in nature.
Restructuring charges. Restructuring charges consist of severance costs for employees, asset disposal costs and other charges related to excess facilities that do not provide economic benefit to our future operations. Extreme excludes restructuring expenses since they result from events that occur outside of the ordinary course of continuing operations.
System transition costs. System transition costs consist of costs related to direct and incremental costs incurred in connection with our multi-phase transition of our customer relationship management solution and our configure, price, quote solution. Extreme excludes these costs because we believe that these costs do not reflect future operating expenses and will be inconsistent in amount and frequency making it difficult to contribute to a meaningful evaluation of our operating performance.
Litigation charges. Litigation charges consist of estimated settlement and related legal expenses for a non-recurring pending litigation.
Tax effect of non-GAAP adjustments. We calculate our non-GAAP provision for income taxes in accordance with the SEC guidance on non-GAAP Financial Measures Compliance and Disclosure Interpretation. We have assumed our U.S. federal and state net operating losses would have been fully consumed by the historical non-GAAP financial adjustments, eliminating the need for a full valuation allowance against our U.S. deferred tax assets which, consequently, enables our use of research and development tax credits. The non-GAAP tax provision consists of current and deferred income tax expense commensurate with the non-GAAP measure of profitability using our blended U.S. statutory tax rate of 26.5%.
The non-GAAP provision for income taxes has typically been and is currently higher than the GAAP provision given the Company has a valuation allowance against its US and a portion of its Irish deferred tax assets due to historical losses. Once these valuation allowances are released, the non-GAAP and the GAAP provision for income taxes will be more closely aligned.
Over the next year, our cash taxes will be driven by US federal and state taxes and the tax expense of our foreign subsidiaries, which amounts have not historically been significant, with the exception of the Company’s Indian subsidiary which performs research and development activities, as well as the Company’s Irish trading subsidiaries.
EXTREME NETWORKS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
GAAP TO NON-GAAP RECONCILIATION
(In thousands, except percentages and per share amounts)
(Unaudited)
Revenues
Three Months Ended
Nine Months Ended
March 31, 2024
March 31, 2023
March 31, 2024
March 31, 2023
Revenues – GAAP
$
211,036
$
332,507
$
860,550
$
948,544
Non-GAAP Gross Margin
Three Months Ended
Nine Months Ended
March 31, 2024
March 31, 2023
March 31, 2024
March 31, 2023
Gross profit – GAAP
$
119,901
$
191,938
$
516,207
$
540,301
Gross margin – GAAP percentage
56.8
%
57.7
%
60.0
%
57.0
%
Adjustments:
Share-based compensation expense, Product
405
492
1,352
1,365
Share-based compensation expense, Subscription and support
679
930
2,294
2,568
Amortization of intangibles, Product
599
2,220
2,336
7,381
Amortization of intangibles, Subscription and support
—
815
272
2,444
Total adjustments to GAAP gross profit
$
1,683
$
4,457
$
6,254
$
13,758
Gross profit – non-GAAP
$
121,584
$
196,395
$
522,461
$
554,059
Gross margin – non-GAAP percentage
57.6
%
59.1
%
60.7
%
58.4
%
Non-GAAP Operating Margin
Three Months Ended
Nine Months Ended
March 31, 2024
March 31, 2023
March 31, 2024
March 31, 2023
GAAP operating income (loss)
$
(62,469
)
$
29,583
$
(16,254
)
$
70,413
GAAP operating margin
(29.6
)%
8.9
%
(1.9
)%
7.4
%
Adjustments:
Share-based compensation expense, cost of revenues
1,084
1,422
3,646
3,933
Share-based compensation expense, R&D
4,226
3,883
13,038
10,935
Share-based compensation expense, S&M
5,683
5,777
20,206
16,326
Share-based compensation expense, G&A
6,840
4,294
21,819
15,367
Acquisition and integration costs
—
—
—
390
Restructuring and related charges
14,421
1,363
26,312
2,320
Litigation charges
2,605
1,680
5,418
4,003
System transition costs
847
490
2,446
490
Amortization of intangibles
1,110
3,545
4,139
11,362
Total adjustments to GAAP operating income (loss)
36,816
22,454
97,024
65,126
Non-GAAP operating income (loss)
$
(25,653
)
$
52,037
$
80,770
$
135,539
Non-GAAP operating margin
(12.2
)%
15.6
%
9.4
%
14.3
%
Non-GAAP Net Income (Loss)
Three Months Ended
Nine Months Ended
March 31, 2024
March 31, 2023
March 31, 2024
March 31, 2023
GAAP net income (loss)
$
(64,425
)
$
22,131
$
(31,761
)
$
52,647
Adjustments:
Share-based compensation expense
17,833
15,376
58,709
46,561
Acquisition and integration costs
—
—
—
390
Restructuring and related charges
14,421
1,363
26,312
2,320
Litigation charges
2,605
1,680
5,418
4,003
System transition costs
847
490
2,446
490
Amortization of intangibles
1,110
3,545
4,139
11,362
Tax effect of non-GAAP adjustments
2,812
(5,737
)
(12,045
)
(15,359
)
Total adjustments to GAAP net income (loss)
$
39,628
$
16,717
$
84,979
$
49,767
Non-GAAP net income (loss)
$
(24,797
)
$
38,848
$
53,218
$
102,414
Earnings per share
GAAP net income (loss) per share – diluted
$
(0.50
)
$
0.17
$
(0.24
)
$
0.39
Non-GAAP net income (loss) per share – diluted
$
(0.19
)
$
0.29
$
0.40
$
0.77
Shares used in net income (loss) per share – diluted:
GAAP Shares used in per share calculation – basic
129,299
128,816
129,021
129,864
Potentially dilutive equity awards
—
4,209
3,209
3,852
GAAP and Non-GAAP shares used in per share calculation – diluted
129,299
133,025
132,230
133,716
View source version on businesswire.com: https://www.businesswire.com/news/home/20240501643852/en/
Investor Relations Stan Kovler 919/595-4196 Investor_relations@extremenetworks.com
Media Contact Amy Aylward 603/952-5138 pr@extremenetworks.com
1 Year Extreme Networks Chart |
1 Month Extreme Networks Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions