Extreme Networks Inc. Reports Unaudited Consolidated Earnings Results for the Second Quarter and Six Months Ended December 31, 2014; Provides Earnings Guidance for the Third Quarter Ending March 31, 2015
January 28, 2015 at 09:07 pm
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Extreme Networks Inc. reported unaudited consolidated earnings results for the second quarter and six months ended December 31, 2014. For the quarter, the company reported GAAP revenue of $147.2 million compared to $146.6 million a year ago. Operating loss was $11,082,000 compared to $13,772,000 a year ago. Loss before income taxes was $11,775,000 compared to $15,061,000 a year ago. Net loss was $13,105,000 or $0.13 basic and diluted per share compared to $15,986,000 or $0.17 basic and diluted per share a year ago. Revenue - non-GAAP basis was $147,974,000 compared to $148,347,000 a year ago. Non-GAAP operating income was $6,693,000 compared to $16,276,000 a year ago. Non-GAAP net income was $4,670,000 or $0.05 diluted per share compared to $14,062,000 or $0.14 diluted per share a year ago. Total free cash inflow was $38,644,000 compared to free cash outflow of $9,548,000 a year ago.
For the six months period, the company reported total net revenues of $283,482,000 compared to $222,498,000 a year ago. Operating loss was $28,280,000 compared to operating income of $13,401,000 a year ago. Loss before income taxes was $30,097,000 compared to $14,670,000 a year ago. Net loss was $32,435,000 or $0.33 basic and diluted per share compared to $16,022,000 or $0.17 basic and diluted per share a year ago. Net cash provided by operating activities was $41,453,000 compared to net cash used in operating activities of $4,869,000 a year ago. Capital expenditures were $3,962,000 compared to $12,562,000 a year ago. Revenue - non-GAAP basis was $285,015,000 compared to $224,262,000 a year ago. Non-GAAP operating income was $7,891,000 compared to $21,991,000 a year ago. Non-GAAP net income was $3,736,000 or $0.04 diluted per share compared to $19,370,000 or $0.20 diluted per share a year ago. Total free cash inflow was $37,491,000 compared to free cash outflow of $17,431,000 a year ago.
For the third quarter ending March 31, 2015, the company is targeting GAAP revenue in a range of $129 million to $139 million with non- GAAP revenue in a range of $130 million to $140 million. GAAP gross margin is targeted between 51.0% and 52.0% and non- GAAP gross margin targeted between 55.0% and 56.0%. GAAP net loss is targeted to be between $14 million to $19.5 million, or $0.14 to $0.20 per share. Non- GAAP earnings are targeted in a range of a net loss of $3.1 million to net income of $1.8 million, or a loss of $0.03 to net income of $0.02 per diluted share. The GAAP and non- GAAP net (loss) income targets are based on an estimated 99 million and 101 million, average outstanding shares respectively. Targeted non- GAAP earnings exclude expenses related to stock-based compensation expense, the amortization of acquired intangibles, acquisition and integration related expenses, restructuring expenses and the purchase accounting adjustment related to deferred service revenue.
Extreme Networks, Inc. is a provider of cloud networking solutions and industry services and support. The Company designs, develops, and manufactures wired, wireless, and software-defined area-network (SD- WAN) infrastructure equipment. The Company's cloud solution is a single platform that offers unified network management of wireless access points, switches, and SD-WAN. Its products and services categories include Cloud Networking Platform, Automation, Analytics, and Security Applications, Wireless LAN AP, Wired for Edge, Campus, and Data Center, SD-WAN, Cloud Native Platforms and Applications for Service Providers and Customer Service and Support. It offers its services in business, hospitality, retail, transportation and logistics, education, government, healthcare, manufacturing, and service providers. Its cloud networking technologies provide flexibility and scalability in deployment, management, and licensing of networks globally.
Extreme Networks Inc. Reports Unaudited Consolidated Earnings Results for the Second Quarter and Six Months Ended December 31, 2014; Provides Earnings Guidance for the Third Quarter Ending March 31, 2015