Extreme Networks Reports Fiscal Q3 Results
Fourth Consecutive Quarter of Positive Non-GAAP Earnings Per Share
SANTA CLARA, Calif., May 2, 2012 /PRNewswire/ -- Extreme Networks, Inc. (Nasdaq: EXTR) today announced financial results for its 2012 fiscal third quarter ended April 1, 2012. For the quarter, total net revenue was $73.4 million. Non-GAAP net income was $3.8 million, or $0.04 per diluted share, and net income on a GAAP basis was $2.4 million or $0.03 per diluted share.
In the third quarter of fiscal 2012, total net revenue was $73.4 million, compared to $75.7 million in the third quarter of fiscal 2011. Total net revenue for the third quarter was $29.7 million in the Americas, $31.5 million in EMEA, and $12.1 million in APAC. That compares to revenue in the Americas of $29.4 million, in EMEA of $29.4 million, and in APAC of $16.9 million for the same period last year. For the quarter, total revenue decreased 11%, and product revenue was down 15% sequentially from the second quarter of fiscal 2012.
"The Americas continues to be our highest performing region and we are aggressively taking steps to improve sales execution in APAC and EMEA in order to improve year over year performance," said Oscar Rodriguez, President and CEO of Extreme Networks. "Our new and enhanced product portfolio continues to garner increased customer and reseller interest, and we are taking the actions we believe are necessary to convert that interest into revenue growth for the Company."
Improvements in operational efficiency and cost reductions completed as part of the Company's strategic transformation have resulted in positive non-GAAP earnings per share for the fourth consecutive quarter.
In the third quarter, non-GAAP operating income was $4.1 million or 6% of net revenue, representing a 195% improvement when compared to non-GAAP operating loss of $4.3 million in the third quarter of fiscal 2011, which included a charge of $5.4 million related to inventory write-off. Non-GAAP operating income in the second quarter of fiscal 2012 was $5.8 million or 7% of net revenue, representing a 29% decrease sequentially.
In the third quarter, the Company reported non-GAAP net income of $3.8 million or $0.04 per diluted share. That compares to non-GAAP net loss of $4.6 million or $0.05 per diluted share in the third quarter of last year, and to non-GAAP net income of $5.8 million or $0.06 per diluted share in the second quarter of fiscal 2012. Non-GAAP financial results exclude the impact of stock-based compensation, restructuring charges, and litigation settlements. A reconciliation of GAAP to non-GAAP financial measures is included in the accompanying financial tables.
Operating income on a GAAP basis was $2.7 million for the quarter, compared to operating loss of $6.6 million for the third quarter of last year. Operating income was $4.1 million in the second quarter of fiscal 2012.
Net income on a GAAP basis for the quarter was $2.4 million or $0.03 per diluted share, compared to GAAP net loss of $6.8 million or $0.07 per diluted share in the third quarter of last year. In the second quarter of fiscal 2012, GAAP net income was $4.1 million or $0.04 per diluted share.
Total cash and investments totaled $147.2 million as of April 1, 2012. The Company has no long-term debt.
2012 Fiscal Fourth Quarter non-GAAP Financial Guidance
Conference Call for Q3 Financial Results on May 2, 2012
In addition, a live webcast and replay of the call will be available at http://investor.extremenetworks.com. Financial information to be discussed during the conference call will be posted in the Investor Relations section of the Company's website www.extremenetworks.com.
Non-GAAP Financial Measures
Extreme Networks, Inc.
Extreme Networks is a trademark or registered trademark of Extreme Networks, Inc. in the United States and/or other countries.
This announcement contains forward-looking statements, including our guidance regarding future results, that involve risks and uncertainties, including statements regarding the Company's expectations regarding financial performance, the impact of the restructuring and company transformation, and product introduction. Actual results could differ materially from those projected in the forward-looking statements as a result of certain risk factors, including, but not limited to: a challenging macro-economic environment both in the United States and overseas; fluctuations in demand for the Company's products and services; a highly competitive business environment for network switching equipment; the Company's effectiveness in controlling expenses, the possibility that the Company might experience delays in the development of new technology and products; customer response to its new technology and products; the timing of any recovery in the global economy; risks related to pending or future litigation, and a dependency on third parties for certain components and for the manufacturing of the Company's products. The Company undertakes no obligation to update the forward-looking information in this release. More information about potential factors that could affect the Company's business and financial results is included in its filings with the Securities and Exchange Commission, including, without limitation, under the captions: "Management's Discussion and Analysis of Financial Condition and Results of Operations," and "Risk Factors," which are on file with the Securities and Exchange Commission."
SOURCE Extreme Networks, Inc.
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