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|Extreme Networks Reports Fourth Quarter and Fiscal Year 2016 Financial Results|
|Posted: Thu Aug 04, 2016 10:22:12 AM|
SAN JOSE, Calif., Aug. 3, 2016 /PRNewswire/ -- Extreme Networks, Inc. (Nasdaq: EXTR) today released financial results for its fiscal fourth quarter ended June 30, 2016. Fourth quarter GAAP revenue was $139.6 million and non-GAAP revenue was $140.0 million. GAAP net loss for the fourth fiscal quarter was $2.3 million, or $0.02 per basic share, and non-GAAP net income was $10.2 million, or $0.10 per diluted share. For the full fiscal year 2016, Extreme Networks reported GAAP revenue of $528.4 million, compared to $552.9 million for fiscal 2015. Fiscal year 2016 non-GAAP revenue was $529.9 million compared to $556.0 million in fiscal 2015. GAAP net loss was $31.9 million, or $0.31 per share, for fiscal 2016, compared to GAAP net loss of $71.6 million, or $0.72 per share, for fiscal 2015. On a non-GAAP basis, net income for fiscal 2016 was $29.4 million, or $0.28 per diluted share, compared to $5.9 million, or $0.06 per diluted share, for fiscal 2015.
"Our results reflect solid execution and significant earnings growth compared to the prior year period. Success in delivering software-driven networking solutions to our enterprise customers, combined with prudent expense controls, produced a significant annual improvement of 400% to our bottom line on a non-GAAP basis and a healthy balance sheet," stated Ed Meyercord, President and CEO of Extreme Networks.
"The line-up of new technology solutions like our enhanced wireless cloud management platform released last week is generating excitement with our field sales teams, partners and customers alike. With a strict focus on our enterprise campus vertical markets, our tailored portfolio of wired and wireless products, custom software solutions and superior in-sourced technical support, we believe we are in a strong position heading into fiscal 2017. We have the most competitive solutions for managing the enterprise campus from access edge to the private cloud."
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Extreme Networks' Business Outlook is based on current expectations. The following statements are forward-looking, and actual results could differ materially based on market conditions and the factors set forth under "Forward-Looking Statements" below.
On an annual basis for fiscal year 2017 we are targeting revenue growth of 2% to 4%. For its first quarter of fiscal 2017 ending September 30, 2016, the Company is targeting GAAP revenue in a range of $120.6 million to $130.6 million with non-GAAP revenue in a range of $121.0 million to $131.0 million. GAAP gross margin is targeted between 53.5% and 55.0% and non-GAAP gross margin is targeted between 56.7% and 58.1%. Operating expenses are targeted to be between $70.0 million and $72.5 million on a GAAP basis and $63.5 million to $66.0 million on a non-GAAP basis. GAAP earnings are targeted to be between a net loss of $1.5 million to $6.2 million, or a loss of $0.01 to $0.06 per share. Non-GAAP earnings are targeted in a range of net income of $4.3 million to $9.0 million, or $0.04 to $0.09 per diluted share. The GAAP and non-GAAP net income (loss) targets are based on an estimated 106 million and 108 million average outstanding shares, respectively.