This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Extreme Networks Management Discusses Q4 2012 Results - Earnings Call Transcript

Stocks in this article: EXTR

Non-GAAP results exclude stock-based compensation, restructuring charges and litigation settlements.

After I review our fiscal Q4 financial results, I will turn the call over to Oscar for an update on the business and our strategy. We will then open up the call for Q&A.

Q4 fiscal 2012 revenue was $87.6 million, which was up $14.3 million or 19% sequentially from Q3, and within the guidance provided early in the quarter of $82 million to $90 million. Product revenue was $72.5 million, an increase of $14.5 million sequentially, and service revenue was $15.1 million, a decrease of $0.3 million sequentially.

The Americas revenue was $38.2 million and is down 10% from Q4 FY '11. Sequentially, The Americas increased 29%, more than making back the decline in Q3 from Q2. The Americas were our strongest performing region this fiscal year despite customer delays in some North American opportunities.

EMEA revenue was $36.9 million, which grew 13% over Q4 FY '11. On a quarter-over-quarter basis, EMEA increased by 17%.

Asia Pacific revenue was $12.5 million and decreased by 16% compared to the year-ago quarter. Asia Pacific revenue increased sequentially from Q3 FY '12 by 3%. During the quarter, we added new sales leadership in our Asia Pacific team, and we are hiring new account managers and sales engineers in various locations in the region and are already seeing increased quoting activity.

Overall GAAP and non-GAAP gross margins were 56%, a slight decline from the third fiscal quarter of 56.4%. Product gross margin percentage dropped slightly sequentially, primarily due to a higher mix of campus edge products in a one-off strategic deal. We believe our new products for the data center and supply chain cost reductions will positively impact gross margins moving forward.

GAAP operating expenses increased by $4.8 million in Q4 from Q3, and non-GAAP operating expenses increased in Q4 by $4.6 million from Q3 FY '12 to $41.9 million. The 2 primary areas that contributed to this increase in expenses were: Higher sales commissions expense in that sales area related to increased revenue; and higher R&D program expense related to the release of some of our new products that Oscar will talk about in a few minutes.

Read the rest of this transcript for free on

3 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,387.21 -291.49 -1.65%
S&P 500 2,029.55 -27.54 -1.34%
NASDAQ 4,681.4970 -90.2660 -1.89%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs