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Extreme Networks Reports Preliminary Unaudited Fourth Quarter Fiscal Year 2014 Results

Stocks in this article: EXTR

SAN JOSE, Calif., July 21, 2014 /PRNewswire/ -- Extreme Networks, Inc. (Nasdaq: EXTR), a leading provider of high performance network solutions, today announced preliminary unaudited results for the quarter ended June 30, 2014, exceeding previously announced fourth quarter guidance.

Extreme Networks Logo

GAAP revenue for Q4'14 is expected to be in the range of $153 million to $155 million, compared to guidance of $143 million to $148 million. Non-GAAP revenue is expected to be in the range of $154 million to $156 million, compared to guidance of $145 million to $150 million. GAAP gross margin is expected to be in the range of 52.5% to 53.5% compared to guidance of approximately 50%.  Non-GAAP gross margin is expected to be in the range of 56.5% to 57.5% compared to previous guidance of 55%.  GAAP operating expenses are expected to be in the range of $95 to $96.5 million compared to guidance of $89 to $92 million.  Non-GAAP operating expenses are expected to be in the range of $77.5 to $79 million which is slightly above previous guidance of $76 to $78 million. GAAP net loss is expected to be between $0.16 and $0.18 per diluted share, compared to GAAP net loss guidance of $0.16 to $0.20 per diluted share. Non-GAAP net income is expected to be between $0.06 and $0.08 per diluted share, compared to guidance of $0.02 to $0.04 per diluted share.  The anticipated results in this press release are based on management's preliminary unaudited analysis of operations for the quarter ended June 30, 2014.  Extreme Networks is announcing these anticipated unaudited preliminary results in part because the release of the final fourth quarter 2014 earnings report will be delayed due to the time required to complete its first year-end financial close and audit process since the Enterasys acquisition. 

"I am pleased with the strong results that the team at Extreme delivered to close out our first year as a combined company.  We saw better than expected results in North America, driven by several NFL stadium wins, as well as full year and quarter over quarter growth in the EMEA region.  Our integration remains ahead of plan as we continue to execute against key Company operational and financial milestones, including successfully completing our ERP integration in early July, two months ahead of schedule," stated Charles Berger, president and CEO.

The estimates for non-GAAP revenue for the quarter ended June 30, 2014 include purchase accounting adjustments for deferred revenue of approximately $1.6 million related to our acquisition of Enterasys Networks. The estimates for non-GAAP gross margin include adjustments of approximately $4 million for amortization of intangibles, approximately $2 million for purchase accounting adjustments and approximately $1 million stock based compensation expense. The estimate for non-GAAP operating expenses exclude $11 to $12 million for amortization of intangibles and integration expenses related to our acquisition of Enterasys as well as stock based compensation expenses of $5 to $6 million and executive officer transition expenses of approximately $1 million.

Company revises release of final Q4'14 results to Thursday, August 14, 2014

Extreme will release and discuss its final results for the fourth quarter ending June 30, 2014, on Thursday, August 14, 2014, in a press release and conference call after the close of market.  The toll-free dial in phone number is 877-303-9826 and the number dial in from an international location is 224-357-2194; the call ID is 74641489.  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.

About Extreme NetworksExtreme Networks, Inc. (NASDAQ: EXTR) is setting a new standard for superior customer experience by delivering network-powered innovation and market leading service and support. Extreme delivers high-performance switching and routing products for data center and core-to-edge networks, wired/wireless LAN access, and unified network management and control. Our award-winning solutions include software-defined networking (SDN), cloud and high-density Wi-Fi, BYOD and enterprise mobility, identity access management and security. Extreme Networks is headquartered in San Jose, CA and has more than 12,000 customers in over 80 countries. For more information, visit   http://www.extremenetworks.com.

Extreme Networks and the Extreme Networks logo are either trademarks or registered trademarks of Extreme Networks, Inc. in the United States and/or other countries. All other names are the property of their respective owners.

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