Call a Specialist Today! 800-886-5369

The Latest Extreme Networks News
Product and Solution Information, Press Releases, Announcements

Extreme Networks Reports Preliminary Unaudited First Quarter Fiscal Year 2015 Results
Posted: Thu Oct 16, 2014 08:56:13 AM
 

Extreme Networks

SAN JOSE, Calif., Oct. 15, 2014 /PRNewswire/ -- Extreme Networks, Inc. (Nasdaq: EXTR), a leading provider of high performance network solutions, today announced preliminary unaudited results for the quarter ended September 30, 2014.

Summary of Guidance and Preliminary, Unaudited Results for Q1 of Fiscal 2015


Guidance

Preliminary Results

Metric

Low End

High End

Low End

High End

GAAP Revenue (in millions)

$149

$154

$134.0

$135.5

Non-GAAP Revenue (in millions)

$150

$155

$135.0

$136.5

GAAP Gross Margin

51%

51.0%

52.0%

Non-GAAP Gross Margin

55%

55.5%

56.5%

GAAP Operating Expenses (in millions)

$86

$88

$86.5

$87.5

Non-GAAP Operating Expenses (in millions)

$75

$77

$74.5

$75.5

GAAP Net Loss per Diluted Share

($0.12)

($0.08)

($0.21)

($0.19)

Non-GAAP Net Income per Diluted Share

$0.06

$0.08

($0.02)

$0.00

The anticipated results in this press release are based on management's preliminary unaudited analysis of operations for the quarter ended September 30, 2014.

"Extreme faced a number of headwinds that affected our revenue this quarter. Our EMEA business was impacted by the weakening of the Euro and the political and economic conditions in the Eastern part of these markets. In North America, we experienced significant delays in closing deals," said Charles Berger, president and CEO of Extreme Networks. "At the same time, we made dramatic progress towards finalizing the integration of the acquisition of Enterasys during the quarter, successfully converging on a single ERP system, closing the Illinois distribution center, converting our direct distribution model in Brazil, and executing a unified partner program and service offering. We are on track to realize the full $30-$40 million in cost synergies expected from the acquisition and were able to maintain strong gross margins in the first quarter, despite the top line miss. On October 1, we announced that Jeff White joined Extreme as chief revenue officer. Jeff brings with him 20 years of experience in the networking market, most recently at Cisco. Lenovo also closed the acquisition of the IBM X86 server business. The combination of strong sales leadership, nearly completed integration and the finalization of the Lenovo acquisition position us well for the remainder of our fiscal year."

The estimates for non-GAAP revenue for the quarter ended September 30, 2014 include purchase accounting adjustments for deferred revenue of approximately $1.0 million related to our acquisition of Enterasys Networks. The estimates for non-GAAP gross margin include adjustments of approximately $4.3 million for amortization of intangibles, approximately $1.0 million for purchase accounting adjustments and approximately $0.6 million stock based compensation expense. The estimate for non-GAAP operating expenses exclude $7.5 to $8.5 million for amortization of intangibles and integration expenses related to our acquisition of Enterasys as well as stock based compensation expenses of $4 to $4.5 million .

Company to release final fiscal Q1'15 results on Tuesday, October 28, 2014

Extreme will release and discuss its final results for the first quarter ending September 30, 2014 and guidance for the second quarter, on Tuesday October 28, 2014, in a press release followed by conference call at 5:00 p.m. ET. The toll-free dial in phone number is 877-303-9826 and the dial in number from an international location is 224-357-2194; the call ID is 19301540. A live webcast of the earnings conference call will be made available after the conference call on the Extreme Investor Relations website at http://investor.extremenetworks.com/. The conference call and webcast will include forward looking information.

 
« Return to News List