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.